Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I can't say for sure about timing but I would expect final well analysis results within say two months and a resource update within four or five months. Financing sometime this year, and first gas two years from that
Eastsix, today has been a major rerate already thanks to the increased net gas pay. We will get more events like these going forward when we get more updates on the comprehensive post-drill analysis and a big one will be the resource update. Then another big event will be project financing and build, and of course production in 2024 or 2025. In addition we'll get more news on Chariot's green energy business across Africa. Plenty of catalysts to look forward to, and I'll remind you again that we are currently experiencing a rerate already
Fernan and Jimmy, personally I'm staying conservative and "only" expecting 300Bcf to be added to 2C resources. Much of the 2U prospective resources below A&B sands are from the O sand which was mostly faulted off. On the other hand they did find a new reservoirs, Lower B and Upper M so I am taking into account those as well. I think around 700Bcf 2C is probably the most prudent to expect for now, plus massive derisking and possible increase for 2U resources
Oh! Actually, I missed a digit! This calculation is harder to mess up when I just use the gas price alone. 1tcf = 1,000,000,000mmBtu: 1,000,000,000*$38.8/mmBtu = $388B gas in place. The value in the ground is actually in hunderds of billions at these prices wtf
Wressmycash, the current Dutch TTF price is €118.88/MWh, which is equivalent to $38.80/mmBtu, which in turn is about $228 in oil equivalent terms. 170MMboe * $228 = $38.76B value of gas in place, now that's value!
Well said BDC. Even today there are companies valued multiples higher from Chariot -- without any oil or gas discoveries! Take a look at how high Reconnaissance Energy Africa is valued, +$1B market cap, ZERO oil or gas found to date. Coincidentally that company has assets in *drumroll* Namibia!
On the other hand, we Charioteers have multi-Tcf gas prospects on the doorstep of Europe during a historical energy crisis, and soon anywhere between 700Bcf and 1Tcf of 2C resources after the reserve update comes out.
https://oilprice.com/Geopolitics/International/Russia-Threatens-G7-Nations-As-Ministers-Reject-Gas-For-Rubles-Scheme.html
Earlier Monday German Economy Minister Robert Habeck said from Berlin that the Kremlin's demand for natural gas contracts to be paid in rubles is a "one-sided and clear breach of contracts" - saying the contracts must be honored under prior conditions, according to Bloomberg. "That means that a payment in rubles is not acceptable and we urge the relevant companies not to comply with Putin’s demand," Habeck said. "Putin’s effort to drive a wedge between us is obvious but you can see that we won’t allow ourselves to be divided and the answer from the G-7 is clear: the contracts will be honored."
The Kremlin's quick shooting down of the German economy minister's comments and the G-7's stance on the ruble came Monday via a Russian lawmaker to state-run RIA Novosti: "Russian lawmaker Abramov says G7's refusal to pay in Russian roubles for gas will definitely lead to a halt in supplies."
I was just reading the Cenkos research paper and thought to myself, how high will the geological chances of success increase for the prospects after the new reserve update? The sky is the limit with this project, we could well be sitting on +1Tcf of 2C resources already and those satellite prospects and the other prospects closer to shore could easily add another trillion cubic feet whenever they get drilled. Not to mention other areas in the Rissana license.
It's kind of crazy how well this is all going for Chariot.
If it eases the pain at all Pete, I actually sold some shares a while ago when I was rebalancing my portfolio, only to come back and buy more than I sold at higher prices when I realized I wasn't comfortable having so little shares after all. Now I'm more content with what I have although I still feel like I could do with some more shares :)
I definitely agree with you Pete. I think we should be much higher too, recent share price action is encouraging to me that market is interested. Generally as we get closer to production and derisk more investors both private and institutional are bound to start taking notice. And a buyout is also a definite possibility as you said. If the lab & audit results exceed expectations then all the better too.