Member Info for Fernan10

Interesting post Bigguboi. You made me think about how an eventual equity raise to fund Anchois development would be.
Assuming we don´t get a partner, I think that an eventual raise would take place after signing the gas sales and bank funding agreements (of course, the bank loan will be conditional at CHAR making their own contribution to finance the project).
The secuence will be:
1. gas sales agreement
2. bank loan
3. equity raise
Each of the first 2 steps, when done, will cause much higher share prices.
Then, this eventual US$ 100 million will be raised at substantially higher prices than today. I then expect that the share issue will no be greater than 300 million shares.
Regards
Fernan

Gil commented that he was approached by companies interested in farming into the block.

From Align research report:
"The Gazania-1 exploration well is expected to be drilled in H2 2022 at a cost of US$25 million. As Azinam farmed into this block Eco will have to finance some 72% of this well for a net cost of US$18 million for its net 50% Working Interest."

Thanks Jimmy.
Nice to see a professional answer after all that non sense.
Regards

I'm concerned about dilution. This is why I asked about the cost.

Hi bigguboy.
It would be a nice question for the next conference call.
Regards

Fernan

Hi. Thanks for your comments.
One of the sources I mencioned was updated on September 2021.
See here:
https://ratedpower.com/blog/solar-farm-costs/
Regards
Fernan

Correction: total cost (excluding land acquisition costs) of US$ 1 million per MW (or US$ 1.000 per kw)
Regards

Good morning.
It seems the average cost of building a solar power plant (excluding land acquisition costs) is US$ 1.000000 per MW (or US$ 1.000 per kw), on average.
See here:
https://www.quora.com/How-much-does-it-cost-to-build-a-10-MW-solar-power-plant
And here:
https://ratedpower.com/blog/solar-farm-costs/
Then, the solar project announced yesterday should have a total CAPEX of around US$ 49 million.
If we have 70% of the cost financed by debt, and CHAR contributes 49% of the equity, then our equity contribution should be around US$ 7,2 million
Comments?

Regards

Fernan

I don´t think the December fund raising cover Chariot´s future equity contribution for the project announced today.
Regards

what is the expected dilution to shareholders, in order to finance this solar business?
I think we have a fantastic project in Anchois. It´s the gift that will keep on giving, with all the gas prospects already identified. I don´t like to see our expected earnings from Anchois substantially diluted, in order to fund a project that I´m sure is not as promising as Anchois.
any idea about the cost of the solar project announced today? how much could be financed off-balance sheet (project financing) and what would be our equity contribution?
Regards

Fernan

You will become our "green hydrogen expert" Jimmy.
To be honest, my level of knowledge on the subject (at least for now) doesn´t allow me to ask a single question about that.
Regards

This is 2 years old news

Julian commented that the production area will be cut out from the exploration license, in order to get awarded a detached production license.
If each future production hub is awarded an individual production license, and the 10 year tax holiday applies separately to each one of them, we will have significant tax savings.
Regards
Fernan

Ok Jimmy et al, thanks for your comments.
Excellent brain storming on the fundamentals of the project.
I think the fundamental reason to have this such low share price is the 3 year waiting period to get to first gas.
Regards
Fernan

Hi Jimmy. Thanks for sharing your highly valuable thoughts with us.
I´m not sure the project could be financed 100% with debt.
I think it´s usually for the banks to ask the project owners to make an equity contribution, in order to have a, for example, 75/25 capital structure (75% debt/25% equity).
In such a case, and taking into account that we need to carry ONHYM´s share of development costs, it would be prudent to model some dilution before first gas.
For example:
Equity contribution from CHAR: CAPEX US$ 350 mio X 25%= US$ 87 mio
Assuming a share price at the time of equity contribution of US$ 0,50/sh, we will need to issue 174 million shares.
After first gas, future exploration/development costs will be financed out of operating cash flow, and no more dilution should be expected.
In my oppinion, it could be prudent to make calculations of NPV considering a share count of around 1 billion shares.

Just my oppinion

Fernan

Hi Jimmy
En relation to the eventual leverage of the 10 year tax holiday in Anchois North and West, I understand the following: in the last conference call, management said that the area
to be developed first will be cut out from the rest of the license area, and will be granted a new production license.
I think it will be logical to apply the 10 year tax holiday to all production coming from this area. Maybe we can include the Anchois North and West prospects to be developed and produced jointly with Anchois 1 and 2, hence applying the tax benefit to all of them.
Regards

Fernan

Ok Jimmy thanks.
And thanks to try to keep the talks in a professional level (even with all this noise).
Regards

I´m talking about the info that I as a shareholder would like to see in relation to the project.
I asked the question to Jimmy. I don´t think it´s necessary for you to answer my questions talking about your Lamborguini Diablo.
But anyway, if you are going to buy one, congrats to you. Enjoy it!!!

Regards

I´m not talking about designing the project from scratch now.
But I would like to see a production profile, a drilling schedule and a financing strategy that aim to maximize NPV and take maximum advantage of the 10 year tax holiday.

Regards

Fernan