Member Info for Surfit

Yes yeeeees Harry 🥱 that's catered for in the first senario 🙄, was was not leaving you out little boy.

It is strange to see such a large spread as said the MM's do not want to trade this now.

Could it be that as we are waiting for news from Chariot, that news could instigate an imediate rerate?

By stopping trades they would not get left holding such?

Bad news of course could be that Chariot can not raise funds, or they are breaking the company or taking it out of AIM.

Good news could be: Financing has been secured, full and free transfer of ENOGs % back to Chariort, positive Anchois project news, Positive Loukos news, a Namibia licence grant, further financing around renewables? any of the positives could at this low price shift the SP up several pence?

It's not that THEY know how it's going to go but a buyer or seller could have got hold of sensitive information.

By stopping the trading they can react AFTER they know for sure?

It does reflect that absolutely no news is presently getting leaked to the market.

All above is purley speculative and not based on any previous experience in seeing this size of spread before.

Rgds Sft

Https://energy.utexas.edu/news/totalenergies-joins-ut-energy-institute-as-newest-industry-partner

TotalEnergies obviously still intrested in Hydrogen!

Chariot still have a way to go, would be intresting to know when they expect to complete the OCP’s Jorf Lasfar industrial site in Northern Morocco????

Would be good to get some clear information?

"Early stage, smaller scale pilots are of great importance to de-risk projects by showcasing project delivery and local value, proving up technology, as well as generating early revenues and creating the basis for deploying larger commercial phases. Chariot will continue to look at other pilots with other like-minded industry partners, as collaboration and sharing expertise and resources will be key to accelerating progression across the sector. The first pilot is currently under development at OCP’s Jorf Lasfar industrial site in Northern Morocco, in partnership with UM6P and Oort Energy"

It's quiet out there and it's going to be intresting what they have to say about cash reserves especially!

Rgds Sft

TotalEnergies still interested in Hydrogen as before with previous posts, it application may not be as obvious as some thought.

I am aware or thought as such, but its also confirming what status A1 and A2 are in what addtional work is required on each?

It jusþ for FULL clarity, as it seems both you and Jimmy appear to have a better back ground on drilling.

Reasoning:

As detailed in RNS s AND notifications out for public information either by webcast, proactive investor or energy websites, Chariot indicated that they would achieve certain project milesones / readiness, especially relevant when raising capital, but as before Anchois drilling and also for OBA-1 they do not always complete what they say they will do (either due to preserve cash or to redirect cash for other pilllers or for G&A costs). I.e. pre Stena Don plans, pre OBA-1 plans and post drilling operations.

It is (imo) important to fully understand project or well status, CHAR IMO are not being fully transparent I belive that it is important for investors and finances to be aware of this and what else's is required, as it has future consequences.

Rgds Sft

Jimmy,

So apart from both A1 and A2 requiring either DST and or a flow test, for clarity, are you say BOTH A1 and A2 are ready for production if not what addtional down hole work is required on which well?

How do you see it Oiltdr?

Rgrds Sft

Sorry so summary as I see it: Is it A1 is good to go but A2 needs further work to get to production ready?

And both need either a DST and or flow test.

Best Rgds Sft

Hey Oiltdr, I thought they had done a Drill Stem Test on A2, but not a Flow test? Or do you belive they done neither? I had assumed, incorrectly, at the time that was what the Stena Don had done: "As previously reported, Chariot’s appraisal drilling objectives are to unlock the development of the discovered sands by confirming the gas resource volumes, reservoir quality and well productivity, and provide a future production well for the development of the field"

https://www.offshore-energy.biz/stena-rig-moving-out-of-north-sea-to-morocco-for-chariot-well/

RNS PRE Drilling detailing A2 then A1 objectives

https://www.lse.co.uk/rns/CHAR/commencement-of-drilling-operations-yd4svt251owwhvc.html

RNS: Post Drilling A2

https://www.lse.co.uk/rns/CHAR/significant-gas-discovery-at-anchois-2-well-48u1uzso08evoo4.html

RNS post Drillin A1 end of campaign

https://www.lse.co.uk/rns/CHAR/completion-of-successful-gas-drilling-operations-ly85lquft7tcbjw.html

So we're are to understand There was NO testing done in A2 or A1 to set gas sale contracts and only A3 could have allowed this?? It was my understanding that A3 was to determine if the reservoirs was larger than expected.

Do you belive that they need to DST and or flow test still at A1 and or A2?

If we also look at the A1

Objectives A1: Assess the integrity of the previously drilled well.

Evaluate the productivity and gas characteristics of the discovered A Gas Sand.

Provide a second future production well for the development of the field.

