Chariot Share Discussion Threads

[hedgebetter] 29/10/2012 15:30

Hey Triples - probably worth putting the above link on the header..thanks.

from iii - Page 76...

Chariot Oil and Gas is a pure African junior oil and gas explorer.
Its current main assets are its eight Namibian offshore licences and its Mauritanian & Moroccan offshore licences.

We believe that Chariot shares have been oversold following disappointing results from both the Tapir South-1 and Kabeljou-1 wells. Currently the equity market seems to be ascribing a negative value to Chariot's Namibian, Mauritanian and Moroccan licences as its market cap is less than its cash. More accurately, the market is saying the expected value of Chariot's exploration programme, on which this cash will be spent, is less than the value of its cash today. This, we believe, grossly underestimates Chariot's exploration prospects.
There are four quite separate basins along the Namibian coastline.

We believe the market is inferring too much about the wholeof Namibia from the two recent wells that were drilled. Chariot's Central Blocks are in a different basin from the first two wells and are still to be drilled. Chariot is expanding and diversifying its African portfolio. Over the last year it has acquired a Mauritanian licence, and two blocks offshore Morocco.

Chariot has a strong balance sheet. The company still had US$112m of cash at the end of June 2012. Over the next 12 months the company's main cash commitment is 1,600km2 of 3D seismic in Mauritanian Block C- 19, which we estimate will cost ~US$16m.

We believe HRT is likely to provide the main catalyst for Chariot's share price over the next 12 months, as it is likely to be the next company to drill offshore Namibia.

Our estimate of Chariot's current fair value is roughly twice its share price. In our success scenario we estimate Chariot's shares could be worth 380p by end-2013, while in our failure scenario we estimate they could be worth 25p.

Nice one newswseller

[newswseller] 29/10/2012 11:03

FWIW i just added another 34k shares

[guesswhosback] 29/10/2012 09:56

I would suggest that most of those above are invested at prices way above the current share price.

[newswseller] 29/10/2012 08:15

Latest Broker recs, expect those from Sep to be revised shortly

26 Oct Chariot Oil & Gas... Merchant Securities 34.60
19 Oct Chariot Oil & Gas... Northland Capital 51.70
17 Oct Chariot Oil & Gas... UBS 70.00
11 Oct Chariot Oil & Gas... Finncap 65.00
11 Oct Chariot Oil & Gas... Seymour Pierce 31.00
13 Sep Chariot Oil & Gas... Investec 31.00
11 Sep Chariot Oil & Gas... Canaccord Genuity 30.00
11 Sep Chariot Oil & Gas... Peel Hunt 40.00
11 Sep Chariot Oil & Gas... RBC Capital Markets 40.00
11 Sep Chariot Oil & Gas... Jefferies International 36.00

[newswseller] 29/10/2012 08:02

'We believe that junior explorers operating in Sub-Saharan Africa often have better access to licences than in other regions,' Amor explains.

When assessing such firms, Amor advises investors to look for those that acquired their licences early when Africa was out of favour, that operate in plays where there has been proven drilling success, that have partnered with the majors, and that have low share prices relative to their net asset value.

He highlights African Petroleum Corp (NSX:AOQ), Chariot Oil & Gas (LON:CHAR) and FAR (ASX:FAR) as all trading at roughly half his estimate of their fair value. In contrast, he says African Oil Corp (TSX:AOI) 'appears overvalued given the risk that the rift basins of Kenya and Ethiopia will not prove as prolific as Uganda's Lake Albert Rift Basin'.

[hedgebetter] 27/10/2012 17:18

I wish! He will eventually make an absolute fortune .... :-)

[triples] 26/10/2012 23:20

Hey HB, I bet you don't have as many options as PW :)

[hedgebetter] 26/10/2012 20:17

PW now owns as much as me....I better buy some more then! Stars are starting to align.M M's have accumulated a lot to sell back later...looking forward to some more positive RNS's ..only an idiot can claim that positive ones are negative - some people's logic is plain daft!

[fairenough11] 26/10/2012 15:37

nice little flurry there as volumes building again.

