The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I would put that estimate on the low end. Someone has to carry NAMCOR and Ignitus so at present I would guess Chariot must be looking at funding around 75% of total well cost. What if there is drilling complications and the well over runs??? More potential costs could be involved. I don’t like it one bit. Chariot operating this well goes against everything management have told us over the years IMO!!!!
Just my opinion but there appeared to be no real interest in conference call. A few questions from one caller who seemed to need reassurance that there was gonna be no equity raise and that Chariot were in discussions with partners. Personally I’ve heard it all before. Datarooms open....discussions ongoing. Weren’t we told that about Mauritania & southern Namibia????!!!!
Just about sums it up in my eyes; https://www.rigzone.com/news/namibia_wildcat_final_throw_of_the_dice_for_chariot-06-jun-2018-155838-article/ What’s the plan B if prospect S is a duster? Nothing else confirmed as yet.... I just can’t see the big money taking a gamble on this!!!
eldorado1909 come on give it a rest. The data room for prospect S has been open a year now and still no farm out. Prior to this the data room for prospect B opened in 2013 ( yes that’s 2013!!!!!) and still no farm out. So if Chariot are going to drill in mid October that doesn’t leave a lot of time to secure a farm out partner. No farm out partner = no pre-drill rise IMO.
With cash burn I predict closer to £20m by October spud and with say £12m put aside for drilling prospect S it’s not looking great if a farm out doesn’t arrive. Look at the bigger picture guys and ask yourself when did Chariot actually last secure a farm out deal!!!!!! Some call it negativity, I’d call it being realistic. 6p on the horizon IMO.
Oh dear.... let me ask you this if Chariot fail to farm out prospect S (which is highly likely IMO) then what is the plan B if that’s a duster???? The placing cash will have been used on the drill and by my reckoning they will have about $10 million left after cash burn at year end!!!!! 15p you’re having a laugh surely??
I don’t think it will take long for people to wake up here and sell out. RD-1 was worth a punt but prospect S with Chariot as operator..... mmmm let me think about that one!!! 7s will come quick and if the summer is quiet on the news front I think 4-5p will be tested.
The Board is, as always, mindful that unexpected events, including operational outcomes or events outside the Board’s control, may result in the proceeds of the Fundraising being deployed in a differing manner to that set out above or on a differing timescale to that currently envisaged. Mmmm makes me think about the possibility of the drill in Namibia being delayed or temporarily put on hold. No confirmed drill in place makes me very weary!!!! Just saying and all IMO of course!!!