Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The majority of licences awarded in Tranche 3 of the 33rd NSTA Licensing Round are mainly focused on gas extraction and are located in the Southern North Sea.
Deltic Energy: 43/2b, 43/3b, 43/4b, 43/9, 43/14a & 47/5e, 47/10c, 48/6c
"but can LTH summarise why there has been such a negative reaction to it?"
The irrational exhuberence exhibited at this time 2 years ago has been replacd by irrational pessimism. A large proportion of holders are short-term and are disappointed with a farm down deal they don't understand.
"Take Loukos for example - when the money was raised, the drilling was to commence by 'end of the year', then it was 'early in the new year', now it is 'around the end of Q1'. 3 months' delay (and counting) is material."
Not sure where "the drilling was to commence by 'end of the year', then it was 'early in the new year'" comes from.
FACTS:
10 Jul 2023 16:32 Highlights:
· The net proceeds of the Fundraise will be used as follows:
o For near term onshore drilling and development planning on a new onshore Moroccan Licence, expected to be awarded imminently
1 Aug 2023 07:00 · Chariot Limited (AIM: CHAR), the Africa focused transitional energy company, is pleased to announce that it has signed a Petroleum Agreement for a new exploration licence, Loukos Onshore ("Loukos"), located onshore Morocco.
Intention to drill priority targets identified, with drill rigs available in country.
Where were drilling dates mentioned between this point and the ops update on Jan 29th ?
To anyone with industry experience, getting from acquiring a licnese to drilling in 9 months is pretty fast.
The information is all there if you care to look
Slide 10 of the December presentation is clear. The Gaufrette "area" is estimated at 26BCF. The first well derisks the entire volume.
Eclair is a further 31BCF and Dartois 18BCF.
Glad I loaded up at 8.11p
GLA
AJ
Anchois has not been forgotten in all this, the new partner is bedding in, with farm-out completion shortly, and drilling will start later in the year along with the FID. With continued high prices domestically all these developments are increasingly positive for Chariot and I maintain my target price of 100p.
"They raised money to do this Q1 drilling. Why not tell us when it is going to happen?"
They have told us - "Q1".
There are 9 weeks left in Q1. It may slip depending on rig availability. But it will be drilled when it's drilled.
By then the meek will be long gone and the brave will inherit the earth.
"Sorry but that is not quite correct as an offer for the company was recently made, just not accepted as to being reflective of what our board deemed a realistic offer."
Wrong, I am afraid ! No offer was made or it would have been reported. Someone may have "floated and idea".
The reason I say "pie in the sky" is nobody would offer what AP believes it is worth.
KB,
My thoughts fwiw.
Few had intended to hold to first gas. Many, if not most, had a plan to take money off the table on news of FID, partnerning or whatever catalyst drove the shares up signficantly. Some did that successfully on the "irrational spike" to 24ish around Easter 2022.
The "catalytic" news was not what some had expected. The plan to drill another well on Anchois introduced risk for others.
The weak hands sold at a small loss and the snowball effect began. The rest is history.
Those who planned to hold most, if not all, to first gas and with deeper pockets are taking advantage and loading up for the inevitable bounce back. The farmout deal is good - not what some had hoped I know - but a buyout was pie in the sky.
If I had more free cash I would have bought more today.
GLA
AJ
Growler ( I think) said "The share awards are granted for SP performance over a period of time (one of the reasons)"
But, I think in this case their scheme is probably heavily biased to rewarding milestone progress towards FID rather than SP at a point in time. Hence my comment about AP's priorities.
If you were 100% sure of a 5 bagger from here by Xmas 2025 (or even 2026) would you care what the SP does in the next 12 months ?
AP is not senstive to short term price movements in the way many here are.
In fact, I would go as far as to say he is indifferent to the current low share price except to the extent that it impacts his ability to raise the equity capital needed to allow Chariot to reach the next goal.
That's the difference between a trader and an investor. I am with AP, with both eyes on the bigger prize.
GLA for 2024/5/6
AJ
Merry Christmas and Best Wishes for 2024.
Looking forward to reaping the benefits of our partnership with Energean and getting that gas to market with a 5 bagger as a minimum
...or maybe just lemmings panicking each other and there's no one big seller ?
On the day of the RNS there were ~1200 trades totalling ~41M shares with a value ~GBP5M
Yesterday there were 129 trades totalling~4.5M shares with a value ~GBP475K
Like everyone I am surprised by the reaction to what looks like a pretty good farmdown. Without a partner we were going nowhere so I am delighted to see a deal done.
I have taken advantage of this drop to add to my ISA position. I may kcic myslef for jumping in too early but I am happy that in the mid-term (2-3 years) I'll be reaping the reward.
GLA
AJ