Member Info for Surfit

"look out as I do not think the market has much faith in the BODs" I should have ended that comment with .....much faith in the BOD's "presently"
Rgds Sft

Hi KB,
If we look at CHARs timeline FEED was reported to be completed 22; and it October now so 2.5 months left.
It will be a good indicator on management to see if that timeline is adhered to.
I am expecting to see some significant RNS's comming in the remaining time available.
I wrote to CHAR and it was confirmed there is no intent for Hydrogen production on the back of the gas project in Morroco: better financials from straight sale of gas. They were a bit vague on making the CPF totally powered from renewable energy. It is my opinion that as they are promoting their renewable path in particular mining, its not a good advert that the plant is not carbon neutral. There was (before Ukraine and accoring to Andrew Austin in Kistos) a financial benefit in selling such carbon neutral gas I.e. at a higher premium. So if they can not, it may be down to cost (and existing infrastructure) of developing a NEW CPF. I can imagine its not any cheap investment to get a plant to run totally green. So it's something for expansion once they are generating revenue and expand the field?
The next 2.5 months will be intresting and will see if management can meet their stated timelines or start giving out excuses.
I personally belive that they are spinning a lot of plates to get this moving forward very quickly.
And again, if they get publish the signed "contract" and (fingers still crossed) operator farm confirmed the market will react VERY positively. Adversely if there is no operator farm in: look out as I do not think the market has much faith in the BODs.
I am sure the BoDs will get a farm in as they can expand other blocks under their own terms later.
The ideal would be that some one like Total want in the farm in to partner on BOTH Lixus AND the undrilled RISSANA but CHAR are holding back (pure speculation of course) to keep control and future options open.
Lots of variables out there and the market will react accordingly to the decisions our BOD make.
One thing I do think is AP has plenty of negotiation experience from a tough mining back ground, I just hope he is not going to turn us small RT investors over during the journey. Time will tell...2.5 months to be exact.
GLA
rgds Sft

Step 1: BoDs get that contract signed and an RNS issued.
Rgds Sft

Hey KB,
I just can't see any approach without knowing what the Moroccan Gov deal will be. Everything (imo) hangs on that, no third party can step in with out getting that signed off.
What intrigues me is it how long signing off is taking?
Know one can balance the books without it?
Re the burn rate, was with RKH for a good while and the terrible deal that the BoDs signed into with PMO after reciving 250mil farm in meant RKH nearly paid back that in FEED costs back to PMO to complete FEED! PMO fleeced them and then went bankrupt due to other debt (and the a significant part of that debt got sold onto a Hong Kong based company called ARCM) when PoO collapsed. Parts of PMO debt got sold on to a company that helped bring it down.
https://www.reuters.com/article/uk-britain-shortselling-fine-idUKKBN26Z1AZ
Not ARCM (sharks are sharks) fault but PMO management fiscal control..and fall in oil of course. The Falkland oil is still in the ground.
This is gas hence my move across but the BODs need to get it right.
I respect that AP raised the cash to get past FEED which on the "face" of it puts us in a strong position for negotiations...but as above...why is the contract with Morocco taking so long? and remember AP got a bargin deal at 18p...would have cost more if it was after the issue of the (again) delayed CPR.
So trust is thin on the ground and (again imo) any ii's want to see the contract and a mature and experienced operator in the mix as well???
Without an operator who knows what finance deal AP could do...more dilution or a bond, as I said before his mining history and what financing he has done plus the above may be route cause on answering our "why"
@Builder, true.
Rgds Sft

Hi KB,
None the less the fundamental buy/sells are not "ideal"
No of Trades 89
Vol Sold 1,192,282
Vol Bought 642,166

I have no idea what is going on with this share, other than ii reducing their exposure in turbulent overall UK stock market. As we have just completed a fund raise it should not be that? Again just yet???but remember consider how much free cash vs expenditure vs time does CHAR actually have: 1 year?
I assume it was SocGen set and organised the last set of funding and set the raise at 18p, would have thought they could (SHOULD HAVE) have set it at a significantly higher price than 18p post drilling conformations, but before the long awaited (delayed???) CPR. Who benefited from 18p a share as a raise price.
As you can see I am a bit of a pessimist with regards to AIM directors or maybe snr managers in general (Tony Durrent PMO and Sam Moody Rockhopper) who are on $500k+ salaries, especially when it leads to very significant share dilutions.
It looks like this sp stagnation could continue as (imo) there going to be little hope of a farm in (if the HOPEFULLY go that way! figures crossed) before completion of FEED.
ALTHOUGH
What COULD give significant hope is an RNS confirming the contract with the Moroccan Gov on supply details be issues before hand, which MAY THEN allow a prospective partner to step forward (i have fingers crossed one does) before FEED completion with a letter of intent? As FEED with a experienced project development partner can be calculated relatively closely.
PATIENCE is the word of the moment.
HOLD FAST bosun
Rgds Sft

