Member Info for Jimmy23

Oneryan1
The stena drilling website shows the rig as preparing for contract in November and booked as under contract in December and January.
Not long to go.
Jimmy

Hi goonerpete
I don’t think people realise that drilling up dip from a proven gas discovery is very low risk by exploration standards. That’s why chariot were able to secure an offtake contract . Chariots brokers valued chariots interest in the field at $500 million or approx 50 p a share , yet that was before the large increase in gas prices. The tax terms in Morocco are that first ten years of profit are tax free so the increase in gas prices goes straight to the bottom line.
With an offtake contract in place, securing finance is straightforward., hard work but very doable.
This is an incredible investment opportunity with high probability of going to 50p and then there is the hydrogen project in Mauritania as a fall back asset which is I believe will be huge.

Jimmy

BBC news have a good article on the role of green hydrogen , while the article is focused on floating wind turbines which are costly, solar energy in Mauritania to generate hydrogen will be so much cheaper due to the abundance of sunshine.

See
https://www.bbc.com/future/article/20211103-can-renewables-replace-fossil-fuels

This share price is incredible value with an updip low risk gas appraisal imminent and gas offtake contracts in place, then green hydrogen for free.
The banks will be throwing cheap long term funds on low cost green hydrogen

Jimmy

That’s very interesting about the danish hydrogen company looking to list on Nasdaq Europe and raise €134 million. Prospectus not yet published.
Been researching hydrogen economics and eu and uk govt reports confirm that hydrogen is the optimum clean fuel in certain sectors such as heavy goods transport , industrial machinery, as confirmed by the recent Jcb hydrogen announcement. The economics appear to require that hydrogen be priced at circa £1.80 per kg to compete against natural gas, this was based on a uk 2020 report when gas prices were more than 50% less than current prices. Mauritania has long sunny days so it’s probably one of the optimum locations in the world and it would be interesting to learn what the cost of solar powered hydrogen would be, my guess and it is a guess is that it’s about €1.30 per kg , and the Eu hydrogen report indicates that 80% of such costs would be Capex , so the key for chariot is to secure an off take partner, such as an oil major and secure project finance on the back of the offtake contract, and then scale up.
Intuitively, if it’s economical to build a hydrogen pipeline from Australia to Singapore, as recently announced, it’s likely to be very profitable to generate hydrogen in Mauritania for Europe. I wish I could get a detailed handle on the economics to understand the scale of the opportunity, but one thing is clear there is no value in the current share price for Mauritania .

Hi sailplane
Anchois was discovered in 2009 by Dana petroleum, who think got taken over by the Chinese.
I suspect that field size of circa 330 bcf was not big enough to justify a standalone platform in those days.since then subsea completions with pipeline to onshore process plants have become much more common and cheaper hence making the proven gas a likely development candidate.
Jimmy

Hi Klien
I am sure AP is enthusiastic for new good reason . As this is a new market and chariot is valued so cheaply, I suspect there is little value in the share price for such a project. We have brokers report quoted in the corporate presentation putting a value of $500 million on the gas project if this next well is successful. There are plenty of comparators to value undeveloped oil and gas fields.
I suspect the hydrogen project is scalable but I don’t know the comparative valuations . Anybody any ideas of company valuations for hydrogen projects. Hence my suggestion for a brokers report so there is transparency about the potential. I know, it’s subject to a feasibility report, but I don’t know if this could generate 10m per year or 100m .

Jimmy

I was wondering could the Mauritania project use solar energy and seawater to generate hydrogen as per the technical paper I posted yesterday and be tweaked so that desalinated water was a by product.
I think a brokers report is required to inform investors as to the economics and shareholder value that this project could generate. Clearly the company would not have started such a project before scoping out its potential. I appreciate that the company have to perform a full feasibility study , but this is proven technologies. I suspect it could be huge but don’t know enough about economics. Producing hydrogen for transportation would probably be priced similar to diesel and with saltwater and solar energy as the raw materials it’s seems intuitive that this would be very profitable . With fossil fuels likely to increase in price due to climate change taxes this looks very exciting.
Broker report please .
Jimmy

Pnas.org

The technical report is called

Continuous electrochemical water splitting from natural water sources via forward osmosis

It can be found on a website pans.org.

This process describes the use of seawater.

I am very much looking forward to the gas appraisal as drilling updip from a proven gas discovery is certainly low risk.
The new transformational power strategy has intrigued me. Another poster questioned the viability of generating hydrogen from water in Mauritania which has little fresh water and asked the reasonable question as to how this could be done with seawater.
A recent technology break through describes how this can now occur with seawater
See
https://www.pnas.org/content/118/9/e2024855118

With plenty of sunshine in Mauritania this now looks very interesting and transformative

Jimmy