Member Info for Surfit

That 400k shares "off load" was a pretty decent size gamble and looks like a faily visable statement (push) on saying they are not expecting any RNS news that imminently. I can only hope they are well in profit already and will trickle buy back in again later...I.e. a week before an RNS.

Great being in the know as a broker hey.

Rgds Sft

Hi Klein,

The project is a pretty simple one for an experienced company. But if they do not have guys employed that have done project set before (or for a long time) there is room for error that's for sure.

But it's no suprise to me that's why they had to raise irrespective off FEED costs/ or errors. They have multiple outgoings some consistent/ regular and some that we just are not going to know about untill its spent

Note: which we have been paying for in either topping up and dilutions.

Thank you for heading down there and supplying your experience and thoughts.

Qurstion: Are you in for the gas project or do you have enthusiasm and continued (or new?) investment for their other two "pillars" ?

I ask as I have not noted any one yet who is in for anything but the gas (or if you are a LTH, It would have been the Namibia oil duster)..

Kind regards and thanks Sft

Hi Klein,

Re "Spoke to JMW about cash burn and $12.1 million end of 2022 resulting in a raise THIS year"

As the feed raised was incorporated and we had $12.01 left at end of year (9 month ago) he was the referring to this latest placing " this year" was required to keep liquidity and not as they had stated for exploration, which has been my thought(s).

Is that how you read his comments.

Rgds Sft

Hi Whimax,

Imo as they have gained significant holdings and are either privileged to information that we are not, which could be regarded as insider information, buying in because they have done there own calculations and are totally satisfied and confident with the BoDs or moving into affect change?

Did you see my previous post on Covalis Capital LLP ??

Latest "Suprise" Share placing 89,631,143 RNS

Askar Alshinbayev 59,676,544 RNS

*Covalis Capital LLP 66,815,976 RNS

*Note: I am not sure if this is a grand total upped from an existing? As the total shares from the respective RNS's exceeded the placing.

What are your thoughts on remaining calculated cash runway and remaining liquidity timeline prior to this latest surprise placing?

Kind Rgds Sft

My guess we were down to very dangerous levels of liquidity if we had $12mil left 8 /9 months ago and that also gives an indication of the BoDs true transparency!

A rather disappointed Sft

Rgds and GLA

The BoDs lack of clear information must be influencing the 2 most recent investors Askar Alshinbayev and Covalis Capital LLP AND any other potential institutions.

The continued suprise share places and block issues (incentive renumeration) for directors does not give a stable platform for investment and again fiscal confidence.

So accordingly from the RNS Number : 3644D

Issued in June 2023

The share-based payments charge of US$4.2 million for the year ended 31 December 2022 was US$3.4 million higher than the US$0.8 million in the previous year mostly due to the granting of employee and Directors' deferred share awards in the current year, and the full year impact of awards granted to employees joining the group as part of the Africa Energy Management Platform ("AEMP") Transitional Power acquisition in June 2021.

We successfully raised US$29.5m in June 2022 to progress the FEED for the Anchois project AND for FURTHER development of our POWER portfolio

Sft note: Unknown expenses or potential finacial costs on AP "ideas" and justification for annual $750,000 salary/ renumerations (up from $500k)

"The Group's loss after tax for the year to 31 December 2022 was US$14.9 million"

Green hydrogen and other business development costs of $1.7 million

Other administrative expenses of US$8.5 million for the year ended 31 December 2022 are higher than the previous year's US$4.5 million due to one-off new venture costs, employment costs from scaling up the team to progress the Anchois gas development, as well as the inclusion of administration costs from the Transitional Power acquisitions.

"As at 31 December 2022 the Group had cash of US$12.1 million, no debt and minimal licence commitments"

So any guesses on current cash burn rates...and the real reason of the very latest large share placings...IMHO NOT just onshore exploration and "finding more gas"

GLA

Rgds Sft

Ps could be interesting to keep an eye on SS7 next quarterly update compared to last with regards to work back log figures?

Rgds Sft

Bit old information as in May 23

But it does show SS7 are busy and very busy in 2025 for pipeline and Subsea umbilical installation ops.

So there is a very definite timeline required for getting contracts/commitments and putting cash down for ALL parts of the project(s).

Both Schlumberger and SS7 can not magic Eng's and personnel out of thin air (industry shortage as it is), so the BoD need to get it done.

https://splash247.com/subsea-7-lands-new-contract-worth-more-than-750m/

Rgds Sft

Thank you NorViking,

Getting that farmin signed, as AP is stating there is equipment supply bottle necks is of CRITICAL importance.

They must know that another share placing (to maintain cash runway) will expose the BoD as incompetent AND send the SP down further, erroding potential future gains.

It follows that they COULD use the latest cash raise to protect the company?

I am guessing they did not mention anything on timeline with the onshore drilling, land rigs being in no way comparable to offshore rig demand.

