We would love to hear your thoughts about our site and services, please take our survey 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.
They used the word imminent again in the release.
could be a last ditch attempt to get friends on board before any major rns. we know management can do this.
for me we will never see CHAR full potential . this is likely to be taken over . my guess 40-50 p
Well sourced Jimmy.
NSAI is a premier firm of independent geological and petroleum engineering consultants providing independent reserves reports and services to the worldwide oil & gas industry..... Based in Dallas, Texas I think. Interesting such a firm in Dallas has got involved. Everything we see indicates a valuable asset in Anchois ----- - - - - apart from the share price! I wonder how long ago NSAI completed their assessment Jimmy?
They appear to have done a presentation on Chariot as long ago as June 2019 when Larry Bottomley was CEO ?? when they quoted $8.50 to $9 /mcf :--
https://chariotenergygroup.com/app/uploads/2021/09/Corporate-Presentation-June-2019.pdf
I hope this isn't going to go on and on for years and years while the shareholders empty their pockets to pay the salaries of the BOD ?? or Is something going to happen soon?
With each subsequent placing, we shareholders lose a share of Anchois´future cash flows.
I would like to see the company growing in an organic way (that is, by reinvesting operating cash flows) instead of over expanding at the expense of shareholders.
Chariot floated 15 years ago with an initial market cap of £189m. Now, 15 (yes 15!!!) years later we have a market cap of £149m.
But hey, we still have the promise of jam tomorrow together with plush offices and senior personnel on humongous wages mixed with a continuing penchant for vastly over promising and under delivering.
If this was a football club the management would have been booted out long ago.
Just noticed the following gas price assumption signed off by netherland Sewell
“ As confirmed by the independent assessment conducted by Netherland Sewell & Associates Inc, the Anchois Gas Development has 2C contingent resources of 637 Bcf which gives the project an NPV10 of US$1.6 billion based on a working interest of 75% and a US$12/mmbtu gas price. The assessment also corroborated the multi-Tcf opportunity that sits within the basin and also de-risked a number of high potential future targets in Lixus.”
Jimmy
A 10% dilution for a few extra bcf potential, not sure I see the big gain here, looks more like char needed short term funds to cover it's wages as the partner deal is taking longer than expected
If you look at PRD over the last 6 weeks and its share price increase of 150% from its onshore drilling in Morocco. It may well be that CHAR are seizing a not to be missed opportunity that will compliment its offshore project and bring early cash.
SFT, you make some strong points (and they are some are not pleasant to consider, but have to be considered), and I too thought that a farm in was a potential way forward before FEED, thought I was the only one back then. Instead, here we are, more bare faced lies to PI's. And if not lies, then absolutely S**T financial planning. I don't believe a word of it.
I hope that they do actually have a number of suitors at the Char door, and that we are not being sold snake oil.
For me, the trust is broken.
Hey GP,
Valid question: I only came in on the back of the Anchois drilling results but have become more and more concerned about how we finance these other "pillars" ( Transitional /Hydrogen) which is imo AP's steer (mining and Africa etc etc) and it really can be open-ended in costs.....how are we to finance this big adventure long term return?
Whimax: Your absolutely right of course it would be a license so I was incorrect to think (duh) or say as I did.
Thank you for the correction.
Its onshore so, it's going to be land rigs so ver y considerably cheaper than offshore drilling. If its a license then they could have just secured that and use or include exploration from returns on investments made from the farm in of our soon to be rich "new" partners???. Why the hurry to raise cash then? Because (as it looks to me).
With only 4 million cash left from 31st of May they really had to raise more cash quickly to keep going.
So it could be thought that they have miscalculated FEED/FID costs or / and are over stretching their out goings else where I.e. AP other pillars?
Either way it's demonstrating a significant lack of good financial planning or disclosure, same drum I know, I know but it's proving correct imo.
That then leads onto me being very concerned that the ii's will not come in as deeply as I had hopped.
Couple that with now significant dilution: from 500mil back when I came in (if I remember correctly), post drilling campaign).
The management could have sold farm in before FEED but not only did not but raised cash instead but then carried on spending in on the other "Pillars"
It just does not add up to me? AP has a history of spending big either on loans that came back to bite him or now through (his new method) share placing.
MY prediction is we will get a new partner signed in THEN we could very well see a share re rate 20:1 or even 40:1 (I really hope I am wrong) but he's not going to start buying back shares with income from the gas.
Will ii's start investing in with the current and potential management shenanigans?
Again I belive if we do not see a decent rerate after farmin/ contract and another more significant one after sanction that will be the markets answer.
No trust.
All just my opinions and speculations.
GLA
Rgds Sft
The Directors plan to pursue the material upside potential within this block and kick start a drilling campaign as quickly as possible. A four well work programme is planned, targeting high-graded prospects ranging from 8-18 Bcf of best estimate prospective resource potential (Chariot preliminary internal estimates). With rigs available in-country, the Directors expect the well programme to be carried out in the near term. Each well is expected to cost approximately US$3 million to drill. The Directors anticipate that first gas production from the new onshore Moroccan Licence could commence ahead of Anchois development cashflows. The drilling of these wells will also have important read-through to the offshore prospect portfolio due to the reservoir fairways that extend across the areas. It is expected that the terms of the new onshore Moroccan Licence will be substantively similar to the terms of the Company's existing Moroccan licences.
IMHO
Personally I think todays news is a positive
I’d expect more licences to be awarded over the coming months and years
Seem to have a very good relationship with Moroccan government
First gas brought forward
The cash from farm in partner could be used for drilling programme
They said $3m per well with four planned. Existing spare capacity on infrastructure so just cheap pipelines to tie in.
Good profitable add on opportunity but bad timing.
