Member Info for Oiltdr

Looking at the book it’s being completely played - be careful here - as much as I’m cautiously optimistic for positive news the book as all the hallmarks of some rogue activity . I’ve sliced some additional equity I took at 1.9-2p.

They have to release within a reasonable timeframe in conjunction with discussion with their nominated adviser.

I’ve heard ruminations that the company is free to RNS this week the DROs - they may just wait until results as that would be compliant with listing rules. My understanding is we have them with MOUs signed with partners.

In general I agree save for the fact you have to demobilise a rig to move it. They have an option over the rig for a second well so it won’t move until enog either exercise the option or releases it.

I agree unlikely any further work but strictly what you say isn’t right

As I said in my earlier post ENOG will almost certainly not FID. they didn’t flow test which is the biggest indicator - it’s not that the field isn’t or can’t be profitable but it won’t fit their IRR profile financially.

Char will end up with another partner and some additional appraisal may be required. Expect b sands 2C to be revised down perhaps to 450-500 range which will steer next steps.

A value will be placed on the renewables business imminently.

The reality is this:

- we are going to have a valuation of the renewables and hydrogen business very shortly which will imply a value far greater than the current market cap.

- we will have production from OBA 1 which will derail funding for other onshore development.

- anchois 3 didn’t fulfil any of its exploration objectives but did in relation to the B sands. This makes development attractive but not to a large player like Energean where they can get better RRR elsewhere.

- Energean will either hand back license to chariot or more likely sell to third party to appraise and develop. Either way there’s a large value to anchois but the scale and nature of development and capex will be revised.

Enog will either sell their stake or relinquish the license back to Chariot - either way if the A1A2 sands are developable there will be a development with a new partner. The snag is that enog decided not to flow test as there was no point if they aren’t interested in a development. As such there will need to be an appraisal of an existing well. Still highly attractive provided the reserves aren’t dented too significantly.

Chariot have the 9m of cash of recent raise and maybe 1m left from prior cash reserves so not an immediate problem. If renewables are refinancing there may be an equity release and repayment of loans from this - to be announced.

Company definately worth a significant multiple of 1.3p but results of anchois on the worse end of the spectrum

Agree - as per my last statement the return on capital is likely now not right for ENOG - hence they didn’t waste money flow testing. Nothing to do with being a duster.

They will either sell or find a mid tier partner.

Possible - was the well bore fit for re-entry?

They didn’t flow test so the premise of your statement is irrelevant

B sands development still potentially very attractive to a mid tier player - ENOG more unlikely as will demand higher returns on capital to proceed. However industry finance or mid tier player would likely be interested once the picture is clear on b sands. Other alternative is they package up for sale - they didn’t flow test presumably as enog likely not to proceed so the day rates are a waste

Thebold - thanks - I accept that’s one way of looking at it

The B sands may prove up further volumes there. But when Energean in their RNS state that the likely hood is that pre drill estimates have not been met they will obviously have known at this point the gross pay in the B sands. I’d have expected them to be more vague if they thought upside in the B sands.

There is still exploration upside here - but the starting point is that current volumes of confirmed still produce an extremely lucrative development for any mid tier player. Funding unlikely to be an issue.

Appreciate the article referencing potential 200m thickness but in the ENOG analyst call the CEO seemed a little more downbeat ? Clearly logging and wiring and more importantly flow testing not occurred yet. A productive reservoir may well increase 2C reserves in its own right. Does anyone know if anyone has reconciled the above conflict. I’m a bit behind on following this. I think personally from experience this is a bit too early to tell. Equally provided 2C reserves hold this will be a highly prospective field development for any mid tier player

Sorry for late reply - I nearly missed this. I bank with Goldmans and have the ear of a number of key market makers and book runners. In this case GS picked it up for me and I got an allocation.

On final point. I’ve done the maths in quite some detail and I expected them to raise 25. There’s a reason they didn’t and the clue is in the RNS.

It’s the price you pay for doing business.

An untrained monkey knew they had to raise short term but if there’s value accretion then it’s an acceptable form on financing. I took shares in the book build via GS and wouldn’t have done so had I not believed the story.

I’m now overexposed due to calls so I’ll be winding down calls on any spike as were an insurance policy.

The question you all should be asking is why have they only raised 5m which let’s face it will not put a dent in very much at all.

The clue is in the RNS but no one has picked it up.

Like I said there would be a placing and it would be positive for share price.

I was notified last Wednesday but was inside. Got a decent clip.

This is exactly the deal structure. If ENOG don’t increase stake then Char have to fund their share themselves. This would likely be project/RBLnfinance - in principle I would be surprised if CHAR Havnt had discussions anyway already in the market for this contingency. That would be the usual approach. A lot hinges on the upside on the appraisal well or wells.