Member Info for Fernan10

I understand the financial arrangements as follows:

1 ETANA will buy the electricity from the solar power plant

2. ETANA will resell the electricity to commercial and industrial users. It has already signed up more than 20 clients

3 ETANÄ´s payments to the electricity supplier (the solar power plant) will be secured by the financial institutions that have already provided the financial guarantees (Standard Bank and BII (British International Investment) and GuarantCo.)

4. This secured payments by ETANA will in turn unlock the funding for the construction of the 75 megawatt solar power plant.

5. This model will be repeated in future projects, for a total investment of US$ 500 million

6. I was surprised to read that Chariot also plans to take equity positions in these upcoming renewable projects.

From JMW´s interview:

"Chariot also plans to take equity positions in these future renewable projects."

"We intend to finance these stakes at the subsidiary level, creating an additional revenue stream beyond Etana’s electricity trading business."

"I have lost ALL faith in the OnG team".

I fully agree with that statement.

William Wallace has not made any success in more than 10 years with Chariot. Yes, I know he has made a discovery with the A2 well, but, pending the flow test, nobody knows if it´s comercial.

Can anyone here endure another conference call with William Wallace talking about "seismic signals" and "geological chance of success" of a future well?

As I said before, he should be fired. We need another man in charge, with a proven and solid background in exploring/developing oil & gas plays.

"if there was any cash issue char would have sold its 34% stake for $30m+."

I don´t think so. The US$ 100 million valuation for Etana is for a fully funded electricity trading company, after receiving the equity investment by the norwegian fund.

Without that investment, Chariot´s stake in a cash starving Etana would had been valued much lower than that.

is there any chance for Char to sell their shares in Etana now (after the closing of that funding), at a reasonable price? I don´t know. Time will tell.

The funding for Etana was arranged primarily by Chariot. I don´t think the banks and fund providing that funding will like (or allow) Char to sell its stake now.

Total funding: US$ 175 million

From the JMW´s interview:

"The firm (Chariot) secured $175 million in financing for Etana Energy, its electricity trading joint venture in South Africa. The financing, provided by Norfund, Standard Bank, BII, and GuarantCo, ensures that Etana is fully funded and financially stable."

"The total financing has now reached $175 million, all at the subsidiary level, not the parent listed level. This means that Etana is now fully funded."

"...we are receiving up to $20 million in cash equity investment, predominantly from Norfund, which is backed by the Norwegian government. In return, they will receive a 20% economic interest in Etana."

"The $20 million cash investment will support Etana’s growth and provide working capital up to first revenues. The $55 million facility from Standard Bank adds to the $100 million facility provided last year by BII (British International Investment) and GuarantCo."

"Chariot will retain a 34% stake in Etana, and at a look-through valuation, that stake is now significantly higher than our current market capitalization."

From all of that, we can infer the following:

1. total funding for ETANA:

equity investment by norwegian fund: US$ 20 million

credit facility by Standard bank: US$ 55 million

facility by BII (British International Investment) and GuarantCo: US$ 100 million

Total funding: US$ 75 million

2. the US$ 20 million equity investment by the norwegian fund will be paid directly to ETANA. In return, the norwegian fund will be issued such amount of shares in ETANA, in order to get a 20% stake in the company

3. That values ETANA´s equity at US$ 100 million. Then, Chariot equity interest of 34% has achieved a read-through valuation of US$ 34 million

Ianfer:

I don't think the market is assigning a negative value to the o&g and the other Char's business units.

In my oppinion, the maket is assigning a negative value equivalent to the net present value (NPV) of the G&A expenses forecast for the near future (the next 5 or 6 years).

A G&A expense of US$ 15 million per year, during the next 6 years, has the same effect as paying a US$ 80 million debt (plus interest) in annual installments of US$ 15 million during the next 6 years.

From JMW:

"The $20 million cash investment will support Etana’s growth and provide working capital up to first revenues."

It´s clear to me that the US$ 20 million will be received by Etana, not Chariot.

From recent JMW's interview:

"...WE are receiving up to $20 million in cash equity investment, predominantly from Norfund, which is backed by the Norwegian government. In return, they will receive a 20% economic interest in Etana."

