Member Info for Surety

This is the translation I get, just to share for all :

Energean, a Greco-British energy company, has announced its intention to withdraw from the Anchois offshore gas field near Larache, Morocco, following disappointing drilling results. CEO Mathios Rigas stated that the company's drilling operations did not meet expectations regarding natural gas reserves.

LEDESK

In December 2023, Energean entered into a partnership with British firm Chariot Ltd, acquiring stakes in two Moroccan offshore licenses: 45% in the Lixus license and 37.5% in the Rissana license, becoming the operator for both. Chariot retained 30% and 37.5% stakes in Lixus and Rissana, respectively, while Morocco's National Office of Hydrocarbons and Mines (ONHYM) maintained a 25% interest in each.

LEDESK

Despite these investments, Energean's drilling campaign did not yield the anticipated results. Rigas noted that while the area contains gas, the quantities are more suitable for a smaller company. Consequently, Energean plans to focus its efforts on the Eastern Mediterranean, the Middle East, and Greece.

LEDESK

This development follows Energean's strategy to optimize its portfolio by divesting mature assets and concentrating on key projects, such as the Karish field in Israel and the Anchois field in Morocco. In June 2024, Energean sold a portfolio of exploration and production assets to Carlyle for up to $945 million, aiming to focus on its core projects.

LEDESK

The Anchois gas field, discovered in 2009 by Spain's Repsol, has seen investments totaling $40 million. A drilling contract was signed with Stena Drilling to use its Stena Forth unit for exploration and development of a well east of the Anchois gas field, with the campaign expected to conclude in the third quarter of 2024.

LEDESK

Following Energean's withdrawal, the future of the Anchois project remains uncertain. Chariot Ltd may seek new partners to continue development, as Morocco aims to enhance its natural gas production to meet domestic energy needs

MT

My point is what your agenda is here … surely you can’t be shorting this .. or maybe you are .. Interesting play given the messages in the last RNS.

You did call Jog right from its high, I think I acknowledged that in my note, however you were also advising holders that they should urgently sell at 50p as it was about about to collapse by 95 percent + following the budget … that hasn’t come to pass .. far from it in fact, it swung the other way adding 35 percent from 50 percent with the house broker holding a 500p + target and FID likely next year assuming it passes the emissions test

If news doesn’t come CHAR will fall further in the next few weeks, almost certainly as people who had a punt at 1.30-1.50 bail out and no institutions buy in.

Today is case in point .. sells out numbered buys about £30-40k GBP. It’s hardly a panic exodus.. just books buying with authority …

As Ianfer rightly points out they need news to do that .. they may however get it … and you are as right as you are wrong

Time will tell on this .. I’m just advising others to consider your narrative and how well backup it is / or isn’t before they follow the path you want them to ..

No more.. no less …

DYOR

MT you have been plaguing the JOG board with this narrative. Admittedly you did call the original decline correctly, but it is now c. +34% higher at 67p (with a realistic prospect of being multiples of that in the next 12 months if the development progresses) than when you said it was going to 1p and you still havent given any rationale for why you thought 1p.

Why is char going to under 1p then? And before you say cash, I'd love your take on power, loukos, namibia, hydrogen and anchois..

DYOR

Funny you should use the word 'insane' Ripley!

Although in fairness, that is probably the right class of investor for this share right now ;-)

I suspect they cant commit to a plan until it's clear what Enog are doing, as we've said before. I'm not sure what else Jimmy Lea is going to add to that at this stage FWIW - and by the way I dont like it anymore than anyone else! Hockey has made it clear that their focus as a Board is on maixmising shareholder value (note he didnt say 'stakeholder' - the differentiation being quite important if they were about to let this go, and were about to run out of cash).

For context there have been approx £70k GBP of sells vs. £50k of buys. Hardly an earth shattering move against even totally rubbish £22m market cap

News needed on Power, Namibia, Anchois and then Loukos (with development funds available if they sell Anchois and Enog stay in?) + Hydrogen. It's waiting patiently until Enog move I suspect.

