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Good summary Snott. Amazed that the market still has not fully joined these dots.
we were basing for two months, and signs of activity appearing last week, and now we are looking good for a strong push past resistance of 11.50p. 18p target sounds about right. I'll take my 9 bagger when that happens. Good luck all.
https://www.share-talk.com/share-talk-bulletin-board-heroes-wednesday-3rd-march-2021/#gs.uisz0p
Zak Mir 18p target
Whimax, yes, it may have been Char that made the introduction. I get the impression that parallel negotiations have been conducted for months now between Subsea 7, Moroccan govt, banks and Char, likely involving Pierre Raillard, to make sure Anchois was ring-fenced by the Rissana licence and ESG-friendly partners like Subsea 7 were favoured in order to deliver the most economically and socially favourable outcome for the kingdom.
We only get to see an occasional RNS which must be the results of months of work, so we shouldn't underestimate the importance of the MOU yesterday; the EOI in October; the granting of the Rissana licence in December or the agreement with Subsea Integration Alliance in January. They are all important pieces in the jigsaw.
Yes, SHC, it is an unusual consortium, but so is having a minnow like Char lead such a large project. Perhaps Morocco felt let down by Dana's failure to develop Anchois after its discovery, so they gave it to a company that 'cared' about realising its potential.
I'm surprised the market hasn't yet joined the dots and we are still so cheap. The CFO estimated that Anchois represents $1.5 billion revenue for Char and its NPV $500 million and that the wider licence has potential to increase that sevenfold. Is no-one listening?
Plus 2 global account directors at schlumberger
Very interesting Wiggly!
To add some fuel to the fire, there seems to be quite a few Subsea 7 employees that have commented/liked the recent Chariot Linkedin activity....
The following have liked/commented on the most recent CHAR posts;
Christophe Souillart
Business Development Director Africa & Global Account Director at Subsea 7
and
Dariush Amirpashaie MEng CEng CMarEng MIMarEST
Business Development Manager at Subsea 7
Also, with Subsea’s contacts, network and size, it may be that they are able to “procure” at better rates than Chariot. They may end up earning back a %age of any savings that Chariot make, as part of the deal.
Snott, I wondered if it was the other way around ie. Chariot introduced Subsea to our EOI proposer? It would make sense that if Subsea are dealing with front end design, engineering, procurement, construction, installation and operational requirements, that they have direct access to the the finance for it, rather than adding an additional cog, requiring Chariots involvement at each stage of the process.
Stranger things have happened, Whimax, though there is no reason Subsea 7 should introduce us to their banker. It does rather feed into JMW's 'seamless' development finance idea though, doesn't it? If Subsea 7 farm in, giving Char sufficient to fund their share of the appraisal well which gives the proof required by the RBL to stump up the £300-500 million for the entire development, wouldn't it help oil the wheels if we were all dealing with the same lending institution?
Do we think this Subsea loan facility is from the “unnamed” second EOI party alluded to in the RNS on 28th October, which has now been ‘taken up’ by Subsea?
“In addition, Chariot has received a non-binding EOI for the provision of Reserves Base Lending for the development of the Anchois Gas Discovery with a Multinational Investment Bank.”
Sorry, the link did not work. Here is Subsea's RNS
Subsea 7 announces new loan facility
Luxembourg – 25 February 2021 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) today announced that, on 24 February 2021, the Group entered into a $500 million five-year amortising loan facility backed by a $400 million guarantee from UK Export Finance.
The Group has a two-year availability period during which to draw on the facility, and the facility has a five-year tenor which commences at the end of the availability period or when the facility is fully drawn, if earlier.
The facility can be used for general corporate purposes, including to provide working capital financing for services provided from the UK. The facility is guaranteed by Subsea 7 S.A.
John Evans, Subsea 7’s Chief Executive Officer, commented: “This flexible $500 million loan facility diversifies our sources of liquidity and supports our strategy of proactive participation in the Energy Transition.”
Whimax,
I think the farm-in news will come soon. Subsea 7 announced a half billion dollar loan secured for 'proactive participation in the Energy Transition' on 25th February. (https://tools.euroland.com/tools/Pressreleases/GetPressRelease/?ID=3876981&lang=en-GB&companycode=n-sto&v=) I'm betting some of that will be earmarked for partnering with Char on Anchois, funding the appraisal well.
The MOU announce yesterday suggests that off-take agreements will be a formality. The EOI letters announced on 28th October indicate Char's capital funding, subject the the appraisal well, is in the bag.
I think it's just a matter of time now. Bring it on.
Think we’ve touched on this before but what’s everyone’s thoughts on the running order of news?
Imo, it would make sense for the next news to be off-take agreements with Publicly (or privately) Owned energy companies within Morocco, following yesterday’s MOU. This would be a fairly “risk free” quick win for everyone as there is no “up front” money involved, however, it would offer potential Farm In Partners, Funding Partners and Drill Partners peace of mind, regarding future revenues, and would significantly derisk their “investment”.
There will obviously be many updates but the real major ones are :-
Off-Take agreements
Funding Agreement
Drill Partner
Farm-In partner(s) (if different from Drill Partner)
......possibly in that order?