Firering Strategic Minerals: From explorer to producer. Watch the video here.
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Webcast for those who missed live cast and those who may want to revisit once more.
https://stream.brrmedia.co.uk/broadcast/65705f5f85e1630925165801/657182955377ed13077fe966
Q&A at 20 minutes in, well worth a listen and read between the lines.
NewKOTB, Thanks, I was at work and missed this. Just watched it! All I can say is "Brilliant", Chariot has honestly a great future. Why we are re sp is absolutely crazy and I believe a massive market disconnect!
Also excellent detailed questions put forward, covered a lot. 2024 is just around the corner and market will be playing catch-up.
I believe BouncyDeadCat did and excellent write up on the near term future prospects of the company with which I totally agree. I'll also say with regards to a "Successful" drill, I believe i'll just add that a company like Energean will have done its due diligence before agreement, and that's good enough for me.
Looking to double my holdings if it's still hanging around in the 11's tomorrow, but this means I have to free up cash elsewhere, but I see a better future here in the interim.
GLA
I do believe that we will eventually arrive to the promised land with FTSE250 boys Energean but what was it that the supposed majors in our data room didn’t like?
I think the market has made its point so let’s see the direction of travel in the coming days.
T
GP,
Do you not find it a bit odd, that we dipped at one point 25% down, yet the total traded was only about 4% of the total in issue, I find that a fair bit skewed, I mean typically I have seen that kind of heavy dip when it is more like well over 10% traded in a day, doesn't quiet sit right to me !!
Bubble, I no longer find it odd, I see it as standard the irrational behaviour of the markets on any “good news”. It happens with the blue chips too.
We are completely diluted with traders now so it’s all fkd up.
If you believe in the journey then be prepared to ride (imo) the single figures on the run to our next drill.
Just when I believed that as long as we have gas we will be good there comes the condition that it now all depends on the next drill? Ffs
We need a buy out. Give me a 2 bagger (for me) at 30p and i promise to never look back.
Boomer I think the majors probably were interested but probably didn’t make an offer as attractive as Energean. I guess it works like anything else where the slightly smaller companies have to make a more attractive offer than the majors to get the contract. Would add though I don’t have any experience of deals in the context of O&G
That should say Gooner not Boomer 😂 although maybe you’re both?!
I get you GP, and yes the swamped with traders is a reality, but everyone is a pesky seller at some point too.
It is more about the imbalance for me, OK, it is something many of us have seen many times, decent news comes out and it barely gets chance to stick its head out the water before it gets sunk, but it has a bit of a different wiff about it today.
I had even considered if some element had accumulated on the back of talks, especially more so if they have rejected a low ball hint of an offer/buyout, I don't know, but regardless, I also feel this will bounce back well, I cannot see anything they have put out today that justifies this reaction.
For sure there will have been a fair number with positions ONLY focused on this news and expectation, we have seen cycles every week for a few weeks now of runs up into close on Friday and then back off again on Monday, but even those trades/traders would not have such an effect over the full session.
Nick the majors may have cast their eye over this but i don’t believe they even came to the table.
IMO a with a major partner we would have seen a minimum 30% spike today before any sell off.
We needed that endorsement.
GP,
Maybe a major or two have looked at it, but simply were not willing to go anywhere close to the kind of deal that was eventually struck, my opinion is that any of the majors would have wanted far more and give a lot less.
It would be interesting to know how much was offered for the whole company and whether there was more than one offer. I feel sure it would have been at a premium to the sp when it was made, so much higher than the sp now. Perhaps we can draw comfort from the fact they believe they can extract a lot more by carrying on rather than taking the money now.
It also throws up the possibility,particularly at this low sp, that a bidder or bidders will return. ENOC will have done serious due diligence and they know what they are doing, so that in itself gives further confidence to a bidder. Personally I hope today has shaken out the traders and the people who were hoping to sell on a spike on news and they will be replaced by institutional shareholders who will be in for the journey to production and cash coming in. CHAR is massively oversold and should recover to a more sensible level in the coming days and weeks.
ICB have we really been bidded for? If we have then as I suggested earlier we will have another bid or two coming. Doesn’t normally end at one.
Strange also that it would have been mentioned in a webcast. Would that not be news worthy if it was an official bid?
I think AP was caught off guard by the question about had bids been received. He realised he had to answer truthfully but hadn’t expected it to be asked. It seems clear it wasn’t going to be mentioned which begs the question was it at a level where they thought shareholders would be tempted to sell and they don’t want to. The bid must have been framed as pre bid discussions about acceptable price, because if it was a formal bid they would have had to inform shareholders.
ICB. A bid in any form would have had to go public as I understand it? We all own a part of the company?
Hey GP,
1. The RNS / Webinar confirmed that the onshore "venture" is going to be a personal CHAR play.
We have been informed that they expect to be fully funded to production, if of course we find commercially viable gas, I do not belive that we have enough.