DYOR

Hi Jimmy. I know you've commented on this before. Do you think ENOG + partners could have completed the analysis + (agreed an in principal price) in time for a directional decision to be communicated on the 28th?

My question is more about the time it would take for the analysis..

DYOR

I think that’s the perfect summary of where we are, JT. In one of their recent RNS updates they use language to the effect of ‘we will update as soon as we are able’ which I directionally read to mean we need Enog, as operator, to confirm what they’re doing

Likewise re the power.. they may be able to extract some operational cash from it for the topco as well..

IMHO

Not the best..

If they can find a way to be part of a smaller, initially, but still explorative Anchois licence - figure out a way to get gas out of loukos and fund power (whilst keeping the hydrogen moving in the background at someone else’s cost) this remain interesting. Namibian gas in the future may be interesting and the development would have been years away anyway so the timing may be ok

The big thing for me is how they play the Anchois negotiation. I hope that the Moroccans will give on the gas price, they need the development. I think Surfit, some time ago, highlighted the ability to give up Chariots accelerator as part of a deal sweetener with Enog. With a higher gas price this would almost certainly kick in, but Enog may be prepared to fund the activity in exchange or at least make a relatively small but meaningful payment to Chariot. This in turn could unlock Loukos

They dice need to fall favourably but there is a path through this IMP

DYOR

Has anyone got full access to this article in full? - Almost a month old :

If they access the Nam licences and the development looks like it will proceed.. the share price here will look very different.. subject to them resolving their cash challenges..

https://www.upstreamonline.com/people/chariot-appoints-new-chairman-as-incumbent-retires-share-price-falls/2-1-1724920

London-listed Chariot has appointed a new chairman, with Andrew Hockey replacing George Canjar with immediate effect.

Chariot's stock price plunged recently after an unsuccessful appraisal well on the Anchois gas find offshore Morocco, and while a development may yet be possible, the company's is now trying to secure a stake in acreage in Namibia's prolific Orange basin.

The company, working with TotalEnergies, is also involved in a nascent green hydrogen project in Mauritania, and has become heavily involved in the energy supply business in South Africa and providing power to mines throughout Africa.

Chariot are involved with Green Hydro in Morocco

Partnerships in Morocco are also progressing, with proof-of-concept projects underway. This includes partnerships with the Mohammed VI Polytechnic University (UM6P) and Oort Energy, a UK-based manufacturer of green hydrogen systems.

Latest update in early Nov on Char in Mauritania - note EU support comment

https://african.business/2024/11/partner-content/mauritania-sets-ambitious-green-hydrogen-agenda

DYOR

Battletech, respectively your huge sale is about 0.07% of chariots current lowly market cap..

DYOR

TotalEnergies commits to exiting fossil fuels in South Africa greenwashing case - FT

I wonder if they are considering a power play invsestment with Char given the current relationship in other areas (solar, hydrogen, etc)

DYOR

Not sure I understand the question. It was this week last year so I assumed the same this year, but when I checked their website it’s the 28th this year. I think it’s helpful, as later gives them more time to appraise the gas and hopefully there will be some form of update for then

Just checked their website, 28th Nov 2024

Worth noting, I think, that Enog have a November trading update set for this week if they follow the same pattern as LY. Somewhere between Tuesday and Thursday.

More to follow no doubt. I suspect that Chariot need Enog to confirm their position before they can update us on their work plan - unless the power funding and/or the Namibian licences come in before.

DYOR

You would think this is a potential takeover target in the next 8 months for c. £2-3

DYOR

I agree with the Bold, all of the news is in the open market and it's suitably generic. I view this as a nod to beliving in the company, but not taking advantage of news that will boost the price

DYOR

This one is quite tricky in fairness to him... if he buys a load and the price rockets he'll be accused of profiteering..

Directionally this is encouraging as he's clearly making a statement of intent.

DYOR

DYOR

JT - I suspect that AA will have had a hand re exerting pressure on the change of guard re: the chairmanship

IMHO

Two=few