Member Info for marineclark

Jinx, the RNS has confirmed the independant audit by Netherland Sewell & Associates. Thats all the verification I need. The EOI is not legally bind, but endorses the quality on offer here.

Its true that there is supply overhang, not helped by the placing. There are many "Gooners" out there wanting to sell at breakeven at 10p, so I expect that level to offer some resistance in the near future. We a re well supported at the current levels, and the higher than average volumes this last few months has reduced the supply overhang, but its not over by any stretch. Once the rig news comes, and it will come soon, I fully expect many new buyers to enter here and the supply/demand balance will flip, and I will be watching close price and volume on thats day but also towards drill date. Also, its not just about the drill.. The low risk appraisal confirmation offers eye watering returns at these leves. Debt funding of 300-500 million in the bank. And gas slaes in mid 2024. Theres a lot to drive the share price to new recent highs.

The fundamentals have changed here since september 2020 when the price was sitting at 2p. There's been a reserve upgrade and EOI from the instutional lenders. Both of those news is what drove the price to 14p. The price moved sideways, with quite large swings, for 7 months thereafter until the placement in May which caused the price to drop to current levels. However there has been big swings in this current range that we in. The reserve upgrade and the EOI have supported the share price at current levels, and imminent drilling news will drive the price higher. If results are good, then debt financining will follow, and then 25p+ here is probable. The current level is supported by a strong technical base of 3 months. Fully funded for the drill, low risk, and imminent news. I personally am quite excited for the next few months:) But as always DYOR. Shares can and do go to nil points.

@LW, Also was the verification strong and robust? Clearly AFC and a multinational bank seem to think so.

28 October 2020

Chariot Oil & Gas Limited

("Chariot", the "Company" or the "Group")

Expression of Interest Letters with Africa Finance Corporation and a Multinational

Investment Bank to Debt Finance the Anchois Gas Development Project in Morocco

Demonstrates Fundability of Value Accretive Project

Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins focused energy company, is pleased to announce that it has received a non-binding Expression of Interest Letter ("EOI") from Africa Finance Corporation ("AFC"), a pan-African Multilateral Development Financial Institution, for the provision of development debt finance for the Anchois Gas Discovery, located within the Lixus Offshore Licence, Morocco ("Lixus"), and the development of future discoveries from the wider prospect portfolio of the Licence.

In addition, Chariot has received a non-binding EOI for the provision of Reserves Base Lending for the development of the Anchois Gas Discovery with a Multinational Investment Bank.

Both EOI's take into account the estimated capex required to bring the development online, anticipated to be in the region of US$300-500 million, but they also identify Lixus as being an important strategic asset, with strong Environmental, Social and Governance ("ESG") credentials, that has the potential to help Morocco transition to a low carbon economy, as it seeks to satisfy an anticipated doubling in domestic demand for energy over the next 20 years.

Legal wolf, I don't know if the independant assemment report itself was made availble to the public, and I dont know if this is a common practice among Oil & gas companies. However, feel free to check out Netherland Sewell & Associates Inc's website https://netherlandsewell.com, where they say their services are used by the major oil companies. I personally dont need to see the verification itself, as for a listed company to fasely claim that an independant assessement was made is fraud.

Below is the part of RNS, if you havent read it already:

7 September 2020

Chariot Oil & Gas Limited

("Chariot", the "Company" or the "Group")

Significant Resource Upgrade on Anchois, Morocco

Remaining recoverable resources increases by 148%

Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins focused energy company, announces that it has completed the reprocessing of 3D seismic data across the Lixus Offshore Licence ("Lixus"), Morocco, resulting in significant improvements in both image quality and in depth control. This has had a positive impact on the understanding of the distribution and extent of the Anchois gas sands.

Following the reprocessing of the data, Netherland Sewell & Associates Inc. ("NSAI") has performed an updated Independent Assessment on a c.50km2 area, covering the Anchois gas discovery on the Lixus licence, which has led to a significant resource upgrade for the proposed Anchois Gas Field Development.

· Upgrade of audited total remaining recoverable resource to in excess of 1 Tcf for Anchois, representing a 148% increase (comprising 361 Bcf 2C contingent resources and 690 2U prospective resources)

· Ability for the low-risk prospective targets (C, M and O sands) to be drilled at low cost as part of any appraisal or development drilling activity on the Anchois Discovery (A and B sands); the development of which brings the potential for material free cash flow

· Chariot technical team continues to identify, evaluate and quantify additional material gas prospects in the Lixus licence based on the reprocessed data

· Management to hold a detailed audio webcast for investors at 12.00 noon (BST) on 8 September 2020 (details below)

@MrJinx

"...The fact that two highly regarded institutional lenders – African Finance Corporation, a Pan-African infrastructure institution, and a well-known multinational bank – have endorsed the project underlines its quality"

The two lenders would have done their due dligence and if there were any question marks about the project they wouldnt have endorsed it .Also , the recoverable resources within Anchois was independently verified.

