Member Info for Fernan10

Chariot drilled the 4b barrels Nimrod prospect in 2012. I was a shareholder at that time. It was a duster (well result announced in September 2012).

I can answer that.

They will make another share placing 6 months from now.

The only question remaining is what prospect/new business opportunity they will present to justify the placing

These numbers are insignificant in comparisson with what an eventual development of Anchois could generate.

Lower case: 70 mmcfd x US$ 10/mcf x 365 days: annual revenue of US$ 255 million (gross)

An (after farm out) equity net of, say, 30%, could generate an annual revenue of US$ 76.5 million (net to CHAR).

This is the same CFO that a few years ago was talking all over the internet about "returning significant amounts of cash flow to shareholders".

Chariot Ltd will have a 65% equity interest in Chariot Generation and Trading.

Chariot Gen and Trading will have the following assets:

*US$18 million (ZAR 296 million) cash

*24% holdings in each of the Zen and Bergriver wind projects in South Africa

*34% effective economic interest in Etana (Chariot will then have a 22.1% indirect equity interest in Etana)

*Potential future wind and solar generation projects in South Africa

It´s clear that , from now on, CHAR will be managing all future renewable energy business opportunities in South Africa through Chariot Gen and Trading.

Mahlako Energy Fund paid US$ 17 million to acquire a 35% equity interest in Chariot Gen and Trading. Then, CHAR´s 65% equity participation is valued at US$ 31.6 million.

I understand that the following renewable energy assets will not be within the scope of work of Chariot Gen and & trading and, therefore, should be not included in that valuation:

- green energy project in Mauritania

-water desalinization project in Zimbawe

- power generation projects for specific mining companies in Zambia and Zimbawe.

I also suspect that the power generation project currently being planned to serve the Tharisa mine in South Africa is out of the scope of Chariot Gen and Trading.

Regards

So far, the only companyy that invested in Chariot's moroccan gas prospects (Energean) has already left the boat.

Let's see if they are able to find another one willing to risk a few millions here.

I can even make a point that NEWCO O&G will be a better option for ONHYM to provide a parent company guarantee than Chariot Ltd.

NEWCO will operate as a pure O&G company, with a reduced management team, lower overheads, and without the obligation to fund green hydrogen or water desalinization project costs.

I don´t think the replacement of current Chariot Ltd´s parent company guarantee for tomorrow´s NEWCO O&G´s guarantee will rise any significant issue with ONHYM, in this particular case. It´s not that we are replacing a financially strong company for a weaker one. Both today´s Chariot Ltd and tomorrow´s NEWCO are expected to be cash strapped parent companies, with no income, depending on future share placings to keep the lights on.

Of course, as Surfit suggested, if NEWCO O&G substantially changes the management team, ONHYM will probably need to analyze the demerger before approving it. But that´s a different story. And I´m sure CHAR will keep the same executives in charge of NEWCO, including (regrettably) Duncan

I noticed that some posters here are worried about the implications of the pending demerger to the legal status of the exploration licenses in Morocco, and other contracts to be eventually signed with ONHYM.

I don´t think that the demerger will have any effect and/or put in place additional obstacles to the contracting activity going forward.

Normally, the exploration licenses, farm in contracts, etc are signed by a local subsidiary (i.e. Chariot Morocco) fully controlled by the parent company (Chariot Ltd). This local subsidiary is the legal owner of the exploration rights.

The assignment of each business unit to an individual subsidiary facilitates the eventual selling of that business unit. In such a case, if someone wants to buy the O&G division (that would be a miracle!!!!!) then the parent company (Chariot Limited) simply sells its shares in the subsidiary.

In the upcoming demerger, Chariot Ltd will transfer the ownership of "Chariot Morocco" to the new entity. And the same will take place in the case of the renewables division.

Before, during and after the demerging process, the O&G subsidiary will be ready to execute any contract with ONHYN or any other eventual partner.

Regards

Surfit:

maybe you need to stop your 24-hour obsession with CHAR.

Stop thinking about what was wrong, stop averaging down, stop investing more of your hard earnt money here.

They don´t care about us, they don´t care about your questions, AP is only thinking about his upcoming trip to the space. Period.

Next year they will ask us to put more money on the table, to fund their next "new business venture". You simply say not no that requirement, assume you have made a bad investment decision, and continue with your life.

This is what it is. You can send thousands of questions to them. They simply don´t care.

