Member Info for Surfit

The JOG RNS makes an informative read.

Cheers for posting.

Rgds Sft

I occasionally look at PANR and also the associated LSE bb

On there a poster "Olderwise" placed a extract from PANRs October Webinar.

I found the CEO discussions on financing their company, the realities required to get they there and then to profitableity exactly as what you would (and should) expect.

https://youtu.be/JJ7DvA8gK9s?t=368

Worth a watch, not very long, and in my opinion a good comparison to different styles of operating.

Rgds Sft

Hey GP, my sentiment remains: Untill we know what we are getting on finances (Gas per and farm in) CHAR is not derisked. We remain open (in potential) to further fund raising and resultant share dilution.

Once the above is clarified investors are hopefully able to have "some" idea on funding over the development period to gas.

Rgds Sft

Ahhh many thanks Ianfer, did not see that particular typo.

Apologise to all those who were offended, harmed or feel let down following the filming of the recent episode.

Rgds Sft

Dear dear GP, its me that is VERY disappointed.

Please look up WHAT BOE (Barrel of Oil equivalent) means 🙄.

I really do give up.

If that's too difficult for some try:

https://www.investopedia.com/terms/b/barrelofoilequivalent.asp

Sft

Hi ianfer,

You belive the onshore costs are covered in the raise? To what point, are you thinking end of exploration or production I.e selling the onshore gas?

Rgds Sft

Hi all,

The gas finds are proven, with independent conformation. The demand in country is very high, the demand internationally very high ( winter is going to get very expensive again).

This is all down (imo) to final detail on 1 to 3 dollars per BOE (barrel of oil equivalent).

The but is the knock on affect on CPF and subsea equipment pecurment, rig, ships, contractor personnel availability.

I know how I am thinking; on the stages of announcement (s) on required (RNS) disclosure s balanced with.....

Again, I ask Jim, who is the most respected numbers man here to do an independent burn rate? And respectfully, NOT " Fully funded to......" what

1. Offshore we do not know the (hoped for) renumeration for field exploration. What about off shore new exploration.

2. Onshore cover to 1st oil (thought to be quicker than offshore ( exploration confirm its there ( could fail), FEED, Fid, Sanction development....Time line??????? Vs cost

Ps not intended as challenging or derogatory, just asking you to consider rather than....

Respectfully Sft

Ps wtf does malcy have any relevance in this industry, the guys a complete 🤠 +🤡.

Summary: I firmly belive the Gas contract is the hang up BUT again the knock on affect (equipment etc etc) time lines, farmin renumeration and time line on receipt of that cash oall are significant and influencing factors on a STILL NOT de risked company.

PPS IT ALL CHANGES ON THE RIGHT RNS 👍

Rgds Sft as per keep the faith GLA.

Hi BDC,

A: Users can't delete posts.

B: I Like how you incorporated my proof of findings. As stated before IMO they had to do the fund raise due to diminishing funds (working capital) that the main or first part states it for exploration drilling was not the main requirement.

You just do not get it do you.

Rgds Sft

Hey BDC, you are a very strange chap, if it was my intent to hide anything why would I quote the particular RNS No. for all to check???

I have shown clearly the wording, that has allowed them to spend as required due to the falling company cash reserves. If the gas contracts and farm in payment are signed and expected / hoped for cash from the farmee comes in VERY shortly then they are safe if not they will need the cash.

Will the hoped for farm in payment be sufficient to get us to onshore or offshore first gas, or will there be more raises required.

But as you and ICB are not into numbers that not directed at you two.

Your starting to sound rather desperate in your attempts to discredit my thoughts and a bit weird, especially if you think I am deleting posts.

Keep a grip there's a good chap.

All the best Sft

Hi BDC

Please Ref RNS

10 Jul 2023 16:32

RNS Number : 5475F

Chariot Limited 10 July 2023

"..............

Highlights:

· The net proceeds of the Fundraise will be used as follows:

o For near term onshore drilling and development planning on a new onshore Moroccan Licence, expected to be awarded imminently; and

o New ventures AND WORKING CAPITAL."

End

ITS ON PAPER And the numbers show they NEEDED THE CASH

ALWAYS READ THE small print 🙄

I really struggle to understand the following, but hope I have answered to your satisfaction :

"Why would you even want to work out how many years or months the company could keep going for?"

ANSWER: pretty important I think??? YOU DO NOT??????

For surely your due diligence is concluded at that point (you simply don't believe them - strong sell).

ANSWER: Yes now I know when /if they need to raise more cash vs potential farm in exploration renumeration vs outgoings operating costs vs potential outgoings to develope onshore (if the Go it alone) vs best guesses on outgoing ( known not the unannounced I.e. suprise purchases or companies).

Re STRONG SELL Thank for your advise BUT I will decide when I wish to exit my investment.

