Chariot Share Discussion Threads

[hedgebetter] 21/3/2013 22:44

Drambui/Wild goose - whatever your other alias is. I guess that is your verion of constructive debate. Lol. Go boil your heed.

[drambui] 21/3/2013 21:57

Much better viewing than the rubbish posted there... is the long term share price graphic... please note the latest fall in the trashing of the share price... -50% in nigh on a month... and in a booming market... dear oh dear? I daresay that's something not discussed too much (if at all) over there? All in my humble.

[belisce6] 21/3/2013 20:21

so wot is it that management is suppose to do ? other than wait for hrt results i suppose... must admit though, they dont really have much to do 4 da money they earn :-((

[drambui] 21/3/2013 20:01

Sub 10p next... while this awful management team twiddle their thumbs (literally it would seem)?

[belisce6] 21/3/2013 14:31

ghhghh...

just read this thread a bit better... i believe that fairenough11 has posted so much in past few days which answer ur questions...

hrt... 2 wells in central block... i am unsure of entire sequence of drilling.... but get a look at map which shows drill locations... just browse thru the previous posts on this thread... someone stuck a presentation from canadian company which is in the namibian area... eco ? and they have almost all the info in that...

[fairenough11] 21/3/2013 13:36

cheers jimmy iii
==================================================================================
March Presentation Comment
jimmy24
Chariot published their March Presentation yesterday.
Interestingly they now confirm the southern blocks source rock issue in that presentation.
Page 19 shows a cross section of Nimrod section with a view into Block 2714 B and then into HRT adjoining block. Chariot now specifically stated that they encountered a "shallow petroleum system" in the K1 well, as this was above the Nimrod reservoir it clearly could not charge such a reservoir. They also state that the "deeper charge system inaccessible to kabeljou" but indicate that it may be accessible to HRT mooshead prospect and a canyon head prospect in Chariots Block 2714 B.

Hence the wait and see.

The good news is that there is a shallow petroleum system proven in Block 2714 A, now they have to map what prospects it can charge.

I will need to review the HRT Mooshead prospect to see if it can be charged by a shallow source system as well.

The proven shallow source rocks now explain the presence of oil seeps in the area. Now where are the prospects.

As more wells are drilled in Namibia, its becoming clear that the maturity and migration of fluids from source rocks to the oil reservoirs is a key risk in this area. I suspect the presence of volcanics in certain areas makes this a complex task. The Central area in Namibia would appear to be less prone to volcanics and perhaps this explains why HRT/Galp are drilling two wells in that area.

Chariot are right to wait and see the well results from HRT as this will indicate which petroleum systems are working and de risk their prospects.Once one system is proven then then the success rate for subsequent drilling is usually very high, such as ENI having 9 discoveries in its block in Angola.

I expect the HRT well to spud this week. There are substantial oil seeps in HRT blocks, so it looks like there is a working petroleum system in that area, drilling will tell us which one it is.

Jimmy

[ghhghh] 21/3/2013 13:11

Just to recap news flow for 2013?

HRT about to drill first well which has significance re CHAR's Central Licence

Then second well near CHAR's Southern Licence.

Where is the third well located?

And does anyone know firm wells planned for Morocco and Mauritania this year?

[jxman] 21/3/2013 12:47

Don't get dragged in guys going much lower this one.

[fairenough11] 21/3/2013 11:47

Namibia: new exploratory frontier
2013: Rig in operation to drill 3 wildcat wells in Africa's southwest coast

[andonis] 21/3/2013 11:25

FTSE should bounce from here a bit for sure but there is a bossibility to go lower.... to end the correction and then to rush up higher...

[alex hawk] 20/3/2013 21:55

Because they're incompetent?

[wild_goose] 20/3/2013 21:17

What's happening guys,

Why 2 RNS, and both the same.

[belisce6] 20/3/2013 15:15

just read the results...

namibia..
northern area -up for farm out for dilling of Zamba prospect in 2014...
central area -waiting for hrt results b4 pinpointing drill prospect, for which they will then push for farming out for drilling in 2014...
southern area -petrobas needs to sort out its own interpretations and conclusions of current JV area by end march13, but other tenement is also waiting for hrt results, so that can help determine which parts will be 3D seismiced...

mauritania..
3D seismic has been done, but results and interps to hit the newslines in early 2014... any drilling will not be earlier than 2015... they have already had farmin partner offers... (so might have farmin partner at any stage of this wait, although one would expect the same as namibia prospects.. after 3D interp and announcement data room opened for farmin etc...)

morocco..
playing around with 2D seismic soas to develop plan for 3D seismic which would be done in 2014... partnering to follow, and drilling no earlier than 2015...

