RE: CHAR14 Jun 2024 12:43
Funding, only money issue July on, sometime after there is $15m due to them, depending...
Final Investment Decision FID
Conclusion
The forecast indicates that there will be a cash deficit from July 2024. To manage this the directors mitigating actions include cutting discretionary expenditure and deferring creditor payments until funding across the business at an asset, subsidiary or Group level are successful, however, it also acknowledges that this short term funding is not, at the present time, in place.
Longer term, subject to successful drilling results at Anchois East, Chariot, in partnership with Energean and ONHYM, are focused on reaching FID shortly after the drilling and testing campaign has completed which could result in $15 million cash inflow within the going concern forecast period.
https://www.lse.co.uk/rns/CHAR/2023-final-results-43qdlfetkid3qc9.html
Can you tell us more about securing Energean as a partner?
During the first half of 2023, we completed the FEED phase at our Anchois gas project which defined our initial development plan and confirmed the commercial viability of this significant discovery. As we progressed our FEED project, we also undertook a partnering process in order to be able to look to upscale and deliver the potential that we saw this project offers. This process generated significant industry interest where we had multiple offers and we were delighted to sign agreements with Energean, the FTSE-250 company, as a partner across our Lixus and Rissana licences. Energean acquired operatorship and 45% in Lixus and 37.5% in Rissana, with Chariot retaining 30% and 37.5% respectively and ONHYM maintaining its 25% stake in each licence. We received US$10 million on completion of this deal, we have a US$85 million gross carry on Lixus pre-FID costs which includes the Anchois-East well and flow test and a further US$15 million is payable on FID. They then have an option to acquire a further 10% for a gross development carry of US$850 million to first gas, a US$50m convertible loan note or 3 million Energean shares, and 7% royalty payments on their production revenues.
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