The point of the farm-ins is share risk/reward. The highest risk is for exploration which which suit a farm in better but for a lower risk appraisal probably better for char to skip a partner, and reap all the rewards.

Assuming the appraisal goes well and its low risk so the odds are good, then debt financing should soon follow. Debt financing ,not equity financing, and therefore which would not diulte shareholders.

The rewards here when the drill is complete will be worth taking on a small risk of failure.I think I can safely say that we are all gamblers here, otherwise we would be investing in bonds. But for a low risk/high reward scenario this is a good place to be in Char. IMO. DYOR.

This article came out OCt last year from IC. Note the debt finance info here is outdated as CHAR have already been approached by two parties.

"....However, investor appetite for pure oil and gas exploration and production plays certainly has changed since then. That’s because consumer preferences for energy consumption have shifted dramatically towards more sustainable, clean, renewable and alternative fuel-driven solutions to demand. At the same time, retail and institutional investors now apply environmental, social and governance (ESG) principles to portfolios. Companies that fail to adapt risk becoming irrelevant.

Chariot’s new management team has taken note and the company is now effectively an out-and-out play on the Anchois gas discovery in Morocco, located 40km offshore in 388m-deep water, after taking a hefty impairment charge on assets (Namibia and Brazil) in the interim results. Importantly, Anchois offers the company strong ESG credentials as an enabler of Morocco's aim to transition to renewables and increase the use of gas in power generation. Coal still accounts for two-thirds of the country’s power generation, but gas is a growing component as part of the national strategy to reduce imports and transition to lower-carbon energy.

Bearing this in mind, much of Morocco’s installed power capacity is in the form of underutilised combined cycle gas turbines. Connection into these installed power stations could be achieved through the nearby Mahgreb-Europe gas pipeline, thus enabling Chariot to build a high-performing business supplying a reliable source of cheap energy to the population of a power-hungry, growing economy. The Anchois gasfield is a huge resource to meet this demand as a new independent audit by Netherland Sewell and Associates estimates it has 361bn cubic feet (bcf) of 2C contingent recoverable resources, and 690bcf of 2U prospective resources. It’s commercially viable, too, as highlighted by indicative pricing of $8/mmbtu (power generation) and $10-11/mmbtu (industry) based on other operators in Morocco.

Chariot is currently engaging with potential off-takers both within the domestic Moroccan gas market, and through the Maghreb-Europe pipeline to the European gas market. It is also in discussions with a variety of parties for the provision of development debt finance. House broker FinnCap estimates that $300m to $500m of funding will be required to get the project to first gas. Clearly, signing up European and domestic gas buyers is a pre-requisite for Chariot to raise debt funding....."

"Appraisal drilling will start in the fourth quarter at a cost of US$20m to test the discovered sands and explore deeper targets, an important requisite to progress gas sales and project finance ahead of a 2024 start-up. Chariot has already received two development funding approaches from institutional lenders to fund the capital expenditure (US$350m for Anchois A and B sands) to bring the project on stream in mid-2024." IC quote

"Farmout agreements are effective risk management tools for smaller oil companies. Without them, some oil fields would simply remain undeveloped due to the high risks facing any single operator."

Correct me if I'm wrong, but my understanding is that farm outs partners would be needed for wildcat drills because of the high risk of failure. This is not a exploration drill. Char have doen exceptionally well to get to a low risk appraisal drill, without any partners and without the diluative effect to future income that a partner would have. Once the appraisal well is confirmed then 2 lenders are waiting on the doorstep to lay the red carpet for Char. The current price is above the placing price. Im definately not surprised the price went to 8p highs. I'm because I expect the price to hit new highs in the coming months. Not in a day or two, as some posers here seem to demand. The placing was done in order to fast track gas development. While that caused the price to drop a lot, this is no different from companies that release news that dont meat earning sales or earning expectiations. Take one example, VLG which dropped form 100p to 70 in a day affter "bad "news. With a risked valuation of 25p and a unrisked one of 325p, there is a lot to look forward to here.

I just read Speed ferrets post again, I missed the last bit when I first glanced at it. To want covid to spread and kill more people so that he profits from shorting this, is as SHC said despicable.

