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Jimmy, I wish you were right, but I suspect it's just temporary over-enthusiasm by the MMs. Years ago, there was chatter about 'getting in before the herd.' It seems to me that the 'herd' are on permanent holiday. I look forward to news when it lands but, like wishing for Christmas, it won't make it come any sooner.
Thanks for the clarification Jimmy. I hadn't expected Rissana to be developed for years, but I would be happy to be proved wrong. It appears that Morocco could become an important gas supplier to Europe in the coming years if the Lixus licence comes fully to fruition and Rissana delivers what Char believes it holds.
BDC, the Rissana motherload is shown on page 10 of Char's AGM presentation as being close to Kenitra and suggests conversion of an exist oil-fired power plants to gas and an 'optional' pipeline c. 60 miles north to Char's processing facility. Given Char's 7TCF estimate for this field, would it not warrant its own infrastructure independent of Lixus? The estimated 6TCF Lixus field alone should keep Char's processing facility supplied for many years.
https://www.chariotenergygroup.com/wp-content/uploads/2022/09/Presentation_AGM_080922_website.pdf
https://ihsmarkit.com/research-analysis/moroccos-anchois-discovery.html
Interesting article calculating several NPVs based on different gas prices, in case you doubt Jimmy!
Jimmy, your calculation of 50% of the production being worth $196 million annual gross profit would give a 25% farmout generating $98 million pa. I wonder what Char have been asking for the farmout.
If Char go it alone, $294 million pa is going to support a mighty capex and then some.
https://www.chariotenergygroup.com/wp-content/uploads/2022/09/Presentation_AGM_080922_website.pdf
Definitely need to order a bigger pipeline.
SHC, I am delighted TE have joined the consortium but surprised they have got in so cheaply, given the huge potential recognised by the pre-feasibility study RNS in May. It is welcome vindication that the project has legs, but I would have liked more consideration in exchange for half of a 10GW project. That's why I fink it may be a sweetener for another deal with TE. Woo hoo.
Jimmy,
It strikes me that TE have got a very good deal. When Anchois starts producing, Char will be cash-rich and able to fund the early stages of Project Nour. I know Char's intention was always to partner on this project, but swapping 50% for a feasibility study seems akin to swapping half of Rissana for some seismic interpretation.
I don't understand. Have we just given away 50% of our Mauritania project for nothing? Is it currently worthless? If not, what are TE giving us in return? Notwithstanding the 'good fit,' I don't see how their involvement at this stage adds value unless it is a side-show to an Anchois farm-in.
120km of pipeline to Spain would cost circa $280 million.
https://www.gem.wiki/Oil_and_Gas_Pipeline_Construction_Costs
European price of gas $60/mcfx70mmcfd = £420,000, so it would take 667 days production to pay for itself.
Is it possible that future phases of Anchois / Lixus / Rissana could have their own pipeline to Europe?