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Never really understood why a whole RNS is transcribed onto this chat board. But a welcome update that should be viewed positively by the market
29 January 2024
Chariot Limited
("Chariot", the "Company" or the "Group")
Operational Update
Business Outlook for 2024 and Morocco Onshore Drilling Update
Chariot Limited (AIM: CHAR), the Africa focused transitional energy group, today provides an update on the outlook for 2024 and near-term plans across its three pillars, Transitional Gas, Transitional Power and Green Hydrogen.
Transitional Gas
Onshore Morocco
Loukos Licence (Chariot, Operator 75%, ONHYM, 25%)
· First drilling campaign of two wells is on track to commence around the end of Q1 2024.
o Planning activity is well advanced including
§ signature of a contract with Star Valley Drilling, for provision of the 101 rig which is already operating in country
§ imminent approval expected of the environmental permit for up to 20 well operations across the licence area, allowing flexibility and efficient planning of future campaigns
§ delivery of long lead items to Chariot's newly established storage yard
§ land access approvals nearing completion, with site construction activities to commence thereafter
o Gaufrette prospect confirmed as the first drilling target
§ up dip of an existing gas discovery and supported by similar seismic anomalies to those successful in Chariot's offshore operations
§ success will potentially unlock multiple similar prospects totaling 26 Bcf of Best Estimate recoverable prospective resources (preliminary internal estimate)
o Dartois prospect has been high-graded as the most likely second drilling target
§ located along trend from a historic gas discovery which tested gas from the same reservoir interval
§ has the potential to unlock a trend of prospects with over 20 Bcf of total Best Estimate recoverable prospective resources (preliminary internal estimates)
· Early fast-track product from the 3D seismic reprocessing project has allowed identification of secondary objectives for the upcoming wells, which are under evaluation.
· Precise timing for the drilling campaign will depend upon rig schedule and further updates will be provided in due course, along with any further updates regarding the reprocessed 3D seismic data analysis.
· Work is also continuing with our partner ONHYM on success-case fast-track industrial commercialisation opportunities, with the possibility to deliver near-term cash flows.
Offshore Morocco
Anchois Gas Development Project within the Lixus licence (Energean, Operator 45%, Chariot 30%, ONHYM 25%); Rissana licence (Energean, Operator 37.5%, Chariot 37.5%, ONHYM 25%) - working interest post-completion of transaction
· Moroccan regulatory approval of the Energean partnership transaction is expected shortly. On completion, US$10 million will be payable to Chariot.
· Chariot and Energean technical teams are working closely together on the Anchois development project delivery,
Nice welcome update regards
I'm hoping for a consistent upward SP trajectory that reflects the experts and analysts views instead a of decade and more of ramblings of not much more than hope.
Easy to be blinded by science.
Personally I'm sucked in with all of the excitement.
Hi fernan, jt
The flow rates for the rharb basin are calculated in some research for comparative flows rates for predator and can read at.
https://www.reddit.com/r/PredatorOilandGasPRD/comments/xqaeza/prd_the_sleeping_giant/
The recent rns from predator indicates a high probability of 20 mmcf per day and rising in due course to 50 mmcf from further wells that need to be drilled and tested. The anchois reservoirs although offshore are substantially thicker with very much larger proven and probable gas volumes.
The recent predator technical report suggested delivery of cng gas from guercif by trailer to the SDX pipeline that delivers gas to the industrial users at kenitra. Chariot was hoping to deliver its gas by pipeline directly to the SDX pipeline, so some competition there I think. Chariot have proven gas volumes to deliver high volumes of gas for power generation over long periods, predator have some way to go to achieve the same.
Jimmy
How much of their own money are the "analysts" putting to support their target prices?
Their "educated" oppinions don't have any importance at all
The current sp is ridiculously low against the analysts targets:
“ The 5 analysts offering 12 month price targets for Chariot Ltd have a median target of 39.36, with a high estimate of 57.47 and a low estimate of 34.64. The median estimate represents a 377.68% increase from the last price of 8.24.”
Also since 22nd December there have been 6 Director purchases at prices from 9p upto 9.89p. Let us hope Friday’s rise signals the bottom has been reached and a rise towards the low end of those targets gets underway fuelled by the regular news that should be landing. ENOG were very bullish on Morocco in their recent update and when their first payment lands in CHAR’s bank account it will be well received by the markets.
Hi Jimmy.
Historical flow rates in the area are substantially lower than the numbers you provided.
For example, see the results of the LAM-1 well:
------------------
Monday, June 29, 2015
Circle Oil updated its operations on the LAM-1 well on the Lalla Mimouna Permit onshore Morocco. The LAM-1, the first well drilled by Circle on the permit, is targeting the Miocene gas-bearing sands similar to those found on the company’s Sebou Permit.
Total depth for the LAM-1 was reached on May 26, with prospective gas zones logged and a completion string installed. The well was tested using a slick-line unit. The primary target was perforated at 1,261-1,272 meters and flowed gas at a stabilized rate of 1.9 Mmscf/d and the secondary target was perforated at 1,181-1,183 meters MD and flowed at a stabilized rate of 1.1 Mmscf/d.
Hi Jimmy,
Why did SDX give up on the lnb1 well and the acreage? I can see that is was considered non-commercial at the time, but they were considering stimulation and re-testing, although I'm not sure if that ever happened.
