Member Info for jt2017

We can only speculate on the terms agreed with ENOG in the event of a poor A3 result, but I believe the BOD took the best farm in deal available, even if the market did not like it. From the link below, it looks like they were always asking for $10M upfront.

https://www.farmoutangel.com/assets/morocco-lixus-offshore-i-ii/

A3 found thinner main sands, so we can expect the resource estimate to be reduced. I believe any reduced development will still need another drill, as A1 is not suitable for production. I think the fact that we have the other two pillars and Loukos to fall back on, has been a blessing, despite the low SP. As for the water desalination, I’m sure that was purchased to complement the Green Hydrogen pillar. So, still some positives and the BOD are invested. Just needs some information flow from the company. IMHO JT

Hi Surety, makes sense, but my only concern is that CHAR do not do anything "quickly" and always seem to raise when you least expect it. IMHO JT

Do we know the details of those corporate costs? For a company with no cash generation, they seem very high.

If it was clear to us from day one that A3 presented a risk, then it must have been clear to the BOD, so you would hope that they would have planned for this during farm out contract negotiations, as others have suggested. I still think they are hoping that positive news from Power funding or Loukos farm out will lift the SP and then they will raise again. IMHO JT

Hi Surety,

My bad, he said "clearly reduce G & A" not " greatly". Was in the Q & A of July 24 investor webinar. JT

I believe one of the reasons the BOD chose ENOG was because they were promising a fast track development. There is still potential for more gas in the license area, so you would have thought that ENOG bought in for that too and not just the Anchois gas find. As for expenses, JMW hinted at that last investor Q & A that once funding for the power side is complete, running costs will be greatly reduced. IMHO JT

Hi Surety,

Using an archive website app for July the bullet points were:

Anchois-1 gas discovery – previously audited total remaining recoverable resource in excess of 1 Tcf, comprising 361 Bcf 2C contingent resources and 690 2U prospective resources.

The appraisal and exploration well, Anchois-2, drilled safely, on time, and on budget, discovered excellent quality, dry gas across seven reservoirs with approx. 150m net pay.

Updated Independent Assessments made in 2022 provided a material increase in resources for the Anchois Gas Field, which now stand at 637 Bcf2C contingent resources and 754 Bcf2U prospective resources.

The Front End Engineering and Design phase was completed in mid 2023 which defined the initial development plan and confirmed the commercial viability of the project

High quality reservoir properties that mean producer wells can produce gas at high rates, reducing the associated drilling and completion costs and subsea complexity.

Excellent gas quality, without impurities such as carbon dioxide or hydrogen sulphide

World-class commercial contract terms with high gas prices in a developing market with growing energy demand offers a potentially high-value project

Project financing for the development of the project being worked on by notable investment bank Societe Generale

Reservoirs are directly imaged on seismic data, showing bright, high amplitudes and far-offset (AVO) seismic anomalies

Material low risk exploration satellites with significant tie-back potential exhibiting a similar seismic signature to the Anchois main field

Additional on-block exploration upside of >4.5 Tcf

Drilling and testing of the Anchois-East well is on track to commence in August 2024

The subsea-to-shore development plan currently includes three initial producer wells, comprising the existing Anchois-2 well, the upcoming Anchois-East well and potentially an optional second well

The Chariot and Energean joint venture technical teams are working closely together across the project, including field development FEED updates and progressing gas commercialisation agreements

JT

Agreed, hopefully they can recalibrate the seismic data to find gas instead of water for both offshore and onshore!

Hi Surfit,

Loukos testing is too risky at this stage. It's all about playing the hand they have been dealt. If A3 had come in, then I'm sure Loukos would have been tested. At the moment, its all about preserving cash and see how things pan out. IMHO JT

I suspect any raise will depend upon the results of the financing of the power business and its effect on the SP (if any). I doubt they would raise at these depressed SP levels. Gas is taken a back seat for now and Namibia new venture is likely after April. Back in Dec, JMW said power financing is expected to conclude within a couple of months, so let's wait and see if we get an RNS soon. IMHO JT

I suspect they don't want to risk flow testing OBA-1 at this stage, considering how A3 turned out. They may be just putting the feelers out regarding a Loukos pre-flow test farmout just to see if there is any interest. Namibia is still months away because of the closed license period till April. As for power, I wish we had more info regarding the accounts and potential cash generation. It seems to me that a lot of the projects are connected to AP's family businesses, some of which he has holdings. Let's hope we get some cash generation soon, to give the SP a lift. IMHO JT

Sorry, just to get my head around this....what is the difference between Application in process (shown as hatch on map) and open (shown as blank on map)? JT

Hi Jimmy,

Those blocks show as "Open" in the 2024 Aug map, which I assume means that we are yet to apply for the license, as applications have been closed since August 2024, if I'm reading it correctly. JT

https://www.mme.gov.na/files/publications/b2b_Lic_Map_29082024.pdf

I believe if Enog decide to stay and develop Anchois, then they will still have to pay Char 15M after FID. It all seems to be put on hold at the moment, but maybe negotiation happening in the background. I think Jimmy mentioned that Char would probably be looking at either the 2714 or 2812 licenses in Namibia. They are not allowing license applications until April, so looking at the license map, 2714 is "open" and 2812A is "application in process". So we may have applied for 2812A or waiting to apply for 2714. Still expect Power funding to be the next news though. IMHO JT

I think the Anchois development decision is not going to be made in the near term. JMW in that last interview, hinted that the next news within a few months will be the power business funding. I emailed them asking about the Namibia license over a week ago and if they had actually applied for it yet, or if they where just waiting for the license award. No reply from them, as expected. At least they won't have spent the money yet. IMHO JT.

I was going on the fact that CHAR agreed Gas sales principles with ONEE and ONYHM in Dec 2022 and as part of that agreement a GSA timetable was agreed. With ENOG taking over, I presume there was a reset though.

Hi Oiltdr,

Morocco might be keen to get Anchois developed, but don't seem to be keen at agreeing gas prices. Both Char and ENOG have tried and not got any indication from them, unless both are keeping quiet. Does it need the gas to flow first? IMHO JT

Yes, I assume there will have to be another block listing RNS soon?

https://chariotenergygroup.com/investor-centre/aim-rule-26/

Looks like they have issued another 5M of shares to employees, as the number of issued shares on the website has been updated today. Something is going on? IMHO JT

Hi Surety, I think he was basically saying that there is still a strong case for a smaller development of Anchois. Trouble is, it is out of Chariot's hands in the short term. That is why he seemed to want to concentrate on power financing as being the next news. IMHO JT

Looks like financing the power business is the now the driver short term, and then looking for Loukos to generate income if they can successfully farm out. Anchois etc is outside of their control and looks like being kicked into the long term by Energean, who are yet to officially declare whether they are out or staying in. Namibia also looks like it is being delayed by the authorities taking their time in granting licenses. I suspect they are hoping news of power financing will lift the SP and then look for a small raise to cover until Loukos & Namibia happen, or Energean makes a decision on the license and continued exploration / development. IMHO JT