Member Info for Jimmy23

Hi fernan.

Just to clarify the deeper sand situation at loukos.

Chariot used re processed seismic and Avo analysis and spectral decomposition of seismic to identify a large increase in anchois resources up dip from anchois 1 well, which was confirmed by the drill results of anchois 2.

The same approach is being used to drill onshore up dip from proven gas at lnb 1 to drill the next two onshore wells. In addition, the deeper 300 meter reservoir which was found in lnb 1 well has now been identified from reprocessed seismic as being up dip also and will be evaluated by the drilling of the next 2 wells.

The reprocessed seismic on page 6 of the webinar presentation shows the lateral extent of such deeper reservoir on the reprocessed seismic.

We know from the webinar that the shallow sands onshore are equivalent to the B sand offshore at anchois, and we know there is top seal and proven gas water contact in lnb 1 well, so gas is definitely going to be found up dip.

Jimmy

The deeper 300 meter sands found in lnb1 onshore the Loukas licence had poor seismic characteristics for mapping its lateral extent, hence the very small prospective resources attributed to it.

Chariot have now mapped these deeper sand below the main reservoirs in both the darfoir and Dartois prospects.

Please see page 6 of the recent exploration webinar and note the seismic signature of the deeper navette sands before and after seismic reprocessing.

That reprocessing has confirmed the lateral extent of such deeper thick sands, which is why I proposed a back of the envelope estimate for its potential. Obviously to be confirmed by drilling results.

Jimmy

Pel 87 contains the giant Saturn prospect and is scheduled to drill in 2025. That licence block is adjacent to chariots block in Namibia.

Jimmy

Wacky,

Can you please advise where in the presentation predator say they have prospects for 7tcf?

Thanks

Jimmy

Thanks fernan , I will have a look.

I would note that chariot have reprocessed the seismic so that could explain the difference.

Jimmy

Hi thebold.

Chariot have identified the deeper sand horizon on its reprocessed seismic only some of which has been received to date. They have identified the deeper zone below the main target of both of the forthcoming wells.

I expect they will want to drill both wells first, validate the gas in the deeper horizon, and then correlate the wells results to the seismic and then re map, using both Avo and spectral decomposition in the 3D seismic data to map the lateral continuity of the deeper gas reservoir. The fact that SDX drilled this deeper reservoir is very encouraging. The mapping of the shallower Avo reservoir indicates the presence of faults which appear to control the reservoir deposition fairway and I expect such fault control to prevail at the deeper reservoir also.

Chariot have identified this deeper reservoir in both its priority prospects . We know the shallower prospects have a reservoir thickness of 10.5 meters based on SDX published data, and that chariot have mapped these prospects in total at 79 bcf. So if the deeper reservoir is50% of what’s been found in lnb1 and the fault controlled area is the same as the shallower reservoir then back of the envelope pro rata that 1tcf.

For reference, anchois 1 had 50 meters of gas reservoir and anchois 2 updip had 150 meters of gas reservoir.

The drilling onshore is pursuing a similar concept and strategy, but at 10% of the drilling costs.

Jimmy

Mr plot.

Lnb1 found a deeper reservoir of 300 meters which will be drilled by the first two wells by chariot.

No prospective reserves announced, but I have estimated it at 1 tcf. Which is huge for onshore.

Jimmy

Bowsled.

The rns stated that predator would commence the contracting of the sand jet immediately after the issue of the next exploration permit.

We do not know how long it takes to get the permit issued, but I suspect that after 5 weeks since the last permit expired that he does not seem to be in a rush.

I suspect, without any evidence, that pg will want to get results from Trinidad first. After nearly three years waiting for sand jet since the drilling of mou 1 and three fundraisers to actual do the work, I just can’t see any urgency from pg to actually do what he plans in a timely manner.

I wish it was otherwise.

