Member Info for Fernan10

In addition to the fully funded wells informed by Harel, I think (if my memory is right) we still have a one well carry by Total on the Canje block.
Regards

Fernan

Hi Jimmy.
I think we have more than 4.5 tcf of prospective resources, including the subnape and Rissana License.
Hence my target of discovering 4 tcf (gross).
Regards

"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."
I followed your "advice" and read the news release:
"Supplying domestic demand in Morocco will be Chariot's main market but access through the gas pipeline into Europe provides a further potential revenue stream. "
I haven´t changed my mind in relation to future prices.
any other advice?

I want management to keep shareholders dilution to a minimum.
I want them to fully dedicate their efforts to develop Anchois.
After we get Anchois to the production stage, we can reinvest the resulting net free cash flow to explore the remaining gas prospects, both in Lixus and Rissana.
At gross production of 70 mmcfd and a selling price of US$ 9/mcf, we can have an operating cash flow (net to CHAR) of US$ 144 mm/year.
Gross operating cash flow: (70.000 mcfd/d X US$ 9/mcf X 0,965 (3,5% royalty) X 365)- OPEX US$ 25.000.000= US$ 197 mm/year
Operating cash flow (net to CHAR): (US$ 197 mm X 75% - G&A Expenses US$ 4 mm): US$ 144 mm/year
We already know that the cost of drilling a well in Anchois is around US$ 20 mm.
After allocating part of the net operating cash flow for the repayment of debt, we will still have a surplus to reinvest in drilling and exploration expenses in the Lixus and Rissana licenses.
Lets assume that, after drilling 3/4 wells per annum, we discover 4 tcf of gas (gross), with a net present value of US$ 3/mcf (last report from management indicated a NPV of US$ 2,5/mcf, but it should be higher in the future). Let´s also assume that, by the time we make those discoveries, we have 1.5 b shares outstanding.
Then, our "fundamental value" will be:
4 tcf X 75% X US$ 3/mcf / 1.5 b shares: US$ 6/share

This is the road that I would like management to follow. No new ventures, no new exciting projects, no distractions from the development and exploration of Anchois and the Lixus and Risanna licenses.

Regards

Hi Jimmy.
I´m not sure we will be able to take full advantage of higher european gas prices.
I think it´s highly likely that our public partner ONHYM will ask as to prioritize supplying the local market, at "reasonable" prices, in order no hurt local demand or create excessive inflationary pressures in the moroccan economy.
As a side note, Cenkos mantained their target price for the shares, because of "the recent rise in the European gas price forward curve offsetting the dilution from the placing." (page 1 of the report)
So, it seems that, in Cenkos view, because of the recent fundraise to chase unknown "new ventures" (among other things), we shareholders have lost the benefit of future higher european gas prices...
Let´s hope that, from now on, management keep focused on developing Anchois, and won´t dilute us further to fund an "exciting" new gas project.
Regards

"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."
Not, you are wrong. The easiest thing is to critizice someone who is giving their honest oppinion about what he/she thinks is the best way of treating shareholders.

Hi Ajilimon
Good questions.
The best course of action should have been :
1. If Anchois needs money to keep going ahead, Ok, let´s raise the US$ 15 mm to perform the FEED, complete the CPR, etc. In such a case, dilution should have been only 7%.
2. Use the US$ 4 mm of cash on hand at March 31 to pay G&A expenses for the next year.
3. Bring the CPR with the updated figures, including Anchois satellites and the rest of prospects in the Lixus license.
4. Forget about pursuing "new ventures", at the cost of diluting shareholders at such an early stage of Anchois. Wait for a higher share price before going after those "new ventures", in order to fund them with minimal dilution to shareholders.

For management, shareholders should be the source of money of last resort, always.
All in my humble oppinion, of course.
Regards

Hi Jimmy.
What I was trying to say is that, instead of trying to get the maximum return out of of Anchois for current shareholders, management will likely provide us with a suboptimal yield from that project.
That´s because we are being diluted at such an early stage of Anchois, in order to raise money to pursue unknown "new ventures" and, worse than that, for no clear purpose at all.
Regards

I'm a long term holder here, because I believe in the value of Anchois.
Regreatly, the project can be managed by itself. We need a management team.
Now I'm not so sure management will realize the full value of the project for us.

"The truth is, we don't know how that additional 20% is going to be allocated to/for"
"We can safely assume that 75% of whatever the company ends up raising will go to Anchois."
That is exactly my point. They have used a highly profitable project to raise money from shareholders, without a clear purpose.

