Member Info for Fernan10

I would like management to provide more clarity on future business strategy in the AGM, what kind of business segments they will concentrate on, and what kind of "new ventures" (ideally no more "new ventures" after Namibia, please!!) they will pursue.

If we are going to spend US$ 2 million to secure an oil exploration license adjacent to areas where 10 billion barrels have already been discovered, that´s OK for me.

But, in that case, we need to stop funding water desalinization plants or similar projects with no significant added value.

Time to stop stretching too much and concentrate limited management resources to develop the best projects (Anchois, onshore gas and Namibia, if we can grab it)

Ok Jimmy. Thanks

I just only hope the "new venture" is located in the Orange basin, where the recent big oil discoveries are located, and not in the Walvis basin (where no oil has been discovered yet). CHAR has previous experience in both basins.

If it´s in the Orange basin, it could either be in the namibian or south african section. The potential for the south african area is still to be explored

The announcement has 2 paragraphs in contradiction:

· "As part of the Subscription, certain Directors and senior managers of the Company intend to subscribe for New Ordinary Shares for approximately US$1 million (£0.8 million), of which Adonis Pouroulis intends to subscribe for approximately US$0.7 million (£0.5 million)."

"Adonis Pouroulis, Andrew Hockey, George Canjar, Julian Maurice-Williams and Duncan Wallace the "Participating Directors") have indicated their intention to invest approximately US$4.6 million (£3.6 million) in aggregate for 8,124,552 New Ordinary Shares pursuant to the Subscription at the Issue Price.".

The second paragraph should be wrong. 8.124.552 subscribed at the issue price don´t equal to US$ 4.6 million.

Maybe the result of a "copy and past" from a previous placing announcement.

What happened here is absolutely incredible: at the same time shareholders were worrying about how the company will close the forecast funding gap, management were carefreely looking for another "business opportunity".

The money to be raised through this placing will last only for a few months.

From the announcement: "Any potential delay in FID and its associated cash inflows would necessitate appropriate management actions to mitigate."

There are lots of prospects to explore/develop in Anchois...idem for Loukos....but now, they divert their attention to a new venture opportunity with "multi billion barrel potential"....whats the next step???? chasing new green hydrogen opportunities in Asia or South America?

I bought here in January 2022, right after the Anchois gas discovery, at 10p. This is the 3rd share placing I have to endure in 2 1/2 years. With each share placing, my potential return for the project that originally caught my attention (Anchois) diminishes.

This is an incredible way of doing business.

The finest example of the "jam tomorrow" management style.

Let´s assume the reality.

History of CHART´s share placing in the last few years:

2.022: 18p

2.023: 14 p

2.024: 6.5 p

2.025: ???

2.026: ??

There is no chance this will be the last share placing.

The quest to find "new ventures" will not end here.

By the time they have all the projects they want the share count will be astronomical.

Management don´t care about the balance sheet. There is always the chance of a new placing to cover any funding gap.

In addition to its high production costs, there are other issues with green hydrogen: lack of infraestructure, markets, etc.

It seems this "futurist" business division will be a drag on CHAR's financial resources for the next few years.

I still think the market assigns a negative value to this "yet to be proven economical" business unit.

Hi Jimmy.

In the case of Chariot, I understand they are planning to use the green hydrogen as raw material for the production of ammonia.

Regards

Interesting video about the subject:

https://www.youtube.com/watch?v=3uxgli37u-o

Remember that the energy equivalency of hydrogen is as follows:

1 barrel of crude oil= 47.3 kg of hydrogen

https://h2tools.org/hyarc/calculator-tools/energy-equivalency-fuels

Still a long way to go for green hydrogen to be competitive with crude oil on an economic basis.

Regards

Let me put the valuation problem in another way:

suppose CHAR decides to split the company into 3 separate business units: natural gas, renewables and green energy. Each business unit to be carried by a publicly traded company.

How much each poster here will pay for the shares of the companies in charge of the renewable and green hydrogen businesses? based on what fundamentals? what is the selling price, the unit and development cost, the tax burden, etc, that the NPV of each project is base on?

It´s no surprise the market attributes cero (o even negative) value to those divisions.

Regards

From note 2 to 2023 Financial Statements

"Over the forecast period the Group estimates a gross $6.5 million outflow in respect of the transitional gas overhead and other related costs before any recovery of development costs from joint venture partners."

Another way of interpreting that sentence: the directors expect that amount to be recovered from JV partners (ENOG, ONHHYM) but, nothwistanding that, they decided to inform the expense to be incurred in the "forecast period".

If that interpretation is correct, and the JV partners finally reimbursed that amount to CHAR, then the "forecast cash flow déficit" for the "forecast period" (until end 2025) will be substantially reduced.

"No not a penny until the field is producing and cash coming in , ENOG is covering everything, all costs for everything,"

Not sure about that.

From note 2 to 2023 Financial Statements:

"Over the forecast period the Group estimates a gross $6.5 million outflow in respect of the transitional gas overhead and other related costs before any recovery of development costs from joint venture partners."

It seems that this "transitional gas overhead" cost will no be repaid from ENOG, at least during the "forecast period" (i.e., until end of next year).

I´m not sure what type of expenses are included in that "transitional gas overhead" item of cost. Are they all referring to the Loukos license, Anchois or both of them?

Otherwise, it wouldn´t have any sense to include this item of cost in the forecast cash flow deficit informed by CHAR´s board.

The most important part of today´s announcement, when it materializes, it will help to reduce the forecast cash flow deficit.

Regards

Initial Operating Cash Flow (net to CHAR) of no more than 3 or 4 million per year.

Regards

By the way, today´s news release is very positive.

Had CHAR´managers hadn´t a clue about Loukos gas flow rates, they wouldn´t have advanced the agreement with Vivo.

Unless they like negociating future partnerships based solely on dreams and desires (I hope not).

Regards

Surfit:

it would be interesting to know the interest rate to be paid by SOU to the local Attijarifawa bank for their gas development in Eastern Morocco (they have already received a non binding term sheet from the bank).

Of course, the idiots here will be starting to complain about "irrelevant read-through valuations" from SOU to CHAR, and all that. But I can live with them.

Regards

Surfit:

The carry by Energean "has a coupon of 7% over the one year Secured Overnight Financing Rate (SOFR)".

It equals to 12.32% p.a.

Then, after FID, it´s highly likely that CHAR will be able to secure another source of funding, at a lower cost.

The carry financial cost acts as the "maximum financial rate" that CHAR will have to pay to fund the development of Anchois.

Regards