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2. The financial contribution made by Chariot to get Anchois to this point has been quite significant. Maybe $25-30 million over the last 3 years.

I imagine the project infrastructure will be funded by a consortium of banks and financial institutions.
$300 million could easily be underwritten by the Moroccan government if Anchois is classified as 'of National Strategic importance.' (which I think it will be).

Since Algeria cut Morocco off from the Maghreb pipeline, I suspect Anchois is already classified as 'Strategically important' by the state of Morocco. That's why everyone has been talking about pumping 1st gas by 2024 - it's desperately needed to fill the shortfall.

Read this article and you'll understand how desperately in need of gas Morocco has become since Algeria cut off their access to Maghreb. They're now relying on Spain to provide them with LNG.

2nd February 2022.
"Algiers terminated the contract with Rabat, dealing a severe blow to the Alawi kingdom, which is still trying to recover. Morocco received some 100 million euros a year in "rights of passage", variable according to the volume of transit, and allowed the production of 10% of its national electricity through the Tahaddart and Ain Beni Mathar power stations. The heavy losses set off alarm bells.

Despite assurances that there would be no supply problems, Morocco then began to negotiate with Spain a possible parallel agreement that could cover its energy needs. The proposal put forward by Rabat involved acquiring liquefied natural gas (LNG) on the international market and then sending it to Spain, a necessary step for regasification, and using the Maghreb-Europe pipeline to transport it to Morocco, the beneficiary of the energy."

https://atalayar.com/en/content/spain-allows-morocco-use-maghreb-europe-gas-pipeline-new-sign-rapprochement

It's much much better than coal which is what Morocco is primarily using to power its electricity grid.
Transitioning to renewables/green energy is going to take a couple of decades to fully execute.
Gas is the best interim option.

It's much much better than coal which is what Morocco is primarily using to power its electricity grid.
Transitioning to renewables/green energy is going to take a couple of decades.
Gas is the best interim option.

I think it's important not to over-react or become too hyper-sensitive and proclaim dilution as one's first react to the announcement of a new project. Maybe try and consider the bigger picture a bit more.

Just to go over some basic points regarding Chariots long-term partnership contract with Total Eren...

*"Total Eren develops, FINANCES, builds and operates these renewable energy power plants."

*As it stands, with small stakes in these renewable projects (10%), I think of Chariot as the Sales & Marketing Dept for these renewable power projects. Adonis has the contacts and relationships Eren needs to sell its product to the African mining industry.

*Under the long-term joint development partnership contract with Total Eren, Chariot have the OPTION to invest between 15-49% into the co-developed projects.

What I glean from this realtionship with Total Eren is a long-term vision for Chariot to transition into.

Offshore Morocco is going to be a cash cow for Chariot. Although relatively low-carbon for a fossil fuel, natural gas is still a fossil fuel and over the next couple of decades the world is going to move away from fossil fuels entirely.
When Chariot calls itself a transitional energy company - looking at the recent moves they've been making - they very much appear to mean it. It is going to 'transition' into a renewable/green energy company eventually because the world is starting to demand a renewable/green future. But swapping completely is going to take time. The world (particularly the West) is in this weird situation whereby it has purposefully under-invested in fossil fuels without investing enough in renewable/green alternative technology to take over the shortfall. And people wonder why we're now having an energy crisis!?!

Meanwhile, there is a huge amount of natural gas located in and around Anchois with a relatively quick route to market (2-3 years), a strong sales price and desperate customers (Moroccans & Southern Europeans alike), offshore Morocco is going to produce some pretty spectacular revenue & some of this revenue can be deployed into increasing Chariots stake in renewables through its partnership with Total Eren (up to 15-49%) and also fund their development/stake in the Green Hydrogen project in Mauritania.

So Chariot helping Total Eren find customers in exchange for minority stakes in the projects now, is a good long term strategy for the transition part to follow later.

Fernan10 Chariot are only liable to cover ONHYM´s share of exploration costs. Not development costs.
ONHYM will be contributing 25% towards development.

I calculate it very similar to Jimmy. With the additional C, M and O sands I have risked valuation at around 85p.

Silly is good if you're a buyer.
Morocco and Europe needs this gas.
It will be developed as a relatively simple project.
$300 million is not a lot for a soverign wealth fund to underwrite.
The Moroccan government itself has stated that it wants Anchois producing gas by 2024.

