Member Info for KissnCuddles

The market value of an approved Phulbari operation certainly points to $billions. It all depends on what deal is made with GCM on GL. Part of the deal could mean that GCM is bought out by Power China for an amount including all back costs plus some kind of premium. Or perhaps GCM will retain 10% ownership of the operation as a sort of silent minority partner.

On both scenarios the SP on GL will be many multiples of what it is now. Will it reach 25p; 50p; 100p; 200p? Honestly, any of those values is possible.

How much of the operation will we have to farm out? We could end up owning less than 10%, which wouldn't be too bad actually!

Digit4lis

Until the deal is signed I doubt we'll see companies handing over cash to GCM. IMO a fundraise and dilution is all but guaranteed. But to what extent? Perhaps we'll release some good news soon to boost the SP, and raise at a higher level? Or we will raise just a small amount to get us to 1Q26 with the expectation that the GL will be given before then?

I don't see why we should give up more equity. ENOG signed a deal with us to cover pre-FID costs up to $85m, and they have spent not even a quarter of this on the A3 drill.

Care to elaborate?

Searcher

And to follow on from your logic, if the SP doesn't move that much up to the raise, then the offer price would well be sub 1p resulting in substantial dilution.

I want to topup as I believe the GL is close, but WHEN should I topup?!!

So another raise this summer? That’ll be some substantial dilution if so.

Why would AP buy out CHAR at such a low SP?

Not only would he suffer a material personal loss (not to mention all his friends and family too) he'd be cutting off CHAR from the financial markets i.e. no more possibilities of a raise.

So he'd take CHAR private, sack EVERYBODY and run it all by himself on a pro bono basis. Not a chance.

Or is it a sign of desperation on the part of GCM? i.e. we're making you (Bangla government) a better offer...

We will see.

So EnOG provides an ops update with zero reference to Morocco and only a paltry few millions allocated to potential exploration in 2026.

Sounds to me like they’re out.

Nice overview.

They just CANNOT raise at these levels for rent and salaries expenses. IMO if they start to run out of cash they’ll sell off some assets.

Harry

CHAR management certainly bit off more than they could chew. They got greedy and decided to enter into an exploration partnership with ENOG, rather than purely development deal. If it had worked out as expected we'd all be singing their praises and posting rocket emojis with the SP hitting 50p.

It didn't work out. So here we are. But there is still gas there. ENOG have not yet pulled out of the deal. And Morocco want to be a net exported of Nat Gas to Europe. It's al still to play for.

Surfit

I hear you. IMO it’s a pivotal moment for CHAR. They won’t raise another 0.5bn shares at 1.5p, or something similarly awful, just to keep a lie going for another year. If they don’t get funding by other means soon (Loukas farm out, Anchois FID, renewables spin off, Namibia license and farm out) they’ll decide to sell off assets, wind down parts of the business etc.

A massive dilution such as that is unlikely IMO considering how many shares are owned by AP.

BDC

I'm disappointed too.

ENOG will probably decide to explore for more gas in the Lixus license to increase the gas volumes above the current 375Bcf at Anchois. Why wouldn't they?

And let's not forget about the recently announced $100m finance guarantee for ETANA. That's huge, and will soon unlock material investments in renewables projects in SA.

Fernan

CHAR will realise an economic benefit from their renewables business whenever they IPO or debt fund their newly carved out renewables subsidiary, which is expected to happen early next year. And then revenues will come some time after that.

It's the official confirmation of CHAR handing out free shares to employees.

Risk of dilution is very high right now. I won’t top up until I know what forward plans they have.

Hope so!

Surety

Perhaps CHAR/ENOG can convince ONHYM to sell 1st gas to Europe (at European prices) We could even sign some long-term GSAs with European offtakers in advance of development. That way we guarantee the commercial viability of a smaller scale production, and could use the free cashflow to fund further exploration of Lixus/Rissana. Morocco will still get their gas, just a bit later than expected. Seems like a better way to go about it.