Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Agree. I thought the interview by CFO Julian Morris was very positive on Proactive Investors' 6.46: "A lot of interest and competition for partnering". The recent RNS lacked energy, excitement or clarity, pretty poor comms basically. The interview is the complete opposite. I'm happy with my investment here and look forward to a partnering update with a substantial player (hopefully)
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From being sceptical and seemingly annoyed with Chariot last year, he seems to consider Chariot now one of his favourites. Malcy doesn't often call it wrong. Worth reading what he has said the last few times he has written about them since the deal in Morocco
https://www.malcysblog.com/2019/05/chariot-genel-vog/
Here are the headlines from their report out today.
The full report makes very interesting reading. Their price projections are predicated on conservative assumptions and well balanced and researched. It can be found at https://t.co/4RX96kYqE9
You will need to register (free) to get access
Chariot Oil & Gas*
Anchois satellites CPR
Chariot has released a Competent Persons Report (CPR) for the Anchois discovery and satellite prospects on its recently awarded Lixus licence, offshore Morocco. This validates and raises management’s previous gas resource estimates for these prospects by 6% to 1 tcf. At this early stage, we are only adding the Anchois North priority prospect to our risked-NAV, which raises this and our price target from 37p to 41p/sh. However, these satellite prospects offer significant further upside potential and running room to our NAV over time as they mature and likely form an important part of the farm-out negotiations for this acreage.
?New CPR raises resource estimate. Chariot has released a CPR covering the five satellite prospects adjacent to the Anchois-1 gas discovery on its Lixus Offshore Licence, Morocco. The overall resource estimate for the Anchois discovery and its satellites increases by 6% from 950 bcf to 1,011 bcf. This is comprised of 307 bcf of 2C contingent (discovered) resource and 704 bcf of 2U prospective resources.
?Anchois North priority. The prospective (2U) gas resource estimate for just the five satellite prospects has been raised by 12% to 588 bcf, offset partially by a lower weighted average Geological Chance of Success (GCoS), which has been lowered from 40% to 37%. The biggest change is for the Anchois North prospect where 2U prospective resources have risen by 70 bcf (+29%) to 308 bcf while the GCoS has been reduced from 51% to 43%. On a risked basis, Anchois North 2U prospective resource rises from 121 bcf to 132 bcf. Given its size and relatively low geological risk, Chariot has confirmed this as its priority satellite prospect.
?Anchois North adds 10% to risked-NAV. Previously, we had included 423 bcf of Anchois A, B & C sands resource within our risked-NAV alongside an extra layer of commercial risking to factor in the need for a farm-out to fund appraisal drilling. Including Anchois North raises our risked-NAV and price target from 37p to 41p.
?Satellite prospects offer material upside/running room. At this early stage, we have not included the entire 588 bcf of Anchois satellite 2U prospective resources in our valuation. However, these likely form part of the farm-out data room and negotiations and we estimate these five satellite prospects have a risked-NPV of 10p/sh (unrisked 106p/sh). This, plus the prospective resource from the five additional prospects that will be subject to a CPR once the 3D seismic reprocessing is complete, offers material additional running room and de-risking potential. It also likely drives upside to our risked-NAV over time as these prospects mature
Netherlands and Sewell are an international Dallas based consultancy. Their clients include BP, Shell, Exxon, Anadarka, as well as smaller companies such as South Western Energy, Marathon Oil and of course Chariot. I am unable to ascertain their success rate versus their predictions/assessments. They also hold large conferences for the industry and seem to be well respected.
Spitfire has withdrawn his post from ii....If Spitfire is Wheep0 as some suggest, it may be him trying to get a good exit. Having said that, volume looks good. Tomorrow morning could be very interesting. They should be through the first target by my reckoning. Fingers on the buzzers!
They won't turn up PM. Too cynical and opinionated to have the bottle to actually engage. Personally I feel very positive about this drill and what will come if it proves to be successful. I doubt very much if ENI or Woodside would have put their money where their mouth is, unless they felt very, very positive about the geology, 3D findings and coring samples. Back then when they partnered CHAR the price of oil was at rock bottom and the whole industry was strictly risk off. ENI in particular have a fantastic track record in these specific cretaceous plays. The data presented to them and processed by their super computer must have generated significant confidence to enter into partnership at that particular point in time. I'm happy to let the drill bit do the talking. I wish the moaners and growers would follow suit.