Member Info for BouncyDeadCat

What's a small utility company (with its own in-house renewable electricity production capabilities and water treatment facilities) worth in a G20 country that's just opened itself up to the free market?

I'd figure it's a fair amount to the right group.

A quick back-of-the-envelope calculation on what Chariot have already spent on the renewables business to date;

$4.5m in capex (Purchasing of AEMP, ETANA and the water treatment business).

$1.7m in G&A (circa $565k per year).

$6.2m Total.

They've also added a few projects that they tended and won over the last 3 years, so hopefully there's a decent chunk of value that's been added as well.

Ajc,

Chariot have spent $5-$10m building the renewables business up.

To only receive $5-$10m for it would be beyond disappointing.

We've hopefully added a degree of value to it over the last 3 years.

Drilling foundations have been laid for Guafrette (drill 1) and they're now moving on to lay the foundations for Dartois (drill 2). Actual drilling will happen towards the end of Q1. 2-3 weeks.

Chill.

Agree Etana was a good add-on for the renewables business, but moving forward, surely all monetary resources must now be deployed solely on developing the Moroccan gas assets to production. No more buying small desalination water plant businesses that might be useful in 5+ years - Unless of course, that same water treatment business could be deployed to treat the waste water in Loukos at a fraction of the cost charged by a contractor? would be a shrewd cost-saving move if so, although they haven't told us it will, so got to assume not.

The initial number proposed was 3 wells, which they could still manage within current budget, although I think most investors would prefer them to wait for the Energean money to come in first.

You can kinda see what AP was trying to do with regards the other two pillars, build them up a bit before spinning them off into separate entities, but with very limited capital.

Fernan,

Onshore wells cost $3 million each. So it's going to be $6 million for the other 2.

The other two wells will get drilled, but will have to wait for the Energean money to come through. Also, having drilled the two wells with the highest chance of success, the data collected will be valuable in determining exact locations to drill the next two.

Loukos onshore is very much happening in stages. This was confirmed yet again in yesterday's technical presentation.

However, now that we approach the pointy end of the stick regarding gas development & production, I do agree with your wider point about the smaller company transactions that were being made by AP, they are going to have to stop as they will be a hinderance to creditability as we enter a critical development phase and any aquisitions, no matter how small, will put larger investors off. 100% concentration must now be on Moroccan gas, at least for the foreseeable future. I think this message has already hit home, but as a shareholder, feel free to write to AP in order to remind him that it's not something you want to see more of. If AP buys anymore minnow companies, without specific funding coming in for those separate entities, then I think there's going to be a lot of pushback from shareholders.

Thebold,

You said it in your post below.

Even if it's dry gas, wouldn't it still need a compressor? I presume these can be rented as ready to use platforms?

I also think it will still be a year or two before Chariot sees any revenue from Loukos, but the fact that they would already have a couple of production wells in place, as well as a plan for achieving cashflow in incremental stages, would make Loukos a lot more attractive, either to farm in partners and/or a consortium of banks. Taking developmental action now means Chariot either get to keep a lot more of the pie, or there'll be more competition to provide the debt financing based on a lowered risk profile (which would mean better terms/rates).

Fernan,

Chariot have already performed and received an Enviromental Impact Assesment (EIA)

https://www.lse.co.uk/rns/CHAR/eia-approval-received-for-loukos-drilling-campaign-sijdq5arme5jqnm.html

They wouldn't be using expensive production grade casings if theses two wells were exploration only.

Does suggest they are very confident that they already know exactly where the gas is located and in what quantity and in what quality/type of reservoir.

Thebold,

Yeah, a fraction of the price in Morocco.

Wouldn't a deal with Vivio for x% of all Loukos gas sales in perpetuity (in lieu of pipeline capex) be the more likely option to go down? Vivo then also responsible for all maintence and repair of the pipeline too. I think that's generally how they do it in North America. Anyway, probably won't even be up for discussion until Chariot are onto their 4th or 5th well (unless they were to hit that 300m reservoir Jimmy talks about :)

Was thinking similar for the first 2-3 wells, a very simple transportation set up. Kenitra looks to be about 75-80km away from Loukos.

