Member Info for Fernan10

You implied too much from today´s announcement.

Morocco is not included in the list of "initial target countries".

Not even AP talked about any implication of today´s news in relation to Anchois.

Thanks Wiggly

you seem to have the technical background to understand a seismic map.

are you a geologist?

I would love to have one geologist in this forum

Wiggly:

CHAR has a 34% equity interest in Etana.

Other than that, your calcs are reasonable, and supports a higher share price for CHAR.

Regards

Surfit

history shows that the moroccan government has been very accommodative in regards to exploration license terms.

Sound energy has been renewing their Sidi Moktar licenses for years on end, without ever having the chance to get a partner to shot some seismic on the block.

I really don´t worry about that, more so considering that nobody else is seemingly interested in taking our blocks.

Regards

Hi Surfit.

You wrote: "AP has influence now over approx 9% in his purchase as CHAR CEO and 9% with Westward (risk of information and trading conflict?????)"

I think he only has a 9,10 % ownership (through Westward investments)

The "total board and senior management" 9.42% holding seemingly confirms this.

Regards

Surfit:

In Eastern Morocco, Sound Energy got a production license for the Tendrara gas field in spite of it having no previous experience as operator.

The money earmarked to get a new namibian licenses has gone a lot time ago, without any positive result......together with the money raised to drill 4 wells in Loukos, and to develop a commercial framework for the play....

This is not serious.

"They have to find ANYONE to finance Duncan Wallaces Anchois 1 & 2 and OBA-1 "find" to production, without confirmed flow rates or finance MORE exploration."

They are looking to fund the testing of a well that has already been funded by us...pathetic and unscrupulous management

PRD's well informed today was not dry.

There was a formation damage that prevent the testing of the well.

The company said that the resource potential has not changed.

Any idea how much is it to flow test the well?

High selling prices combined with a 10 year tax holiday.

I doubt there is another place on earth where the net operating margin from natural gas production will be higher than in Morocco (in dollars per thousand cubic feet).

Regards

Source:

https://www.marketscreener.com/news/transcript-sound-energy-plc-special-call-ce7c5cd2d181f22d

Sound Energy is developing a natural gas project in eastern Morocco. As part of the project, they are building a micro-LNG plant in the production site. They will sell the LNG at the well site. Then the offtaker (Afriquia gas) will transport it by truck, regasify it and deliver it to their industrial customers.

From Sound´s CEO:

we'll be selling gas over $8 at the well site, don't forget. And therefore, Afriquia will have to pay for the transportation, the trucks, the storage at their customers' site the regasification.

"...we'll be selling gas over $8 at the well site, don't forget. And therefore, Afriquia will have to pay for the transportation, the trucks, the storage at their customers' site the regasification."

"So if we sell gas to them, just use another $8, they probably have a couple of dollars, if not $3 costs that they still have to incorporate into their gas price. So they will be selling gas at maybe $11, $12, $13, whereas if the current customer buys imported liquefied petroleum gas, different type of gas, they'll be paying $15 to $18 for it. So there's a win for Afriquia. There's a win for us"

The fundamentals of the local natural gas market remains solid, and could economically support the delivery of compressed natural gas (CNG) from Loukos, and the development of a downsized Anchois.

The chairman bought a few shares (a great vote of confidence)....and then his wife came and asked him to sell them immediately......."too much risk!!!!" she said

Our management is not totally innocent. They used money previously raised for drilling to pay for salaries and overhead expenses.

But I don´t think they are lying about well drilling results. ONHYM as a 25% partner have access to drilling logs and all documentation produced during the drilling process. It would be impossible for CHAR´s management to lie about that.

Sound Energy plc (SOU.L)

0.6000

-0.0750

(-11.11%)

The combination of strong local gas prices and an initial 10 year tax holiday not only increase the NPV of the project. It also allows for an accelerated increase of reserves (always subject to drilling success, of course).

Regards

Regarding Anchois, the amount of annual operational cash flow will be far more important that the total amount of the resource. A strong annual cash flow will allow the operator to drill more wells and in turn increase the volume of the reserves.

In the last call, Duncan said that a 70-100 mmscfd gas production will generate an annual operating cash flow of US$ 150-250 million (net to Chariot´s 75% interest). That will be equivalent to US$ 200-333 million per year (on a gross basis),

That annual (tax free) cash flow will allow for the drilling of a few wells per year, after payment of debt (interest + amortization).

And the same can be said for Loukos.

Hence the importance of doing a proper (and overdue) flow testing in both projects.

Regards

Jt2017:

Good question.

So far, CHAR has said the following:

"Simulated individual well productivity in the base case is 100 to 200 mmscfd"

"Analogue reservoirs show high productivity over much thinner pay intervals"

Source: CHAR´s dec23 presentation, page 14

"Gas found in main B gas sands – 24m net pay"

"Reservoir quality confirms 50 mmscfd modelled from drilled gas sands in Anchois-3"

Source: CHAR´s July25 presentation, page 8

It would have been very nice to confirm these numbers through a well testing.

If A3 well can produce 50 mmscfd from a net pay of 24 metres, A2 will be able to produce at a much higher rate from its 150 metres of net pay.

In the last call, Duncan said that "rescaled" Anchois could produce 70-100 mmscfd (gross). That will generate an annual operating cash flow of US$ 150-200 million (net to CHAR). That would be equivalent to a net operating margin (after deducting royalties and operating expenses) of US$ 8-9/mcf.

Ultra high gas market prices in Morocco are very positive for Anchois, together with the extremely favorable tax regime.

Regards