Article8 Apr 2026 16:46
From an investor publication late February
Block 14 is a mid- to late-life producing asset operated by Chevron (31 per cent interest) and Block 14K is an adjacent area crossing the Angolan and Republic of Congo maritime border, operated by Trident Energy (15.75 per cent interest). Etu Energias currently holds interests of 29 per cent (Block 14) and 14.5 per cent (Block 14K). Chevron has operated Block 14 since 1995 and has 13 years left on its licence term following a recent extension. The fields have produced more than 900mn barrels of high-quality crude since first oil in 1999 and have current production of 40,000 bopd. Block 14K produces 1,000 bopd on a gross basis and its licence expires in 2030. Current producing reserves from both assets are estimated to be 93mn barrels of oil.
To facilitate the acquisition, Chariot is providing $12mn in cash as well as covering $4mn of financing-related transaction costs. The funding will be repayable from future cash flows. Once fully repaid, Chariot will then share future cash flows with Etu Energias equivalent to up to 4,000 bopd of production. The balance of the funds raised from the placing and share subscription ($4mn) and proceeds of the open offer (up to $4mn) will be used by Chariot for working capital.
Multiple share price catalysts
Bearing this in mind, analysts at brokerage Cavendish note that Chariot has been working on re-scoping its Anchois offshore gas development in Morocco to optimise a core development plan and substantially reduce capital expenditure requirements. They also point out that Murphy Oil Corporation, a significant independent E&P company, has recently secured acreage adjacent to Chariot’s blocks, offering the potential for collaboration. Murphy has been one of the most active explorers in recent years, having made an active decision to extend its international portfolio in the wake of declining shale inventories. Chariot’s acreage could offer an attractive farm-out opportunity.
A demerger of the company’s South African renewable power businesses is another potential share price catalyst (‘A demerger could boost this energy small cap’, IC, 24 September 2025). Earlier this month, Etana Energy, the South African electricity trading platform in which Chariot holds a 34 per cent economic interest, signed a significant offtake agreement with Sibanye-Stillwater, one of the largest gold and platinum group metals producers in South Africa. Under the 10-year agreement, Etana will deliver 600 GWh per year of renewable electricity, equivalent to approximately 220MW, to Sibanye-Stillwater’s mining operations, commencing in late 2027.
In addition, Etana has signed a further offtake agreement for the Orkney solar photovoltaic project, which is being built by Mulilo, a leading renewable energy developer and independent power producer. Once operational, Orkney is expected to produce around 478GWh of renewable electricity per year, which will be ‘wheeled’ to Etana’s custo
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