I'm sure that fraser is a top notch fella so it saddens me to say it's not me.
I don’t believe the “new onshore opportunity” is to be purchased. As below, from the RNS, it will be a license award (by the Moroccan Govt). Yes, there will be drilling costs (I don’t know how much it costs to drill on land in this area, or depths etc) which Chariot may or may not end up going it alone on, and also development costs, and some other “commitments” but we’re not buying it.
“The net proceeds of the Fundraise will be used as follows:”
For near term onshore drilling and development planning on a new onshore Moroccan Licence, expected to be awarded imminently;”
Fraserd - don't suppose you are the fraser from acc - - - by any chance?
Yep unfortunate timing. They had to cover both onshore drilling and decent cash balance to complete negotiations simultaneously. Lot of gas around that SDX acreage in the Rharb though and as the new SDX gas sales agreement showed there's a lot of demand, could probably drill and produce within a year given existing 3D and past exploration.
Don't think it was their preference to do it this way but needs must. Will be drilling this year with a couple of rigs available nearby and hopefully we will have public info on Anchois soon, feel we may surprised by the final candidate.
Do we think this opportunity for onshore drilling has only come up very last minute and was an opportunity too good to ignore? If so I can understand and live with the fund raise.
The fact is though the RNS also says the money will be used for the other areas as well. Maybe the board thought it’s best whilst they are doing the fund raise to ask for a bit more to give them some spare cash capacity.
Or is the onshore drilling always going to be something they were going to bordered and it just makes a good cover story for the fund raise. It’s worth remembering the new gas project mentioned in the presentation at the end of 2022.
I really want to believe it was a last minute opportunity too good to turn down but I really have my concerns. Adonis needs to give us much more info what it’s costing. What percentage of the raise is going to that etc.
None of this was mentioned or even hinted at in the end of year results report just 2 and a half weeks ago
Cheers Surfit.
So you wouldn’t even invest for the Anchois project once the dust settles?
Are you suggesting that this raise for the new adventure is a smoke screen?
I am near the bottom of the food chain in terms of technical knowledge in comparison to many others here but my instincts have never let me down, unfortunately. Market sentiment and SP is a good gauge.
I didn’t even bother to watch the promo video as I just cannot stand his smug face or believe what he says.
I still believe it’s a decent opportunity though for pi’s despite of him.
Looking forward to Malcys spin on this one!
Hey GP,
Yes the gas is our ONLY real potential income generator but the cash from this will not be "ring fenced" to gas growth alone (AP answer to a question I posed on a QnA, he laughed at another; on future share buy back also).
I do appreciate this onshore purchase MAY be an excellent opportunity (purchased from whom?? and for how much 🤔) IF its not a duster.
What and for how long has a contracted geologist been working on that suprise gem?
I belive the 4 million cash left is more the real reason.
I, even more so now, belive the market ii's will steer clear: There is too much risk, lack of fiscal prudance/planning and visible disclosure and all in done in third world country's with high levels of corruption.
A very disappointed but not surprised Sft.
All the best Sft
Surfit I have never trusted him and I believe Bottomley was made a scapegoat back in the day.
This “new” Chariot hasn’t changed but at least we now have a proven asset. My belief is that not even AP can deny shareholders some reward in the long run?
The fund raise explains the tick down of the share price as the market got wind of the requirement for cash. The company still offers an upside for retail investors but we are left at the end of the queue when it comes to what is happening - this dilution will not impact management because in due course they will be given more generous options at an attractive price - this is small cap investing
Well AP has well and truly dragged us over the billion shares in issue now: 1,064,010,779 will be the out there after this latest cash grab round.
With only 4million left in the bank as of 31st of May it is obvious they were also running out of cash (wages) fast.
"Any funds raised though the Open Offer will be used to supplement the Group's working capital. As at 31 May 2023, the unaudited cash balance of the Company was US$4 million."
Who will the LATEST closed offer have been made to...wonder if the Chariot IR have to tell us?
These types of last minute fund raises with a company that has never made ANY cash will really undermine confidences, apart from all with most (us) private investors just hammers home CHARS fiscal prudence.....they have not really started on the Transitional and Hydrogen elephants yet, but of course, I must not worry as they will secure seperate financing for that 😉
"Proceeds from the raise will also support the wider Chariot group as we continue to deliver on milestones across each pillar (ELEPHANT) of our business for the benefit of all (Of my family, African mates and Westland Investments, oh thats me) stakeholders."
Of course if us private investors vote against the latest placing it could get voted down? Bit unlikely of course but I would advise when you do vote to vote against the reappointment of AP.
It would never get a majority but it is a protest none the less.
Again AP in my opinion is not to be trusted.
Rgds Sft
Personally I don’t expect fireworks in the short to medium term and I’m not that fussed as I am in it for the long term. No doubt we’ll see some more pain in the SP for a while yet but hopefully in the best interests for a sustained long term gain 🤞
Just glad we have got it out if the way now albeit disappointed at a raise 4p lower than the last 😕
The onshore Morocco basin with 80 to 85% success rate near a pipeline is the rharb/gharb basin which is described well by onhym at
https://hydrocarbons.onhym.com/sites/all/themes/hydrocarbure/images/pdf_onshore/Hydrocarbon%20Exploration%20Opportunities_Onshore.pdf
Jimmy
Agreed redeyemines
“ Our overriding objective remains to build further value for shareholders and we are therefore looking to raise funds for a new licence onshore Morocco as we continue to expand our strategic footprint in-country. This licence will give Chariot near-term drilling opportunities with the potential to accelerate Chariot's timeframe to first gas. The acreage shares geological similarities with our offshore assets so we benefit from unique insights on existing 3D seismic and on-block well data and have already high graded targets for a first phase drilling campaign.”