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Thx Jimmy.
I'd imagine Chariot must be bosted by the Galp news...plus, as they now have an experienced operator on board in Morocco, I'd imagine there may be some interesting discussions about that 10% opt-in.
Whatever happens, it's another string in Chariot's bow!
Jimmy - thx for that info.
What are the potential implications for CHAR on this news?..and how would this work - if CHAR wanted to exercise the opt-in for the 10%, would there be a (big) cost assocaited with that? Can they sell the opt-in rights to the main/another operator?
Thanks.
No doubt v disappointing to see the share price tank on the back of the farm-in news.
While aspects of the deal itself are being pored over and used to try to justify the crashing share price, I think more time should be devoted to Energean and what this company brings to the table.
It may be a FTSE250 and not the major oillie we dreamed of, BUT it has an impressive track record and portfolio, not just as an operator in its own right, but also has experience working alongside oil major CNOCC in the North Sea.
Worth reading why Energean is a good bedfellow:
https://www.energean.com/operations/
Yes.
But Karish is Energean's main source of income and given the risk in the ME presently, a strike on the platform would see its income stream vanish.I think this is why the market it reacting with the dropin the sp.
Gooner - not sure if you can read the FT article on Energean, but have posted some of it here...the reason I thought they might be interested in CHAR was mainly because of the current risks to their operation off the Israeli coast...their Karish field sits in Israeli waters but...
https://www.ft.com/content/a45e366d-8193-4243-9ea5-a79db82f28dd
About 75km off the coast of northern Israel sits a vessel once targeted by Hizbollah, and now guarded by two Israeli warships, tasked with ensuring the lights stay on in Israel during the war against Hamas in Gaza.
The giant floating production facility is the primary asset of London-listed Energean, which started producing natural gas from the Karish field last year.
Although a relative minnow in the oil and gas industry, Energean “has been providing at times up to 60 per cent of all of Israel’s gas demand” from Karish since the October 7 massacre of about 1,200 Israelis by Hamas, the company’s founder and chief executive Mathios Rigas said.
“We had to produce to keep the lights on in Israel . . . ‘just keep the gas flowing’ was the message, so we went to maximum capacity,” Rigas told the Financial Times.
The responsibility was thrust upon Energean after the Israeli government ordered a temporary shutdown of the Chevron-operated Tamar gasfield, which normally meets about 70 per cent of the country’s energy needs.
Tamar’s production platform, visible from the north of the Gaza strip, sits only 25km off the coast of southern Israel — well within range of Hamas’s rockets, although production was restored after a month.
For Rigas, the dangers for natural gas producers off Israel are not new. In July last year Israel shot down three Hizbollah reconnaissance drones that the Lebanese militant group claimed were heading for the Energean Power floating production vessel as it arrived at Karish amid a territorial dispute between the Jewish state and Beirut over control of the gasfield.
Gas production only began at the site in October 2022 after the US brokered a landmark maritime border deal between the two countries, leaving Karish on the Israeli side of the line.
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https://www.ft.com/content/a45e366d-8193-4243-9ea5-a79db82f28dd
The war with Hamas has reignited fears that Hizbollah could try to target Energean again, leading to a 20 per cent drop in the company’s shares as the conflict started. But having stabilised in recent weeks they are down only 6 per cent from pre-conflict levels, valuing Energean at £1.7bn, helped in part by Rigas and other senior figures stepping in to buy
I had read this from the FT on Energean -published end Nov - and had them on my potentials' list, but was expecting a big oillie like ENI or Total, so like the rest of the market I'm a bit surprised that it's not one of the majors.
https://on.ft.com/46MfsoM
Nick - my sentiments exactly!
Words have meaning and I clearly recall AP saying news was 'imminent' at the AGM, way back in Sept. His -at this stage - knowledge of the O&G sector should have matured to the point where he & CHAR can cushion their words with 'we remain hopeful' etc...
It's a tad insulting to shareholders to use language that is not meaningful, whatever the intent.
Sunfit - if onshore derisks the Risanna licence, then I do wonder if a partnership deal might now be contingent on Chariot going ahead with the onshore drill, getting the results, and then sealing a deal to encompass offshore + onshore?
I hope not TBH as I'm running out of Godot patience!
Sunfit - I agree with that assessement. If CHAR goes it alone on the onshore, it would have to eventually raise financing for all the production & development costs, so it makes a lot of sense to aim to get a big player on board now, and eliminate another cost-raise in future.
I just keep thinking of what would be the ideal for a partner, in particular a big oillie?
Sunfit - I was at the AGM and this was a quip made by Adonis...as I recall (and it's just my recall so I could be wrong) questions from the floor at the time centred on why/when a partnership deal would be announced. Bear in mind that the quip may have been said in jest, or not!
Indeed, the onshore was necessary, as Char needed the cash...but looking at all of the assets today, if a big E&P player is in the mix, why would they only want Anchois and not a piece of the onshore, which could be a revenue source before Anchois? My gut is that it will be part of the package when a deal is announced.