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đ Up or down? đ˛
And part 3Moreover, with rigs available in-country, the plan is to kick start a drilling programme for four wells as soon as possible, targeting high-graded prospects ranging from 8-18bn cubic feet (Bcf) of best estimate prospective resource potential (Chariot preliminary internal estimates). Each well will cost $3mn to drill and should provide an important read-through to the offshore prospect portfolio due to the reservoir fairways that extend across the areas.
Value accretive to shareholders
First gas production from the new onshore Moroccan licence could commence ahead of Anchois development cashflows, too. House broker Cenkos Securities estimates that a 10Bcf onshore prospect at an industrial gas price of $11-12 per million British thermal units could generate gas revenues of $100mn. Analysts at Auctus Advisors estimate that each onshore prospect under the new license has an unrisked value of 2p per share, assuming a similar value per barrel of oil equivalent as for Anchois and a 25 per cent working interest held by the Moroccan state company. The fundraise clearly makes strategic and commercial sense.
Furthermore, with Auctus risked valuation of $630mn (44p per share) for Anchoisâ 2C contingent resources of 637Bcf three times the companyâs existing share price, then a successful farm-out and financing of the flagship project should act as a major share price catalyst. Both broking houses have a 60p per share core net asset value valuation. The open offer is worth taking up and the shares, which are marginally below the offer price in my last article, continue to rate a buy.
2 parts to it - here is 2ndNew onshore licence opportunity
Bearing this in mind, the directors expect to be awarded a new onshore Moroccan Licence imminently. The area covered by the new onshore licence is an overlooked, conventional, shallow gas play in a basin with a high historic success rate of 80 to 85 per cent and low development costs. It has geological similarities to Chariot's offshore licences and is located close to existing infrastructure, as well as the planned processing facilities and onshore pipelines for the Anchois gas project.
Importantly, it is close to the industrial offtake market and offers potential to rapidly monetise production through Chariotâs recently announced gas-to-industry partnership with Vivo Energy. Multiple drill-ready prospects have been identified on existing 3D seismic data, and gas and reservoir presence has been proven on-block from previous exploration wells. Drilling one target well could de-risk and unlock a wider group of geologically-linked prospects, too.
Exciting but weird that ST are reporting on this.
Isnât that insider information?
This is only the start of a rerate.
He states within his article - "I can now reveal that an announcement will be made shortly"
Can you really, if so how? đ¤
Chariot having to retweet a ST article doesn't exactly inspire confidence and speaks volumes to there own PR, oh wait a minute I forgot Chariot don't do PR, they just go on a paid for jolly knocking on the doorsđ
Just retweeted by Chariot.
https://twitter.com/chariot_energy/status/1679136440310026243?s=61&t=n_2hkWpElgdgvzOpn_RbHg
Chariot (CHAR:15.3p), an African-focused energy group developing and delivering transitional energy projects, has raised $15mn through an oversubscribed placing of new shares at 14p. The goal is to fund a drill programme on a new onshore Moroccan licence and for working capital. On the 11 July 2023 record date, existing shareholders are entitled to participate in a one-for-58 open offer that will raise an additional $3mn. I would certainly take up your allocations by the 31 July deadline.
As I noted a fortnight ago, the directors are in the final stages of selecting a farm-out partner for their flagship Anchois gas development project in Morocco. I can now reveal that an announcement will be made shortly, which could materially provide the financing of the development capital to first gas and significantly reduce the risk of dilution to shareholders. I can also reveal that investment bank Societe Generale is in ongoing discussions with a consortium of European and Moroccan banks which have âindicated their appetite to provide debt finance.â
Cheers
The Placing, the Subscription and the Open Offer are each conditional, inter alia, upon the passing of the Resolutions by Shareholders at the General Meeting, to be held at the offices of Memery Crystal at 165 Fleet Street, London, EC4A 2DY on 2 August 2023 at 11.00 a.m.
If a suitor took the new shares issued there would be a holding Rns
When do they come on to the market
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 ÂŁ1? A buyout at that price would end years of misery, disappointment and endless talk of potential.
We can all move on happily then đ
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 ÂŁ12m. 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 ÂŁ1 or so which could increase his value to around ÂŁ90m 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 Chariotâs largest shareholder by a considerable margin.
If thereâs a claim to be made that he doesnât care about shareholders, then that equates to him not caring about himself.
That doesnât 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 couldnât 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 hasnât got its FID yet, I can only imagine that with so much hard work having been done this too is imminent.
I shanât 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 Fernan10đ
No downside there from Malcy. Still sticking to his ÂŁ1 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 .....