Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Yes beware the front loaded bonus'
Surely the next news has to be GSA and FID completed, in that order imo.
Nothing else would put the love back into this head fk of a stock except maybe a bid of £1? A buyout at that price would end years of misery, disappointment and endless talk of potential.
We can all move on happily then 😀
I think we all knew / feared that there would be at least one more raise before good news but in order to sell the raise they obviously have not shared bad news to the new shareholders and I imagine that must be because the future looks bright. So next step is FID which was due in H1 but is now late but these things happen in complex negotiations. Whether this will lead to the step change we have all been waiting for or whether we will have to wait till first oil, it does seem like our day is finally coming and we are all impatient to hear the good news.
Has AP got some good news up his sleeve?
Has he set the 14p offer for him other big shareholders and us to take the offer at a low price 1 for 58 , he will get a cheap 1.5 million shares and then drop a positive RNS that moves the price quickly upward and he and us all gain?
Just a thought!
Fingers crossed!
GLA
Fernan10 - A.P. has 9% of the Company which currently values his shares at about £12m. Firstly it will take a large number of years to earn that in Salary and bonuses and if you want to add to that some more free or cheap shares, they will not be so great if the sp stays low. So it is in his interest to have a higher value on the shares which then also gives more value to other shareholders. Secondly, I am sure he would be over the moon to see the shares reach £1 or so which could increase his value to around £90m by which time he will benefit from dividends. I think he will be quite keen to have these shares motor upwards even more than us.
I bought some more at the ridiculously low price of 14.3p today.
Adonis paid nothing for his initial equity holding in CHAR. In 2021 or 2022, he invested a few million in a placing. But, after a few years, he will earn a lot more than that through his salary, bonuses and free share awards.
As it´s the usual case for management, more "ventures " mean more power, higher salaries, especial bonuses, etc.
Not sure he is fully aligned with us.
Fernan10,
AP is Chariot’s largest shareholder by a considerable margin.
If there’s a claim to be made that he doesn’t care about shareholders, then that equates to him not caring about himself.
That doesn’t make much sense to me.
"Given that Chariot has secured a new onshore licence with all the commitments that brings this is a very canny raise indeed. The proceeds are earmarked for the new licence which has been awarded by ONHYM, with the agreement expected to be signed imminently, at no cost to Chariot, a true testimony to the strong relationship the company has there.
This licence is thought to be on the Lixus reservoir fairways and with the Anchois gas development infrastructure such as processing facilities and pipeline access immediately to hand couldn’t be better placed. Also the licence offers the Company exposure to near term, low cost drilling opportunities. Chariot plans to start a four well drilling programme as fast as possible, in order to deliver near term cash flows and value for shareholders.
At around $3m each the company will still have change from the raise and has intimated that it will use the rest for working capital in order to be able to negotiate the best possible farm-out terms for Anchois. With local lifting prices at some $16/mcf a gas sales contract will be eye watering and being onshore and near to near insatiable markets the prospects are hard to oppose economically.
Finally it is easy to get carried away after all these exciting prospects but it should be remembered that Anchois still hasn’t got its FID yet, I can only imagine that with so much hard work having been done this too is imminent.
I shan’t be changing my TP for Chariot, nor taking it from the bucket list, it still shows significant upwards potential and even only looking at the domestic gas business could make substantial growth dynamics, 100p is very much doable. "
Excellent post Fernan10👍
No downside there from Malcy. Still sticking to his £1 TP
Chariot could be trading at a penny and he would still wax lyrical about management
Taken a decent position today, I have had a lot of dealings within the industry along the N.African front, and I think this new onshore venture will prove a solid addition to Char and for us.
Lets see what the next update from them is, I expect strength to strength.
I am sure once the record date passes there will be a significant spike in the shares although this coud also happen before close of business for those who want to buy more at a discount.However not sure if in fact purchases today will be recorded as the record date for dividends is the day after they go ex dividend.Whatever this share is one that is going to go places.Good luck to all
Apologies it didn't post my full post despite trying 3 times!!! I have reported them so should get deleted soon
So good you had to post it 3 times .....
I have noticed the efforts made by some posters here trying to find the reasons for this unexpected shareholders dilution.
Some say that capturing this onshore acreage is necessary to secure better farm out terms for Anchois. I find it difficult to defend such argument.
Others think that this onshore acreage should be too good an opportunity to let it go (in spite of the fact that, apparently, we are talking about an exploration license that was previously relinquished by SDX).
