RE: (CHAR)7 Dec 2024 12:23
Both Chariot and farm-out partner Energean (ENOG), a FTSE 250 company which has a proven track record of successfully developing large offshore gas projects, are in the process of finalising the technical assessment of the Anchois-3 appraisal well. A smaller and economically sound development is still possible even if it’s not reflected in the current share price.
That said, the immediate attention is firmly focused on the group’s transitional power activities, which have received multiple offers of financing that should highlight material value in that business. Importantly, the £22.8mn market capitalisation company is not in a distressed position, having raised £7mn in a placing and opening offer in August 2024.
So, having last advised holding onto your shares, at 1.6p, I feel that potential positive news flow on multiple fronts – the onshore gas discovery in Morocco could lead to a fast tracking of gas to the undersupplied domestic industrial market – could act as a catalyst to narrow the deep discount to analysts’ SOTP valuations. Speculative buy.