My Conclusion...
1
wot u already know... they r waiting to get info via hrt 4-well 2013-14 drilling program, to further constrain namibian drill spot selection within own tenements, with all 3 prospects still being well and truly alive...
with this info, they will then also conclude drilling farmin partners where required... me thinks that lack of success with hrt will not reduce char chances, as from all the info i have read in the Final Results, the entire namibian area has different interpretations when one burrows into the finer detail of exact drill spot selection... (this is proven by their comments in regards to selecting what part of southern tenements to 3D seismic based on hrt drill info etc... and as i have mentioned elsewhere, success with hrt will b good for char sp, but dont mean char has oil in their tenements, yet failure
from hrt drilling will be bad for char share price but might mean they have the oil :-) )

2
other gist i get from Final Results, is that regardless if Namibia comes up lacking success over time, they will just roll out Mauritania which can and should/will have impact on sp, especially seeing that ALL 3D seismic announcements r extremely positive for any company that does it... it is the point in time that they max up the statistical probabilities of how much oil they dream they may have... and this is the only info the punter has until actual drill result

3
similarly, they have Morocco project in the wings which can be turned into next rolling project in exactly the same manner they have done with namibian projects and intend to do with mauritanian project...

4
so all in all, i think they have a portfolio of projects which will give char share price some decent upward spikes at least over the next 18 months... so i remain holding even though i got in at average 28p just before the last negatively received update (ie -announcement prior to Final Results) ...

[fairenough11] 20/3/2013 13:52

Well said Jimmy--iii
==================================================================================
jimmy24 View Profile Add to favourites Ignore
Date posted today 13:35
Subject Results Comment
Votes for this Posting Voted 6 times.
Message
There is certainly some welcome detail and comments in to days results announcement.

Geology:
Chariot now explain that the Tapir North prospect is considered to be a leaking stratigraphic trap, which leeks up to the Zamba prospect. Chariot seem satisfied that area to the north of Tapir North contains mature oil source rocks which migrate to the Zamba prospect. A data room has been opened to secure third party farm in to drill Zamba. Correct move.
Perhaps this also explains why Chariot moved the previously proposed Tapir well from Tapir North to Tapir South which was dry.

The data from the central blocks has been mapped and their are multiple propects in the area including stacked prospects. Because there are considered to be two mature source in the area they will let HRT drill to confirm which source rocks are best in the area, and then farm out. Correct Move to de risk and maximise farm out terms.

There is a little more information on Nimrod and what went wrong. In my opinion, it looks like the problem with Nimrod was not the reservoir which was previously described as undeveloped, but the source rock which was supposed to underly it does not appear to have charged the reservoir for some reason. Otherwise why are Chariot waiting on HRT to proove the presence of the deeper source rocks in their forthcoming well in Block 2713. In addition the confirmation of a deeper source rock by HRT would determine if Chariots proposed 2014 3D seismic in Block 2714 B would be extended to a deeper turbidite reservoir in that Block. So clearly the deeper source in Block 2714 A did not work, hence Larry's previous comment that Nimrod was no longer a prospect. But the shallower source rocks in Block 2714 A did work, and there are most likely good prospects in Block 2714 A & B to be charged by such source rock as it is such a huge licenced area.
The accounting information confirms the write off of the Tapir South well, there do not appear to be any impairment charges in respect of Blocks 2714 A&B.Thats important to note.

Mauritania
We now know that the reason for a huge 3500 Km sq 3D seismic survey in Mauritania was because there are three deep water turbidite prospects of circa 300 million bbls each, in that area that needed 3D seismic. The fact that there is a proven oil field in Mauritania and Tullow drilling similar deep water prospects in Mauritania should substantially de risk this area.
Chariot have confirmed that they have been approached by a number of oil companies to farm in ahead of getting the 3D seismic results. So re imbursment of past costs looks likely here.
Morroco
Long term potential, let others do the work.

Other areas
Chariot looking at new opportunities. My advice is dont reduce the cash balances doing this, Chariot now have a huge exploration portfolio, it would need to be a truly exceptional opportunity to grow the exploration empire any further.

Corporate Governance
Very strong emphasis on corporate governance and a new management team taking the helm, the old gaurd are either gone or pushed to one side. Something very serious indeed must have occurred. Was it the trading volumes prior to the two well result RNS' ?
There was little comment on the departure of PW and JB.
Interesting to note that Chariot have moved out of Dover st where Helios was previously located as well.

Chariot has net book assets of £0.65 per share after writing off the Tapir South well. With a share price of £0.20 p i am expecting the Chairman and management to be buyers of chariot shares very soon.

Conclusion
It would be crazy to raise funds when the share price is substantially below book value, as some posters are regularly implying. Chariot have a declared policy of farming out and being re imbursed past costs and this was very successful last year when $33 million of past costs were received by Chariot.

The Southern blocks clearly have some considerable potential as the Nimrod well found mature oil source rocks above the Nimrod prospect reservoir. So now its a matter of waiting to find out where are the nearby prospects to such proven source rocks. With a 3500 Km sq 3D seismic coverage it should not be too difficult to find the reservoirs.Maybe thats why Petrobas still have leased port side storage facilities in Walvis Bay.

Jimmy

[stockriser] 20/3/2013 13:50

Cantor Fitzgerald lifts Chariot Oil & Gas to hold from sell

ADVFN competitor.com/article/4558531/FLASH-Cantor-Fitzgerald-lifts-Chariot-Oil-Gas-to-hold-from-sell.html

[f0rl0rn] 20/3/2013 13:00

Second RNS because:· Kabeljou-1 well analysis to be completed by Petrobras end of March 2013, forward plan for Namibian Southern Block 2714A to be decided subsequently, expected 2Q 3013 Look at the year:)