Member Info for Surfit

Hello all,

The question I ask is what do those that remain invested see as the way forward

I, as previously posted, feel the only way out of this situation is the development of the Anchois-2 as was originally intended.

1. We have been told FEED has been completed for this development. We had a subsea Alliance set up with Subsea7 and Schlumberger to oversea the offshore and onshore (Processing facility).

2. The costing should be know, but due to the delay costs will have raised.

3. If I remember correctly the original plan has us in production for 2025.

4. CHAR directors/management MUST have had a contingency plan for a negative result on the drilling of Anchois-3.

5. We require an RNS update on status on OBA-1 and Loukos including conformation that they are now as a poster alerted us to that it is up for farm out AND/OR what is the plan for Loukos.

6. Conformation of the companies remaining cash reserves

7. What cost reductions are the company intending to make to protect the company's liquidity

8. Clarity on the renewables and Hydrogen investment strategies and expected time line on returns

9. Conformation and assurance the company will place cash generation as a priority rather than continually redirection on to long term speculative and disclosed investments.

10. Intentions, clarity and costs on Nambia explorations investments

11. Feed back on exploration data analysis as it appears as in Anchois-3 and Loukos that the data has not met expectations: has there been a review on what was causing the errors.

The above is just my opinions, but we really need to start send in emails to get some feedback after the catastrophic impact of the BODs decisions have made on the share price and share holders investments.

Rgds Sft

Hey GP, the only hope (IMHO) is Anchois-2 development coupled with a farm out of Lokous, which needs MORE exploration as there is quite probabley (imo) nothing to flow test at OBA-1 OR a sale of the WHOLE gas portfolio.

NAMIBIA: The 1.2 billion shares in issue, the required cash, the historic exploration failures, the time to monetise any of the other renewable/hydrogen speculations, the management history presiding of the company since 2007 will simpley NOT attract ANY investors.

The management knew the farm out conditions was a gamble, after deceiving investors on the the previoys RNS's stated quick road to developing Anchois-2 offshore, a onshore processing facility all via the Subsea Alliance. Thrown out the window with the ENOG farm out.

Greed, gamble on data, terrible contracts and finance decisions, inflated salaries: selling yet ANOTHER exploration gamble with no cash to drill does not look very attractive, I only entered on the success of the Stena Don drilling and the fast track RNS wording 🤡

I was just reviewing the historic RNS back (to only 2016) reads as a car crash of cobstant failures!

Kind regards Sft

Hey Fernan,

I included this link on the 7th of December with regards to hydrogen prospects.

I have been quite negative about it for a while but decided to investigate further after watching a (I think BBC) programme regarding the future of flight if not using hydrocarbon based fuel, the upshot was hydrogen is the only (presently) viable alternative.

It was the higher energy with in Hydrogen compared to hydrocarbons.

https://energytracker.asia/hydrogen-oil-green-vs-blue-whats-the-difference/

It of course is not a definitive artical but interesting.

ALTHOUGH your main point is ALSO supported in the artical I.e. 2050!

BUT as I was saying on the 7th of December the Oil Giants MUST move in the hydrogen direction, and I belive BP is currently leading in that...the 3x energy return is the key, but the 5x the current cost the "challenge"

I personally do not think AP has a clue, he exposed his ignorance with his comments (webcast) after visiting COP 28 in Dubai but he sees opertunitys for securing finance/funding, obviously via TotalEnergies, but we have NO internal expertise "our" man is the MANAGER

Laurent Couche who "has over 20 years of experience in the international development sector and sustainability, public and private sectors across Africa. Laurent was the Senior VP Sustainability (Africa) for AngloGold Ashanti and previously led large-scale energy programmes for the UNDP in East and Western Africa for over a decade..."

And our investment is in Cambridge....no, Oxford....no....but looks really high powered

https://chariotenergygroup.com/operations/green-hydrogen/

The crucial bit to read is the last wording:...."Next steps include completion of investment framework, engineering conceptual study and offtake negotiations"

That a good 5yrs of spin, cash outgoings and wages for the "team" dedicated to fast tracking income generation and value for share holders 😬

Merry Christmas to all LTH'S

All the best Sft

Hey Sb1, IMO very doubtful, IF CHAR had that in the agreement they would have been required to put that in the RNS, its important commercial information, especially when CHAR are constantly fund raising.