They certainly look to be at or in the sell price range rather (unfortunately) than the buy range.
Rgds Sft

Okay thank you gents. Is there any understanding on the date 10th October 6pm as well.
I retain a good few share in my trading account but have (ironically) been trading my £8k of Kistos in my isa account (due losing the lower price (original buy in to Kistos) on bed n transfer and am out only at the moment...so was wondering if I miss out on any potential allocation?
The thing with shares and Kistos in particular; investors do run the risk of missing out on a AA suprise announcement!
Kistos look very solid but are facing issues on a decline of reserves buy not being able to aquire further assets IF AA adheres to his / their stated profile of ONLY purchasing in the North Sea UK /NL and avoiding exploration.
It not going to be easy in these days to aquire proven gas assets at a reasonable price. They were lucky on getting part of Greater Laggan+ as they moved quickly and early.
I am I vested in CHAR which would suit them with the BIG acception that THEY WILL NOT invest out of the designated area.
I do see a special dividend potentially comming up....maybe?
Rgds Sft

Should have done a Google search before I posted below but is it in affect a share buy back?
"Capital reduction is the process of decreasing a company's shareholder equity through share cancellations and share repurchases, also known as share buybacks. The reduction of capital is done by companies for numerous reasons, including increasing shareholder value and producing a more efficient capital structure"
Or have I got it wrong......?
Rgds Sft

Can anyone explain what the Capital Reduction Update is about?

I have no understanding?
Rgds Sft

Hi Jimmy, thank you for the reply and input.
I really think the market is just waiting to see how the BoDs jump. I really belive we must have an operator farm in (I still hope it's TotalEnergies) and not going it alone with the development.
If the Anchois development also build in the plant for Hydrogen production it fits with the current alignment with the Total Eren.....could it be the first of its kind including carbon capture (that gets it to "blue" status rather than grey....and then taking it further if they can green the plants it could be a world first new development project....I may be wrong (not researched it fully).
If they went that way CHAR would also attract the pension fund green investors.
I will actually write to chariots to just ask the above question directly.
Rgrds Sft

Hello Jimmy, interesting find.
They look to have secured a significant amount of backers. Here one of the larger: https://www.noria.eu/en/home/
They have set the IPO quite high to cover project development costs I would imagine. Intresting to see how many share left in reserve.
Jimmy I STILL see our SP value down to the recent dilutions, the lack of (for the moment hopefully) a decent farm in partner and the markets evaluation of AP recent financial structuring and leveraging (he has IMO and checks "form" (mining adventures) so to speak and its a (the 50.5% dilution through new shares) not well recieved (again imo). If its not that then WHAT ELSE do you suppose it could be?

We have a great and proven find, they could get Schlumberger to build the plant to incorporate Hydrogen production (blue) as well as gas redistribution, how is the plant getting powered? Will it be carbon neutral, if so then the produced gas has a higher green value (picked this up from my investments with Kistos energy who under Andrew Austin the SP has gone a VERY different way, for the present, to CHAR).
Is there a feeling of mistrust that has been reinforced by the way CHAR BoDs have acted? Well I think the SP answers that question, can it be turned around YES but only with a respected farm in partner.
Again my thoughts ONLY based on previous investment experiences.
I think we will know the direction shortly I.e. Next 3 to 4 months with FEED completion (including contract with Morroco) and clarity on farm in OR (I seriously hope not) separate financing .
They could I suspect, if in concurrent talks with another operator, move from FEED/farm in to FID/sanction quickly but FEED is now down to Schlumberger, SS7, equipment supply chain and Bods negotiation with Morocco.
The market has valued the Total hydrogen deal as nil as they have not seen any financials plan for profit. There could be IF they do as detailed above for the Anchois plant and build for the GREEN future whole field /area. THEN we will see serious movement.

Rgds Sft

Hello Jimmy, thank you for the reply and information.
I will defer to your greater knowledge on financing, but if the 50.5% share dilutions is correct (again I pulled that from Simply Wall St) that's where any gains have gone and its a heck of a dilution that have left us with nearly a billion shares in issue. AND only enough to FEED (IS that actually FEED costs or paying the existing office costs?)
That's a massive amount since the drilling campaign.
I did ask the question when I first joined (invested) after the drilling campaign and was told that said we were good for financing. I could not see it but thought conformation of drilling the right time to get a farm in but the CPR was thought to be the "crucial point"
I have always belived that the "contract" and FEED cost must go hand in hand for a clear understanding of project costs, that must include obviously the onshore plant/pipe line tie is both offshore to plant but plant to main supply.
The lead time on all that equipment (especially the plant) could start to come in as a significant factor.
My concern is those multiple investment vehicles in a time when (imo) cash WAS readily available for gas investments or a partner farm in...but AP went his way. The BODs WERE stating they are looking a share holders value but I have not seen that since I joined.
Why is the signing of the "contract" not confirmed?
I have a concern that they are going to go it alone and how they raise that cash is through more of APs vehicles? Or BONDS and look what happened to Premier Oil (ARCM Hong Kong) when that went wrong.
I would much prefer to be partnered with the likes of TotalEnergies who have a decent existing local infrastructure, reliable contacts and would add the confidence (and financial surety) that I belive the market sees as lacking (APs mining history on spending).
Respectfully Sft

