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With what Chariot are sat on this should have been a Bank Funded deal and not a Placing in the middle of summer when the demand for oil and gas decreases and so does the oil and gas prices and share prices. So many opportunities also to have raised at much higher prices.
Sorry for the delayed response. Just hacked off at more dilution than necessary here.
Interesting to see all the differing opinions on our most recent placing, a placing I fully expected, and whilst disappointed, genuinely really surprised. It is interesting to note that most (not all) of the more positive comments are coming from posters who I suspect are traders rather as long term holders (although I am surprised at one or two posters openly showing disapproval who I didn't expect to) but hey-ho we are all here to try and make a bit of money at the end of the day.
I personally don't think I will now see a return on my investment and will not be taking "advantage" of the placing so it is just a case of sitting it out and see where we go.
And the next "RNS" was yet again most definitely not the catalyst but some on here will have you believe that it is just around the corner, yep it is always just round the corner.
I am starting to wonder if our main man AP is not actually Phil Connors, đ§ď¸ but even he came good in the end so there is still hope....
One very deflated (or should that be diluted) KB
PS: Surfit, Please keep posting as it is nice to have a sense of realism amidst all the la la land postsđ
This is looking like the 1st step to a takeover.
they are in discussion with party A.
party A likes CHAR and instead of buying in open market go for a capital raise and instantly own 10% of the company.
the risk is that now before any announcement Party A can make a full bid for CHAR at any 40 p and Adonis will recommend it to the board.
this makes a lot of sense.
i'm as ****ed off as anyone else with regards to this recent raise, or rather, the timing/price of it.
the company appears to be very close to fid and there are a number of interested parties who they're in final discussions with. it can't be long now and they do have enough cash to keep them going until fid (if they were to accept whatever deal was put in front of them).
so i can only assume that in order to get the deal they want â they had no choice in doing the raise.
we don't know what deal(s) the potential partners have put on the table, but one can only assume that whatever the deal is/are, it would be much much improved if/when chariot had this new licence in the bag and the cash to drill it. i think that's the logical explanation for why a raise now. anyone got a better explanation?
if chariot were offered terms that are say 25% better on anchois with this additional licence and no carry, then a 9.3% dilution makes perfect sense.
hopefully this is just a cold business decision based on hard numbers regarding what delivers the most amount of value over the next few years rather than the next few weeks.
the following statement has also been repeated in both yesterday's and today's rns;
âthe company continues to make good progress on its partnership process for anchois, with the fundraise providing an improved financial position ahead of finalising negotiations.â
Your âMates ratesâ are also being offered to you in the open offer so what is your problem. You will also in all probability be able to buy in the market close to the placing price as indeed you can today. If the shares are going to rise substantially on Anchois news whatâs 1p when itâs on its way to 60p according to todays broker note. If you donât want to be diluted just make sure you increase your holding by 10% at around the placing price.
Can't believe they have done a raise when they stated an offer imminent and they had about ÂŁ4m in the bank, then again it's Aim and it's UK so not surprised. This is similar to another aim company 'Alba' albeit a much larger discount raise. Char have stated they are creating share holder value, hope this raise make it closer to higher bid price.
COMPLETED .....
https://www.lse.co.uk/rns/CHAR/result-of-oversubscribed-placing-and-subscription-qr61gdd0cswghtm.html
Truly staggering how this fiasco happens time and time again on AIM stocks.
aimo & dyor
Don't see the fuss personally. Not a bad price. They should have just done it 6 months ago as the share price has done nothing all year due to most knowing a placing was coming. Hopefully we can now kick on.
Wonder who took all the stock,---could it be our potential new JV partner.-----Still sorting out the terms of farming into Anch, but putting up the cash for the extension to the field---would make sense.
Also a possibility that granting of the on-shore licence may have been dependent on âproof of fundingâ to progress development immediately. The numbers kind of fit $3m x 4 wells plus planning and peripherals?
Farm-out has/is taking longer than hoped (possibly due to farminees playing hard ball on up front payment as mentioned last night) so proof of funds maybe had to be dealt with this way.
Bit painful, but thatâs AIM for you. If it ultimately bring productivity forward, I wonât argue with it.
One has to agree with the brokers that this is value enhancing. Nothing has changed regarding Anchois and the next news on that could well land during this placing. The placing is to take advantage of early cash flow from an onshore well. CHAR have form on this with the placing during the drill which was very beneficial financially for shareholders. This seems very positive to me and I would expect my open offer shares to be well above 14p when they are issued to me.
Cenkos report has upped their target price to 60p. They have been first on the sell side for weeks and now the fund raise is done ( oversubscribed what a surprise!) they think we are worth more. Hopefully once the panic sells have been moped up we will bounce
Hi Gooner, I had similar thought's on the price range mentioned but IMO was hoping that I was again wrong,sad to say I wasnt. I am fortunate to be in the position that I am in,as my average is just under 7 so yes I have still made profit but the amount of shares I hold its been an absolute gutter to see where they are now when we hit 24p as that is why I have so much frustration at the company. ÂŁ1 party is another umpteen years away if that ever happens. I still hold at present but I am inclined to sell up and move on,time will tell if that decision is the right or wrong one. I hope you are also in a similar position, best of luck going forward m8đđ
RNS further comments:
The Fundraising is conditional, inter alia, upon the passing of the Resolutions (as defined below) at the General Meeting, on admission of the New Ordinary Shares to trading on AIM becoming effective and the Placing and Open Offer Agreement not being terminated in accordance with its terms. Shareholders should be aware that if the Resolutions are not approved at the General Meeting, neither the Placing, the Subscription nor the Open Offer will proceed.
Is that the September GM or one just for the directors?
Most would have recieved their electronic voting requests prior this RNS share placing.
So I am assuming most have already cast a vote for, against or abtain on points 6 and 7?
6. AUTHORISE ISSUE OF EQUITY
7. AUTHORISE ISSUE OF EQUITY WITHOUT PRE-EMPTIVE RIGHTS
Myself I had actually ALREADY voted AGAINST 6 and 7 ( AND No. 3 also..re electing AP) before this latest cash grab RNS.
Again would urge others, if you have not already done so to do the same. It will not stop any of the planned actions as LSE posters here would not carry sufficient quantity of voting rights but it may raise our profile.
Rgds Sft
Last week I posted the below fictitious just for fun communication email from that man:
I wasnât that far off the truth just 2 trading days later was I?!!
-AP kindly replied and told me that itâs all progressing nicely but if we do run out of cash we will raise at 12/13p in Q3/Q4. â¨â¨I then asked AP if he follows this BB and he said he does and is somewhat amazed how some investors will believe in anything. -
Mugging us off. A raise has been in the pipeline for a while and NOT just in the last 2 weeks. Chariot have never and will never work that fast!
Smyth there will be blood on the streets but if your average is around this price then I think weâll be ok but I think we can forget the ÂŁ1 party!
They have used many words that to alot would mean so much different in terms of time. I think that target you mention is not even in the distant future. Really think we are going to see a sea of Red today after that newsâšď¸âšď¸âšď¸ Absolutely gutted after that landed....
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 ÂŁ189m. Now, 15 (yes 15!!!) years later we have a market cap of ÂŁ149m.
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
â 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.â
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