Chariot Share Discussion Threads

[stockriser] 27/11/2012 13:18

It's funny you should mention that CHAR should introduce themselves - when Hummingbird Resources appointed JHG as joint broker they had this to say.....

"Jefferies has offices in over 30 cities, and this reach will allow Hummingbird Resources to gain greater exposure into the global marketplace as the Company develops."

[fairenough11] 27/11/2012 13:01

from jimmy iii-cheers
=================================================================================
12:56
HRT Farm out Valuation
jimmy24
HRT have just announced that Galp are farming into three of HRT licences and will pay a fixed amount (unspecified) for a 14% interest in three licences and for three wells to be drilled.

The amount of the financial cap is not specified, which is not unusual. One of the newswire reports stated that GALP would pay the costs of three wells for these 14% interests.

HRT had previously budgeted $150 million for 2 wells to be drilled 100%.
It does not appear as if Galp are re imbursing HRT for past costs, so we can estmated a value for these licences.

Three wells pro rata costs is $225 million for 14% working interest, less the basic working interest cost of the 14% well costs is $31.5 million (225 X14%) , so the premium paid for the valuation of the acreage is $193.5 million (225 less 31.5) for 14%, so the 100% value of the acreage is $1382 million.or $460 million per licence area.

If this is pro rata apllied to Charioys net acreage it works out at £618 million or £3.09 per share.
While these valuations look huge from this point of view, we have been at such a valuation previously, so perhaps not so crazy.

I am not sure if i am going mad with these calculations,but it looks like Chariot should get on the phone to GALP immediately and introduce themselves for another three well program.

Somebody, please check these valuations and confirm.

Jimmy

[clumpweight] 27/11/2012 12:18

RNS, Jefferies, are the small company take-over specialists.

[lanaken] 27/11/2012 12:05

FWIW,

I chased IR at GALP and the head of IR is distantly related to an ex Chelsea manager.

My reading between the lines of that conversation and the press releases



Under the terms of this agreement, Galp Energia will carry part of HRT's share of costs, limited by a cap, associated with the drilling of the exploration wells to be drilled in 2013.

is

It's looking to me like HRT have recovered a slice of past expenditures and will be covered for a little more than 14% of future costs subject to a cap under this deal.

That would square with HRT now saying that they are going for three wells now whereas they said they would finance two alone if the farmouts failed to deliver the terms they needed.

I was told that the costs were not material which given that they teed up drilling on

According to Galp Energia's internal estimate of volumes and risk, the primary objectives of those prospects have a combined estimated gross recoverable exploration resources of almost 8 billion bbl (unrisked mean estimate), in the oil case, with POS's in the 20% - 30% range.

So their ticket into Namibia has probably cost them about a little less than 20% of the $200 cost of drilling three wells. Plus they will have to fund their own 14% of costs.

You can see why they think it's not material.

Total cost say $65m for a chance of getting 14% of a couple of bn boe valued at $8-10 per barrel.

They could end up with nowt, about a 40% chance after three wells at 25%CoS i.e. 27/64. Or have a decent chance of adding several hundred million barrels to their reserves and a slim to very slim chance of adding two or three plus times more.

At the moment CHAR's acreage is being given away.

Hmmm...

repo

[stockriser] 27/11/2012 12:04

RNS Number : 1091S
Chariot Oil & Gas Ld
27 November 2012
27 November 2012
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
Appointment of Joint Broker
Chariot Oil & Gas Limited (AIM: CHAR) is pleased to announce that it has appointed Jefferies Hoare Govett, a division of Jefferies International Limited ("Jefferies"), as Joint Broker alongside RBC Capital Markets ("RBC") with immediate effect.

[fairenough11] 27/11/2012 09:38

Ah Sinopec through the back door?

Amazingly easy to farm out namibian acreage,YET CHAR'S is priced as worthless?

Keep buying imo.

[triples] 27/11/2012 09:21

Across on lse, the reckoning there is that GALP have paid for the 3rd well to get 14% of the three PELs.

And elsewhere, it turns out that Sinopec bought 30% of GALP (Brazil) a while back.

[lanaken] 27/11/2012 08:54

Yep thought that was the case, but it was confirmed in the underlined part in the link above.

Sluggish price is probably due to FOGL punters getting squeezed out of other holdings on Scotia disappointment.

repo

[triples] 27/11/2012 08:50

A second farm out is being negotiated, hence the stum on the $ numbers.

[ronan7] 27/11/2012 08:50

sp sluggish today given buys vs sells

[lanaken] 27/11/2012 07:53

Looks good news although some $ numbers would help.

repo

[fairenough11] 27/11/2012 06:03

from iii cheers


HRT SIGNS FARM-OUT WITH GALP ENERGIA FOR NAMIBIAN BLOCKS

Rio de Janeiro, November 26th, 2012 - HRT PARTICIPAÇÕES EM PETROLEO S.A. (the "Company" or "HRT") (BM&FBOVESPA: HRTP3, TSX-V: HRP) announces the signature of a Farm-Out Agreement with the company Galp Energia in regard to the assignment of a 14% participating interest in exploratory rights over three (3) offshore Petroleum Exploration Licences (PEL) in Namibia - specifically PEL 23 in the Walvis Basin and PELs 24 and 28 in the Orange Basin. HRT will retain the operatorship of these PELs and is set to commence a drilling campaign in 1Q13.

According to the terms agreed to by the parties, Galp Energia will carry part of HRT's share of costs, limited by a cap, associated with the drilling of wildcat wells, which are set to be drilled in 2013. The exploration program is expected to comprise the drilling of three exploration wells, in already identified and defined prospects, targeting two prospects in PEL 23 and one in PEL 24. These prospects carry both oil and gas assessments with material volumes, and are expected to be more oil prone.

The three PELs cover an area of 37,744 km2 in water depths ranging from 180 meters to 2,500 meters. Both Walvis and Orange basins are located in a new exploratory frontier area in an emerging hydrocarbon province with potential for oil and natural gas discoveries with already identified, drill-ready prospects.

It is important to highlight that HRT has carried out the largest 3D seismic acquisition campaign with excellent quality off the Namibian coast, which covered the areas where the three wells will be drilled, decreasing, therefore, the exploration risk.

The main targets of these prospects have a combined estimated gross recoverable resource of almost 8 billion bbl (unrisked mean estimate) with POS (probability of success) in the 20% - 30% range.

"We are honored to have Galp Energia as a partner in these highly prospective assets. This partnership will enable HRT to bring into its drilling campaign the experience of a major company that has had outstanding performance in the search for hydrocarbons in frontier-exploration projects such as the Brazilian pre-salt and also the West-African deep-waters", CEO Marcio Rocha Mello commented.

The transaction is subject to the requisite regulatory approvals, specifically the Namibian government approval.

[mr.oz] 26/11/2012 21:28

We estimate that the current fair value of Chariot's share price is 62p,
which is roughly 2x higher than its 30p price on 19 October 2012. 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.

[hedgebetter] 26/11/2012 21:14

Some interesting chatter on iii ...star trader ....



Notice the date ... And the partners ...

[hedgebetter] 26/11/2012 17:03

Hi - The Ambrian report is also in the broker note in the header.

It's becoming more relevant as time progresses.

Thanks

[triples] 26/11/2012 16:41

HB, well spotted. The chart is looking much better too.