Member Info for TrustILie

It would not surprise me if we receive a holding notification shortly considering the pattern it has been in lately, there is definitely more at play. I mean that in a positive way

Also our debt levels are well manageable.

Gross Revenue $22.3M
Debt $25.4M (includes new debt facility to fund opl 310 licence renewal and opl 276 licence acquisition.)
Cash Balance $8.3M

With any future debt being pinned in development finance pegged against future oil revenues meaning paid from oil revenues when we ramp up production at otakikpo.

Opl 310 finance to be leveraged by a 22.86% stake in opl 310.

OPL 325 - PSC execution and then funding partner discussion.

Completely agree super roty, but drills that are purely backed on non revenue generating companies are likely to sink quicker on dusters, we are already underpinned by 2,400 bopd with another 5,000 - 6000 bopd to still come. So in effect future drills will be cushioned by serious revenue. Also future drills could potentially mean farming down to a smaller percentage for a free carry with partners funding the bulk of the drilling cost what’s not to like. It’s all relative in my opinion however let’s see what the next few weeks and months bring as with all things it takes a while to assess the full direction of the company and I have been following for a while. I cannot say where the peak value for lek will be but all I can say is it is more then the current market cap, by how much more that’s anybody’s guess and that’s the beauty of investing.

Nigerian oil and gas sector turning a new leaf with the minister of petroleum willing to get approvals through opl 310 a great example. I agree that things in the past have not been so great in the region but that can not always be the case and now is the time to position yourself in the Nigerian oil and gas sector. With production, appraisal and exploration assets we can exploit every stage of the value curve remember the market had priced in opl 310 as a writedown on the balance sheet with the renewal impending we shall see a material re rate, if we get an appraisal drill in 2020 then a substantial re-rate. Add to that we could get opl 276 partners and opl 310 partners not to mention increase in otakikpo oil revenues as well as a gas terminal revenues and an up to date gas cpr at oml 11 fields

With the licence renewal of opl 310 and acquisition of opl 276. Lekoil is finally starting to turn the corner and attract debt finance in a tough market things looking up. FBNmerchant bank to fund through debt and no penalty on early repayment meaning as soon as we have increased cash flow from otakikpo phase 2 in 2020 we can effectively pay of the debt facility much sooner without any negative impact remember in 2020 we will have production of 6000-8000 bopd net to lek. Plus once opl 310 is renewed we are likely to receive industry partners to fund the appraisal for opl 310. Not to mention farming out opl 325 and bringing in a partner. So much news due as we head into 2020. I can safely say I can tuck these away for a very long time.

A lot of people did not have the confidence of Lekoil being able to source the necessary funds to get the licence extension for opl 310. However they have shown that they have attractive assets and the necessary contacts to raise debt finance. With licence extension news likely to be confirmed next week. This used to be 20p per share once before the opl 310 licence situation and now that we are making that ground up this can only head one way. We are finally going to be a company that we were once promised we would be a mixture of production, appraisal, and exploration. Plus additional news is still due on otakikpo. Watch this space.....

Clearly being held back even after fantastic news I reckon we will be into the 5s and testing 6p+ shortly. Stay calm and load cause once the train leaves from this level I don’t see it ever coming back here

With tapi aike newsflow due and drilling near term we should see a comfortable rise up in anticipation of first drill. Let’s see where we get too....

The way the nigerian press have reported it seems like funding is not a challenge as they are not foolish to sign off on the go ahead without having a funding partner lined up.

Development finance deal imminent from partners, schlumberger likely to fund lekoil share of development finance

Nigerian press covering lekoil strongly and otakikpo field. Phase 2 go ahead confirmed means funding news almost complete pending rns. Good luck all

https://businessday.ng/energy/oilandgas/article/lekoil-completes-phase-2-otakikpo-field-development-in-half-year-update/

https://mobile.offshoreenergytoday.com/otakikpo-partners-to-go-ahead-with-phased-development-program/

Last week was a sellers week with sellers clearing out I think they will have pretty much been flushed out. We are currently trading at cash levels with zero value attributed to the 2 drill ready licences in Morocco and Brazil I see another 2p being added on to the share price from current levels and it should settle at around 5p before we get the next bit of news. I believe larry mentioned that the Rabat well results will be due shortly and they might have come across a new jurassic play, remember eni did partner with us on rabat so they would have analysed this data with chariot and they might come for a second bite of the cherry on this particular acreage especially now that they have additional drill data. fair value to close this year looks like 5p. Soon there will be not many sellers left at current levels and i can see this being bought back up to respectable levels based on cash position and asset value.

totally agree mate well oversold, this will be back up to shortly. way oversold below cash levels and this is still not pricing in 2 drill ready assets one which will be further de-risked which is morocco due to our rabat drill earlier this year. watch this space.

