Member Info for jt2017

I think they did have an interest there years ago and have 3d seismic, but failed to partner.

Although, probably not a massive cost to get a license and they will look to partner, it’s not the news that will attract investors because it’s high risk. Still, interesting that Murphy are looking at acreage there too.

I don’t buy into the volatility argument as a reason for a share consolidation. I still think they want investment short term to fund new ventures and fuel the growth in the O&G business and I don’t believe that they can afford to wait for future earnings to fund this. If the completion of Angola deal has a positive impact on the sp, then it’s possible that the warrants could be triggered and bring in some funds, but it seems to me, with proposing a consolidation, they are adding another method to raise in the future. IMHO

I notice that the AGM is a few weeks later than normal. I wonder if they’re hoping that by then, the Angola deal will be complete? I’m not sure it will be enough to placate shareholders though.

Hi KnC, yes, you could be right. There must be a reason why they are delaying the announcement this year. Let's hope it's for the deal completion date, as you suggest.

Have they given a date for this year's AGM? It's normally in the Annual Report RNS, but I can't see any reference to it?

Hi Surfit, can't argue with that. FWIW, I didn't believe AP's answer to your question either! I just think they are keeping all options open, so place your bets.

I personally can't see a future share buyback, if they are talking about consolidation. IMHO

Hi Surfit, I don't think they are necessarily running out of money, I suspect they have more deals lined up, which require short term funding, So it's all down to timing. The renewables is a cash drain (it was circa £2.9M G&A in the last accounts), so maybe they want to sell because its earnings are some time away. The Angola completion date also may have been delayed due to the 2nd Etu pre-emption, meaning the refunding of the deposit could be later than anticipated. All speculation on my part, but with the recent One2One presentation, it seems to me they want investment / funds soon. IMHO

Agreed KnC, a share consolidation is usually followed by a raise IMHO. They were probably hoping that the sp would have risen by now, triggering some warrant executions and potential funds. A higher sp also allows for more institutional investors to get involved, as some have restrictions on investing in penny stocks.

Thanks for the explanation Oiltdr, that does makes sense. Do you still think that char will not be involved with the Chevron pre-emption, or has your view altered?

So are you saying Shell will be entitled to trade all the barrels even if the facility is paid off? Does Shell get the barrels at Brent price or equivalent and then mark up before selling to the refiners?

I must admit that I’m struggling to see what Shell gets out of the deal? If Chariot’s intention is to re-finance upon completion, then surely Shell are just acting as a temporary guarantor. If they repeat the same deal for other Angola pre-emption sales (Chevron aside, Equinor are also rumoured to be selling some of their blocks in Angola), then will Chariot just re-finance again at completion? Maybe they will want to use the shell facility for the prospective block 14 development, or could that be funded by the renewables sale? The move into Angola certainly does raise a number of questions IMHO.

Agreed Gardie.

Morocco partner, is that going to be ONHYM? Increasing the team, is that for Angola?

They definitely want funds for investing for the O&G upstream asap, hence the talk of monetise the renewables.

The results are due next week, so perhaps more info will be released about the current status. I still have some reservations and will hold judgement until we see a timeline to earnings. IMHO

Still committed to selling the renewables to invest in the upstream O&G. Currently negotiating gas offtake agreements Morocco.

Future dividends and share buybacks. Nice if it happens!

Looks like they are starting to put the one2one videos up on the site now.

Hi Surfit, hopefully Surety will report back if he attends the proactive forum. I’m just curious as to why they need to do it? I wonder if they are just unable to get a decent offer for the renewables, though I would like them to keep the renewables side as long as it not a cash drain on the holding company. Anyway the closer we get to O&G earnings, then the need for a sale diminishes. I believe September was mentioned as the likely Angola deal signing. As you say fingers crossed and sit tight.

Hi Surety, you have more faith in AP’s comments than I do, but I hope you are right. It seems to me that they may have other deals lined up, but just need funding. IMHO

Thanks Smyth for your comments. I try to keep a balanced view and will always say it how I see it.

I suspect the market is looking for some certainty regarding the future earnings timeline before the sp moves. FWIW, I attended the agm and will admit my disappointment with the lack of progress in the last 9 months. Angola curveball aside, we’ve no real news on any other potential O&G assets (funded at sub level), or Anchois revised development, or possible renewables sale / demerger. I’m unsure of the purpose of the upcoming investor forum next week. Is it to raise the profile to new investors and get the sp above the warrant price, or a precursor to another fundraise.

BW Energy may be looking for a way back into block 14 via a tie up with Etu, having previously lost out due to the last pre-emption. Char may still be involved, albeit with a smaller interest. IMHO

Hi KnC, I think that September was mentioned as the estimated completion date for the the original pre-emption with Azule. The latest Enog deal mentions end of 2026 for estimated completion and it seems likely that this will be extended by around 3 months if the new Etu pre-emption is successful. I would hope Char have some involvement, as the timing would suit us re-earnings. Also expect another partner, maybe Trident Energy, who already operate the 14K block to be involved to cover the deepwater operator clause. IMHO

Oiltdr, your thoughts?

It will be interesting to see how this plays out, as I don't think Etu have deepwater operator experience, which is one of the conditions for the block. The Enog deal does not mention a deposit, so probably just transaction funds needed upfront. Char will probably be able to release up to $100M via the shell deal, if they are included. Maybe, another third party could be involved, or perhaps Etu just forcing Enog to make a deal. IMHO

I think they struggled to get an ipo off the ground for the renewables. At the agm, they mentioned a possible sale, but only if the price was right. The Angola deal has thrown a curveball, so maybe they might not need to sell the renewables after all. It will be interesting to see the forecast / timings for Angola earnings. At the current oil price, it must be closer than first anticipated. IMHO

Hi Surfit, agreed, Etu are using the threat of pre-emption to squeeze Enog for a deal. Not sure if we will have any involvement.

Anchois - I still think the hold up is connected to ONHYM's conversion to a joint stock company. Hopefully the bill will pass royal ascent soon. IMHO