Jimmy

Drilling onshore will commence shortly and first well will also test a deeper target which encountered 300 meters of reservoir in the nearby lnb1 well, if successfull could transform the onshore and offshore potential

Also the npv of onshore gas reported at $3 to 5 million per bcf,

Similar geology and seismic signatures to anchois offshore, very low risk

Jimmy

I am really surprised by the current share price.

The farmout to Energean is likely to result in the following cash payments, $10 million on approval by moroccon govt, $15 m on development approval and $50 million on reduction of licence interest to a finance carried development of 20%. Total $75 million or approx 5.9 p per share plus the value of the proven gas of 20% of 635 to 1000 bcf.

Predator valued 1bcf at $2 million npv, so even at half that it’s worth an additional $127 to $200 million or 12 t o 15 p per share.

Value opportunity for investment in a fully funded company, which is misunderstood.

Jimmy

Should read lost circulating drilling mud.

J

Interesting comments from GRH regarding high permeability of the reservoir.

Perhaps someone can answer this, was there lost circulating drilling reported during drilling , as I did not find that in the ITR, can someone post a reference.

Jimmy

GRH,

I am shocked that you received such threats.

Keep safe and well

Jimmy

Hi mariachi.

You are correct, they did not go back and test the well.

Chariot will be drilling updip of that well starting in March.

Jimmy

I am looking forward to the onshore drilling.

Within chariots acreage there is a discovery of 10.6 meters of gas reservoir with porosity of 30.9% as reported at .

https://www.lse.co.uk/rns/SDX/update-on-drilling-operations-in-morocco-and-egypt-iqq36mk87ax3xfu.html

In addition in chariots Agm presentation clearly shows the lms discovery of proven gas onshore above which chariot will be drilling as reported on page 13 at.

https://chariotenergygroup.com/app/uploads/2023/09/AGM_070923_Presentation_Final_noapp.pdf

Then there is a possible secondary target of 300 meters also found deeper in the lms well

With a reservoir of 10.6 meters and 31 % porosity , this will flow very well, my guess, is about 20 mmcf per day per well.

Jimmy

Hi dakad,

The current testing problem seems similar to the SDX experience.

Paul has always stated that he needed to use sandjet technology to overcome the issue.

Page 21 of the ITR shows the thickness of the source rock at mou 1 and 3 so there is a huge amount of gas generated, after nearly three years since mou 1 he needs to get it done asap, and properly, no low cost short cuts,

Jimmy

The following rns issued by SDX in 2018 regarding the lms1 well in the rharb basin onshore Morocco.

“ The well test program in the LMS-1 well in the Company's Lalla Mimouna Nord permit in Morocco has been completed. Upon test the well flowed at sub-commercial rates which at this stage we believe are temporary and due to damage created by the fluids used to control the elevated pressures encountered in the well whilst drilling, however this is still being investigated. At present, we believe the damage is the result of formation clays reacting to certain components used to increase the mud weight of the drilling fluid. The reservoir section, beyond this zone of damage, is thought to be of excellent quality based upon the well log response and is not expected to have been damaged by the drilling fluids. Once the fluid interaction study is complete, a stimulation program will be designed and implemented and the well test will be repeated.”

Could have been predator. The geological horizon is the same as the mou fan .

Using sand jet successfully will be important to demonstrate these horizons can flow economically.

Jimmy

Zebra.

I share your frustration.

But the earlier rns stated the testing programme was underway not that the testing had started, hence the difference. The start of mobilisation of testing equipment could be the start of a testing program.

Weasel words, I know,

Jimmy

Not worried about the onshore drill

However if they drill deeper to test the 300 meters of reservoir found downdip in lnb 1 they may need to change the mud system to deal sticky clays that prevented previous operator logging the section.

Jimmy

I do not expect chariot to have the same problems testing in anchois east compared to predator because the reservoir intersection are very thick, 150 meters in anchois 2 and I expect it will be circa 200 meters in anchois east.

Predator have a series of thin reservoirs . Chariot is designing the testing prior to drilling starting . Duncan Wallace has a strong track record whereas predator strategy seems to me to be based on the lowest expenditure .

Jimmy