RE: Cash12 Dec 2024 09:53
After this years utter disaster, what really have Chariot got left to farm out?
They haven't even purchased the anticipated Namibia licence and doing so will completely wipe out what little cash they have left.
There's the abandoned flow testing of Anchois by ENOG and a failure to flow test Loukos after raising TWICE and PROMISING TWICE to do so... and yet still... haven't done so...
It all points to another cash raise + dilution for shareholders or dare I say, possibly several more equity raises (in stages). No wonder the CFO isn't interested in investing his half-a-million-a-year-salary in buying any stock. All these placings are paying his salary, plus he's getting free shares on top. For him personally – what's not to like? More block listings incoming!
Regardless of all the false promises, the Chariot board has proved woefully incompetent at producing any kind of value for shareholders.
Looks like it's going to be a third raise and a third promise to pay for Loukos.
At least with Anchois and the long slog we had to go through had a potential giant prize at the end of it, unfortunately that prize wasn't there. At best Anchois is shelved as a smaller future-project, at worst, it's dead in the water.
The thing about producing from a much smaller Anchois asset, is the costs to do so are proportionally much much higher. In terms of infrastructure costs, producing from a 375Bcf resource is only $100m less than the cost to produce from a much larger 1Tcf resource. Doesn't look like ENOG is interested in this much lower rate of return on capital employed.
Regarding Loukos, it's hard to get excited at the potential of a few million in profit per year coming from the OBA-1 well.
Since the failure of Anchois East, I'm finding it difficult to see where any decent level of value can be derived from the assets they have left. It's difficult to see this company as anything other than another AIM struggler permanently crippled by a lack of capital and excessive dilution that doesn't really go anywhere.
I'd be interested to know others thoughts on where they think value remains in this company?
And I'm not talking about hopium or wishful-thinking, but where they think some real value that another company with capital would be willing to invest in is contained within this stock?
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