I have been doing some analysis this morning and I see value in Chariot Oil and Gas at current levels and here is what I think. Please see below:

Cash at 30th June 2018 ($28.4m) and no debt as per Interims RNS on 12/09/2018

Yearly cash burn as per Interims RNS on 12/09/2018 ($5m) so on a monthly basis i make that $5m / 12 months = 416k

So by end of october if we use 416k per month then we would have used 416k x 4 (Jul , Aug, Sept, Oct ) = $1.7m circa

So on monthly running cost our balance would be ($28.4m - $1.7m) = $26.7m (not including namibia drill cost.)

Now the drilling cost as we know that they have captured the bottom of drilling rig rates cycle the daily rate for using ocean rig poseidon would be $250k circa. (because tullow spuded on 1st sept 2018 and roughly announced the result 20 days after, and as per there rns they estimated the cost to be $5m, so $5m / 20 day's = 250k per day

So I expect our drilling cost to be in line with tullow at circa or even less by $1m or so considering we spuded on the 1st and had an announcement on 11th. However less just say we our cost comes in line with tullow drill cost at $5m circa.

Our cash balance by the end of Oct 2018 will be = ($28.4) - ($1.7m) - ($5m) = $21.7m and no debt

With that in mind we have 2 licences that are drill ready targets awaiting farm in partners. Morocco we have partnered with ENI on rabat so they might come back in after studying the rabat data and remodelling surrounding areas for a better chance of geological success.

Bearing all of the above in mind we don't have any other commitments or cost to bear with cash levels above $20m usd and our yearly cash burn of $5m as per latest interims, we have enough cash to run as a going concern for another 4 years.

However even if we do an acquisition we can afford to spend roughly $10m and still have another $10m left to run at cash levels as a going concern for 2 more years.

Studying all of the above I believe we are still cheap on the value curve and with the strong oil price environment farm in partners will still be interested to Morocco and Brazil hoping to get in before the drilling costs start to pick up and I can see this return back to fair market levels.

Now I am not saying Morocco and Brazil will be success but from where it is currently in the value curve it's cheap as chips.

Good luck all remember the best time to take positions is post a blood bath as this is when the majority are fearful and flushed out, and Chariot still has plenty of upside to offer on cash levels and asset levels.

Great find balanced article giving a balanced coverage, main thing is people and investors are starting to notice our potential and the FT article will go long way to doing that. We dont require funding for a year now, and we could potentially have more agreements and contracts being signed before then. Looking like we have well and truly turned a corner.

Buys coming in I can see a brilliant week ahead of us trying to break 48p proving to be the current strong resistance i am confident we can break this and then fly.

Haha well I am trust I lie lol so take it at your own account.

We should bag or more before we end the year testing 52 week high end beyond after the rise in Thursday towards 60p and a pullback towards 45p has allowed peeps a chance to get in at these levels before the train leaves for good. With a Chinese billionaire husband and wife taking 30% ownership in our company our long term prospects have vastly improved, they already are a majority shareholders in a Shenzhen listed company called REALCAN Pharmaceutical Ltd, which is a pharma company distributing medical equipment in china and the Asia region, they are a multi billion company, and through there existing network we are perfectly placed to commercialise our product. I don't know about you but I will happily have some of that. Thank you very much ;)

exactly there is nothing to worry about all these investors are in there for the long haul and hence that's why the sp rose, this sort of financing is what I call good financing it's not like Darwin or Bergen where they raise funds through equity placings only to be sold straight into the market. We have private individuals participating a consortium, directors and a Chinese billionaire with his 30% stake with his billion dollar pharma business that will support our growth. I say good luck all and watch out for the major re-rate

I sure am looking to add more of these beauties tomorrow, and holding for a minimum 1.50p x2 bagger is well and truly on in my honest opinion. a lot of people failed to take serious look at thursdays rns and failed to do their research. I managed a few good top ups on friday and looking to get some more at a reasonable price. I reckon we will see more interest in the coming days and weeks as people try and understand our partners and hopefully we have additional new flow coming in as well.