2. Was the lack of flow testing the Anchois wells of concern to prospective farm in partners, I belive it was. We are going back to do what we should have done, whilst there. It was a mistake reading between the words and partnering (maybe????, not a driller, but I sense there MAY have been doubt created???
3. The farm in deal: I still wonder what the last paragraph means I.e. " Energean's carry of Chariot's costs is non-recourse, and has a coupon of 7% over the one year Secured Overnight Financing Rate (SOFR), with the carry including interest repayable from 50% of Chariot's future net sales revenues from the Lixus licence"
My understanding of a farm in is that the project costs are paid for by the farminee, for the % of the asset we are giving to them not that we pay them back from 50% of our profits? May be I am wrong on this, but I do not think so??????
4. Back to burn rates and cash flow to get to FID, we are getting 10 million for our exploration completed to date.
2nd December 2021 CHAR undertook the risk and share placed $11milion for re-entering Anchois 2 exploration/ conformation AND Finalise ( STILL NOT FINALISED) negotiations of gas sales agreements and financing to unlock Final Investment Decision on Anchois AND FOR pursuing the other pillars.
Then share placing to raise $24million RNS 18th of May 2022 to quote
"Advance the engineering and design of the Anchois Gas Development, including FEED project, project financing, gas sales and updated reserves report, to reach FID (YES FID, but now we have to flow test before); and Progress renewable power pipeline, strategic partnering and new venture opportunities.
Then obviously the last raise for (imo) to keep the lights on (cash runway) and do exploration not FEED OR procurement of build.
In summary, it as feared the RNS revealed that we are lacking cash, and have to prove flow rates AND be successful with onshore exploration we have been rerated again, next raise...could it be 10p or 12p. That's probably how the markets see it.
I have had my choices made for me, I can not get out shares and I am not putting more in to keep averaging down...just going have to back draw this investment and hope.
GLA
Rgds Sft
Surfit
“In summary, it as feared the RNS revealed that we are lacking cash, and have to prove flow rates AND be successful with onshore exploration we have been rerated again, next raise...could it be 10p or 12p. That's probably how the markets see it”
Whimax mentioned that there will “not be significant raise pre gas”
Depends what chariot consider significant and after todays carnage I would have to agree with you at those prices.
Jeez. I was cool about the good news first thing 🙈
Hey GP, I listened to the Webinar and the wording ( As I recollect it) was, that they were funded for the onshore to production at 3million per well and I think it went they do not "expect" to do another "significant" raise. I just do not belive them.
I will have to go back and scrutinise the last up date to cross check burn rate....I even think approx +$900k went on a category called "good will".
I checked the SP price at 0900 today, saw the drop and went bugger, we have had another renewables or hydrogen investment RNS 😂.
I just feel the market does not trust the boards financial direction and that lack of flow testing is coming back to bite them big style?? It's reexposed risk and doubt. IMHO.
Rockhopper got around 200milion cash off Permier oil for a sea lion farm in, paid a lot back due to poor contract on having to also pay for 2 years of FEED costs, squandered the rest and have now have a loan also (similar repayment deal as us) with their (Premier taken out by creditors, absorbed by Harbour energy qho dropped project, then passed sealion on) to new partners Navistas petroleum (also Israeli)
Different and bigger project mind.
Nothing nice going to be happening for 6months now., then it's a nail bite on onshore exploration results.
So I am done here for a while now. Pointless.
Good luck, been an education....again 😂
TTFN
Very best Sft
Surfit
I think you're completely wrong about this. You totally underestimate the importance and seriousness of this deal not only for Energean and Chariot but also for Israel's relations with Morocco. You're taking snippets of information and spinning a needlessly negative yarn. The picture you present couldn't be further from the truth.
This is a great deal for Chariot and will produce very substantial cashflows in time. The reason for the fall is that investors nowadays are impatient for instant gratification and I truly believe the London Stock Market is fundamentally broken. But value will out.
Energean are highly innovative and bold. They are not Premier Oil or Harbour. They are the perfect partners to bring this very large gas field, close to European end markets, to production.
All IMHO DYOR
Happy
Couldn’t agree more Happyinvestor.
This deal gives Chariot the opportunity to earn vast amounts of revenue with no further dilution and zero debt (in fact less than zero due to structure of deal) off the back off 1 drill with a very high COS.
It’s an absolute no brainer. If people can’t see it, simply because the SP didn’t react “correctly” yesterday, more fool them.
I concur whimax, the aim market is very unpredictable at the best of times but even more so atm, strong hold for me, may even add to my holding.
Well I've already added, current sp I seemed as good enough, waiting for lower will take up too much of my day IF it ever happens, and the goal here is to wait for new year works, which, let's be honest is right around the corner with a high CoS drill that'll change the company's future with a multiple of today's market cap! It's a win win for me.