An electorate who has the majority of its long term investments held in stocks is not going to vote for a government who tapers the value of those assets down in price.

The US fed has a few months to talk tough on tapering before reverting to type (infinite QE).

Now is the time to accumulate cheap assets at a discount.

You're only forced into accepting an unreasonable price if you sell now.
Another way of looking at it is you're gifted a massive discount if you buy now.

Wider markets are selling off because of taper talk... but.. The Fed will have to turn the money printer on prior to the US mid-term elections later this year. It would be political suicide not to.

#Short term noise.

Well I'm still buying :)

why and who needs this gas (desperately). you will understand why the board of Chariot are talking in absolutes about 1st gas in 2024.

Algeria has cut off gas supplies to Morocco and there is a gas supply crisis underway in Europe.

This project needs to go ahead.
And why 1st gas will be fast-tracked.
They have desperate buyers for this gas.

The gas crisis, however, goes deeper and remain beyond the spat with Moscow and the lingering impact of the cold winter of 2020-21. Domestic gas production is falling, notably in the Netherlands and the U.K., and that means a growing share of the gas Europe consumes must come from abroad. With Asian demand for liquefied natural gas (LNG) rising fast, Europe will have to compete for supplies — at a price. Russia, via its state-owned giant Gazprom, is unlikely to refill the depleted European gas inventories as it once did every summer, ahead of the high-demand winter season. Europe will have to go it alone.

https://www.bloomberg.com/opinion/articles/2022-01-27/europe-will-continue-to-struggle-with-gas-prices-even-after-the-spat-with-russia

@9.5p

Haven't been buying this hard since Char was @ 2p.

@Wizzard Chariot will be liable for 75% of the debt finance repayment, not 100%.

The BoD suggest many contracts are already penciled.
As each one gets signed we move closer to 1st gas 2024 and closer to 85p where I think the SP ultimately ends up (at 1st gas).

Contracts awaiting signatures:
Larger Rissana Licence area
Debt Finance with 2 Institutional development banks they signed LoI with.
Subsea partnership (already signed but building agreement also needed).
Offtaker agreements (seems close from on-going discussion that have taken place so far & Europe literally crying out for more gas supply).

I expect most of these contracts will be signed this year.

@LuckyCounts The current SP is an opportunity. It's a travesty for those who can't see the value at 10p :))
When the penny does finally drop, the SP will be in far excess of where it is now. Once they announce i) debt financing ii) partnering and iii) begin laying pipe - newsflow all expected to come this year, the SP will gradually start to represent the value of the resource and will be 4-5x from where it is now.

Look at all of those gas bearing responses on the seismic :))

4Tcf!!!!!!!

Carry on looking this gift horse in the mouth by seeking out an imaginary bogeyman to justify your fear (which you wittingly or unwittingly contribute to the index).

If the ONHMY wanted to secure gas at very low rates, they could simlpy elect to receive their 25% share of this resource directly in gas rather than dollars.

If so, Chariot could concentrate on supplying southern europe that's seeing massive gas shortages.
https://www.nytimes.com/2021/11/03/business/energy-environment/spain-natural-gas.html

Since the Fed announced it was going to be hawkish and reduce tapering and increase interest rates (not sure they'll even be able to do that - but we'll see), the wider stock markets has started to sell off.

So this is just an opportunity to buy undervalued stocks like Chariot whilst they're on sale. Yesterday the market gave me a 10% discount. Today the discount is still there or thereabouts.

"Every day Mr Market will offer you a price to buy or sell a stock.
Everyday you have the chance to accept or decline Mr Market's offer.
Buy when others are fearful. Sell when others are greedy."
~ Warren Buffet

The current market indicator is currently fearful.

But really, you just need to do the maths on this stock & you will quickly come to the conclusion that it is WAAAY undervalued.

By buying Chariot @ circa 10-11p, you're buying $3 billion worth of gas (probably a lot lot more with time) for just $100 million.

For value investors, it really doesn't come much better than this. An asset on sale for 1/30th its net asset value.

Hence Malcys perplexity (which I share) that the market hasn't woken up to the value Chariot currently presents.
However, what it presents to me, is a gift horse, which I'm not going to look in the mouth.

Several weeks ago I sold down some of my bluechip tech stocks which had quite hefty P/E ratios and I've been sitting in cash. But since Anchois-2 I've been layering that cash back into Chariot (even though I already hold a large chunk of it in my portfolio).

Not financial advice. DYOR etc..