Achieved: Anchois-1, the original discovery well drilled in 2009, was efficiently located and the wellhead was inspected, prepared and successfully coupled with the Stena Don rig confirming its potential viability as a future producer well.

But some have said there is further work required on A1?

Is that how you see it?

Rgs Sft

Ps asking to understand as its probably my limited depth of knowledge in drilling or Chariot not completing the stated objectives and / or being "rather" opaque on what they say they are going to do and what they actually end up doing?

The drilling campaign was planned for 40 days and took 15th Dec - 18th Jan

Rgds Sft

What is very important to fully consider and understand is really how Chariot is looking to develop its Hydrogen and Renewable sectors.

Renewables/ Hydrogen: ".....the increasing share of wind-based electricity puts a high burden on balancing supply and demand in the electricity network...."

"Hydrogen Energy Storage (HES) systems can supplement renewable energy sources to overcome the challenges associated with higher penetrations of wind-based electricity [4]. During periods of oversupply, electricity can be converted into green hydrogen and be stored as a compressed gas for later use. The hydrogen stored can be converted back into electricity in times of supply shortage..."

https://www.sciencedirect.com/science/article/pii/S1364032122006323#:~:text=Hydrogen%20Energy%20Storage%20(HES)%20systems,the%20electricity%20network%20%5B11%5D.

Gas/ Hydrogen-based steelmaking to begin in Hamburg- ArcelorMittal is developing a new, innovation project at our Hamburg site in Germany aimed at the first industrial scale production and use of Direct Reduced Iron (DRI) made with 100% hydrogen as the reductant, with an annual production of 100,000 tonnes of steel.

"The process of reducing iron ore with hydrogen will first be tested using grey hydrogen generated from gas separation. We aim to achieve the separation of H2 with a purity of more than 97% from the waste gas of the existing plant, using a process known as ‘pressure swing absorption’"

https://corporate.arcelormittal.com/media/cases-studies/hydrogen-based-steelmaking-to-begin-in-hamburg#:~:text=In%20the%20future%2C%20the%20plant,extracting%20oxygen%20using%20natural%20gas.

Note: As stated in previous posts Germany and Holland are ahead of the curve

If you start to combine all of Chariots pillars: Gas (Enough said for now), the mining energy aspects, the wheeling structure based in SA, arounds renewable generations and then combine the use of hydrogen more as a storage system and the resultant, important and significant CO2 emission offsets/ reductions in heavy emissions industries the markets have not fully grasped where Chariot are trying to get to....of course the fly in the ointment unfortunately is we may well not get the cash from the gas that was to fund the drive, BUT as our CFO has stated and it seems they are now hunting the cash at subsidiary levels, we must also consider the RISK STILL present is on the success of the hydrogen process that they are developing, the pilot has yet to be proven!

IF we can secure and prove financial security to the markets they IMHO could do VERY well. I believe as before that once AP finally (forced to due to continued mismanagement) stepped up to CEO, there was rapid moves to get away from the failed explorations that has (Morocco TBC ) failed to find commercially viable hydrocarbons.

The O&G side has been a massive waste of cash (to date).

Maybe by not allocating the gas contracts that was another indicator to the markets that the farm in was adding even more risk to the A3 appraisal/ no conformation of Anchois development that was exposed via the RNS farm in details: Hence the SP fall, then collapse post A3?

Oiltdr, your thoughts most welcome, as well as others.

Kindest Sft

I am leaning your way on that Fernan, as CHAR hold the licences they are responsible for either being the operator or allocating one. The Morrocan gov HAVE to approve that allocation though.

Although it in fairness MAY be different in Morocco:

UK: "The licensee grants the right to operate, the operator manages the field, and duty holders ensure specific regulations are met, potentially through delegated responsibilities within the operational structure"

The farm in, as you say is between CHAR and ENOG but as ENOG have been granted operator ship they are/ were/ still are (for now) in control of development and timing, ALTHOUGH if the Morrocan Gov do not think it is progressing it can, I belive, NOT renew the licence, but its only recently been extended and CHAR have NOT been neglected in thier efforts ( just TBC, not correct on thier partner selection imo).

Note: I still find it strange that the gas contracts were not finalised on farm in.....this I would think crucial for understanding profit vs expenditure. Comments anyone?

Rgds to all, Sft

Intresting email from Simply Wall St:

"New minor risk - Financial data availability

The company's latest financial reports are more than 6 months old.

Last reported fiscal period ended June 2024.

This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts"

Rgds Sft

Hey Surety/ Fernan

I just really struggle to understand that they could not have contractual protections in place (I hope your right Surety), for such a basic premises I.e. if the contract is not fulfilled or carried out as intended.

The farm in was extremely loaded (as the market and resultant share dropped reacted accordingly) in Energeans favour so therefore the free return would be the point of levelling back to CHAR favour.

