IC PART 114 Sep 2022 23:11
Climate change and this year’s turmoil in Eastern Europe have reinforced the reality that energy security and sustainability remain at the forefront of global agendas, factors that add further weight to the investment case for Chariot (CHAR:19.35p), a £185mn market capitalisation African-focused energy group focused on developing and delivering transitional energy projects.
During the summer, the group announced a major resource upgrade to its low-cost flagship Anchois Gas development, offshore of Morocco (‘Profit from the European energy crisis’, 26 July 2022). An independent resource report indicated 82 per cent higher 1C contingent resources of 365bn cubic feet (Bcf), 2C contingent resources of 637Bcf (76 per cent upgrade) and a near 50 per cent increase in 2U prospective resources to 754Bcf.
With investment bank Societe Generale leading the project financing, a tie-in agreement signed earlier this month to provide access to the major Maghreb Europe Gas pipeline, offtake and strategic partnering discussions ongoing, and Environmental and Social Impact Assessments underway, Chariot’s board are looking to reach Final Investment Decision as soon as possible and start generating material cash flows thereafter. An oversubscribed placing and open offer raised $29.5mn at the end of the first half, so with net funds of $23.4mnn Chariot is well capitalised to extract the best deal possible.
An African Adventure
Significant resource upgrade at Anchois-2 well offshore Morocco
Rissana Offshore exploration license awarded
Pre-feasibility study completed at Project Nour
Two renewable energy projects in development in South Africa
Chariot’s exploration and appraisal drilling served to de-risk a range of targets, both in the Lixus licence where Anchois is located and in surrounding acreage in the 8,489 square kilometres Rissana licence, which the group was awarded in February 2022.
Early assessment of the areas in Rissana covered by 3D seismic data indicate a total 2U prospective gas resource of over seven trillion cubic feet, combining a high-graded prospect 'Emissole' within the lower risk Anchois Tertiary gas play and multi-trillion cubic feet prospects in a higher-risk Mesozoic play. Importantly, there is huge domestic demand for new gas resources both domestically in Morocco as the country transitions to greener energy, as well as in Europe as the region tries to find reliable alternative sources of energy to reduce its heavy reliance on Russian imports.
In addition, Chariot has added two major projects to its renewable power pipeline in Southern Africa and delivered on the objective of securing a world class partner in Total Eren, a leading renewable energy independent power producer based in France, to co-develop a large-scale green hydrogen asset in Mauritania. Working alongside Total Eren, Chariot’s team has leveraged their expertise and network to win a contract to construct, operate and maintain a 40MW solar plant for the su
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