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That should help send us back to the 10p target (new share placement price range).

The markets really respect the CHAR management teams clear, considered, forward and finance detailed company path, every RNS slowly enhances our SP and finances.

Even AP's COP 28 visit comments were a revelation: "He was "surprised" at how well they are strategically placed".

Thank goodness we negotiated a free carry, they can go on a spending spree now 😂

Not all bad

https://shorttracker.co.uk/company/GG00B2R9PM06/

Hey GP, I listened to the Webinar and the wording ( As I recollect it) was, that they were funded for the onshore to production at 3million per well and I think it went they do not "expect" to do another "significant" raise. I just do not belive them.

I will have to go back and scrutinise the last up date to cross check burn rate....I even think approx +$900k went on a category called "good will".

I checked the SP price at 0900 today, saw the drop and went bugger, we have had another renewables or hydrogen investment RNS 😂.

I just feel the market does not trust the boards financial direction and that lack of flow testing is coming back to bite them big style?? It's reexposed risk and doubt. IMHO.

Rockhopper got around 200milion cash off Permier oil for a sea lion farm in, paid a lot back due to poor contract on having to also pay for 2 years of FEED costs, squandered the rest and have now have a loan also (similar repayment deal as us) with their (Premier taken out by creditors, absorbed by Harbour energy qho dropped project, then passed sealion on) to new partners Navistas petroleum (also Israeli)

Different and bigger project mind.

Nothing nice going to be happening for 6months now., then it's a nail bite on onshore exploration results.

So I am done here for a while now. Pointless.

Good luck, been an education....again 😂

TTFN

Very best Sft

Hey GP,

1. The RNS / Webinar confirmed that the onshore "venture" is going to be a personal CHAR play.

We have been informed that they expect to be fully funded to production, if of course we find commercially viable gas, I do not belive that we have enough.

2. Was the lack of flow testing the Anchois wells of concern to prospective farm in partners, I belive it was. We are going back to do what we should have done, whilst there. It was a mistake reading between the words and partnering (maybe????, not a driller, but I sense there MAY have been doubt created???

3. The farm in deal: I still wonder what the last paragraph means I.e. " Energean's carry of Chariot's costs is non-recourse, and has a coupon of 7% over the one year Secured Overnight Financing Rate (SOFR), with the carry including interest repayable from 50% of Chariot's future net sales revenues from the Lixus licence"

My understanding of a farm in is that the project costs are paid for by the farminee, for the % of the asset we are giving to them not that we pay them back from 50% of our profits? May be I am wrong on this, but I do not think so??????

4. Back to burn rates and cash flow to get to FID, we are getting 10 million for our exploration completed to date.

2nd December 2021 CHAR undertook the risk and share placed $11milion for re-entering Anchois 2 exploration/ conformation AND Finalise ( STILL NOT FINALISED) negotiations of gas sales agreements and financing to unlock Final Investment Decision on Anchois AND FOR pursuing the other pillars.

Then share placing to raise $24million RNS 18th of May 2022 to quote

"Advance the engineering and design of the Anchois Gas Development, including FEED project, project financing, gas sales and updated reserves report, to reach FID (YES FID, but now we have to flow test before); and Progress renewable power pipeline, strategic partnering and new venture opportunities.

Then obviously the last raise for (imo) to keep the lights on (cash runway) and do exploration not FEED OR procurement of build.

In summary, it as feared the RNS revealed that we are lacking cash, and have to prove flow rates AND be successful with onshore exploration we have been rerated again, next raise...could it be 10p or 12p. That's probably how the markets see it.

I have had my choices made for me, I can not get out shares and I am not putting more in to keep averaging down...just going have to back draw this investment and hope.

GLA

Rgds Sft

1. Who had heard of Energean's before today, another finance centric player rather than a proven operator.

Do they have the funds for this or do they have to raise capital?

Make you wonder all that dilution as we ran with FEED Costs and still only got 30%

2. We get 25million to keep the lights on until gas production, will that be enough? NO!

3. Does this mean the onshore is seperate?

4. If onshore is seperate I.e. Char management will be operators, what will be total costs to production

5. I must be reading this wrong can some one clarify the wording at the end of the RNS does it say/ mean indicate we have to pay for the project carry later? Ie 50% of our 30%

" Energean's carry of Chariot's costs is non-recourse, and has a coupon of 7% over the one year Secured Overnight Financing Rate (SOFR), with the carry including interest repayable from 50% of Chariot's future net sales revenues from the Lixus licence"

Markets are treating it not derisked, quite the opposite. More flim flam dealings from AP and crooks imo.

The market has seen that CHAR could not get a reputable operator, and has determined it will need more funding.

Current target 10p probably.

Sft

Spot on Wizzard, many thanks to you and B4Now, very useful.

Rgds Sft

Hi B4Now,

Okay, thank you, appreciate the input. Do you have a link to a good site, especially if it also shows graphs.

Rgds Sft

Ps I have a right mare with gas and how to calculate the different forms of measurements: companies seem to use, ft, meters, then millions and billions and is that a US billions or a UK billion, then BOE (Which I can get my head around).

Cheers Sft

Only invested into gas via Kistos ( annd before Rockrose) and CHAR.

Scroll down a bit for the historical prices:

https://markets.businessinsider.com/commodities/natural-gas-price

Rgds Sft

I would think that the fall in gas prices, would have to effect the SP. Even though we are not a producer it still influences the worth of the company?

Just got to sit tight and hope we have some clarity from RNS's as the board are keeping quiet on how the onshore "venture" fits in with the offshore packaging.