I believe you are also invested in Predator. If their on-shore discovery is as big as some are predicting, do you think that will have any affect on Chariot (good or bad)?
thanks
Hey Jimmy,
Really good information, appreciate the input and time. Thank you.
Rgds Sft
Great summary Myoung.
Hi surfit, a review of the SDX announcements from 2018 is worthwhile to consider the potential.
Firstly they stated there is a 10 meter reservoir sequence in the Miocene which is widespread in the onshore 3D seismic acreage and chariot have identified as being in four very low risk prospects they identified in the 3D seismic
The average flow rate per meter for reservoirs in the rharb basin is 1.1 mmcf per day per meter, so expect a flow rate of approx 11 mmcf per day from the primary target for each of four wells.
The route to market is interesting as there appear to be two options
a) SDX announced they have spare capacity in their pipeline to the industrial users in kenitra and they are looking to monetise that, these could be a pipeline tariff of 10 to 20% of end user price.the price for cng is reported by predator as $12 mcf. I estimate opex at approx$1 mcf so a strong cashflow generator.
b) chariot have signed a gas distribution deal with a vitol subsidiary . The predator recently announced economics for cng reported a net back to predator of $6 mmcf, which for chariot to produce at gross 40 mmcf per day would be $180 k per day or $65 million per year.
That’s the low risk option. However, the SDX rns of 20th April 2018 reported a major discovery of 300 meters of net sands in lnb1 well which is now in chariots onshore acreage , the reservoir is in the lafkerma sequence and had average elevated gas shows of 20% and some zones exceeded 50%. The reservoir was not logged by SDX due to drilling conditions. If this reservoir is updip and below the main target, then that’s a very pleasant upside surprise.
Jimmy
Thank you for your input MYoung.
If ONshore is successful, it will then be interesting to see what information the board put out for time lines and costs to production (CPR, reservoir size, expected flow rates, FEED/mode of transportation of gas, GSA, FID, Sanction, project development)
Rgds Sft
Reminder of impending RNS newsflow in next 11 months in no priority broken out into the different areas , All below are non grey , material news category
ONSHORE GAS :
1-Rig contract award
2-drilling programme and plan , civils preparedness ,licences and permits all in place
3- spud of first well
4- results of 1st well
5- spud of 2nd well
6- results of 2nd well
7- spud of 3rd well
8- Results of 3rd well
9- spud of 4th well
10- results of 4th well
11- campaign summary and future plans to first production ……
OFFSHORE GAS :
1- ONHYM ratification of licence changes approved and in place formalising ENOG
2- receipt of $10mm from ENOG
3-offshore drill unit award
4- offshore services awards, detailed programme and objectives for AE
5-Rig mobilisation to AE
6-Offshore spud of AE
7-multiple updates due to nature of this well (essentially 3 wells in one)
8-final results of all objectives and forward plans to FID
9-GSA news,
10-production licence awards
11-FDP submitted an approved by ONHM
12-FID ( what size /scale ??)
13- receipt of $15 mm from ENOG
14-ENOG intention to increase equity and chariot decision on either 3 mm ENOG shares or $50mm bond note
15-EPC contract awards
16-Rissana seismic award,
17-commencement of Rissana seismic campaign
18-completion of Rissana seismic seismic campaign
19-First overview of results from the campaign detailing some basic new information- very positive hopefully ( full results will go into early 2025 )
RENEWABLES :
1 funding for pillar ( spin out to newco? they have reiterated no dilution to parent company ( chariot level )
2- Tharissa project commencement
3- other project updates( 3) and potential new awards
4 Etana news on continuing electricity wheeling and first monetary values hopefully given GREEN
HYDROGEN -
1- feasibility study on project noir
2- Total intention on next steps and first financial seen on what they are paying
3- potential new projects
M H 95
Let’s hope S T excludes Chariot. He not got it right last year. They are prostitution imo. Just east tge MW “interviews” on interactive.. what a load tosh.
He should be selling fruit down the mkt. at least there everyone accepts it’s a joke. Unlike here. We think BoD are aligned with PI’s, yet those same PI’s would immediate unaligned themselves on decent upside. My hope is that AP cranks up the news flow and stops the BS. We need a developing story line not fairy tales .
5 blue days next week may restore some confidence but always remember that this is chariot trading on an AIM market.
On "Good news" we go into reverse and on hot air we can shift upwards. Its all bent af.
Anything over $12mcf would be good, not sure how much I produce tbh....
I'm forever blowing bubbles!
But gas, expensive commodity.
Jagua,
Not nice! and BTW, why waste gas, when prices are on the up and in short supply??
From a TA perspective we had to hold 8. We dipped slightly below it yesterday, but have now closed above with a lovely looking green candle. Next week would be a good time to receive an update to push on. Have a good weekend all.
Hopefully the bottom has finally been reached and the price can now climb back to it's realistic and sensible side. It's been an horrendous ride, pure manipulation at play, deal wasn't what the market was expecting add the bad play from the management.
Lets hope Simon Thompson mentions Chariot in his 2024 bargains portfolio in a couple of weeks. I think he has mentioned some companies multiple times in different years. Maybe then, it can go back to at least 10p.
At this level the only bubbles I can afford is if I fart in some tap water!
Above 8p break out the champers Chariot loves a Friday🤷♂️😁
Https://on.ft.com/3UxHzG3
Back on the topic of near shore energy security.. Chariot are in a very good place
Hard to believe that a bid isnt a talking point (fully accepting that AP would have to vote in favour), but any noise would clearly fuel the share price..
DYOR