CHARIOT has reduced its equity interest from 49% to 34% (a 15% reduction). The only entity that could give the norwegian fund a 20% interest "in return" for their investment is Etana. Then, when JMW said that "WE are receiving up to $20 million in cash equity investment", he was referring to "Etana (not Chariot) receiving up to US$ 20 million in cash".

So, as I said before, the read through valuation for Char´s equity interest in Etana is US$ 34 million.

The norwegian fund acquired a 20% interest in Etana, buy contributing US$ 20 million funds to the company.

Standard bank acquired a 10% interest, buy providing additional funding

Total equity interest acquired by the norwegian fund and Standard bank; 30%

This implies a reduction of Etana´s and local partner´s interests, 15% each

From recent JMW's interview:

"...we are receiving up to $20 million in cash equity investment, predominantly from Norfund, which is backed by the Norwegian government. In return, they will receive a 20% economic interest in Etana."

"Chariot will retain a 34% stake in Etana, and at a look-through valuation, that stake is now significantly higher than our current market capitalization."

Taking into account the investment made by the norwegian fund, the read-through valuation for CHAR's equity interest in Etana will be US$ 34 million

Don´t be so innocent, please.

Our managers have never bought a single share, except through their participation in share placings (in order to encourage others to buy)

If our "managers" had serious doubts about the success of A3, previous to drilling it (despite selling it to the market as almost "as good as it gets" well), we should expect that they have negotiated a tough penalty should ENOG decides to leave (after the drillling campaign).

Lets see if they were savvy at least in the negotiation of the exit penalty.

ENOG should compensate CHAR at least for the US$ 7 million Rissana spending commitment.

The amount commited by ENOG to be spent in Lixus could be somehow conditional on the success of A3, and therefore less certain to be compensated by ENOG, given the poor results of the well.

In the end, it all depends on the wording of the farm in contract.

ENOG will have to pay CHAR to leave the licenses and cancelled their expense obligations in Lixus and Risanna.

ENOG knows that we are running out of cash. The longer the negociation takes, the worst for us.

There is a big incentive for CHAR to receive ENOG´s compensation payment as soon as possible.

And ENOG knows that.

If there is nothing written in the farm in contract about the amount to be received by CHAR (and the timing of that payment), I won´t expect a lot of cash coming to us.

Duncan Wallace should be fired and replaced by someone with verifiable previous successes in exploring/development o&g assets.

His "exploration thesis" have lost all credibility

ENOG was so dissapointed with the results of the A3 well, that they decided to transfer not only their interest in Lixus, but also in Rissana.

This is very embarrasimg for CHAR and particularly for Duncan Wallace

Morocco

In September 2024, Energean completed drilling operations on the Anchois appraisal well (W.I. 45% operator), offshore Morocco. Although gas was confirmed, drilling results were lower than pre-drill expectations. Following detailed post-drilling analysis and positive engagement with partners ONHYM and Chariot Limited ("Chariot"), Energean is assessing its options with respect to a transfer of its interest in the Lixus and Rissana licences.

Energean is grateful for the support provided by ONHYM, the Ministry of Energy Transition and Sustainable Development, and the Moroccan Government. Morocco has an attractive regulatory and legal framework that incentivises international investment into its hydrocarbon sector; Energean will continue to assess potential opportunities in the country.

Don´t forget that Essakane project debt should be repaid before the distribution of any excess money to the project owners (Total 90% / Chariot 10%)

From CHARIOT´s Dec21 presentation:

__________________________________________

Essakane Solar

•Largest hybrid PV-HFO plant in Africa and one of the largest in the world

•Together with Total Eren, we have successfully developed, financed and built, and now operates, a 15 MW solar PV plant coupled with a 57 MW HFO power plant for IAMGOLD's Essakane mine in Burkina Faso

•Chariot holds equity of 10% in project

Ok. Just explain to me:

How do you know Anchois is commercial?

Whats is the estimated production rate?

Who exactly is going to fund the testing of the wells already drilled?

The FEED already done was for a much larger project than the one currently envisaged. All that work needs to be reviewed. And the funding for that will come from whom???

I don't think that ENOG leaving Anchois would be good news for us. We will have to spend more time to rethink the project, fund additional exploration and testing of wells, etc.

All of this will mean more shareholders dilution. The simple passing of a few months' time analyzing options and future steps without ENOG on board will be negative in terms of cash flow, and very damaging to us