GLA

Rgds Sft

Sorry a glitch in the matrix

" The Moroccan Gov AND what gas CONTRACT PRICE PER BOE AND WHAT THEY WANT TO PAY , is what IS HOLDING THINGS UP ( they will have real influence in that imo), If you add in this onshore.....IT ALL SEEM VERY CONFUSING. You couple that with the lack of clarity on financing the other pillars no wonder the market is cautious on share price valuation!

I am in to deep now 😂

Rgds Sft

Hey NorViking,

I really can't see onshore holding up the Anchois development, but in saying that it depends on what either the farm in partner and / OR CHAR management are trying to do.

BDC comments are informative in that I did not relook at the EIA RNS and understand the onshore inclusion, I just assumed due to the time scale present for onshore that it was not. It had obviously therefore been something that the board had been working on for some time.

I just remain rather stressed on cash runway and further dilution, but we are all signed up now so are very much in their hands.

But I agree on your "if", but surely the whole of Anchois, Lixus and Rissana do NOT have to be agreed in one deal: Operators have HAD a ruthless reputation in the past , but having worked for them for over +20yrs, the days of intent of bankrupting contractors (or partners) on finacials and delays on payments are very much long gone....so s it down to CHAR (their financials) and what they are trying to play.

The Moroccan Gov what gas, my bit is what they want to agree to pay ( they will have real influence in that imo).

CHARs business modle imo is flipping difficult to follow.

GLA

Rgds Sft

Remember if the onshore, following exploration, is deemed commercially viable, its CPR, FEED, Environmentals, FID then (secure financing) Sanction, equipment pipeline and contractor procurement and build....all in a year? Can't see that imo? Hence me agreeing with NorViking and others now.

It could be as Jim alluded that onshore derisks Rissana due to the geology, how this all marrys up into ONE all encompassing RNS will be intresting.

Rgds Sft

I suppose (hope), once they have signed the gas contracts and then the farm in, in theory they can then secure creditors to get them across the line.

I still feel (again hope, in trying to understand the finance logic) AP gone down the previous share raising route due to his previous experience with creditors in his old mining company, that he left over extended?

@ BDC is that to production? They have to strike onshore first of course, and have money to get there.

Which as NorViking and others ( me too now) feel will be all packaged in one?

Rgds sft

Ps that's not to say if AP had NOT invested, it may well have gone under but its been the consistent share placing that to date has kept the company solvent.

As others have said the 6% ers (2×) have come in with investments, so AP and the board have sold them something.

They could have come in on a credited loan or bond but the bought a pice of the dream just like us 😀

GLA

The 2x RNS's must be close. The farm in RNS will determine how the gas project(s) will be funded and give an indication on how much spare cash will be left to support the company untill there is a revenue stream comming in rather than out.

Then we will see if the market re valuation see's what we hope for I.e. the board still need prove they can derisk the current potential for further capital raising via share placing.

Is that why JOG dropped back? Was there farm in capital sufficient to not only pay for the development but keep them solvent to reach income????

Genuine question?

GLA, follow the numbers is my opinion.

Rgds Sft

I was thinking of the annual recompense of $750, 000 salary and share options.

Information Reference: CHAR report from Simpley Wall Street

Rgds Sft

AP not going to give up on his cash cow that easily 😂

Rgds Sft

Hey NorViking,

I am guessing (and really hoping) TotalEnergies remain the firm favourite.

Gas is a good energy transfer medium and significant expertise in new field development (West of Shetland and build of Shetland gas plant as a UK example), they have *presence in the country with petrol stations and renewable aspirations , they already have a relationship with Chariot in project Nour.

* https://totalenergies.com/morocco

Fingers crossed on a pivotal farm in RNS this year.

Rgds Sft

Hi NorViking,

Thank you for the conformation, I think it was you then that posted such before.

You could be right regarding tie-ing it in with the offshore development and this would probably encompass the exploration costs, or part of it, then we have to look at the all the further addtional costs and steps to get ONshore to production: Drilling, testing CPR, FEED, environmentals, FID, Sanction, equipment procurement, contractors, development etc etc) which has not been covered in the most recent raise and would need FURTHER investment.

So in balance its going to be the most cost effective way, is to group everything?

Everything being Anchois development, exploration of Lixus AND maybe the South of Rissana? AND now onshore?

I was leaning towards the onshore being Chariots own enterprise (seperate income stream) but as time goes by and considering Chariots cash runway you are probably right.

Rgds Sft

Hi NorViking, just for clarity are you saying that YOU actually heard AP say that the onshore licence (unproven gas field) was the reason why there is a delay? Or is this something that another had posted?

My thoughts have been that CHAR were going to exclude the recent (surprise) onshore licence announcement and speculative exploration (resulting in further share placement and further dilution) from the confirmed offshore find, so as to provide a seperate income revenue to support (not enough to fund) their other 2x "pillers" that continue to drain the remaining company bank balance!

Ps not forgetting they needed the last share placement to stop from running out of with in a limited time frame.

I still see the conformation (signed contracts) for the price to be paid on gas supply as the sticking point, as before, once that has been agreed and signed there is a legal requirement to issue a RNS.

Without knowing that; then financing / farm out can not proceed? I.e. partners cannot calculate investment vs return?

Ps: the 2nd RNS being the farm in also needs to provide sufficient runway cash to keep us liquid for 2 years ( offshore production, possibly not onshore production).

IMO.

Rgds Sft

Interesting artical:

"Shell Egypt, a subsidiary of the UK-headquartered energy giant Shell, has made a new gas discovery in an offshore block located in Egypt’s Mediterranean Sea. Stena Drilling’s drillship was used to drill this well, which is the first of three planned in the oil major’s current drilling campaign......"

https://www.offshore-energy.biz/shell-finds-gas-in-mediterranean-sea-with-stena-drillship/?utm_source=offshoreenergytoday&utm_medium=email&utm_campaign=newsletter_2023-11-24

Rgds Sft