Member Info for Jimmy23

Brv,

The comparison with chariot fails to mention the anchois field capex carry and also fails to mention the impact of prd issuing a further 200 million shares , as per resolution 3 to further the cng development, presuming we get a good flow rate from mou 3 which I expect.

Yes, I am disappointed that chariot diluted its shareholders by approx 10% which is the risk of investing in pre revenue companies such as chariot and predator.

Jimmy

I am certainly disappointed by this fundraise even though it’s less than 10% equity dilution, even though I do like the Namibian acreage.

Chariot need to be laser focused on getting to production cashflow asap, from onshore to remove the dilution risk from its equity valuations.

Chariot need to start delivering on third party financing for its renewables business

My guess for the Namibian acreage is blocks 2714 an and b adjacent to galp blocks.

Jimmy

Why do you post about chariot on the predator site.

Get the impression some prd investors are upset with chariot.

Why?

J

Tear drop.

Chariot have further funding and capex finance from its its anchois.

I am anxiously waiting on flow testing results from both chariot and predator and fully expect a further equity placing after its flow testing, maybe that’s why there is a delay in announcing flow test results.

Jimmy

So tritoretire.

When is the next prd share placing to fund repayment of directors loans and finance Trinidad.

J

Nice close on the shares to night.

Up 4.37% and the bid offer spread has narrowed from 10% to 4.7%.

Hopefully an Rns on Monday,

I don’t like Friday rns,s

J

Keith.

The shallow gas is not included in the sand jet perforation programme as announced on the 6th June 24.

We do not know how laterally extensive such shallow gas sands are , which will require a flow test to determine and we have no time frame for this.

I just hope that the recent focus here on shallow gas is not setting the scene for disappointment on the zones that are being flow tested.

J

Fernan,

Crude oil has to be refined before it can be used. A better comparison is to natural gas or lng

J

I agree Ibiza28.

I just pray there has not been another delay to flow testing.

Let’s hope for a good rns by mid next week.

J

We should be getting details of the planned loukos flow testing of 70 gross meters in q3.

They should have worked out the net meters to be tested by now , which in turn will determine the likely flow rate.

Then anchois 3 and a potential 50% increase in proven gas volumes, at low risk.

Jimmy

Bold,

You are correct that chariots renewables are valued at nil by the market.

Part of that problem is that shareholders have little to no financial information regarding the performance of that division.

The reason is that the investments are made via special purpose vehicle entities in which chariot hold minority interests in such companies which also have high levels of project debt in each spv investment. So until the spv debt is repaid, no spv dividends can be paid to the investors in the spv and hence no indication of the performance of such investments.

However, as the debt is being repaid in each spv, real value is being generated but shareholders cannot see this.

Chariot is accounting for its renewable investments in accordance with accounting rules.

However, chariot can include additional voluntary information regarding the performance of its renewables in its accounts. For example it could report the amount of project debt in each project, it’s % equity ownership of each spv and the change in debt in each spv, this would provide a rough estimate of the cash generation of each spv and allow shareholders to estimate how long each project will take to pay a dividend to its equity investor. Hence value creation is more obvious.

Just a thought, perhaps others might have other ideas.

Obviously , a third party equity investor in the renewable holding company would also provide another basis for valuation and potentially release cash to the chariot.

Jimmy

Interesting read at.

https://www.prospectmagazine.co.uk/ideas/economics/67236/thatchers-mistake-london-stock-exchange

Jimmy

HB,

Great article that sums up the poor valuations in the uk market and how most uk pension funds are investing abroad.

Proposals to stop exploration in the uk will only make matters worse.

Jimmy

Porters,

With regard to your question of follow on funding for cng development prd has a number of options on the back successful flow testing.

1. Prd has signed a letter of intent with a local company, owned by the prime minister I understand, to distribute cng in morroco. That loi was for 12 months so good to get flow testing data soon. It’s expected such a company would put up much of the capex finance as the price for a deal and be repaid from future sales.

2. A number of companies have secured advance sales funding from customers which can be used to finance capex.

3. Much of the capex relates to mobile trucks and tankers which can be leased.

5. Finally prd passed a resolution for directors to have authority to issue shares, which can be used to fund the balance of funding.

There is a heavy discount to prd share value as the wireline log interepretations of nuetech require validation by flow testing, and the risk of large equity dilution. I believe these risks will be substantially reduced and the share price re rated if flow testing is successful, which I expect to happen soon.

Jimmy

Unwin,

Perhaps you know more about chariots acreage than energean who farmed into its offshore acreage and will carry chariot through development to first cashflow.

It would be great if you could explain this to chariot investors on the chariot LSE site.

Jimmy

Lancy,

That newspaper article from 2022 was mostly about generating renewable power from solar and wind and exporting it to uk , as was proposed by a uk consortium.

With regard to morroco gas the article stated.

“ If all goes according to plan, Morocco will be supplying seven million British households with green energy, while Moroccan gas can be used to heat local homes.”

There is no hidden message in that article regarding predator or other morroco gas explorers, just govt policy too meet local demand first before exporting.

Jimmy

Good morning wacky.

The last corporate update issued by prd included the following statement regarding the jurrasic at guercif.

“ The prospective reservoir fairway is an Early Jurassic carbonate sequence and different from the sequences of sands for the Moulouya MOU-3 structure. The primary reservoir target and structural setting has never before been tested in Morocco.”

It would therefore appear that the Exxon Mobil offshore acreage has no relevance to the mou 5 prospect.

Jimmy

The last corporate update stated that mou 4 carbonates are to be flow tested.

“ A carbonate interval in MOU-4 has also been selected for possible perforating with Sandjet in order to calibrate the NuTech petrophysical log interpretation over this interval which is located at the extreme edge of the Jurassic structure to be tested by MOU-5.”

This will hopefully establish the proven gas down to level and indicate the flow capability of a2 meter section of carbonate reservoir which in turn can be used to calibrate the mou5 logs.

This is really important in my view and if successful will increase the chance of success of mou5 which is currently better than 50%.

In the meantime we wait on the mou3 flow testing results which hopefully will result in a clear pathway to production cashflow and a share price re rating , probably followed by a fundraising in my view. That’s ok as it will be to finance production cashflow and hopefully end the the need for pump and dump equity financing.

Jimmy

Energean see huge potential, not just to increase proven reserves at anchois but to increase daily production to 200 mmcf per day which will be a huge cash generator for chariot from first production.

Chariotsannual report also includes reference to sub sea fan deposits , in deeper water, which elswhere in Africa have giant reserves.

There is a huge amount of value for such a low price.

I am confident they will sort out short term financing without equity dilution.

Jimmy

Drilling the jurrasic will happen after we enter the next licencestage,

Got to complete sand jet perforation at mou 3 before that is to happen.

Ram head is interesting but for political reasons in Ireland and distance from infrastructure and offshore I view it as the highest risk and lowest value for predator.

There is a logic developing corrib south that simply does not apply to ram head.

I get worried when the chat here is about the high risk assets in Ireland instead of flow testing for near term cashflow in Morocco.

Jimmy