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70mmcfd @ $11 would generate $281 million x 75% to Chariot per annum. Increase the pipe to 14" and we'd have $382 X 75% per annum ($286 million). That's about 30c per share gross income. Gerbil will be rich beyond the dreams of avarice.
Jimmy, I think you speak for everyone's impatience regarding the SP. It is plain to everybody who has been following the Char story for years where this is going. Now we actually have an independently verified resource worth billions, it's strange that we are lingering with the company valued at only £188 million. It's as though the market can't quite believe what Char has done. Granted, it could take a couple of years for the income to start to flow from the gas or we could be taken over at multiples of our SP before then, but we know something special is going to happen in the near future. Exciting times!
As we signed the collaboration agreement with SIA in February 2021 (https://otp.tools.investis.com/clients/uk/chariot_ltd/rns/regulatory-story.aspx?cid=351&newsid=1454522) and the Anchois development has been deemed 'straightforward' using off-the-peg engineering, how long would you reasonably expect SIA to take to complete pricing the FEED?
Char have a very good idea of the range of value of the resource and a figure of $300 million has been touted to bring it ashore. Will Societe Generale have to wait for the total project cost before approaching the bank or will negotiation be in parallel with the FEED? Could the FID be made before 8th September?
Page 19 of Char's May corporate presentation suggested 3.4Tcf combined Anchois, Anguille and Maquereau prospects in the Lixus licence. Yesterday's RNS upped this to 4.6Tcf 2C and 2U. Confusingly, Anchois west was listed under "Additional Lixus Prospects" rather than "Anchois Gas Field." They like to keep us guessing. What the presentation described as "Risana Gas Play Giant Upsides" on page 7, coincidentally has 7Tcf attributed to it (2U). If that doesn't whet Total's appetite, I don't know what will.
https://www.chariotenergygroup.com/wp-content/uploads/2022/05/Presentation_Corporate_May_forwebsite.pdf
Thanks for the explanation Jimmy. So, the change from 'C' to 'P' and reserves is not based upon additional analysis of the discovery, it is merely the acknowledgement that it is commercially viable, which we have a pretty good idea of already.
Jimmy, will the 'contingent' monika be changed to 'proven and probable' once the FEED costs are known or upon FID? Given that the FID will be based upon the 'contingent' resources, is the remaining unknown merely about the extent of recoverable gas?
When the the 'significant resource upgrade' RNS was published on 7th September 2020, the SP rise was not instantaneous either. It took a week to rise gradually from 1.73 to 3.54 and another week to level off at about 4. It appears that it takes the market a while to catch on. The difference this time is that the third party accreditation grants certainty to investors and lenders. Next steps: FEED costings to minimise uncertainty, firming up capex loan and FID. Looks like one-way traffic to me.
It will be three weeks tomorrow since AP told us the CPR would be published 'shortly.' In geological terms, three weeks isn't even the blink of an eye, but this is worse than waiting for Christmas. Come on Adonis, give it over.