Partnering Process - Advanced29 May 2020 08:26
April 2020, Larry stated;
"The partnering process for Lixus has endorsed our excitement for this project"
"The strong industry interest witnessed in the partnering process has reaffirmed the value of the project and Chariot remains committed to risk-sharing through partnering"
Larry also indicated that the potential partners required CHAR to do further work, which I interpret was the PSDM referenced below;
"The company has performed a PSDM reprocessing project on the legacy 3D seismic data which has materially improved the seismic imaging and depth conversion accuracy and will offer the team a high-quality new dataset to continue to extract more value from the proven and emerging exploration play systems in Lixus. Preliminary assessment of fast-track data from this project has already highlighted additional potential within the Anchois area. For example, this work has identified an additional deeper target, called the "O Sand", which was not penetrated in the discovery well, for which preliminary Best Estimate ('2U') Prospective Resources of 159 Bcf have been estimated by the Chariot technical team. This would thereby increase the total remaining recoverable resource estimate of Anchois to 582 Bcf with the addition of the resources assigned to the O Sand to the NSAI 2C estimates for the discovered A & B Sands and 2U estimate for the undrilled C Sand"
As the results from PSDM appear to be positive, strengthening the potential of the asset, I do believe we are very close to agreeing terms with the partner (s).
Finally, we should have update related to PSDM very shortly and I suspect partner announcement will coincide;
"The detailed assessment of the final PSDM reprocessed seismic projects is now underway and further updates on the impacts on existing objects within the Lixus portfolio, and identification of any additional exploration opportunities, will be made in due course"
As we are trading below cash, news of partner will see CHAR multi-bag from here. From viewing the recent trading (volume significantly above the average) it would appear we have some accumulation taking place - which suggests we are close to news.
Fingers and toes crossed! No doubt, this is a good time to accumulate.
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