For continuing to work out how long a $19 Million pile of cash will last to pay a bunch of lying fraudsters for is completely irrational.

ANSWER: NOT toooooo sure who is sounding like the irrational one but okay, thank you for the information.

AGAIN it's good to disagree, Whimax pointed out an obvious error in one of my comments and I thanked him the observation. It was a good point and helped me.

I get the feeling your not trying to be informative or instructional in my case, I may be wrong of course 🤔? In which case I apologise 😂

Kind rgds Sft

Hey Ianfer,

I agree, something has to give soon and the next RNS gas project relevant, will (imo ONLY) give us a clue on what was the hang up.

As CHAR reportedly informed (remember that leaked report by a journalist, wish I had kept the link) that delays in closing out goverment departmental requirements, will have a knock on affect on booking drill rigs and equipment procurement.

AND

Morroco need the gas! But something is obviously proving RATHER sticky???

It will of course give at some point, but CHAR needed to be sure they are not precived as financially weak.

I am sure an extra dollar per gas supply is worth A LOT of money.

GLA

Keep the faith

Rgds Sft

Hey ICB88,

I do not feel I was shot down, you and DBC disagree with my thoughts, so? That's what a good board is about. I did not feel both your inputs required any responses ?

That people choose a particular way of putting that disagreement across reveals (imo) more about them than me. And I am sorry my little tickle up set up you, I thought it quite a funny response to a typical type of insult.

Re the cash flow required well I worked out an estimated burn rate of 1.5m and was hoping to see if others would have a look. I looked though the previous RNS and had a go at it. I know Jim is more ( and better) numbers man.

I was of course not expecting others, that just sit back and do not attempt research and that are not interested in such, to do so. Illuminating.

Again as I have said in the past I am very interested in attempting to understand the potential paths CHAR go down, as its an OFI ( opportunity for improvement) and learning.

We have different styles of investing obviously, but I am heavily invested in CHAR, based on gas potentials. Am disappointed that they refinanced to include FEED as I did not see that comming and having mistakenly belived others statements that they are well financed to farm in ( I did not look deep enough at the runway remaining the time). This led to an average up, where as it would have been obvious another raise (3 in total, I belive) would result in share dilution and I should have held off ( I recently averaged down, when it reached 11.x.3p, came in after bottom at around 12.3p).

That they did decide to complete FEED before attempting FID is not to say a bad thing, as I know of a previous investment that got ripped off by the farminee/operator to the tune of 10's of millions.

All a good (expensive though) OFI for future investments with different companies.

Again apologies, if it all sound like ramblings but I hope it at least gives you some idea on the discussions: project Ideas, attempt a reasoning and assess where right or wrong.

Of course if not interested, your not interested: Quite frankly Scarlet.....

All the best Sft

" .......OF course IF the onshore is included in the OFFshore Farm in then CHAR will only use the partner renumeration cash....for operational and Hydrogen/ renewables "development"

Note: Again I belive the onshore income will/could be earmarked for company costs and operational related development directly for the other pillars ( longer term ability to generate returns) and the OFFshore generative income to build company strength cash security (even, reaching for stars dividend and share buy backs). Over 4-5yr period?

What needs to be avoided is a share consolidation. NOT in any way muted I clearly state, but I saw this with Harbour energy, and was not done well.

Rgds Sft

Hey Nick,

I still belive the sticking point must be the final determination of the price paid for the gas supply. Its something that should/could have been resolved a lot earlier and would have required an RNS to notify the markets.

With out the final price being agreed it would in my opinion then possibly be a bottle neck on the signing of farm in / FID then finally a sanction RNS? The gas price must (as I see it) be announced first?

IT could be that just before the conferences it is announced as it would be a good announcement for the Morrocan goverment to disclose (directly after a RNS of course).

Morroco will want it as cheap as possible and of course CHAR /Partner or (unlikely) seperate financing will want as good a price as possible.

I am assuming this based on the confirmed supply quantity that Morroco have asked for will not be based on international prices, something that is not the case in the UK domestic gas (and oil) production.

AND the reason why CHAR needed more cash to keep operational, put under the umbrella of the onshore exploration cash raise. As before the hope is (essential) that the farm in cash repayment (offshore drilling and FEED) includes sufficient cash to complete exploration, testing, FEED, FID, Sanction and develop to production the onshore side. IF CHAR as I think will NOT include the onshore with in the farm in OFFshore.

That is why I remain very interested in cash runway. Unlike other that appear to deem it irrelevant.

Why commence onshore exploration with out knowing what your REAL return will be.

It may be deemed as "ramblings and deramping" 🙄 but financing seems "rather important" for a company.

Especially when we remain minimum 1.5yrs away from ANY cash generative income.

OF course IF the onshore is included in the OFFshore Farm in then CHAR will only use the partner renumeration cash.

A few variables remain.