More director buys?Very possible imo.

[triples] 26/10/2012 14:46

Um, good point. Any idea how to change the default LT chart? The instruction is "LTCHART!". Ta.

[ernestly] 26/10/2012 14:14

hi triples, your long term chart in the header would look vastly better as a 3 year chart. been looking at CHAR news from 3 years ago.. and really the CPR reappraisal of namibia central was one trigger for it's increase. on about 141M shares in feb 2010 report it had about 16M cash USD and a share price in the 30s

actually looks a bit similar to FAST now!

[fairenough11] 26/10/2012 09:05

PW is pretty cute imo.

Mauritania,for example,Tullow to drill 3 exploration wells early in 2013 which could have positive waves on Chars acreage there and costs us nowt.

TULLOW

Mauritania Various 3 Exploration Wells Various H1 2013
=================================================================================
AND HRT in Namibia


"To be specific, the geochemistry evaluations:
Demonstrated that the offshore of Namibia is an oil-prone province, not a gas province, and that it is very similar to the oil-prone offshore basins in other parts of the South Atlantic
Established that there are three potential oil source intervals in the Namibian offshore, and that they contain enough organic material to generate the volumes of petroleum needed to fill the reservoirs
Verified that these source intervals are mature enough (have been heated enough) to have generated the needed volumes of oil, but are not yet generating gas
Showed that there are pathways for migration of the generated petroleum to the reservoirs, and that the migration occurred after the reservoirs and seals were in place"

"Offshore: Have you already started drilling? If not, when do you expect to start and where? Also, are the reserves calculated at 11 Bbbl in Namibia the result of drilling? Please identify the area you are referring to.

Peres: No, we have not started drilling yet. We anticipate that we will begin execution of our planned drilling campaign in 4Q 2012. HRT recognizes promising prospects with significant resource potential within each of its operated concessions. A decision on where the first well will be drilled will be forthcoming after contracting a rig. This information will be released as we get closer to the spud date."

[jxman] 26/10/2012 08:56

To put your minds at rest I am not short I am sitting on large loss and hope and wish more than most on here that char share price increases significantly from here.

[jxman] 26/10/2012 08:54

To put your minds at r

[triples] 26/10/2012 08:51

Other than Greece, it's unlikely that Chariot will seek more acreage for the time being. This helps to conserve cash.

So PW has diversified into M and M but hasn't bitten off more than Chariot can afford.

Pragmatic approach.

[newswseller] 26/10/2012 08:47

Yeah, but you would contribute more over time, not literally just appear from no where one morning with a strong vocal negative view. Strange

[fairenough11] 26/10/2012 08:45

Hugh,

I said I hope he isn't short and I certainly hope everyone recovers any paper losses.

But my opinion is that a Director BUY of around £58k can only be good news imo.

[hugh garss] 26/10/2012 08:42

Just because you're hacked off about a share performance doesn't mean you're short fairenough11. A lot of holders are sitting on huge paper losses including me...it's only natural that we're going to sound off from time to time.

[pedramp] 26/10/2012 08:41

This is a very good sign and hopefully the newsflow will keep coming. Now that we know they were in a restricted period, I expect to see more buys today/monday.

[fairenough11] 26/10/2012 08:37

hope he aint short:-)

as I think they are determined to break the 32p with positive newsflow and Director BUYS.

Time for shorts to stop dreaming and chuck in the towel imo.

[jxman] 26/10/2012 08:37

Been interested for many years diss appointed for last 6 months.

[newswseller] 26/10/2012 08:34

jxman, why the interest in char today? very vocal

[jxman] 26/10/2012 08:32

Trading this morning has shown the response to the rns. A damp squid! Director buys to sucker in more pis. No confidence in this company or management.

[jxman] 26/10/2012 08:30

I'll tell you what would be good. If they found some oil and/or gas. Now that would be good news especially for all those that have invested way above the30p mark

[triples] 26/10/2012 08:25

I am very happy with PW's announcement. He has stacks of options but a straight buy of ~ £60k is ver welcome.