Member Info for preciousmaj

Remember that YF Finance bought their 7% holding at 13p, that should be the minimum that the SP rises to pre spud IMO. Larry gave a fantastic responses in the Q&A session at the Oil Capital Conference on Thursday 14th June, check 21:00 onwards: https://www.youtube.com/watch?v=RmKPcUReh_Q Question: How keen are you to farm out Prospesct S? I mean is it... would you say if you don't farm out on Prospect S, you will have enough resource to continue with the rest of the program. Larry: Yes the.. in terms of the commitments that we've got... the only commitment that we've got throughout the entire portfolio is the drilling of prospect s. We'll be drilling that and we're funding for it regardless of whether we partner... we are very keen to partner because what that allows us to do is in prospect s specifically, with 5 four way dip closures... explore, discover, sell... our preference will be on partnering and be able to drill prospect s and then w back to back with s... that proves up two of the five prospects... it proves up that there are two separate source kitchens and it derisks the remainder of the portfolio. So by partnering it allows us to drill s... if s is a discovery... we will drill w back to back... we've got the well on a 1 plus 1 basis. Question: Obviously, if you drill s without getting it farmed out... to continue with the rest of the program... s will cost in the region of $19m and you've got $30-$35m in the bank so with G&A as well... you know... I'd say if you don't farm out then you'll probably be looking to raise... Larry: We're looking to partner in all of our portfolio... so, if we partner on s then that will be great... that the cash that will be liberated that we're not spending on s, we could invest elsewhere withing our program... We're also looking to partner in Brazil... Any cash that this liberates we can invest elsewhere... We'll be looking to partner in Morocco and anything that we liberate there will go elsewhere... so it's really about continuing our process of taking large equity positions and then going through the partnering process... we have historically been successful in partnering... partnering has been really touch over the last 2 to 3 years and we have been one of the few companies that have been successful at partnering over the last 2/3 years... we have historically partnered with Petrobras, BP, Cairn, Eni, Woodside, Azinam... so we are continuing.. that's part of the derisking process that we're undertaking.

https://youtu.be/RmKPcUReh_Q

To give balance the share awards have been granted for a few years. The bonus scheme was created after the May 2015 update resulting in the directors taking a 50% cut in salaries. I would rather they have shares so that they have skin in the game. Their interests are therefore aligned with shareholders. 2015 update: “Further to an in-depth review with due consideration of the strategy, the portfolio and current market conditions, the Board has deemed it financially prudent to reduce its overall remuneration by 50%. This reduction will result in a net cash saving of c.US$1.5m over the course of the next year, serving to both protect the Company’s cash position and maintain Chariot’s financial flexibility.”

http://www.chariotoilandgas.com/wp-content/uploads/2018/06/Oil-Capital-conference-_14June18_email.pdf

It's also worth noting that Larry stated the following in last weeks conference call: To undertake an equity raise, we need a use of funds. We don't see a use of funds over and above it is what we're doing so, we have no plans to do an equity raise before the spudding of the next well.

http://www.valuethemarkets.com/index.php/2018/06/13/placing-cards-chariot-oil-gas-char/?utm_campaign=shareaholic&utm_medium=twitter&utm_source=socialnetwork The key paragraph to stop a placement is near the end: "One potential Ace Chariot has up its sleeve is if the company is able to secure another farm-out for one of its projects. The company certainly has a strong track record in delivering these and if it is successful again in the coming months then this could prove to be a catalyst for the shares to move higher." It is now evident that the risk of a placement has stopped the share price from rising, a farm out needs to be completed so that the share price can start rising and for investor interest to increase.

The Cormorant-1 prospect in Namibia that is licenced to Tullow Oil (35%), Pancontinental Namibia (30%), ONGC Videsh Limited (30%) and Paragon Oil & Gas (5%) has a resource estimate of 125mmbbl with a 15% chance of success. The Chariot Oil and Gas (65% interest) Prospect S has a resource estimate of 459mmbbl with a 29% chance of success.

https://www.offshoreenergytoday.com/ocean-rig-drillship-mobilized-to-drill-tullows-well-off-namibia/ "Commenting on the upcoming drilling of Cormorant-1, Pancontinental CEO, John Begg, said: “We are on track for the drilling of Cormorant-1 in September. According to Wood Mackenzie, the global energy research and consultancy group that reports on all aspects of the upstream oil and gas industry, this will be one of the most –watched offshore wells anywhere in the world this year. It has been highly anticipated for a number of years by the company and our shareholders. “We are obviously keen for the well to commence as the first test of the giant– scale oil potential within the Block. No doubt ExxonMobil, who recently farmed into the immediately adjacent acreage, will be watching closely for the outcome.” Ocean Rig Poseidon is the 6th generation deepwater drillship of a Saipem 10000 design. It was built in 2011 by the Samsung Heavy Industries Shipyard in South Korea. The drillship was also recently hired by Chariot to drill one firm and one optional well offshore Namibia."

