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The $170m of carried costs will be refinanced in the year of 1st gas. By then Chariot will be much more credit worthy and will easily be able to refinance the debt on the debt market.

I had a banana 🍌 and a croissant 🥐 for breakfast.

Agreed. And I also think we’ll see a continuous rise in the following month to our brokers targets of c. 60p. We may hover round this value until onshore drilling results and FID on Anchois, which should all arrive before end of Q1 2024.

Perhaps this low percentage was part of the original offer, which Chariot rightly rejected.

From reading the article it seems that a few selected partners are now bidding against each other for a deal. So perhaps Jimmy's estimates are not far off.

If the partnering deal comes with a cash down payment in the $$$ tens of millions, surely that’d provide enough funds to expand their green portfolio with?

@Surfit

Apologies for my late reply.

I believe CHAR will create a new legal entity for the green Hydrogen business and issue shares on it, purchased by both Total and the "market" while CHAR parent retains a material (c. 35%) piece. There is a lot of money needed to get project Nour and similiar projects to commercialisation. CHAR needs partnership and money to make it happen, but they won't, as you say "dilute us into the relms of incredulous dilution" to achieve the right amount of investment.

Green hydrogen will be spun off into a separate legal entity and funded by a share raise (at subsidiary level) as well as partnering (Total Energies) I doubt very much they’ll use gas revenue to fund it.

CHaR parent will retain a minority ownership of this newly created entity.

All imho

@Starbanker1

They can have it for 100p

Duncan's write-up reads like FID has already happened.

I did do my own research, insofar as I discovered that "Citygirl" is a notorious ramper. And I decided to share the results of that research here. It's on you what you do with it; wear it or cut your losses.

I got duped into buying a few k's of these shares, based purely on Citygirl's hype. Bought in at 8p. As soon as I started questioning the merits of my investment on the Telegram group "Citygirl" immediately kicked me out! Sold all my shares at 6p; thank goodness for that. Just be careful of her. She's as dodgy as they come.

Gooner, it’s impossible to know where the SP will go after we tie up all of our finances. Why don’t we look at the numbers? A partnering deal should be more than +$100mn, given the projected ebitda on Anchois. Given that our current Mcap is in the same region of this amount, we should see a considerable rerate (possibly to +25p) as soon as such a deal is announced. The deal will also derisk Anchois as well provide for further drilling of Anchois satellite prospects and other Lixus license opportunities and completely negate the need for further raises. In addition, the deal will enable IIs to buy into CHAR on the prospect of future dividends.

All of this combined, as well as finalisation of multiple GSAs, debt financing (for whatever cost the partnering deals does not cover) and FID, should send the SP nearer to the broker numbers. I would expect, therefore, the SP to drive north of +50p sometime in Q2/Q3 if everything I‘ve outlined above transpires.

I reaffirm my belief that there won‘t be any more raises.

There will not be a raise.

A partnering deal and/or debt funding will include funds for working capital up until first revenue from Anchois.

Professional.

I think they'll go it alone on the discovered Anchois gas wells i.e. they won't give away a percentage of them in any partnering deal. They'll partner on the other satellite Anchois prospects as well as the greater Lixus/Risanna.

IMO DYOR

It looks like Char will go it alone on Anchois. So I think these discussions relates to partnering on the wider Lixus/Risanna license area.

London AIM-listed Chariot Energy expects to reach financial close for the development of its Anchois gas discovery by the middle of this year and expects the find could open a new gas province in Morocco’s Atlantic offshore zone – where many other upstream players have tried, and so far failed, to make a commercially viable find.

According to technical director Duncan Wallace, Chariot “thinks that Anchois is potentially the start of a new gas province”. He told a Mauritanian British Business Council (MBBC) event held at Chariot’s offices in London that the company was targeting a final investment decision (FID) in mid-2023 for a subsea-to-shore development.

This would include three wells in the initial development, with the potential for five wells assessed in the development concept. Chariot signed a front-end engineering and design (Feed) contract with Schlumberger and Subsea 7 last June

That’s the guts of it. All other info is more or less available from CHAR’s year end preso.

Pierre Raillard (Head of Gas business and Morocco country) posted an article on Anchois development.

Excellent article from John Hamilton in African Energy reporting on discussions held with Technical Director, Duncan Wallace, describing Chariot Limited's ambitions in Morocco for the development of the Anchois gas discovery. The article rightly confirms our commitment to the development and the priority given to the domestic markets both power and industrial sectors. #energy #gas #development #markets #power #morocco

https://www.africa-energy.com/news-centre/article/morocco-chariot-hopes-anchois-will-open-new-gas-province

Graham, there are rules surrounding the rights and obligations of the license holder (CHAR) for Lixus/Risanna development. If Morocco decides to break these rules via taking an unpaid extra stake in the Anchois field it'll be akin to Castro nationalising the means of production in Cuba or Mugabe 'reclaiming' farmland for the people of Zimbabwe.

Needless to say, it wouldn't go down well. And Morocco would have a big red flag against it's name for any future foreign investment in the country. I'm sure they're not that stupid.

It is intended that the Ordinary Shares issued under the initial and deferred consideration will be subject to a lock-in period of 12 months.

This is the wording from the RNS.

Your logic re. back to business as usual with Russia as soon as Putin chews down on a cyanide pill is indeed ridiculous.

But I asked you a specific question about the large CHAR sell trade today. One has got nothing to do with the other.