Member Info for Oiltdr

They are in talks with the government to get some assurances that Earlhan will pass through approval.

I have been able to verify through a contact that in the next month ENOG will be relinquishing its share on Anchois. I’ll wait for the announcement but the sooner Chariot update the market as to their plans going forward which I would still expect to be a development and completion of appraisal work the better. I think this will be broadly market positive as long as they are clear. Market currently discounting Anchois to zero.

Don’t be ridiculous. Morocco needs investment and are collaborative and CHAR has satisfied the terms of the license. In national oil companies took licenses away like that no one would invest there. It just won’t happen without default of terms.

There’s no reason a similar split wouldn’t be achieved albeit with less sweeteners which were there to compensate for huge exploration upside. There’s less risk now as they have more data re the field - but they will have to spend capex on an appraisal well to yes the reservoir characteristics on production.

The license reverts to chariot - energean write off their investment. Chariot will have 75pc again.

Anchors needs a higher gas price at current volumes or below to achieve the IRR that energean wanted but they aren’t required for a fully commercial development per se.

Chariot will have 75pc of the license again to farm and or use as equity for project finance (although this route alone is unlikely to be viable).

There is still a hurdle to development even with a new partner - they Havnt conducted a DST and flow test which they need to model the reservoir. As such any new partner will have to appraise the core field. It’s not a major problem but needs to be factored.

It’s not right or wrong - it’s just the discount rate they have chosen to apply for risk purposes. They won’t necessarily apply the COS rate

I’ve said it before and I’ll say it again, the ROI simply won’t work for ENOG who will have higher standards for capital allocation.

That said chariot will likely get their ENOG share back and have far more value to play with with other partners and project finance. It will be developed as one of largest discoveries in offshore Morocco.

The point is if energean give up licence then Chariot have a much bigger piece of the pie to play with and leverage again. It’s just a different ball game.

Not quite - the market has had access to the data room which has been open for a while. Enhanced DD with a view to offers often takes place via exclusivity to save everyone costs and time particularly if alignment on terms in principle.

Everyone is scrambling for better insight as to what the post 2030 landscape looks like before pressing buttons. They also want to know they are going to get their FDPs signed off and not cancelled by a radical energy minister!

I would hazard a guess and say an exclusivity period has just begun with one potential partner to do final due diligence and close a deal.

Probably it for me - I just took opportunity to buy in size as liquidity is generally quite low.

I was asked on Friday by a market maker if I wanted to help clear out a seller. Myself and four others took out 50pc of what was disclosed today. My holding is now at 2.6pc of the company.

I’ve taken a position here Ona. Risked basis.

The issue and it’s a big one in the short term is that whilst we have budget certainty we don’t have any certainty whatsoever on the fiscal regime for when the current regime expires in 2030 - this is extremely key given that realistically this will be when many of these fields come to conclusion. Ed milliband was clearly forced against his will to compromise on the North Sea and his influence is scaring off inbound investment.

If the fiscal position was clear most companies would have RNS their position. The problem is they only got half the puzzle on the 30th.

Orca have great assets that in principle should be approvable but if the numbers don’t stack up ….

I think this is a timing issue.

I suspect they aren’t quite there with a final deal yet as there will be due diligence.

What SEA will have done is outline the parameters of any offer they expect to receive. Given how competitive this acreage is they are in a position to do this - it’s for each firm to then wrap an offer around those baselines. sEA will ask for up front cash (the board stated this in their summer video).

They won’t want to do multiple farm downs so they will want a carry through to development.

For acreage and resources of this size and given the competitive nature of the tender the company will be looking for a) a full carry to development and b) cash of c.30-40musd. Clearly there could be other staged awards or milestone awards but they are in a position to get a full carry through here rather than just for initial drill. The cash received up front will likely exceed the current market cap as of Friday close

Additional points to note:

- my understanding is that they will not need to dilute to fund their share of development costs. They expect the farm out of 2A to cover the equity share of any development finance as part of a finance package.

- 2A expected early December

- Enquest keen to develop asap - development plan will be fast tracked.

- other opportunities including production assets with appraisal upside being looked at

I’m told that the resource assessment will be very near term - given data readily available will not be difficult but likely upside to original estimates as technology has advanced in 40 years.

Expecting resources pre Christmas is told. Will be covered on call tomorrow

The delay was just waiting for a date for two separate signing ceremonies.

Note the 500bcf is in relation to the initial four fields they will focus on and I understand that there is significant volumetric upside to the 1980s data. Enquest are a good partner and have good financial headroom to get this done.