If its NOT done so, its a very damning example of Chariots contractual abilities.

The markets saw thereafter the reintroduction of risk AND either, the management's poor abilities OR desperation for cash (also reflected by the quick "appearance" of Loukos) OR that Energean promised a quick development, OR that no other were operators offering anything NEAR thoses terms taken I.e. the driver being potential for massive field expansion via the "option"

The OnG team (And AP with his business background) should be better than how it's looking. I would be truly shocked if it's not a free transfer and would hope (doubtful, only because my faith has been undermined) that there was ALSO some recompense, from Energean, for stepping out without fulfilling the signed farm in terms?

I will, of course, have to wait with intrest as to what eventual transpires.

Rgds Sft/ GLA

It does seem to be taking some time for Energean to transfer their % back, not sure why?

We SHOULD expect that Chariot due to the structuring of the farm in I.e. being VERY favorable to Energean will have a secure take back T&Cs in place.

It may be that they are haggling over the non completion of the contract ters I.e.

"Progress EXPLORATION together across Lixus and Rissana, INCLUDING a 2024 seismic campaign"

Energean have clearly NOT adhered to this, due to 1x A3 drill. This COULD be why AP stated in the July 2024 Webcast that finding gas on A3 was not critical?

Namely, CHAR was expecting more to understand / appraise the reservoir extents???

Then of course as Energean had signed in with FULL knowledge of that AND that the gas contract was not fully signed as in same farm in RNS:

"Finalise ongoing gas sales negotiations with focus on meeting Moroccan energy needs" this would of course been discussed by ALL parties (Morocco Gov) before signing in?

Something does not seem right that it's taking this long, when an easy transfer back should have been implemented. I do not buy HC guessing...as before it would mean incredibly poor contractual knowledge by Chariot if they did not close that out...all that field(s) %'s, free carry on just 1x drill and a LOAN for a carry, £15million on FID!!!!! signed away for US$10 million!!!!!! Just impossible to NOT have protected themselves?????

Again this is taking to long to get back, coupled with no real RNS comments from Energean other than the ambiguous wording "transfer".

Chariot are just too quiet for too long?

IMHO

Rgds Sft

Would be ironic if Grand Gulf Energy could drill in the right place, if so, we should let them look at Lixus's data too 😂

Rgds Sft

🙄😂

Interesting post HC, Hydrogen future is far from certain and like all new energy technology's some routes will NOT be right and development expensive.

I guess that's why coal replaced wood and only during the industrial revolution, oil replaced coal and we are facing another change: Nuclear Fission is also expensive but Nuclear Fusion looks to be the ideal, u fortunately not there yet!

Imperial college has posted a decent artical on the subject of Hydrogen and where it could be used. I think "some" countries are desperate to get away from depending on fossil fuels due to the Co2 Climate concerns and the OPEC/ Russian/US supply dependencies and controls? It is also intresting that the big operators have either not entered (ExxonMobil), pulled out (Shell) or probabley best scatter gun on alternatives (TotalEnergies/ BP/ Aramco)

Worth a read:

https://www.imperial.ac.uk/Stories/hydrogen-futures/

Lost of for and against out there.

I think that is why Morocco and Mauritania are looking at the Hydrogen "potential" and letting other companies do the heavy lifting.

I see Chariots attempts as small scale at proof of concept, but with large investment opportunities.

I put a list out previously to those companies involved in Mauritania, and it looks that of 5 chariot is in 2nd place, it helps that TotalEnergies are partnered, not sure what they are providing though?

Rgds Sft

I am really struggling to see where the financing is going to come from?

With reference back on the farm in RNS if A3 was successful is Energeans estimate for the project of 3x producer wells, sub sea assets, PL to shore, onshore processing plant, PL onshore to tie in (As per FEED, that we paid for) was going to be "US$850 million gross development"

So even if they go with 2 well development they need to drill production tubing for A1 and *FLOW TEST BOTH another 1 or 2 appraisal wells AND develop / build as per FEED and I am still seeing that it is going to come in as the above price???

That's big financing? And share placing may not cover it 😂

So maybe onshore first, to help prove / disprove Wallaces rejigged seismic field(s) data.

*Note: Energean were going to flow test A3, but CHAR pulled the flow test for A2 (Stena Don). Either due to cash and or Wallace making more wrong decisions.

Just do not see them finding the cash for Anchois?

Rgds Sft

Correction:

"It's a pity they did not stick to what the told share holders and new investors in *March 2023."

*SHOULD read 20 June 2022

Rgds Sft

Let's hope this was the "contingency" BEFORE signing with Energean.

The terms of transfer back will be the first indicator then financing the second.

IMHO

Rgds Sft