Thebold,

Looking at Chariot's scaled map, the start of the pipeline network that feeds gas to industry in Kenitra in the South, looks to be approximately 15km away from our drill sites in Loukos.

As I'm fortunate enough to be in the ABC camp, I'm not interested in encouraging other investors to do more research or rather, I'm not interested in doing their research for them. I think investors will turn up post-drilling results and pump the price anyway, hopefully after Loukos, but might have to wait until post-AE. I don't really care either way as this morning I was able to buy another decent amount at 7.41p and I'm closing in on an average of 11p. Just a couple more top ups and I'll be there. Ultimately, I'm then just happy to wait for Anchois to unfold, as that's the real jewel in Chariot's crown.

Regarding Loukos, in the latest presentations Chariot have been indicating that they're most likely to CNG the gas from the first few Loukos wells, which would be the cheapest & quickest way to get the anticipated 10 mmscf/d to market. When asked about the $3 million per well cost and whether this was total cost per exploration well or per developed well, Duncan replied it's for both. In which case, they must be going straight in with production-grade casings.

A) You haven't put you & your families entire life saving into Char

B) Have regular spare income coming in

&

C) Can afford to wait for these Moroccan gas assets to progress through to production

The current share price is a gift.

imo.

The information is there if you care to look for it. Don't wish to sound rude, but I'm not here to do other people's research for them.

'If the BoD's would issue a statement of assurance it would disprove my doubts'

Or you could just read the most recent RNS's and listen to the most recent investors call ¯\_(ツ)_/¯

*Then take those words as they were intended.

*Like all deals, Dragons den deals only fall through if they fail due diligence (i.e. if the info given during the pitch doesn't match up with the facts).

*I don't see delays. Farm out Anchois was completed by end of 2023, Check. Drilling onshore Loukos Q1 2024, which was again reconfirmed this month, Check.

I have no wish to get into a discussion with bad faith actors on here, so I'll leave it here. Have a good evening.

Mrplow,

Let's not try and twist my words. I said getting as much of the pie as cheaply as possible would be the aim whilst negociations were underway. Each side would of course want to get the best possible deal for their respective side. However, once the deal is signed, the partnership becomes cemented in good faith by both sides.

Peter Jones will negociate hard in the Dragons Den, but once he's shook hands on a deal with another business owner he works positively for both parties for the good of the overall business. He doesn't down tools in an attempt to undermine his business partner. Bizarre why you are even trying to insinuate this is what Energean might do, it does just come across as fud rather than trying to be balanced as you claim. We could all speculate on what wild thing Energean may do next, like offer Chariot a buy out @ £1 per share, that doesn't make it any more believable or true.

Yes, I calculated and stated here that I thought Chariot would get $50m+ in back costs and that's what they got.

Yes, I still think that $50m will be used to develop Loukos further (providing the next two drills are as expected).

*Have you ever had a business partnership? I can promise you, that's not how it goes or how you would want it to go.

*Energean pumping as much gas as they can from their new asset and selling it to a ready market with decent prices would be in the best interest of their shareholders rather than shelling out $25m and then sitting tight. Energean have told their shareholders that they're planning on drilling and developing this asset as quickly as possible. Are Energean actively lying to their shareholders? You decide.

*Morocco got cut off from Algerian gas year end 2021. Morocco have been moving heaven and earth to find companies who will develop in-country supply ever since, including giving the enormous Rissana licence and then Loukos to Chariot (for next to nothing) on the proviso that they get it into development asap. It's just turned 2024 and look where we are. 2 years later. Drilling about to start both onshore and offshore Morocco. In terms of how fast the O&G industry moves - that's very quick indeed.

*Chariot is receiving over $50 million+ in back costs. Read the RNS. $25million + $50 million in convertible loan notes.

Since being cut off from Algerian gas in 2021, Morocco and OHYMN have been crystal clear that they want companies to come in and develop in-country sources of gas.