Regards

They are raising US$ 29 mm in total. Only US$ 15 mm are invested in Anchois. As for G&A expenses, they already had US$ 4 mm at the end of March to pay for them.
So, the remaining US$ 14 mm being raised is not related to Anchois neither to pay for G&A expenses.
Regards

This management have produced a string of economic failures for the last 10 years.
Once they found a potentially highly profitable project, instead of trying to maximeze shareholder´s return, they seem to be using that project to get money from shareholders, in order to pursue new ventures and build an empire, diluting shareholders in the way.
Anchois looks excellent for us, management not so.
Regards

The Cenkos report confirmed what I said yesterday. Only US$ 15 mm of the placing is to invested in Anchois. The balance is more related to developing marginally economic renewable energy projects, new ventures, etc.
We shareholders have been forced to sell a 13,6% equity interest in a potentially highly profitable project, in order to contribute to management to "build an empire".
I would like management to concentrate solely in developing Anchois, and forget about all the remaining projects. I´m sure our future return per share will be much higher than currently envisaged.
But, without a few exceptions, management always prefer to buiding empires rather than maximizing shareholer returns.
Regards

These are the reasons provided by management to perform the equity raise last December:
"The net proceeds of the Fundraise will be used to:
o Re-enter the Anchois-1 discovery well as an additional value-accretive work opportunity capitalising on a low-cost rig rate secured for the Anchois-2 appraisal campaign, due to spud in December 2021, offshore Morocco;

o Finalise negotiations of gas sales agreements and financing to unlock Final Investment Decision on Anchois;

o Progress new ventures on debt fundable, material producing gas assets focused on Africa;

o Fund a feasibility work programme on large-scale green hydrogen project in Mauritania; and

o Progress the rapidly developing Transitional Power project pipeline under recently expanded partnership with Total Eren."
The money was seemingly required to "finalize negociations of gas sales agreement and financing", among other things.
Now, 6 months later, they asked more money to do what it should be completed by now?

And only US$ 15 mm of the equity raise is going to be invested in Anchois (see "Use of proceeds" in yesterday's press release).
The balance is going to be applied to the development of a pipeline of renewable projects (that have minimal economic value) and "working capital purposes".
This equity raise is more related to "building a renewable energy empire" than "maximizing future value for current shareholders".
Regards.

Good morning.
I remember from ECO´s past presentations that the cost of drilling a well in Orinduik will be around US$ 50 mm (gross).
First well drilled by CGX energy/Frontera (Kawa-1) cost them US$ 150 mm (gross) .
Their second well (Wei-1) has a drilling budget of US$ 93 mm (see press coment on that well below).
do you know if there is any reasonable explanation for this diverse numbers?
how much are we going to need to fund the next well in Orinduik?

Regards

https://oilnow.gy/featured/cgx-prepping-for-next-target-on-corentyne-block-with-initial-cost-pegged-at-us93m/

"Between 2022 and 2025, Petrobras announced a new round of investments, six of which will be on the dividing line with French Guiana. In total, R$ 8 billion will be invested in the drilling of new oil wells, in order to foster new jobs and income for the Brazilian economy, including the Pará-Maranhão basins“The Brazilian Equatorial Margin is one of the biggest investments for the oil industry on the planet. At that meeting, Petrobras showed that this basin is a priority,” said Alan Kardec Barros."
"Studies carried out by the state-owned company demonstrate great potential for oil exploration in the sedimentary basins of the Brazilian equatorial margin, which encompasses the basins of Foz do Amazonas, Pará-Maranhão/Barreirinhas and Potiguar."
“The wells in Guyana and Suriname, plus these discoveries in Africa that are giving a lot, aroused Petrobras' interest in the Equatorial Margin region. And the company announced that it will drill wells in the Barreirinhas Basin”, explained Alan Kardec.
https://clickpetroleoegas.com.br/en/petrobras-invests-r-8-billion-in-the-next-five-years-to-drill-oil-wells-basins-for-maranhao-station-among-state-priorities/

As I remember, CHAR´s exploration blocks are located in the Barreirinhas basin, with one prospect having around 900 mm bls of gross unrisked prospective resources.

I don´t think this is the right time to sell those licenses.

Regards

https://news.cgtn.com/news/2022-04-28/Algeria-threatens-to-cut-gas-to-Spain-amid-Morocco-tensions-19AWDNJyRjO/index.html

https://news.cgtn.com/news/2022-04-28/Algeria-threatens-to-cut-gas-to-Spain-amid-Morocco-tensions-19AWDNJyRjO/index.html

SOU currently has no money to drill any well