4x coming very soon12 Nov 2020 21:48
this is a buy and hold
Perhaps refer to what Simon said Chariot primed for further share price gains ¦ Non-binding expression of interest to fund the Anchois gas discovery. ¦ Offtake discussions ongoing. Aim-traded Chariot Oil & Gas (CHAR:6.48p) has received two non-binding expression of interests to provide development funding for the company’s Anchois offshore gas discovery in Morocco. It’s a huge resource with an estimated 361bn cubic feet (bcf) of 2C contingent recoverable resources, and 690bcf of 2U prospective resources. The fact that two highly regarded institutional lenders – African Finance Corporation, a Pan-African infrastructure institution, and a well-known multinational bank – have endorsed the project underlines its quality. It’s also significant given that capital expenditure of US$300m to US$500m needs to be funded to bring the development on stream. Chariot is also engaging with potential off-takers both within the domestic Moroccan gas market, and through the Maghreb-Europe pipeline to the European gas market. Investors have reacted positively to the news. In fact, the share price has surged 70 per cent since I highlighted the buying opportunity three weeks ago (‘Priced for profitable outcomes’, 12 October 2020). If Chariot secures both an offtake agreement and the development finance, as seems increasingly likely, then the share price could easily treble or quadruple given that analysts’ risked net asset value of $153m (£118m) for the Anchois gas field is five times Chariot’s own market capitalisation of £24.5m. Buy.
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