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Jimmy, The report says it was based upon seismic surveys carried out in 2003 and 2007. I find it difficult to imagine partnering on Rissana without further 3D seismic and analysis by Char. Surely we have enough on our plate delivering Anchois and the other Lixus prospects? Rissana seems a way off yet.
When Char published its RNS in September 2020 announcing a significant resource upgrade to 361Bcf 2C contingent resources and 690 Bcf 2U prospective resources, the SP rose from 1.65p to 4.09p in a few days. If the upcoming CPR raises this to 1000 Bcf 2C contingent and 2000 Bcf 2U prospective, what will happen to the SP?
Given the the Ukraine war, you might imagine there will be interest from Repsol or Total in our pokey little company. I think the current SP and value of our main resource makes a take-over a real risk.
Jimmy, would Char not be better getting their 70mmcf per day up and running, sold 40mmcf as per the MOU and 30mmcf to Europe for £16 and the prove up another prospect in Lixus or Rissana? They must have confidence in the seismic at Lixus, so what do they need to prove? It's not going anywhere and an 80% GCOS is like money in the bank. They could open it up when it suits them and have a 35 year cash-flow to look forward to. A new discovery would add to the reserves and company value.
Just thought I'd chuck out a contrarian view to provoke debate.
"We will be announcing independent third party validation of Anchois resources through a CPR shortly."...........because Chars own published assessment of their "pre-drill resource of 2 Tcf" Anchois development hub is clearly not to be trusted. Has the market not been paying attention?
Nice to seen them using the fund raise cash to do what they said they were going to use it for. Clearly Char know what they have. No point them sitting waiting for the CPR: get the design and prices as soon as possible to speed up FID. I'd love to know the size of pipe they've asked SS7 for.
It's interesting that they have bought 40% of a project with nothing physical yet to show for it, much like Char's gig. BP's Western Australia project is designed to provide power for local mining operations in phase 1, hydrogen for local mining operations in phase 2 and ammonia for export in phase 3. Char already has a pipeline of PVs for local mining operations, so they're ahead of BP in that respect. Char's green hydrogen project is about as advanced as BP's, but has zero value attached yet. The latent potential of this project is huge.
Jimmy, if you scroll down to page 21, however, Char attribute 149 and 362 Bcf to the O sands, though the drill result shown on page 5 suggests much less than this was appraised, though it derisked adjacent O sands. Swings and roundabouts? Given the announced increase from 55m to 150m+ net pay, I think the swings are winning, but we won't know by how much until the CPR is published. It would be nice to hear from Char an estimate of when this is likely to happen because the wait is driving me crackers.
AP bought £400K-worth at 18p. I imagine he has a pretty good idea of what the CPR will say. I don't think he is the sort of person who would invest £400K unless he was feeling confident. It says all I need to know for me to be happy about my dribble of shares.
61.1 million shares applied for, 17.6 million available leaves a latent demand for 43.5 million shares. Given where I believe Char are going in the near future, why would I not complete my top up at c. 21p? It's nice to get some 'bargains' at 18p, but I'll soon forget the extra 3p when we reach 30, 40, 50 and beyond.
Follow the money: https://www.bbc.co.uk/news/uk-59107805
On Page 7, the top right diagram has black and red circles numbered 1 to 9. Are these future drills? Do the black represent the development wells of the 1TCF Anchois discovery and the red derisked satellite hubs?
What is the maximum flow rate of a 40km 12" pipe?