Member Info for bigguboi

How quickly the sentiment shifts. As I have maintained, things will line up for us shareholders very very well. In Chariot we trust. Onward and up, Charioteers.

I agree with schlemiel. This is just how it goes. Weird to see so many being shocked & appalled about the raise. If anything it confirms that there is lots of interest in this stock especially considering there were no warrants and since it was closed immediately. Insiders get inside information and opportunities others don't. That's how it's always been.

We also don't know whether sub nappe prospects actually have any gas. Best stay focused on the above nappe targets that are already hugely derisked. Sub nappe can be tested by drilling deeper after the main targets have been tested, if Chariot so chooses.

Nice math Fernan. Personally I would be even more conservative with the costs and the dilution, but I would assume higher natgas prices. In the end it balances out very well for us regardless. As I've said before we could add 100% more shares as dilution and Chariot would still remain a multibagger. Of course, the less dilution the better for us shareholders. But I don't mind it if management believes they must dilute. Getting some quick cash can derisk and speed up development and since I've done the math I am comfortable with whatever AP & co think is best.

As a comparison, while probably not entirely accurate, another natgas company in Turkey has recently received $17.93/mcf for their natural gas sales. This was in April. They sell their gas in Turkey and their reserve reports were made on assumptions of $8-10/mcf price.

Would we get similar prices in Morocco? Perhaps.

Bob, personally I believe it's reasonable to assume $500-600M CAPEX. The high inflation environment has absolutely affected capital expenditures in the resource sector. However even taking that into account the math checks out. Also they don't even need 1Tcf or more to get finance, I had done my math based on 600Bcf and high CAPEX initially before the added 50m net pay. Now I conservatively expect 800-1,000Bcf reserves. Let's not forget, the current 361Bcf came from 50m of net pay at Anchois-1.

Dan, in the newest interview about a month ago Duncan Wallace says the company is doing studies on the size of the resource. The CPR is coming, patience. See: https://youtu.be/CLzahAcs7hU

I brought this up a good while ago in passing but since there is discussion going on about whether Chariot will go at Anchois alone or farm out some of its interest, I'd like to point out again that Jean-Maurice Williams said in an interview that the company is planning on partering up "across the value chain" at Anchois together with the same company that will buy 40mmscf/d from Chariot. In this same interview he also says that Chariot will try to keep as much of Anchois for the shareholders as possible, but I believe there will be some dilution in our share of Anchois based on what he is saying.

Here is the interview. Second half is more about Anchois, partnering info at about 8 minutes in
https://youtu.be/xqsIKkc3Fzs

The purpose is clear! 75% go to Anchois, for FEED etc. in order to reach gas sales agreements, FID and project finance. And 25% go to renewable projects like the green hydrogen project in Mauritania. How is this unclear?

This has to be the first time I see investors complain about an oversubscribed financing, done at market price and without warrants, that closed within hours.

Fernan... "Progress renewable power pipeline, strategic partnering and new venture opportunities - $5M"

The initial announced offering allocated $15M to Anchois and $5M to renewables. The extra $9M come from 1) $5M oversubscription, and 2) $4M open offer. We can safely assume that 75% of whatever the company ends up raising will go to Anchois. Rest assured mate.

Fernan, only $5M is being allocated for green energy projects.

Surely a FEED would require a good understanding of the reservoirs, i.e. CPR would have to be done before the FEED can be completed. That said, I think the company is increasing its pace with this financing, they can begin the FEED at the same time as they process the data. imo

Bob, I'm not sure what makes you conclude that the longer we wait the worse the CPR will be? Based from what we know by now, the publicly available factual data, we can already establish that the CPR should indeed be good. The 50m surprise extra net pay will likely need more time to process.

And the company got some capital too which derisks operations in general

As Sniper88 says this was most likely an insider buying opportunity. I was honestly surprised to see them close the offering -- oversubscribed no less -- the very next day after announcing it after close. The hands had been shaken in advance already, people wanted to buy a lot of shares at the current price without the headache of moving the needle too much. Anf

This sentiment I don't agree with on the other hand. I liked the raise.

Good points Bob and I agree with you. Time is of the essence. The expectation is 2-3 years until first gas, how much will inflation run until then is anybody's guess. Difficult time to be an investor.

Even if the amount of shares outstanding doubles on the way to production Chariot will still be a multibagger. All we have to do is account for stuff like this in advance and we can see how the value is still very much there for us shareholders. Dilution is to be expected and frankly I'm surprised that so many here were expecting no more dilution going forward. I've said it before and I'll say it again, expect an equity portion is the project finance as well.

Not that my opinion is worth much but I've been expecting the CPR to come before H2 but perhaps it will come before Q4

That's also a reasonable fear to have Craig. We'll just have to wait and see. Personally I'm keeping my position as the data is on our side here. Below 800Bcf would be a disappointment to me, 800-1,000Bcf is my expectation, and above 1Tcf would be a very positive report to me

Personally I was already expecting equity financing(s) as I had previously said. I'm pretty pleased with the placement, 18p is a good price to do a raise considering the turbulent market environment. The big one will be the project finance, a small part of it may also consist of an equity portion. Doesn't phase me since I've accounted for dilution with my own calculations.