If you see my thought process?

IMHO

Rgds Sft

Hey HC,

Fortunately it does not work that way as in these guys go "mad". Especially in drilling (unless it a f up on the rig), exploration and appraisal drilling are fraught with risk even these reported "80%" derisked (rubbish) . Its only about 6 to 20% on frontier drilling and up to max +40% in a production area, so that a lot that are not commercial viable, so it no suprise, disappointing, but these people are not children.

And as stated AS Anchois-2 (which is REPORTEDLY ready to go) WAS NOT being included in the farm in deal on its own it, as said before INDICATES the risk of NOT hitting commercially viable other reservoirs has already been thought through and the extraction from farm in/out MUST be detailed.

I appreciate if you have no offshore experience and therefore, think like you do, but its very very very rare it ends like that i.e. get the lawyers in and threaten each other....ENOG went in after conducting there own data assessments and got the deal THEY wanted...hence the market did not like it for CHAR I.e. it does not guarantee the Anchois-2 development.

Now I am not saying that CHAR have negotiated a good deal, probably not, nor do I like CHARS management. But there will be an exit strategy and it WILL have been fine detailed.

Rgds Sft

It is very disappointing, following Anchois-3, regarding the lack of news flow from CHAR.

It is somewhat understandable though, as as others have said; what happens remains totally in ENOG hands. CHAR have to wait until ENOG decide what they are going to do.

It seems to me, it would be TOTTALY inconceivable for Wallace to have not alerted the other BODs to the requirement for contingency of the Anchois-3 being non commercial. In fact as Anchois-2 WAS NOT mentioned in the farm in RNS wording AND we have had an RNS stating the FEED for its development has been completed, then it looks that ENOG and CHAR knew what was going to happen in the event we find our selves now?

CHARs BoDs knew and have agreed from when they accepted ENOG terms, so the extraction from farm in/out MUST be well and clearly detailed?

The time presently must still being spent on data evaluation and maybe (big maybe) on getting a gas contract signed.

Again CHARS BOD'S set /accepted the terms during the farm in SO they MUST (unless completely inept) know what is currently happening and going to happen on the go/no go flow chart???

Loukos

I am surprised that there has not been an RNS stating Lokous is under farm out? That, if it is, demands a RNS to inform the market.

IMHO

Rgds Sft

Hey Surety, good points BUT ".....It would be reckless (bordering on negligent) for the directors of the business to allow....." are you NEW here? 😂😬

Very best Sft

I would be surprised, this looks to be about the right position for a 2p share placing: "money too tight to mention"

Hope I am wrong but I am not seeing a rerate unless the BoDs RNS that ENOG are going to go ahead with Anchois-2 development...the chances of that are rather slim, imho.

Rgds Sft

The Bold, when that happens with Etana I won't worry, when it happens with ANY oil and gas project I won't worry, when it happens with ANY Hydrogen project I won't UNTIL then.....it worrys me that you make these comments...nothing has changed since you threw your hat in the ring pre farm in...and Jimmy's just the same 🙄...dude we are at under 2p for a REASON: THE BODs desicion tree and risk matrix was made by a fat greedy child.

IMHO

Hey Fernan, the only source of Revenue is:

The water desalination in Djibouti, that generates $80k pa gross. Cost us a $1 million (purchased via char shares) to Eneo Water Pte

Total group losses after taxation $15,571,000 for 31 Dec 2023

Total comrehensive loss for the year 15,585,000

Total liabilities 5,767,000 for 2023 31st Dec

As from the sent out: 2023 Annual Report and Accounts.

Page 53 and Revenue from page 63

Employment costs wages, pensions and shares $7,959,000

With the following of that attributed to "exploration $2,275,000"

Key management personnel costs+(as above)

$4,845,000

With the following of that attributed to "exploration $739,000

Ref page 64

Rgds Sft

hey ianfer,

yes your thoughts are similar to mine, i thought i would just look at thier website, which is rather sp**** and then i tried to find the office via google, to no avail.

i guess it's very early days but it seems, in their own words: h1 holdings: a south african renewable energy juggernaut, are the main contribution?

will try and do some research on h1 holdings as well?

seem odd that etana energy are not promoting the customer base they have already:

18 september 2023 rns wheeling to growthpoint properties, then increasing that supply (another rns on january 24) raising the supply (195gwh of renewable energy a year) this represents 32% of growth points total energy consumption.

hydroelectric power plant supplier is, owned and operated by serengeti energy.

that's the 1 customer etana has so it seems since its conception in 21 november 2022, of courses it only been just over 2 years, for char that's no time at all.