I think most were expecting a farm out of the Namibian blocks, which would have improved the cash balance and provided a free carry. The Namibian acreage is of fantastic quality, prospect s has prospective resources of 459mmbbls that has had third party validation from Netherland Sewell and Associates. With an asset like this, long terms shareholders expected a farm in partner to come in. I didn't expect a raise just before drilling would start in Morocco, this was a poor decision but like I have said we don't know the details - a farm out deal may have collapsed just prior to the raise. If the raise was priced at say 20p then I would have had no issues with it at all but the management undersold IMO and sent the wrong message about the value of the assets to the market. If the raise was at 20p as I have suggested then we would be well above 8p now. Maybe the best deal to farm out wasn't good enough for the management, they may have wanted to keep a larger share of equity and potential partners (most likely majors) would have wanted a larger share, in that case I am expecting a great deal now as we are in a position of strength. I agree that there is a large discrepancy between the value of the assets and the current market cap, prospect s (65% of 459mmbbls) has much greater value to us then rabat deep (10% of 768mmbbls) yet our market cap doesn't reflect this. Using your calculations, pre Rabat our assets excluding cash in the bank were valued at around £45m - £49m yet they are now valued at £8.5m. We didn't even know about the three stacked targets with 911mmbbls prospective resources back in February, where we have 100% ownership. The chances of farming out the Namibian blocks in the near term are high IMO, then we have the Brazilian blocks where the data room is open and Kenitra where it will open in the next month or so. We attained the licences,, done the studies and interpretation of seismics and incorporated data from third party drilling, had independent assessments done by Netherland Sewell and Associates and now need to recoup our investment and be rewarded with free carries. Part from drilling prospect s, we have no further commitments and the plan now according to Larry is to partner, partner, partner.

I agree but the issues are not entirely as a result of a bad run of luck. The fund raise has damaged investor sentiment, the large discount to the then share price resulted in a 40% drop. The timing was also poor, I still can't get my head around it. Maybe a deal fell through at the last minute, who knows. However I agree that CHAR now is a healthy company and we can only go upwards from here IMO. I would be extremely surprised if we cannot farm out the Namibian acreage and equally the Brazilian acreage where 12 wells are committed surrounding our acreage. Our neighbouring blocks in Brazil are licenced to the likes of BP, Total, Petrobras, Galp, Shell, etc. The data room should be busy.

I am surprised that the notice of AGM has not been posted yet. The AGM was on 13th June last year, the company has to provide at least 30 days notice before the AGM date.

Actually having said that, a credible farm in partner would provide third party validation of the acreage, which would have a more positive impact on the way the market reacts. Either way, news of a farm out is overdue IMO. I wouldn't be disappointed with any partner in Namibia at this stage.

The company is way undervalued to be honest, it's just a matter of time when the re-rating will take place. The volume over the past few weeks has been very low, in fact it has been like that since the bad news from the last well. Any decent volume will push the share price up dramatically IMO. The Namibia and Brazil farm outs will add cash and/or free well carries, Larry confirmed last week on the conference call that the data rooms are open and "attendees are coming in for both data rooms and conversations are on-going. We've got discussions going on in both Namibia and in Brazil with potential partners". Our Namibian prospect is much larger and has a much better chance of success than Tullows so interest would have been high. The Brazilian stacked prospects totaling 911 million bbls will get a lot of farm in interest, as you say the block adjacent was licenced for a fee of $72m. The market has massively undervalued this area and a re-rating of the share price is coming soon IMO.

I'm not too fussed who the partner/s are to be honest, as long as they pay a fair price I will be happy. A decent partner would've made sense if we were a non operator but it has been confirmed that we will be drilling ourselves. As you say it will be interesting to find out who does farms in though.

"...we also connect oil companies with investors via our Oil Capital conferences; the largest Oil conferences in London. They are international in nature and involve six companies presenting to an audience of 250 - 300 investors. Post-presentation, a catered networking period is hosted where directors and asset managers converse over lunch. " OIL CAPITAL CONFERENCE June 14 2018, 08:30 am http://www.oilcapital.com/

#CHAR #ChariotOil fans big presentation June 14th in the City rumour is opps Farm in update before to show #CHAR master plan. Deep recovery play value

One way to find out, come and see for yourself. Don’t be influenced by others again, you know where that lands you.

Mate I have a lot of charisma, come and see at the AGM. You talk about my common sense but have made wrong decision after wrong decision for years, you were influenced by the wrong person and are paying the price for your nativity.

Your judgment is clouded by the past, which will not help you at all.

I’m a shareholder and you’re not so you will say that, i know that it annoys you when I post positively about the company. I’m doing pretty well financially unlike you, you’re history is there for all to see. You have been buying high and selling low. You have missed the boat previously shy boy and will likely make the same mistake again.