You also start digging a bit he is tied into Hayden Bradley SOMMER (through KINSELLA CONSULTING LIMITED) he is a "lawyer" with a lot of consultancy companies notable I.e. AIMS MARKETS LIMITED
There are a lot of wheels turning with these guy?
Rgds Sft

I am starting to get the feeling g that it might actually be Adonis that is also part of the issue:
You start digging
1. We have had and 50.5% share dilutions in a year (rather than farm in the directors have by various investment vechicles obtained that % of shares and that that just gets us to FEED!
2. He is making investments through a variety of investment vehicles At least 2 that I can find.
3. Renewables are also under a different Adonis Pouroulis "vehicle" Acting CEO of Chariot, beneficially owns 39.86 % of the total voting rights in Tharisa.
Accordingly, Tharisa is considered to be a related party of Chariot for the purposes of the AIM Rules for
Companies (the “AIM Rules”).

You couple that with the previous charts showing a drop in share price prior to RNS fund raising....something is rotten in Denmark (and its not a particularly safe investment) and this is what the markets do not like (imo).
Rgds Sft

"Definitely worth a read....especially the Section 1.5 if you really want to dream"
It's a bit more than that in the above mentioned section

Not sure if anyone uses Simply Wall Street but you can sign up and get 5 reports a month (free):
https://simplywall.st/stocks/gb/energy/aim-char/chariot-shares

I liked a lot of the information it produces but a few points I found interesting were
REWARDS
Trading at 95.7% below our estimate of its fair value
Analysts in good agreement that stock price will rise by 211%

RISK ANALYSIS
Shareholders have been substantially diluted in the past year
Makes less than USD$1m in revenue ($0)
Has less than 1 year of cash runway

Detail look at:
Section 1.5 : Share Price vs Fair Value
Looks too good to be true
But the others
Section 6
Adonis Pouroulis (52 yo) 2.17yrs Tenure
US$518,000 Compensation
Adonis's total compensation ($USD518.00K) is about average for companies of similar size in the UK market ($USD711.16K).
Compensation vs Earnings: Adonis's compensation has increased whilst the company is unprofitable

Section 7 Ownership Breakdown
Institutions 1.7% 16,133,696 shares
Private Companies 8.9% 85,143,102 shares
Individual Insiders 9.6% 92,085,383 shares
General Public 79.8% 764,640,240 shares
Alert:
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 50.5%.
I had it at around 40% so a bit out but that supports my thoughts over why we are not getting any significant share price movement: the dilution has sucked out any further growth.

Definitely worth a read....especially the Section 1.5 if you really want to dream.
GLA
Rgds Sft

Hey KB, thank you for posting the RNS.
I am sure the the BoDs comment is correct, I have just been following the graph drop in SP price and subsequent fund raising RNS. CHAR (imo) is a leaky ship and someone has clearly taken advantage of unpublished information previously (if you tie in sp drops and released information).
Hopefully my armchair observations are wrong and it just reflecting the market drop in general.
Rgds Sft

We have been on another steady decline since 12th Sept: Wonder if BoD's let one of their brokers know about another share / fund raise suprise or some poor news is on its way?
Once it bottoms out should be an RNS appear telling us what going to happen.
Rgds Sft

As off Friday 25th June "2021"
The Company has applied for admission of the Fundraising Shares to trading on AIM ("Admission"). Admission will occur at 8.00 a.m. on Monday, 28 June 2021. On Admission the Company will have 636,077,728 Ordinary Shares in issue and there are no shares held in treasury. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules."

We now have just shy of a billion shares in issue, with the company history of raising cash through the granting of shares (to Adonis) it has probably calmed any external SP investors from putting in. No finance structure explained AND if there is one introduced its as per the directors direction.
So unless there is a farm in its further fund raises.
ii's can possibley get in on a preferred investment vehicle rather than just open market shares.

FEED still needs to be completed proving the methods of finance.
No movement here until real clarity.
Relax, and wait (and hope they do not issue more shares).
Rgds Sft

One final question
What is the barrels of oil equivalent per day of 100mmcf (CHAR spoken of production per day)?
Rgds Sft