If you're waiting for gas sales Growler thats another 3-4 years I believe, but I suspect the price wont be this low when that happens. Gooner, 10 percent sounds a lot, but its actually 2.5 percent of total equity if you put instead of investing 100 percent of your equity in one company but to invest 25 percent on one company instead. Ideally to have 25 percent share each in fou companioes. That way 10 percent of 25 percent is 2.5 percent. that is the holy grail of trading my friend. it nots making money, its not losing it that matters more. I am in more that 25 percent here, unfortuntely, being human, greed is still a weakness:)

Thats why my loss is ten percent and not 50 percent:) it keeps me in the game, and not stuck in a share for ten years. Actually 10 percent is still to high, I would prefer 6-8 percent loss on any trade. I trade both the technicals(charts) and the fundamentals. We know the fundamentals already whcih havcent changed, risked value of 25p, and unrisked 325p, but technicals show different stages of supply and demand. Thats what I'm trading. Also, my timing was a bit off before. But happy now. If I saw another opportuniy for quick ten/20 percent I would trade our of here and back again, but less now that the drill is getting closer.

Gooner, Im an trader not an investor. My trading window can be a day or 3 months. And I;m not here to be taken seriously. As I said before these chat rooms are for entertainment purposely only, not serious research. but my track record speaks for itself I believe. i was posting here this last year when it was 2p.

However, you seem to have lost all hope, and thats understanble since you almost 50 percent down, but that doesnt mean at the current price thast isnt an excellant deal to be had.

I would say there is strong support at this level. Sure you could time it even better and wait for 5p where I would call it the bottom, not the absolute bottom mind you, there is 0, but if you waiting for 5p you would be risking missing the boat altogther what with the drill around the corner. Why is no one buying? Who says? The last 3 months of this base has had high volumes, indicating that the smart money is buying. This time last year, when the share price was 1.7p, it stayed at that level for six months before a rally to 14p. Its no impossible the price could go back to 1.70 again, but with exciting news imminent, the risk is to the upside, not downside. A 3 month base is a good place to buy IMO. But as always, dont buy shares if you cant afford to lose.

SC,

I only use mental stop losses, not orders with the Broker. Like you said, MM's can see them a mile away. I must admit that I sold because I was looking to buy a property on auction and needed the funds, but when i read the legal back saw that the seller was asking the buyer to pay back pretty much everything fees etc...so I didnt bother. I bought back in about 0.2p more than what I sold it for so barely a loss. As for bottoming, we now have a solid 3 months base of support to work from. I bought in on a breakout earlier , but it pulled back into the base again, which is fine as breakouts dont always work every time but it left me about 10 percent down. Stop losses dont work when the market gaps, as can happen on the morning of a news. I may be wrong, but with solid support at these levels and with game changing news soon, and with a low risk drill, I found it hard to be out of this, and thats considering I'm watching 100 companies in my watch list. As for a ten percent mental stop loss, it works for me if I get a the timing right, but I;m not one to preach about stop losses.

back in, cant afford to miss out on the drill :)

SImon thompson tips on average make money but buying blind and usually the morning after its already shot up 10 percent is a good way to lose money.
My charts worked nicely gooner, from 2p tp 10p, last year. But charts give an edge thats all, its not written in stone. But charts are nothing without risk management, something that took me a long time to realise, and many dont have any concept about.
I was looking for quick bounce back from the other share I bought into, but if nothing happens, will look to get back in here as its near support. Hope the rig news hasnt come out before then lol.

You say that Ferret, but im in annual profit of 200 percent , not down 50 percent like some including yourself?. I dont trade on hope. I used to find it hard taking early losses, but barely even think about it these days. This is still a good trade. I'll be back soon, no doubt.

The best companies to invest in are the ones that have growing substantially in revenue and earnings, and VLG ticks those boxes nicely. As Rivaldo has noted EPS forecast for next year 6.21p, meaning EPS has increased about 150 percent year on year for the last 3 years. This may take a few months, but the price will almost certainly double from here, so as these kind of opportunities are diifcult to find, I wouldnt take too long to get in. I'm fully loaded here now, so should be an easy two bagger+ in a few months.

High volumes at extremes is a sign that a reversal is likely i.e we have hit a bottom in the price. As the price just now has made a new weekely high, its time for me to add more to my position today which I just did, as given the price target of 130p this is like picking up free money falling from the trees. I'd would be happy for just a ten/ twenty percent increase from here, but if 80 percent increase.... where do i sign?

Nice one @ST. With those odds let me just run to the bank:)