😁

rgds sft

...but as said...etana were formed very recently????

Https://www.etana.energy/about

Address

Moorings 3, Portswood Ridge, Portswood Road, V&A Waterfront, Cape Town, 8002

😂

Hey Surety,

Initial meaning : adjective: existing or occurring at the beginning: "our initial impression was favourable"

(I had to double check 🙄 )

I cannot read anything positive in Rigas's comments. Unless it is as we/ others hope it's a negotiation attempt for more favourable terms, as there is SIGNIFICANT tax incentives already on offer it leaves only the price of the gas to be secured....but if the revised data after Anchois-3 throws all data out and the when revised there is a lot more water wet then its a walk away for them, but we must consider what extent does the old seismic data encompass, hence further surveys being built into the farm in contract.

Then they must also compare the Anchois-2 which as we are being "told/informed" (supported by a CPR Competent Persons Report, affirming the Anchois-2 drilling findings, although how good was the CPR hired by CHAR is TBC)

Note: I do remember it took 6 months to get the CPR results: 18th Jan 2022 end of Anchois-2 drilling campaign RNS to 20th Jul 2022 CPR "upgrading" Anchois field (that has not turned out to be very good)

Worth reading again:

https://www.lse.co.uk/rns/CHAR/material-increase-in-gas-resource-offshore-morocco-z4vbgyn47j1i1yj.html

Sft Note: you will also notice the hard sell to investors on fast tracking, enabling (drawing in) investor's remains in full swing, until of course they farm in ENOG. My distrust remains very strong on ANY communications from CHAR BoDs, you can tell, but not with out proven merit.

Rigas is stating Anchois-2 is not enough, so is it possible that if following the Anchois-3 data review and possibley remodeling all of the received data from Chariot, they MAY go for doing further seismic IF ENOG see the old data (Duncans AND CPR may have been floored TBC) , coupled with the new A3 findings as still not good enough but close?

The last 2 points in the ENOG farm in agreement are:

- Finalise ongoing gas sales negotiations with focus on meeting Moroccan energy needs

- Progress exploration together across Lixus and Rissana, including a 2024 seismic campaign

Cost section:

Planned Rissana seismic acquisition costs separately capped at US$7 million

In summary(imo) : if the revised data is bad they definelitly walk, if the data need further input, why not conduct further seismic as plannedfor 2024?

Lastly they CAN NOT or will not proceed further, especially after A3 results with out have a signed contract on gas prices as they can not cost the project.

All imo, and for debate.

Rgrds Sft

Hey Mannan,

Thank you for the post.

The bit (main one of a few) that I am a bit wary of is the comment: "......Importantly, the £22.8mn market capitalisation company is not in a distressed position, having raised £7mn in a placing and opening offer in August 2024...."

Sft Note: They were out of cash at the end of July 2024 hence the required raise.

I calculated (very basically) CHARs burn rate around 1.2million per month (dividing total yearly operating costs) by 12 to get that figure.

Sft Note: approx +7 million is on office and salaries, IF I remember correctly.

Still as stated previously (and imho) they must have met SOME sort of finance criteria OR their partners (H1 Holdings (Pty) Limited) did,???..... to get the US$100 million guarantee finance facility for Etana Energy (Pty) Limited ("Etana"),

I must admit I was please to see some slight fruition from one of the other pillars, since they APPEAR to have totally mismanaged the opportunity to fast track ( as sold to investors) the development of Anchois-2 (FEED completed) in agreeing / selecting ENOG for farm in.

What would be a miracle , would be securing a hydrogen development contract with TotalEnergies.

Ref further reading: https://investmentpolicy.unctad.org/investment-policy-monitor/measures/4861/mauritania-adopts-dedicated-framework-to-attract-investment-in-green-hydrogen

But have the Germans beaten TotalEnergies/ CHAR to the punch or is it the 1st investment of more?