CHAR started floating in 2008 at around 150 p/share. 17 years later, it´s trading at 1/100 of that value. Let´s hope he finds the right "formula" for us to start making any money soon

So, the CEO of a company that has destroyed millions of shareholder value during the whole 17 years of operation, and that has never produced any income, is going to the space....he should be feeling very proud about his achievements....

Hi Surfit.

Thanks for you reply.

As a comparison, let´s take a look at the farm out agreement announced yesterday by Eco Atlantic (Oil&gas) in relation to their Orinduik block in Guyana. The farm in partner is Navitas Petroleum.

Highlights:

"Navitas has been granted the Orinduik Option to execute a farmout agreement to farm-in to the Orinduik Block offshore Guyana such that, on exercise, Navitas will make a US$2,500,000 payment to Eco and become the Operator of the block with an 80% working interest, subject, inter alia, to customary government and regulatory approvals. Eco's remaining 20% working interest will be carried in respect of the work to be performed in the Orinduik Block, which may include drilling the first exploration well or performing an appraisal programme over the existing Jethro-1 and Joe-1 heavy oil discoveries. The Orinduik carry is capped at US$11m net to Eco and excludes mobilisation costs, if any."

"The amounts carried by Navitas will be repaid via Eco's share of proceeds from future production "

https://www.lse.co.uk/rns/ECO/strategic-partnership-with-navitas-petroleum-ajbfrh8o4vnk2f1.html

Regards

Hi Surfit.

You wrote:

Keith analysis on CHAR is unfortunately accurate imho. Especially the reasoning on the 40 prospective partners and the reality of the Energean deal."

what analysis were you talking about?

Regards

Surfit: you wrote:

"Chariot BoDs used the promise of Morrocan GAS to fund wages and the renewables Arms at the cost of additional drilling and flow testing to fully prove what we had (or did not have) in Anchois/ Rissian and Loukos."

Yes, and that´s the reason this management team has lost all credibility.

I´m not going to average my purchase price down, I´m not putting any adicional money here. Just wait and see if they are not as incompetent as they seem.

Regards

I suspect any potential candidates to farm into Rissana will call Energean about the reasons for their departure.

Energean´s answer could be:

1. the prospects are excellent, but we have to leave because of our internal issues (i.e., the cancellation of the selling of some of our assets).

2. Ducan Wallace´s analysis and seismic interpretation is BS, this guy is a clown, there is a very low chance of finding gas in the area. Prove of it is A3´s resounding failure.

It could be a combination of the 2, or something in the middle.

Regards

At some point in time, it will be necessary for Adonis to evaluate Duncan Wallace´s qualifications for the position. This guy has been an unmitigated disaster for the CHAR.

He sold Loukos as a low risk and quick way to achieve short term cash flows....then the company raised money to drill and test the wells...and even more money to commercialize the gas that was supposedly found......and nothing happens at all.

The only company that seemed initially interested in exploring the potential of the Lixus and Risanna licenses (Energean) has already left the boat.

They didn´t bought Duncan´s theories about flat spots, AVO anomalies and all the other signs about the presence of gas.

It would interesting to know what Duncan really expects from all these propaganda efforts

Hi Surfit.

You wrote:

"WHY would such a large organisation consider CHAR? I do not understand that at all?"

I worked for a big international O&G engineering and construction company. We built O&G pipelines, refineries, onshore oil tanks and upstream facilities.

Each time we look to enter in a new country, the first thing we did was looking for a “local partner”.

That partner was always a small local E&C company, with solid business experience in the country we were looking to enter to.

After identifying the right partner, we execute an MoU with them, in order to jointly bid for the projects. The local partner normally has a 10%-20% economic interest in the partnership.

The “local partner” provide us info and contacts in relation to:

-government entities in charge of the project we look to participate in

-local regulations

-labor unions, and the level of difficulty to deal with them

-local competitors

-labor costs, social benefits, taxes, inflation rates, and all the info required to budget the construction cost for the project we want to bid for

In exchange for that, by partnering with us, the small local construction company had the change to bid for big projects that otherwise they couldn´t bid for on their own.

I think the same reasoning has been applied by AWCA and CHAR in the MoU announced yesterday.

It looks very promising for CHAR.

Regards

These guys are not small fish. They are not in the game to develop just a few megawatt here and there

It seems they are going to put heavy bets in the south african renewable energy market.

And they chose Chariot as their "local partner", in order to leverage CHAR´s relationships in the region.

In spite of having no details of the agreement, it looks very promising for CHAR. Maybe Adonis has a lot more prestige in South Africa than in AIM investment forums

By the way, and as I said before, this Mof U has nothing to do with Anchois