There are those that believe management´s comments about the chance of getting to cash flow quicker from this new onshore acreage, in comparison to Anchois. I doubt that, since, as stated in the press release, the new acreage will likely use the same gas processing facilities to be built for Anchois.
For me, this placing is related to 2 things:
- Adonis is more interested in “building an empire” than in “maximizing shareholder returns”. It seems to me he doesn´t care about diluting shareholders, in order to growth for the sake of growth.
In this particular case, we shareholders are losing a 10% equity interest in a project with a NPV of US$ 1.6 billion (net to 75% Chariot interest in Anchois), just to drill 4 exploratory wells that obviously carry exploration risk, and have a potential resource of only a few billion cubic feet each.
- They were running out of money. Only US$ 12 million out of the US$ 18 million to be raised will be invested in the new acreage. The remaining US$ 6 million will be used for “working capital purposes” (i.e., wages) and “new ventures”
The message from management to us shareholders is: no matter what we said previously, we can unexpectedly dilute you any time we find an interesting business opportunity to pursue.
I think this message will endure in the minds of investors for a long time.
Regards
Only 1h 45min remaining to be eligible for the Open Offer, either in or out !
aimo & dyor
KB,
"Could the same sentiment not have applied to our last placing in May last year at 18p?
Yet here we are @14p😣"
Looking at the state of my pension pots, I reckon it's all part of the Truss effect !
Here's to brighter days for us all
AJ
KB,
"Could the same sentiment not have applied to our last placing in May last year at 18p?.."
Of course, but then you only need to see the progress we have made off the back of the last placing ..... deals take time, but eventually, it resolves itself one way or another. Don't forget, last placing was also off the back of the Ukraine invasion and super high gas prices due to macro environment, some maybe forgiven thinking a deal was imminent !!
https://www.lse.co.uk/rns/CHAR/
For me given all the KNOWN'S and UNKNOWN'S, something has to give this time around, you pays your money you take your chance.
aimo & dyor
Hit the nail right on the head KB 👏 I am not sure what it will actually take for people to realise that this is a massive slap on the face after previous RNS and the whole back slapping of how well its all panning out to then drop the dilution post. Ffs it's been up and down between this dilution and the previous one! No wonder the market has taken notice of this,its been hanging around since the last bloody dilution. In saying that,the BUY @13:28 is proof someone is stock pilling!!!!! Wouldn't want to out of this......
NewKOTB "As for book build and getting placing away in 14.5 hours, well you don't commit that type of cash ($16.1m) without having some firm idea (wink wink) of CHAR's imminent future direction."
Could the same sentiment not have applied to our last placing in May last year at 18p?
Yet here we are @14p😣
No way will there be a full t/o ... more likely sale of LIXUS licence in entirety, although CHAR could retain ~5% full carry to production. Could be >2 years for first gas, whereas these new (yet to be awarded) licences could see cash flow in 12 months. Together with sale of our 75% licence AND long awaited revenue stream from new onshore interests would allow CHAR to move comfortably to the next, self sustaining level whilst SH could easily see ~40p/s special dividend from sale proceeds. Sale of our Lixus acreage WILL fully capitalise CHAR going forward, whist still retaining a working interest in Morocco at same time accelerate substantially our green interests.
As for book build and getting placing away in 14.5 hours, well you don't commit that type of cash ($16.1m) without having some firm idea (wink wink) of CHAR's imminent future direction.
Theses, 'yet to awarded' licences, why's and wherefore's intrigue me as clearly they are part of a bigger picture.
aimo & dyor
Jmmy,
Thanks for confirming.
Though I was disappointed the RNS was not the partnering one we all anticipate, I am not unhappy about the fund raise if this is the license. Looking forward to the formal award.
GLA
AJ
Ajilimon,
I think you are correct, it’s the old SDX acreage with a discovery, with 3D seismic and is adjacent to chariots offshore acreage.
So we know that the average flow rate in the gharb basin is approximately 1.1 mmcf per meter net pay per day, and that SDX encountered very high porosities and over pressure. I do not think they reported a flow rate from that well but it’s likely to have been more than the basin of average.
Chariot report a $12 mcf gas price so the calculated annual revenue is from that discovery is approx $76 million per year from 16.5 meters of net pay. Can someone check my numbers, I had not expected this.
Jimmy
Whimax,
I am talking of a takeover where management is on board such as a MBO. this is plausible otherwise I don't see why Adonis will accept to get diluted at this stage. price is low also. 14p
add Adonis stake and the 10%.
could be news is being delayed due to these calculations.