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CEO - I take all your points on board.
Can you elaborate on what you think an acceptable farm-out to a major woudl look like ? Would you see the major operate ? What % split would we retain after farm-down ? What would economic model be ? Chariot on a full free carry ?
I still think the FR to see us to debt funding and FID is optimal for 2+ years SP.
CEO - do you mean bids to farm-in or for a buyout ?
imho a farm-out wuld be highly dilutive and not in shareholders lmedium/long term interests.
A buyout would significantly under value the asset and again would, imho, not be in the long-term (ie over 2 years) interest of shareholders.
On the other hand if you are underwater and looking to recover I can see the attraction of either option for a quick win.
Fair enough Fernan. I take your point. So you would not have famred-down to raise funds I assume ? That, imho, would have been even more dilutive.
Perhaps the management view on the non-Anchois opportunities is "act now or miss the boat". Chariot &Total Eren seem to have a pipeline of opportunities. They may seem irrelevant to you but I am sure they are meaningful in the context of ESG and debt funding for Anchois.
Hi Fernan,
I'd like to understand what action you think the compnay should have taken ? Would you have been against a smaller raise with all funds allocated to Anchois ?
The FR seems good to me. My views on CPR timing are on record. The FEED and other activity need to be funded. Would you have preferred we were diluted via farm-out ? What % of the asset should they have sold ? Price ?
With so many on this board seemingly disgruntled by the FR I wondered if we could have a constructive discussion about exit strategies.
Full disclosure - i hold, for me, a very significant posotion with ave ~16p and will look to exit with minimum 5x in next 2 years.
"They have used a highly profitable project to raise money from shareholders, without a clear purpose."
An alternative view is "They have used a highly profitable project to raise money from shareholders, with the clear aim of growing the overall value of the company to the benefit of all stakeholders."
The only reference to reserves in the last RNS is
"The net proceeds of the Fundraise will be used to:
• Advance the engineering and design of the Anchois Gas Development, including FEED project,
project financing, gas sales and updated reserves report, to reach FID"
It would have been simple to state that "an updated reserves report is currently in preparation by ...."
I conclude Chariot are still running the numbers and not yet ready for an audit.
Dan "For all of our benefit, can someone explain in a sentence or 2 why this Report is so important and what is in it and why does it take so long to produce. Rather naively i had thought it was an independant report giving confirmation of the many detailed statistics and findings already gathered by the company"
In a sentence Chariot can't declare they have reserves (as a opposed to resources which are valued less) until their analysis/models/plans are audited by a Competent Person. To date we have not been told that the CPR has beeen commissioned or who will do it. For more info google PRMS or go here https://www.spe.org/en/industry/reserves/
CEO "if chariot has anything serious "
If you really question that maybe you should sell up and move on. If you are correct the the only way for the SP is down....
I reiterate - too many folks on here with little to no understanding of oil/gas exploration/development are expecting more rapid progress than is realistic. Patience will reward you.
well said BDC.
Projects like this take time and I don't have any problem with the current FR. Compare it with the dilutive effect of a farminee taking a 1/3rd of our 75% share. What price would we expect for that ?
In the long (2024) or medium (late 2022) timescale, depending on your measures, we will all be significant beneficiaries of this investment. Naturally we will see more froth from over exhuberence and FOMO as news is released. I may continue to trade a bit but my core holding remains.
CEO - I always said "no earlier than end May" for the CPR.
You say " imo, it's a fair expectation to have this ready given it's a computer crunching exercise." It's way more complex than that and a mult-disciplinary exercise to prepare the models in house/with contractors before submission to audit.
I moved my estimate for CPR release to end July and admit that MAY be optimistic. Adonis made little reference to the CPR except to say that some of the funds will be used for it. No statement along the lines of "we have commissioned N&S to conduct a CPR". I conclude it is farther away than you woudl wish.
"....and think how much more oversubscribed it would have been with cpr being released prior to raise."
CEO - you keep banging on about this but perhaps they have not yet even commissioned the CPR. The Competeet Persons Report is an audit of Chariots analysis. Maybe that itself is not yet complete - there is a mass of work to do.
CEO,
I don't think the CPR is/will be a dud. But I believe it is much furrther away than many hoped or expected. I have often stated "not before end of May". There is a lot of technical work to do before Chariot are ready to submit all the models for audit.
I now revise my timing to "not before end July".
"Details of the Subscription
Adonis Pouroulis, George Canjar, Julian Maurice-Williams, Duncan Wallace and Chris Zeal (the "Participating Directors") have indicated their intention to invest approximately US$0.6 million (£0.5 million) in aggregate for 2,594,442 New Ordinary Shares pursuant to the Subscription at the Issue Price. In accordance with the Company's Non-Executive Directors' Restricted Share Unit Plan, George Canjar and Chris Zeal would receive a matching share award in the event that they subscribe for New Ordinary Shares which would vest in equal instalments over the three years following completion of the Subscription.
As well as the Directors listed above, certain other investors have indicated their intention to subscribe for New Ordinary Shares pursuant to the Subscription at the Issue Price. Any Subscription would be conditional on the Placing becoming unconditional in all respects, including admission of the Placing Shares and the Subscription Shares to trading on AIM becoming effective and the Placing and Open Offer Agreement not being terminated in accordance with its terms. Any Subscription will be announced with the closing of the Bookbuild."
---------------------------------------------------------
The key bit is "As well as the Directors listed above, certain other investors have indicated their intention to subscribe for New Ordinary Shares pursuant to the Subscription at the Issue Price."
How do you get to be in the category "CERTAIN OTHER INVESTORS". The implication surely is that this group were also aware of the fund raise. How big a holding do you need for that ?
I mean to cast no aspirations, in fact I am in awe at the possibility. But could SHC's recent departure have been a pre-condition of him falling into this select group ? He said he was a major investor.
SHC if you still read this I genuinely mean no offence. As I say I would be in awe if this supposition holds up.
I see that Duncan is a speaker at this event next week https://www.frontierenergy.network/events/africa-e-p-summit-2021/speakers
This event attracts potential investors and farminees alike. Just imagine if Chariot released audited volumes in time for Duncan to pitch. I still think it's a bit early for the CPR but one can dream....
Here's hoping for a bit of FOMO
Why don't you draft a statement for them ?
Alternativley you could sell up and move on ? Persoanlly I bought at just over 27. A bargain.
i think some input from Nordell would be valuabale. That's if he/she would still be willing to contribute after all the abuse he/she has received.
I still expect the CPR is 3+ weeks away. So expect volatiltity until then... but a BOOM to follow !
We might experience more froth along the way to £1+ - it's your choice to trade it or not.... but please be polite and kind to those who approach investment differently to you.
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The data is confidential for a period of 5 years