I still do not understand why they are gambling on land drilling (and the funds) BEFORE securing "proven" assets.

Besides that we cannot generate income from onshore without the construction of the onshore processing facility?

Be intresting to have heard if Covalis Capital LLP had anything to say.

In general as expected a disappointing agm, but so far the SP has held up.

And in the BoD we must trust 🤔

GLA

Rgds Sft

Thank you NorViking for the attendance and feedback.

So following your written comments:

"Adonis did admit that there were 'delays', epxlaining these to a large extent on the changing project costs, and difficulties in securing rig/equipment suppliers"

Was there any further elaborations, did any one else press him? The BoDs have known this as a significant and serious threat for project delay (explained as an incentive for Morocco Gov departments to not delay, reference that "leaked" artical last year, does any one still have the link to that?).

So could we see that as the initial negotiations on farm in/ financing have been protracted this has resulted in pushing back the ability to secure financing / signing off with Schlumberger and SS7 on purchasing (Processing plant, subsea umbilical, flowlines/ pipelines, trees etc etc) equipment, vessels rigs and allocating project personnel both onshore and off.

They themselves said to the Moroccan Gov departments that delay could push it back by a year (againg quoting from that leaked artical) and specifically named securing equipment and rigs as the threat, which it appears they have walked us into now?

So if there IS such a delay then company cash flow will AGAIN become a SERIOUS concern.

They would have been in contact with SS7 and Schlumberger. I would have preferred using the exploration raise to have secured equipment orders not more exploration gambling before protecting the single point of income.

Again thank you for attending and the feedback, greatly appreciated.

Kind rgds Sft

Just my opinion but I would think time lines are very important purley from a costings perspective, even more so when a company is not generating ANY income and has continued, known (directors, staff and office / admin etc etc) and the big unknown (Building a world-class green hydrogen portfolio, Developing some of the largest renewable energy projects in Africa (including potable water for 1000 people for 25yrs! 😯) and of course the continued costs on getting the gas project(s) across the line...with only having $4 million (fact check please) in the bank before the "exploration" share placing. We have some considerable outgoings......SOooooo in my humble opinion (other may disagree) timing from this perspective and in most businesses is VERY VERY important.

No offence intended to any that think otherwise.

Kindest regards Sft

Timing is everything: if we had all know about, the AP wish to rather than loan from a company but pay for the campaign via a share placing for drilling after campaign

RNS Jan 22

"Magna Capital LDA (of which Adonis Pouroulis has a substantial interest) underwrote the Fundraising, ensuring that the total fundraising equated to approximately US$23 million enabling the successful Anchois drilling campaign, with its significant gas discoveries, to occur on time and on budget"

Note Another company OTHER than Westland Investments

THEN ANOTHER placing to take us financially past FEED (this time the share price dropped from 24p to 18 two weeks BEFORE THIS 18p placing, purchase other companies (erode that cash) have another share placing but 14p this time (company now de-valued again) to fund another drilling campaign, but the reality was it was also needed to keep the company afloat, as they had too little remain cash left AGAIN and have IMO lied to share holders by saying it is for exploration costs.

So timing is handy I guess, insider knowledge even better 🤔🙄

Regarding the RNS we need for tomorrow, my guess is no, as they now have more cash to keep them going through longer and hopefully better negotiating.

Will the money from raised and resultant dilutions be worth it, not sure if we were looking for 70p-100p production with 500million shares so is 140-200 now possible with +1billuon due to there wanting to self finance and get a better farmin past FEED rather than before.

That I doubt too.

GLA,

Really hope I am wrong and it's GAS, Farm in and 74p on Friday Close 🥳

Kindest Rgds Sft

Hi NorViking,

Thanks for the addtional. This acquisition of more shares by Covalis is a big deal in my opinion, only just looked and done some research, so apologise if it was done a month ago and posted on the board by the other regulars /LTH's???.....??

So 2 bites of just over 6% each time by two, I would like to see more but maybe AA (billionaire and does not answer to any one) and CC (investors trust their investment risk profiling, which is better than mine because I added at 18p and over, wonder if they were adding then also?) have broken the back of the ii investment drought?

2x RNS's please AP: Gas contracts and farm in. Please, and no I do not want another share placing RNS as you and the board take high wages and options for another year at share holders have to average down, you continue to gain significantly.

Let's see if AP remains in such control now Westward is not the dominant force.

Rgds and standing by Sft

Seems like the other new investors Covalis Capital ( 6.24%) are not shy on making a fuss if they do not like the CEOs of the Companies they invest in:

"The hedge fund, which owns abut 1% of Enel, did not propose a CEO candidate. Its list comprises the names of Marco Mazzucchelli, Leilani C. Latimer, Francesco Galietti, Monique Sasson, Paulina Beato and Daniel Lacalle. A source familiar with the matter said the fund's primary objective was to prompt the government to clarify its vision for Enel and explain the choice of Cattaneo..........In an interview with the Financial Times published before Covalis unveiled its list, the hedge fund's founder Zach Mecelis said Enel was trading at a discount due to uncertainty over management choices: "Enel's stock will go up 30 to 40 per cent if this process is run differently," he said.""

