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Is that neither broker notes issued today, of which are neither are a house broker, have flagged a short term specific financing concern.. Their respective notes are live this morning

Hybridan reference cash burn (but not an immediate burning platform) and Auctus reference FY23 financials being in line with forecast, but dont subsequently reference cashflow and are busy referencing a 50p target price.

It also seems odd that they have taken the approach they have to Power. Auctus state : In March 2024, Chariot announced a strategic review process for the Transitional Power business. This review is expected to be phased. Given the interest received from various financial institutions in Africa. Chariot expects to progress the various projects in the energy transition portfolio with initial funding (~US$50 mm) from some of these institutions. This funding would be at the level of the Transitional Power business subsidiary or at project level (rather than at the top company level) and could include a partial divestment of the relevant subsidiary. This is likely to provide a read through value for the business.

They also state : Testing of the Dartois discovery onshore Morocco is expected to take place in 3Q24. Subject to the results, first gas could occur in early 2025. Chariot will initially transport its gas to market as CNG.

Not the language you would attribute to a business, who has a responsibility firstly to it's shareholders - and if necessary, ultimately to its creditors to achieve the best outcome. If they have an asset that can realise cash (power) and a short term liquidity requirement to plug then they are required to act.. If you can raise £50m in financing .. you can sell the thing for 20-30m outright!

None of this makes sense... I know it's AIM, but there are still codes of conduct..

IMHO/DYOR

There is a pretty serious question about why they drilled Loukos, given the cash position. Anchois was way more important..

I assume a big part of Loukos was paid upfront though..

Any thoughts on this specific comment :

Conclusion

The forecast indicates that there will be a cash deficit from July 2024. To manage this the directors mitigating actions include cutting discretionary expenditure and deferring creditor payments until funding across the business at an asset, subsidiary or Group level are successful, however, it also acknowledges that this short term funding is not, at the present time, in place.

Full accept the accounts were signed off in December

DYOR

I think the big question is whether they are near certain on the 10% decision from Energean (releasing £50m), or if they need to raise. If the drill results are good, either will work.. If they're not - to state the obvious - we have a problem! Hence the SP is where it is..

IMHO

I'd prefer 25-30 for the asset suite!

Building on this, I imagine there is a good chance they are going have to raise $10-20m either immediately pre drill, or directly after. The Enog cash is dependent on taking the extra 10% or FID - The first could be drawn out if it suited them and they wanted to buy CHAR...

On power however, I thought this was interesting from Auctus this morning : Energy transition portfolio In March 2024, Chariot announced a strategic review process for the Transitional Power business. This review is expected to be phased. Given the interest received from various financial institutions in Africa, Chariot expects to progress the various projects in the energy transition portfolio with initial funding (~US$50 mm) from some of these institutions. This funding would be at the level of business subsidiary or at project level (rather than at the top company level) and could include partial divestment of the relevant subsidiary. This is likely to provide read through value for the business.

DYOR

Https://on.ft.com/3KuUqm5

Not entirely unhelpful... the clues around decomissioning savings, and low carbon developments around licences play to Jogs strengths.. Jersey is mentioned..

The clues are forming that this will be ok for us.. and perhaps how a labour government might incentivise the development of existing licences...

IMHO..

Definitely feels like there are a few interesting pieces for the jigsaw about to collide in Q3 : Anchois, Dartois flow test, SP review outcome and possibly a further update on Hydrogen...

I remain intrigued that Cavendish are quiet... makes me think there are writing something big; or Chariot are changing advisor; or they know other news is due shortly..

IMHO..

It's just lazy journalism...

We do...

Greener - I agree, governing policy - to avoid individual tax hikes - needs to leverage O&G revenue... likely by creating an incentive to drive the energy transition / low carbon developments.....

It may take 6 months to get clarity, but this could sky rocket when that happens..

DYOR

Https://www.investorschronicle.co.uk/ideas/2024/06/05/jersey-s-flagship-project-still-on-track-despite-delay/

High profile news from the ‘Tory-graph’. Jersey being used as a ‘stick.’ Not a bad thing to drive the message home - and hopefully force labour to clarify their real intent quickly on how they will likely govern (in the highly probable event they get in)

https://www.telegraph.co.uk/business/2024/06/05/north-sea-oil-labour-tax-raid-delayed/

DYOR

From SP Angel

Jersey Oil and Gas (JOG LN) 125p, Market Cap £41m: Awaiting UK fiscal clarity • Jersey announced an update on the Buchan redevelopment project ahead of today’s AGM, also advising a current cash balance of over £13m and a forecast burn rate of under £3m per annum. • The Company is fully carried to first oil in the proposed 100mb Greater Buchan Area (GBA) project (20% WI), with a further $20m payment due following approval by the NSTA of the Buchan field development plan (FDP). • The exact timing for achieving this key milestone and enabling project sanction is linked to the partners securing fiscal clarity from the next government and ensuring that the project remains financially attractive. • Jersey is hopeful that with a UK General Election now announced for next month, fiscal clarity on the UK oil and gas industry will be forthcoming in short order. The shares have fallen by over 15% in early trading as management has indicated that Buchan first production has slipped by a year to late 2027 as the joint venture partners wait to secure fiscal clarity from the next government. Following the cooling in commodity prices and extension of the energy profits levy (EPL), we think that only the best UK greenfield developments and infrastructure-led investments will move forward under the proposed tax changes. After a year of significant value realisation for shareholders that has secured the funding to progress Buchan to first oil, we also expect the high quality management team at Jersey to look to maximise its financial synergies by using its $50m tax loss position to acquire a package of production assets and explore other growth opportunities during 2H24

Agree IBC, you would think there will be an update shortly if they are holding …

Also of note is that we are 2 weeks away, from being 3 months off, the initiation of the strategic review on power …

News news news ….

As the house broker... still no note, although Auctus have updated very positively... It's unusual because Cavendish reference Dartois heavily in their last note after the Gaufrette drill (see headline extract below)... so you would think they would be in a hurry to update, as the house broker..... I suspect they are waiting for something... DYOR..

The drilling rig will now move to the Dartois prospect, targeting a different play fairway and trapping style to the Gaufrette prospect. Dartois is situated along trend from a historical gas discovery (RJB-3) which tested gas (1.6MMscf/d) in the same interval as that targeted in the Dartois well. Success at Dartois has the potential to unlock a trend of prospects with a P50 resource of 20Bcf. We value the gas on the Loukos licence at US$4-5/mcf (gross, unrisked), meaning that success at Dartois could be worth US$80-100m.

My issue is with the unbalanced slant with which it's written. I'm not suggesting they ramp.. just balance.. there was nothing good about Char in the article on the PRD board.

On Char. I think they have said 2 years from FID unless Energean can accelerate.. There is a difference between '2 years' and 'years' in the context it was written (I obviously know years can equal 2 years before someone makes this point). There is also the point about whether Energean can accelerate things which is also a matter of public record..

Bear in mind they are carrying Char's share of up to $85m to fid.. It's hardly a lightweight punt from ENOG.. and therefore unlikely to be quite the dead duck that it was painted as... that was my only point

DYOR

All good, Whimax!

Https://www.moroccoworldnews.com/2024/05/362866/chariot-oil-amp-gas-finds-major-reserves-in-northern-morocco

25th, I saw it around 7pm on a Google New Alert