Reference: artical March 8, 2023

https://www.reuters.com/business/energy/german-uae-egypt-consortium-sign-34-bln-deal-hydrogen-project-mauritania-faz-2023-03-08/

Sft Note: Remember the above is only a MOU

There is actual opportunities out there and Hydrogen investment, may be slowly on the rise, with BP looking to be very serious in its inclusion for its energy future.

https://www.bp.com/en/global/corporate/what-we-do/hydrogen.html

And this attical indicates possible WHY:

https://energytracker.asia/hydrogen-oil-green-vs-blue-whats-the-difference/

In that the energy potential per kg is 3x greater than oil (thats VERY good) but CURRENTLY 5x more expensive.

But BP (IMO) know there long term future in fossil fuels must end...so maybe that why they (TotalEnergies, not as much presently) are investing in such.

Sft note: The like of ExxonMobil, Petrbras, and Aramco still going hell for lether in OnG for now.

All speculations and musings DYOR.

Kind regards Sft

Hey Fernan, me too.

I will up it to 1 email, 1 point a week.

If we all did so they might start to understand the share holder distrust and fear on the company's mismanagement. That and when it comes to voting directors back in, by not voting for them to continue in their positions, it will not force them out but will show the level of concern and disgust?

All the best Sft

Spot on Fernan.

The more PI's send in emails to chariot@celicourt.uk demanding clarification on the allocation of funds, the competence on where the spending is going, the actual contingencys set in for protection against the obvious redirection or misappropriation of raised funds to long term investments, questioning the validity or competence of gas exploration and appraisal data assessments, the failure of the BoDs to adequately secure the promoted (and as stated by the BODs RNS's) short term development of Anchois-2 or Loukos.

The more emails sent in asking for clarifications on why the BoDs have failed to secure any return or profit since the companies conception in 2007, despite the salaries, pensions and constant share rewards being allocated.

Pick 1 point a week, send in and demand a reply.

If the BoDs do not get any push back, they will not feel accountable.

Rgds Sft

We could consider that CHAR would have had to provide some proof of solvency present and future to obtain acceptance for this guarantee by both the "British International Investment" and GuarantCo?

Not sure what would be the acceptance criteria, but would they provide such if one of the companies was under threat of insolvency or would it be covered by insurance???

Rgds Sft

IMHO Anchois-2 is not getting realistically valued at all, the market is concerned about the CHARs cash reserves and valuing accordingly. It can not allocate anything other than that as it precives more cash MUST come from somewhere at historicly that has been raised by share placements.

This is also taking into account the recent share placement supported by the management investment and the open offer....it will consider (again IMHO) that the BODs have not been able to raise addtional financing for the Anchois-2 development on its own, hence the BODs input.

Note: it was an investment equivalent to their salaries. This will not be noted in a favourable light. Possibly reflecting the precived farm in contract finance structure.

It is the BoDs responsibility to maintain the companies cash flow. So why did the gamble on the Anchois East (3) drilling and expose the company to such risk WITHOUT having an adequate contingency (which they recognised in thier RNS) statement regarding the Anchois-3/ENOG exploration drill?

As responsible Directors it should have (may be it is) been in place I.e. in a decent farm in contract. If it is not the have failed the company and in their positions of responsibility.

Again IMHO.

Rgds Sft

I think it's essential that we hold the BoDs to account:

The RNS regarding the completion of FEED for Anchois-2 was completed and SEVERAL share placing/ dilutions were implemented to reach that point:

RNS 8th March 2023

RNS worth a reread:

https://www.lse.co.uk/rns/CHAR/anchois-engineering-and-design-update-bhleu7ujn8hp7q5.html

AP closing statement on the development

".........."The conclusion of the FEED stage, largely performed by the Subsea Integration Alliance ('SIA'), is an important step in defining the initial development plan to deliver gas to our anchor customers. In conjunction with the Field Development Plan and Environmental and Social Impact Assessment work completed to date, we have further cemented the viability and commercial potential of the development, founded upon its excellent reservoir and gas properties, favourable location with regards to existing infrastructure and the opportunity to leverage off existing, conventional technology. We remain fully focused on taking the Anchois project to first gas in a way that can continually grow the resource and project scale and help unlock the basin scale potential that we see across our licence area."

So WHY are we not moving forward with this...because they gambled and failed AGAIN to secure ANY income.

Rgds Sft