We could certainly do with some resolve from: "uncertainty over management choices" when relating to financing our other "pillars" Mr Zach Mecelis, so step in and get some clarity.

https://www.reuters.com/business/energy/covalis-capital-presents-alternative-list-candidates-enel-board-2023-04-17/

Wonder if Zach Mecelis is in London?

AND another acquisition that made no impact on the share price??? These and AA must have been acquired from the last funding/ share issue????? Question not fact??

Rgds Sft

That was terrible, certainly put me of joining any clubs like that. AllI heard was: I think, I don't know, I am not expert at this, if winter bad is good for kistos, I don't know about politics...? Very strange

Rgds Sft

Hi Henry,

If it does play out as I speculate, in that the onshore will be used for the other "pillars" that is not as bad. I personally have doubts about these green aspirations only because I think its going to be very expensive to develop and I do not see the deep company knowledge. It feels to me to be a way to justify AP's salary as he is mining business/speculator/entrepreneur. I also know very little about hydrogen development and how profitable any other projects have been as of yet.

Of course we, after gas project sanction, can make our choices then on if to remain invested or not.

If they come up with some decent plans/projections people may stay in ( or partially at least).

Presently I am only in for the gas. The market as a whole will give us an indication also, but over 50% dilution since I came in has taken the shine (and hope for returns) off for me.

Still of interest is our new major investor Askar Alshinbayev...he has made a very decent purchase and under his own name? Just for the gas?

I am remain highly puzzeld on how he got hold of that number of shares in a +6% leap, with out breaking the 3% notification rules????

GLA

Rgds Sft

Hi KnC,

Forgive my ignorance but fund raising through more share placing, would that not be diluting us into the relms of incredulous dilution?

Or when you say "subsidiary level" do you mean that it would be as seperate entity I.e. raised for a specific project/ development? I did say I am being ignorant.

I would imagine there has to be quite a bit of time and investment of cash to even get to that level, I would imagine? The onshore project would allow CHAR management (AP) to freely use that cash.

Note: Possibley without damaging Chariot or getting another company into debt and control of creditors ( see/ Ref his history with Petra mining and its resultant "liqudity issues" as a end result (ultimately) of AP ambitions: https://www.miningmx.com/news/diamonds/41033-petras-founding-chairman-adonis-pouroulis-steps-down-from-board-after-23-years/

He is using share placing instead rather than generating debt presently.

Kindest Sft

Oppps sorry ICB888,

from your post " .....with further potential development synergies through the location of the planned Anchois processing facility and pipelines being situated on-block"

I.e. Already confirmed by CHAR...rushed the read doh.

Kind rgds Sft

Hi ICB888,

My speculation is that the onshore will not be part of the farm out agreement. I belive it will be developed as Chariots own (hence the fund raise for drilling) and if the exploration provides the hoped for results the production funds raised will be utilised for freeing cash flow up for the other two "pillars".

Am I correct in assuming onshore output could be tied into the onshore plant. I think Jimmy or another done the calcs on plant capacity and I can't remember if he said it the plant could manage the onshore input?

Speculations as per ususal and sticking my neck out with such a comment but it does give them financial freedom to pursue the other energy dreams.

I can see the farm in partner may have even already have commiteed ( Not signed of course...yet) to to the offshore Anchois and further offshore block exploration /development.

With Char onshore gas seeing the financial freedom required for funding rather than taking future loans (or more dilution) required for hydrogen development projects. It makes sense to me in theory??

Thoughts from the bb?

GLA

Best rgds Sft

Hi All,

I should have put a break and between

Private Companies 8.2% 87,365,324 shares

General Public 86.8% 928,738,869 shares

Here

"Major investors"

Westward Investments Limited 6.86%

Etc etc

But Askar Alshinbayev is not mentioned as a pointed out "major investor" and should be even if he is a private one, I assume?

So it does indicate it may not be "that"accurate.

Simply W Street are, in this case my only source.

I am not a paid up subscriber to them i.e get the free monthly allocation but I will write and ask saying I am thinking of signing up but how accurate is the share ownership break down...Worth a try.

With RNS issued it is the only indicator ( having to declare once over 3% I belive.

So it does make you ask again did he jump in with his +6% instantly crossing the threshold, if so you would have thought we would have seen that reflected in the shares sold/bought and an affect on the share price or as others said a gradual accumulation via a completion of a long block buy order???

Trying to find and understand, I belive is an opportunity for learning for us...?

Still gas contracts and partner farm in signing imminent 🙂

GLA

Rgds Sft