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I’m actually moderately bullish from here. The transitional power underpins the share price by 2x and the market will do a value discovery exercise as more news is released on this. The funding access allows huge value creation.

Separately whilst I understand that ENOG won’t be developing anchois there has been some discussion over unitising the license to allow chariot to deal with anchois. Personally this makes no sense to me as clearly drilling the rest of the license would. Be with a view to firming up volumes and a wider development.

Onshore is frustrating but having cost taken a way through farm out and a wider drilling programme can only be value accretive. I suspect Jimmy is right on the seismic but I havnt heard anything about it.

There’s significant upside from here as clarity is provided. I would just add that Morocco will want anchors developed as one of the largest discoveries offshore - this will be a priority for them.

Unless energean have done a u turn in the last ten days they are walking away from an hood full stop as it doesn’t meet their high grading criteria. It doesn’t mean it can’t be profitable but just that it doesn’t get them the return on capital relative to other opportunities.

For shareholders they are left trying to recoup capital - the good news is that transitional power underpins the price and looks like the biggest growth prospect. The problem is the market doesn’t understand it and has yet to undertake value discovery on these assets.

On anchois chariot may still get a development away but until the license handover happens, a new farm out and appraisal undertaken, the market will heavily risk anchois and this becomes a longer term potential value driver.

Onshore Morocco it looks like they are looking for a farm out partner but the board are sheepish on providing any details here on the resource / discoveries. This may prove a near term value driver if they can convince market there is a path to revenue.

In the meantime they MUST cut costs.

Agree , share price will likely drift in absence of imminent news flow, it’s the nature of the market. Equally it’s technically very overbought. Seeing some run off and consolidation would be very healthy for the next leg up early next year.

They do have one thing they are really keen on is my understanding but think they need the cash from farm out ideally to sign.

I think what they have done is bought tax losses from an entity in a group in liquidation. By buying the company they may have access to the losses to make any developments they have more attractive. This does suggest they have a line of sight in a development whether this be earlham or with Ping. Looks positive and clear step to improve economics.

They have effectively paid a pound to take forward ongoing payments /liabilities off their hands. I Havnt reviewed the carried interests yet though.

Agree only disappointment was not drilling until 2026 (previosuly slated 2025) but understand rigs are hard to come by in the area as well as lead items. Suspect also want to do a lot of work on location as high impact

Don’t forget the share price did nothing post the dewa announcement. It was only post the management call the day after the share price rallied.

The deal aside today, they have something else interesting in the pipeline which is revenue generating. They aren’t doing things by halves!

Excellent farm out deal

Strengthened balance sheet

And as shareholders will find out they are looking at something else- I understand a long life production asset

If they don’t they will miss out on something else quite lucrative and as I said in my earlier post the deal won’t close until Q1 as needs state sign off.

Excellent farm out

Strengthened balance sheet

And…as shareholders will find out shortly they are looking at another long life production asset.

Unless they have changed their mind in the last 7 days enog are exiting the license.

Will be more than 5m. This is a huge bit of acreage. There is gas there it’s just getting the optimal locations - equally there is huge peospectivity outside what they have identified as the best prospect. The IRR here is off the scale

Not Enquest

Save for the fact that they said they are in discussion in relation to the sale of their offshore U.K. assets!

On liquidity , they are fine until end of Q1 2025 and there are a number of shareholders willing to provide a short term liquidity line if required. I wouldn’t worry about that.

You need to understand the process of farm outs. The data room was open from early summer. Interested parties have the ability to request further information from the company before putting forward indicitive proposals. There is then either a shortlist or if any one party proposal is compelling enough exclusivity will be awarded for a period. In this period there is prolonged due diligence and discussions around specifics (often operational as well as commercial). I don’t actually know whether heads of terms with any specific party has been signed albeit I know they have one party extremely interested. You’re talking semantics . A deal will be signed pre Christmas but almost certainly won’t complete until regulatory approval in Q1 .

I’m not sure what point you’re making. They can sign terms pre Christmas and having spoken to the board they hope to do so. However the deal will not complete until the regulators approve it as with most countries.

The plan remains to agree farmnout heads of terms pre Christmas with completion in Q1 once have government approval.

I don’t think we need luck. It’s commercial - the asset is there and the economics are likely there for the right player. I suspect ENOg will announce their intention to relinquish at the end of the month in their trading update - this will give Chariot the platform to state their plan going forward. The share price may get worse before it gets better but it is intrinsically undervalued here.

In principle subject to how they were left but suspect they will drill a new one and use as a producer. Smalller development means potentially faster development - but farm outs and lead time for equipment takes time