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I would second all those compliments to BRV.
BRV, you do indeed add much value to an excellent BB and I too am grateful for your contributions and the insights and information you give.
Billy,
You contribute a lot yourself and one gets to learn something new from everything you put.
Androcles, diss, GRH… you’re all very kind.
I’m happy if I can make an occasional (and hopefully coherent!) contribution to what is a truly terrific board. I’ve learnt a huge amount from the many seriously knowledgeable and experienced posters on here, so sincere thanks to you all.
Cheers
BRV
Afternoon
I just want to thank Billy...
Very good stuff ...
and it's great to have you on the case
Thanks!
Regards
GRH
Another impressive set of posts Billy.
Great work Billy
I own shares in PRD
I choose NOT to own shares in most companies...
CHAR being one
Each to their own of course
I wrote a piece re respective costs ages ago
Regards
GRH
JH,
Comparing PRD’s and CHAR’s fund-raisings over the previous 12+months is pretty enlightening IMO. Looking at placings and open offers since the start of 2021:
CHAR:
Issued 495.580432M shares to raise £45.50M*
(*note: I’m assuming that today’s placing is ratified by shareholders and the OO is fully subscribed)
These extra number of shares has increased the total number of CHAR shares in issue by approx 107% to 958M
PRD:
Issued 54.5M shares to raise £4.12M
The extra number of shares has increased the total number of PRD shares in issue by approx 23% to 304.45M
During that time, both companies have drilled one well, both successful and both which will likely prove up similar volumes of gas.
Yes. you’re right, PRD doesn’t currently have the funds for further drills... but neither does CHAR. CHAR’s new funds (£23.5M) are aimed at Anchois FEED (and 25% to their transitional power company) with none allocated to further drilling and they’ll need partnering to fund any development (costing $300-500M).
PRD only needs approx $9M for 3 wells and $12M for development (CNG).
So chalk and cheese in my view… one company diluting shareholders significantly, the other keeping dilution to an absolute minimum.
Also, tweet this morning from Oil & Gas Tracker:
“#CHAR Chariot have raised £20.4m at 18p per share. The placing discount was only 2%, which shows the strong interest for Chariot asset and prospects”
https://twitter.com/OilGasTracker/status/1527173090718924800
The fact that today’s CHAR placing was oversubscribed and the minimal discount does indeed suggest there was strong support for CHAR’s fund-raise. But, IMO, this simply highlights just how incredibly easy it would be for Paul and Lonny to raise cash in the markets to drill 3 wells – and the fact that they’re choosing not too speaks volumes about their desire to avoid diluting shareholders if at all possible.
All IMO of course.
Hi John, pay attention there at the back haven't you been listening?
Or are you trying to spread FUD for a specific reason?
Worth remembering that PRD /Griffiths have issued 50,000,000 shares in the past 12 Months and still do not have the funds to drill.
I've just re-checked the IMC presentation from Sept last year and slide 7 states our IRR for the CNG development (25mm cfgpd) to be >100% (internal estimate) [I thought I'd seen the figure somewhere!].
So CHAR's figure of 45% would seem to support our own incredible IRR metric.
Just in case some have not seen it, I see CHAR is up to its old tricks of issuing shares “like confetti” (copyright GRH!):
https://www.londonstockexchange.com/news-article/CHAR/proposed-placing-and-subscription-and-open-offer/15458732
https://www.londonstockexchange.com/news-article/CHAR/result-of-oversubscribed-placing-and-subscription/15459112
By my calcs, if the OO is fully taken up then that’ll be, in total, an extra approx 130M shares taking the total number of CHAR shares in issue to around 958M.
The comparisons between PRD and CHAR have been made a number of times here, so I won’t repeat them. But, with just over 300M PRD shares and Paul and Lonny doing everything they can not to dilute us, I know which company I’d rather be in.
Just one thing of note from CHAR’s announcement last night:
“A post-drill reserves report is in the process of being updated but the Directors believe that the economics of the project are robust. The project consists of a base case development for Anchois, with a 70 million standard cubic feet per day plateau production rate from the 2C contingent resource (pre-drill), delivering NPV 10 of US$900 million with an IRR of greater than 45%.”
Anchois and our MOU-4 fan look to be pretty similar in scale (subject to successful drilling, likely to be >1Tcf ultimately recoverable??) I wonder what our own IRR will be considering we’re onshore, quicker to first gas and with around 5% of the development costs of Anchois?