All of which I find interesting.

GLA

Rgds Sft

It's good that we all do different calculations and debate, part of what's great about a good and useful bb.

ICB888 financial assessment is " very soon the deal will be announced (by mummy and daddy) with a partner (Daddys friend) who will give CHAR a large amount of cash" of course being 15 helps in his detailed assessment 🙈.

GLA

Rgds Sft

I can almost see the billowing of dust off the RNS ledgers, the fervant turning of pages and clicking of the abacus.

Looking forward the different assessments. This is fun.

Rgds Sft

Hi whimax, what did you calculate the remaining balance in July, OBVIOUSLY I know its not zero, but there is I would assume????? a minimum cash threshold at which they do not wish to go under?????

TO help you out its a bit like making sure your own bank balance still has enough to pay for your out goings like shopping, electricity, direct debits, and in CHARS case instead of the monthly Disney subscription they have renewable partnership expenses, studies, water company salination production? Employee wages, directors wages etc etc

Hi Jt2017, my approximations were based on and from financial updates, ref RNS 21/06/23 June 2022 Final Results and I was looking at RNS 24/09/22 H1 2022 Results.

Would appreciate yours or ANYONE else's workings, I am sure there are a lot of investors on here doing similarly appraisals....anyone? Whimax, ICB888 I could be wrong so your or Jim's cross calculating would be appreciated. But only if you think its of ANY relevance of course.

Kindest Rgds Sft

Hi ICB888,

Sorry if you think they are rambling deramps, could you help me out as I was using RNSs (do you know what they are?) on time scales and tryng to look at some realities.

As YOU KNOW when we are getting the cash could you say when "very soon" is please?

I need that to balance the finances and try some fiscal planning?

Kindest Sft

Hi Jim,

Thank you for partly confirming. Greatly appreciated.

So 3x 4 =12million from 19 leaves us 7 divided by 1.5 gives us 4.6 months? From August?

Let's now drill down a bit (sorry could not help that) further:

How long do we think a 4 well drilling campaign will take?

Anchois (RNS's)

18th Jan 2022 completion of offshore drilling

20th June 2022 announced start of FEED

20th July 2022 announced completion of CPR (6 months crickey, but worth the wait).

8th March 2023 END of FEED (9 months) "largely completed by the Subsea Integration Alliance team"

Included: Three initial subsea producer wells, Subsea infrastructure ("SURF" and "SPS"), Onshore central processing facility ("CPF") and Onshore gas pipeline to deliver the gas to the anchor gas offtakers via the Maghreb Europe Gas Pipeline ("GME").

Engineering, Procurement and Construction ("EPC") COMMENCED.

10th July "Onshore suprise (another) Fund raise, (not included all the other fund raises since Jan 2022)

1st of August signed ONSHORE licence

18th Sept RNS on the electricity share at a shopping centre in South Africa .

Question: Did CHAR BoD confirm EPC completion on offshore project, not sure?

Any one on any ideas how long it takes to complete 4x drilling Onshore, the 6months CPR/ start of ONSHORE FEED, completion, EPC, FID and Sanction, development and hot tap into Onshore pipeline.

(Jim any ideas on time scale?)

All the best Sft

So.ething to consider and if your bored use Predators experiences and costs to compare 3 onshore drills.

We raised $19million on the two recent placings for the "onshore drilling campaign" (AND TO keep us SOLVANT during ongoing negotiations GAS CONTRACT PRICE CONFORMATION and FARM IN).

CHAR Burn rate (I belive) approx $1.5million per month.

CHAR have stated 3 million per well, I think (really need to sit down at PC and start correlating ALL per

Now if we look at Predetors drilling campaign on MOU-1, MOU-3 and MOU-4 they estimated $5 to $6 million for originally 2 wells but then also had to do a an addtionl £7million placing for "The net proceeds of the Placing will be used for completion of an extended rigless testing programme for MOU-1, MOU-3 and MOU-4, commencement of CNG development studies and tendering for long lead items, residual MOU-4 well costs and general working capital"

Ref RNS 31 Jul 2023 RNS Number : 7899H

Now if you go back further to 17 Mar 2022 07:00

RNS Number : 0567F

They continually raised capital before (survey work) and this was for (above) was for building the drill pads

There were other raises after, I have not gone through it all.

Jim, your a numbers and drilling/ wells guy, how do you think Predators total 3x drilling costs add up to what CHAR have raised ($19mil) plus are Burn rate and how do you think total costing to drill, CPR, surevy overland pipe line route, FEED, FID, Sanction, build hot tap in and get to production for onshore project....do you think we have enough?

My thoughts are CHAR need to be VERY close to signing of on the OFFSHORE side or we will be too short within 2 month to run the onshore project all the way through on the current raise I.e. it will be eaten up by Burn rate???

Thoughts

Kindest Sft