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Just to make clear an appraisal drill is very different to a wildcat drill..
Appraisal drilling is carried out to assess characteristics, such as flow rate, of a proven hydrocarbon accumulation. Appraisal drilling is drilling done when oil or gas has been discovered, to assess how much there is, how big the field is, the possible rate of production, and the properties of the oil or gas.
A lot riding on the outcome of the appraisal drilling now.
Snap Glaw. I bought more @ 10 misled into believing a major partner was about to sign on the line. Instead they all walked away.
There was a major pump from the 2’s to the 14’s. IMO we are pumped out now. I think the SP Will probably stay static until results whichever way that goes.
I think your argument is flawed. I think it has strengthened Chariots position to have a stronger financial position. It says a lot to the potential partners that Chariots funds are on the line. The investment from the CEO and his guarantees give him serious skin in the game. Investors put great store by the key Directors having their money at risk. They may well still pull in a partner or go it alone as they have the funds.
The presentation was good and CHAR looks to have a bright future with a strong team.
You don’t need to be Einstein legal.
For me it’s so obvious AP And the gang are delivering a sh@t show.
The presentation sounded great - but then they always do. I think my main concern is that it would appear that they didn't receive any serious interest in partnering and hence ended up doing the placing, rather than wanting to do the placing to put themselves in a position of strength re the partnering. Saying "lots of interest in our data room" is all good and well, but it hasn't really translated into any offers, because when asked about offers being made/turned down, AP said that there had been, but this was last year. So I think the key concern about failure to attract partnering remains IMO.
I'm also slightly puzzled by the idea that they believe they might still secure partnering pre-drill. This begs the question of why a potential partner (PP) would allow the company to do a fund raise, and thereby put itself in a stronger financial and negotiating position in partnering discussions? Why wouldn't the PP have done the deal earlier this year when the company was needing cash? Doesn't make sense to me that. All in all, I still wonder whether the current claims, or data being relied upon by Chariot, about the size of the resource at Anchois/Lixus, is simply not seen as reliable or robust enough for any company to be willing to do a deal on it. And that's why we're having to go it alone.
Is it just me or is the volume of that presentation just way too low? I've given up trying to listen to it. I hope the amplitude on the Morocco seismics is a bit greater.
Is it just me or is the volume of that presentation just way too low? I've given up trying to listen to it. I hope the amplitude on the Morocco seismics is a bit greater.
As a trader, not investor, I don't have the patience to hold any share for more that a few months. However, in this case, I'm prepared to wait 4 to 5 months here for what I expect will be a two/3 bagger from here when the drilling starts or to mid drill.
An extra year or two for investors doesnt sound that much of stretch, as long as the gas doesn't disappear, than that 325p unrisked valuation will be realised eventually I'm sure.
If risk is a concern then as savings rates go, a 1 to 2 percernt APR, might be a better option.
Sorry, direct link here:
https://webcasting.brrmedia.co.uk/broadcast/60fad6bc981eb346d9fe87f7
The AGM webcast is now up on the CHAR website:
https://www.chariotoilandgas.com/news-media-centre/video-audiocasts/
SHC,
It's more of an 18 month delay in time to first gas which I actually think is significant as it means that there's a feeling of a lack of urgency (dare I say, a lack of 'sizzle'!) IMO.
However, I'm not saying that the sp will remain flat until late 2024 so, of course, agree with you about there being other trigger points. Just that first gas H1 2023 would have really added to the sense that cash flows and returns to shareholders were not far away, whereas late 24/early 25 seems pretty distant IMO.
Saying that, there were some positives from the presentation, particularly Duncan saying that the low case (1C/P90) for Anchois of 201Bcf was economical in itself so, assuming the appraisal drill confirms the Repsol findings, it does seem like the project would be sanctioned, and there's clearly plenty of upside to that figure.
And he said they wanted a 10 bagger. Instead the sp is less than 6p after an offensive and idiotic fund raise.
Harrrysdog, I realise that project development takes time but it was the CEO himself who stated, only a few months ago, that they were hoping for first gas in H1 23. I think this was just after SIA had come on board so the presumption was that their expertise has allowed us to fast-track development (2024 had been mentioned as a target for first gas prior to this). In today's AGM Q&A, Adonis actually stated that they hoped first gas would now be at the end of 2024 but this might actually slip into early 2025, so the timeline's now getting potentially even longer. This is not a de-ramp, these are the words of the CEO, spoken just this morning.
Similarly, they stated that they hope that Anchois will be drilled late this year, but gave the impression it may actaully slip into early 2022.
Having held CHAR since 2012 (apart from a small break after the recent placing) this 'new' board is starting to sound pretty much like the old board (Larry) with a habit of letting things drag on. The assets are clearly good, with NPV10 and IRR of Anchois being attractive, but the lengthening time-frames are of concern, IMO.
BillyRayVal,
Yes, the date has changed as you say, however H1 2023 seemed to me to be overly optimistic. Even if Anchois is to be developed with standard technologies (as reported) the onshore processing plant is still likely to require long-lead equipment (gas compressors, power generators - possibly gas turbine driven) with delivery times exceeding 12 months. Typically, this isn't going to be ordered until FID, which follows FEED, and then there's the installation and commissioning time to consider. 2H 2024 seems an appropriate forecast. By the way, the Genesis pre-FEED study should have looked at a processing scheme for the onshore, so this would inform the planning work.
Excellent presentation, what a bargain 5.8p to buy is, going to be an exciting few months, looks like drill in November, news flow should start mid august with rig contracts
any replay ?
just logged into the presentation... one hour late ;-( haha.. am living in another time zone.. damn...
Think I heard Duncan correctly that first gas from Anchois is now expected in H2 2024. I think Andonis had previously suggested that this might happen in H1 2023, so that's some slippage unfortunately.
Not a bad update i must say.
Drilling imminent.
AEMP big opportunities
https://www.chariotoilandgas.com/wp-content/uploads/2021/07/Chariot_Presentation_July2021.pdf