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I recall Adonis saying at the AGM that 'Duncan keeps finding more gas' (or word to that effect), as being one of the reasons why no partnership deal had been announced. Currently, CHAR is pursuing its onshore plans alone, but how would a potential partner view this - something they would want to be a part of, or happy to et CHAR get to 1st gas before Anchois?...is this the last item to be sorted?...all food for thought!
FROM TODAY'S FT - increasingly, Morocco is gaining prominence as a source of energy, on the green front too supplying @8% of the UK's needs....see this excerpt from today's FT:
UK streamlines planning for £20bn plan to bring power from Morocco
''Sir Dave Lewis, former boss of Tesco and executive chair of the project, Xlinks, told the Financial Times the move was a “significant milestone” and said the Morocco energy scheme was “progressing well”.
Under the plan, electricity from the Guelmim Oued Noun region of southern Morocco would be supplied via cables running 3,800km under the sea to the tiny North Devon village of Alverdiscott, where it would be connected to the national grid.
Lewis said the project would have generation capacity of 10.5 gigawatts, of which 7GW would come from solar and 3.5GW from wind. “The sun shines every day there and the wind blows every evening,” he added''
IT's interesting that no amount of positive words can support this share for any decent length of time!
Boosted price afdter Simon Thompson's latest piece, plus all the 'imminent' partnering news, and yet...share price falling yet again when it looked as though it might continue on a steady rise!
Think the share has suffered from the expected ( & 'missed') deadline of deal-making (end H1); now the reality that a partnership deal will land has begun to take hold IMO.
Really believe we're on a upwards trajectory till the news lands.
Hi
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For those who may be interested, today's FT carries an article on the importance of Morocco to the stability of Europe & the West. It lauds Morocco as a beacon of stability in Africa. Here's an excerpt:
'Morocco is a uniquely positioned ally: even before this terrible disaster, we should have been far more closely engaged. As an intelligence and counter-terrorism partner, they have stopped more than 300 attempted attacks since 9/11. On migration, over the past five years they have taken down more than a thousand human trafficking networks and prevented upwards of 300,000 illegal crossings. Crucially, 45,000 immigrants have been integrated into Moroccan society, many from the Sahel.
But above all, Morocco is a western-facing, Mediterranean country that appreciates the importance of civic reform and economic development, with a record of promoting both across the continent. King Mohammed VI has mediated conflicts across the Sahel, helped to negotiate over a hundred co-operation agreements and deployed more than 70,000 UN peacekeepers. Morocco is also the second-largest investor in economic development on the continent and a crucial guarantor of its food security'
Having been at the AGM, my take is that they will deliver a partnering deal before the year end...Loukos, while apparently offered to them by the Moroccans, is definitely a way to keep the lights on while they try to get the best deal in...
The real issue is being a minnow - albeit with a great asset in Anchois - makes negotiations with a major (IMO) harder..
A great asset, with very good potential, on the shores of Europe at a time of serious security of supply now RU is offski - so, CHAR should be hugely attractive to a major. All boxes ticked except for query over BOD/mngt expertise - I remain hopeful of a deal in the near future, but am resigned that we won't get as good as we had hoped in the earlier days.
I spotted this on LI just now.
https://www.linkedin.com/posts/chariotlimited_bank-al-maghrib-on-x-activity-7107033441988141056-lYZc?utm_source=share&utm_medium=member_desktop
Surfit - if I recall correctly, they expect that work on Loukos will be Q1 next year ..Duncan W said they are working on the permitting that's required to get the site drill-ready...Adonis said that the Loukos licence was pretty much offered to them by the Moroccan gov and they had to take up the opportunity there & then, thus the fund raise.
There was no mention of any drill/rig probs with Loukos.
Surfit - he wasn't pressed on explaining the delays, and I don't believe he would have given more detail on this..it's v possible that delaying tactics by a potential negotiating partner are in the mix esp if it's a big player with deep pockets..
Re rigs/equipment etc- he said there was a supply/shortage issue with these...and that costs had risen with inflation...perhaps Jimmy, or another industry expert, can give us an explanation of why rig capacity might be so tight?
I felt that a lot of the ducks are in place, and the GSA has come as far as it can with sign-off awaiting the partner deal.
I think they have the partner deal in sight, with final costings being hammered out.
Whimax,
My gut feeling is that it isn't that far off, depsite our ongoing disappointment that something hasn't happened by today. And, at one point Adonis was talking in general about the realities of negotiating with partners, and mentioned Total...it felt like this was a slip of the tongue v. just an example.
No timelines! Adonis did use the wonderful phraseology of a deal being 'imminent' and and RNS would be released 'shortly'.
He acknowledged shareholder frustration around timelines, but was a adamant that CHAR wants the best deal.
Whilst they are clearly delays - - he stated this - I came away feeling that a partnership deal was not too far off...over the next couple of months.
But whadda I know?!
Agree, Jimmy.
I was at the event, and as a lay-person investor (non-industry expert), I do believe we will see a partnership deal in the next couple of months, certainly by year end.
Adonis did admit that there were 'delays', epxlaining these to a large extent on the changing project costs, and difficulties in securing rig/equipment suppliers. He ruled out any problems with the Morocco gov side, and stated CHAR had got to the right shortlist of potential partners.
He did say partnering news would be 'imminent' and 'shortly', though I don't feel he defended the case very well when sme asked if the report by Fox+? that stated CHAR first gas in 2027 were true or False. He said 'not true' but I wasn't convinced that his reasoning for not issuing a firm denial at the time was particularly good - CHAR didn't want to draw attention to smthg that wasn't true.
Thought Duncan Wallace was v impressive - he really knows his stuff.
Adonis also reiterated that he has skin in the game and it's in his & BOD shareholders to get the best deal possible.
Think everybody understands the complexity of getting such deals across the line, but the CHAR BOD gave us all the distinct impression that it would all happen by the end of H1, so it's a poor show to have to wait until today to get any updated progres report.