Member Info for BouncyDeadCat

No. The only things a major would be interested in is confirmation of proven and probable reserves. If there’s lots of gas and a willing (desperate) market for it, and a relatively easy route to that market (infrastructure already built that they can plug into), then the relatively small amount of money ($300-500 million) required to get it onshore is inconsequential.

Jules told us the offtaker they signed a contract with is European and supplies the European market.
So much speculative fudding going on here. I advice people to read the RNS’s and listen to BoD interviews than listen to speculative opinions posted here.
Have a good weekend all.

Inflation is driving commodities higher. What is gas if not a commodity?
If infrastructure costs go up, so does the sales price of gas.

Meanwhile Chariot will allegedly be buying its 14” steel pipe from the local B&Q in Rotherham - the one next to Asda.

Carry on :)

Says Chariot’s capex has just doubled. Must be true.

Fernan10,
What are you doing if not critizing?
You don't have an ESG mandate that you need to adhere to in order to personally invest in Chariot. However, Financial institutions such as banks do. It's how the world is nowadays.
Either get onboard with their business as it is or maybe go and find a pure O&G play that's fully funded (because if they're not fully funded - and they have no ESG credentials - they will be limited in their ability to raise finance).

bigguboi,
Yes, they've told us numerous times now that they plan on doing as much of the work themselves as possible, which will allow them to keep the majority of the pie. I'm thinking they want to keep operatorship too.

4kandles,
Not sure how you keep a FR under wraps whilst you're sounding out the appetite (and price) for it.

Most financial institutions now have mandates that only allow them to invest in O&G companies that have ESG credentials.

It's the easiest thing in the world to armchair quarterback on how much better we think we would be at raising funds for this project.

correction, 25.5% more. Keep forgetting how much more the market was willing/wanting to give them.

Since Adonis has been acting CEO, Chariot has been a completely different company to that of 10 years ago.

Fernan10,
I think you're grabbing at straws to try and fit your narrative. The truth is, we don't know how that additional 20% is going to be allocated to/for. All we know is the market was desperate to give it to them ;)

CEO,
I don't really get the cognitive dissonance. Chariot have told you the placing money is going to be used, in part, to get these contracts signed up. You seem to want them to hurry up, but at the same time you don't want them to acquire the money in order to hurry up, instead, you want them to wait for the CPR – which may take a few more valuable months and then hurry up after that. It doesn't really make a whole lot of sense.

One thing we know of Chariot – they are the best out there at cost control – literally record-breakers at saving money on O&G drills.

Funny how fear can take over some people and make them guess at dark imaginings.

Often the simplest explanation is the correct one.

I just don't think the CPR is going to be ready for a while and they have lots of work, planning, contracts & ordering to get on with and set up in the meantime – all of which is going to cost money.

They want to pump first gas from Anchois by the end of 2024, beginning of 2025, so they need to get a shift on. Regardless of whether they have an official CPR or not, they still have a lot of work to get on with to progress this project.

Why the CPR may be taking longer; The Anchois-2 well gave them a huge amount of information. The drillbit found a lot more gas than they were expecting to find, in areas they weren't expecting to find it, so it's going to take a lot of work to reprocess and model what they've discovered, incorporate the new data and extrapolate it across the wider area. Like I said yesterday, if they want to include the Anchois satellites in with the CPR (which would add significant reserves) then the work will need to be thorough and robust in order for the CP to sign it all off.

I don't know how much it costs now, but a full reprocessing of a 2D/3D seismic data set used to cost in the region of $2 million. A single data set, would typically take a month or so, but a suite of data sets could take 3 months and they could be running more than one simultaneously. Reprocessing wouldn't have started as soon as the drill ended. They would have needed to do all of the lab work first and then compile the results prior to reprocessing.

A bit more patience is required. If a little more time is required for larger reserves to be proved up, then that's ok.

Some retail investors on here seem to be getting a little bit scared, but the smart money isn't.
It gobbled up the oversubscribed placing within a few hours.

The competence is certainly there.
The reason they drilled Anchois-2 was because they competently assessed that they would find more gas. Lots more.
Maybe the CPR is taking longer because they want the Anchois satellites included in the report. In which case they will need to reprocess the seismic data including all of the recent well data.

It's always nicer to see the diagreement of opposing views when it's done in a jovial manner and based on facts and evidence.
Safe Journey.

schlemiel,
Agree. Bigger picture.
Also, AEMP is cashflow positive so installing and maintaing these renewable plants is a good side hustle for Chariot to have going into the future. Right now it's all about Anchois.

kingbilly,
A greedy CEO gobbling up shares is an incredibly rare and good thing for any stock, particularly an AIM stock. It shows extreme confidence in what they have and their plan to monetize it.

I understand that there's some floating negativity around the placing, but people posting yesterday's news without referencing today's news is to be somewhat disingenuous imo.

The placing was over 25% oversubscribed. This again, is quite a rare thing.

If people don't like the placing, then they have the perfect opportunity to sell above it today.

lol.
They raised way more than $15 million for Anchois. See today's RNS.

kingbilly,
I'm not taking any offence, I'm being tongue in cheek back :)
You seen to want to hang on to some disappointment you experienced a few years ago and I'm looking at what has been going on this past year and how the latest two drills into a discovery has changed everything for the company.

More from the RNS supporting documents...

"Reasons for the Fundraise
Further to the success of the drilling programme and analysis to date, the Board is focused on bringing the Anchois gas development online, with the intention of fast tracking towards material cashflows as quickly as possible. The majority of the proceeds of the fundraise will be utilised for this purpose. The FEED project is ready to commence and the partnering process is underway. The Company is looking for long term, strategically aligned partners in both upstream and downstream capacities. The next commercial steps will be negotiating and completing gas sales agreements and securing project finance and, as recently announced, Societe Generale ("SocGen") has been appointed to lead the project financing."