Chariot Share Discussion Threads

[seball] 11/1/2022 08:15

Agree this is extremely undervalued and now this is my biggest holding in my portfolio. These should be trading minimum 30p. Market will realise soon imo. If Shell have indeed hit oil in Namibia then this is also excellent news for Char and there prospective blocks. Buy

[sweepie2] 11/1/2022 08:14

Bought in here yesterday, love seeing significant find in a RNS

[ant15] 11/1/2022 08:12

Hi someuwin good to see you on here. As certain as can be that this is a fantastic opportunity.

[someuwin] 11/1/2022 08:07

Bought more. This still looks way too cheap now.

[everready1] 11/1/2022 06:40

so red when do Char drill these blocks?

[red rook] 11/1/2022 00:25

... Chariot operator of the Central Blocks licence offshore Namibia
...
Drill Ready; No Remaining Commitments
> 2.6 Bnbbls of prospective resource
Current Equity Position: 75%

... link from 2018 with map showing the offshore licences at the time Chariot commenced drilling operations for Prospect S well, offshore Namibia ... Shell and Total hold licences in the southern end.
...

... also another interesting link, with a focus on the Central Blocks
'Deepwater turbidites offshore Namibia shown to provide high-quality reservoir sands'
...

.

[mynameiskhan] 10/1/2022 20:46

Repsol relinquished Lixus license due to their strategic decision. They exited four countries including Morocco, that's why they had to relinquish Lixus.Plus, Anchois was not commercial in 2009 on standalone basis due to lack of infrastructure structure.However, now situation has been changed, there is infrastructure and any gas discovery will be connected to infrastructure via pipeline and gas prices is significantly higher than compare to 2009.

[red rook] 10/1/2022 19:56

... 'more good news for char'

... looks like Namibia may be finally kicking off if Shell has indeed hit oil.
... think Total have also spudded in the adjacent block, and results should be due soon.
... a lot of the big operators have interests in the area
... Char is operator and also holds licences covering two blocks in Namibia.

... anyone got a link to Chariots blocks wrt Shell & Total's ?

[jungmana] 10/1/2022 19:19

Finncap 54p price target, https://www.proactiveinvestors.co.uk/companies/news/970767/chariot-price-target-doubled-on-new-moroccan-discovery-970767.html

[excellance] 10/1/2022 17:01

So Repsol only drilled one of four holes looking for gas in 2014 and gave up the license five years later.

Still don't know why, but gas prices were extremely low at that time, particularly from Algerian producers, so development costs of $240m to $500m were considered prohibitive for development.

How things have changed!

[excellance] 10/1/2022 16:56

The reserves are “high quality dry gas (97% methane, no CO2 or H2S) in excellent quality reservoirs,” Chariot says.

[excellance] 10/1/2022 16:51

10.70p UT at close to artificially boost our share price
I still expect a significant rise in coming days and weeks if I've read this right.

[smithie6] 10/1/2022 16:39

Ah ha.

Very interesting/useful.

[value hound] 10/1/2022 16:31

Re-tipped by Simon Thompson:

Aim-traded African-focused transitional energy group Chariot ( CHAR:10.75p) has announced drilling results which “materially exceed the directors’ expectations” at its flagship Anchois Gas development, offshore Morocco.

The Anchois-2 well has encountered multiple high-quality gas reservoirs with a calculated net gas pay totalling more than 100m, or almost double the level in the original Anchois-1 discovery well. Net gas pay is a key parameter in reservoir evaluation as it identifies penetrated geological sections that have sufficient reservoir quality and interstitial hydrocarbon volume to produce commercial quantities of hydrocarbon.

Analysts at house broker finnCap note that Chariot estimates that the Anchois B sand prospect has a calculated total net gas pay of more than 50m in two stacked reservoirs of similar thickness. The upper reservoir is a continuation of a reservoir drilled in Anchois-1, with the lower reservoir being newly identified. It suggests upside potential to the 247bn cubic feet (bcf) pre-drill 2C contingent recoverable resource estimate in the high-quality reservoir given it has a 3C resource estimate of 375 bcf. To put this into perspective, finnCap’s risked valuation of the combined 361 bcf pre-drill A and B sands 2C resource is US$215m (19p a share), but if the B sands 3C resource is assumed then the brokerage’s valuation rises to US$300m (27p a share).

The news gets even better because the well also explored the deeper C, M and O prospective sands and was successful at all levels, encountering multiple gas-bearing intervals across 250m with no water-bearing reservoirs identified. Pre-drill mid-case prospective resource estimates for these three prospects was 543 bcf. However, fully geologically de-risked, and assuming 50 per cent commercial risking to account for partnering, and finnCap’s pre-drill valuation of US$43m on the C, M and O prospective sands rises to US$322m (29p a share).

So, with development funding interest high, an offtake agreement with an international energy group announced last autumn, and excess gas to be sold into a tight European gas market through the Maghreb gas pipeline, then the latest drilling success significantly enhances the project’s development prospects with first gas pencilled in for 2024.

Although finnCap doubled its risked-NAV estimate to 54p a share, analysts have not included any value for numerous similar material exploration targets on the licence which have an estimated 2.45 tcf of potential resources.

The holding has produced a 255 per cent total return (TR) on my 3p a share break-even point if you have been following my recommendations since I included the shares in my 2017 Bargain Shares Portfolio. The price has also surged from the 8p level after I highlighted the potential for Chariot to hit pay dirt last autumn (‘Bargain Shares: Speculative high return trading opportunity’, 5 Nov 2021). It could double again once investors cotton onto the implications of the latest drilling news. Buy.

[excellance] 10/1/2022 16:28

No mention of sulphur, can we assume there is no meaningful sulphur?

[888icb] 10/1/2022 16:21

Malcy is massively bullish10 Jan 2022 15:59
hxxps://www.malcysblog.com/2022/01/oil-price-chariot-iog-eco-igas-and-finally/

· Anchois-2 well has been safely and efficiently drilled to a total measured depth of 2,512m by the Stena Don drilling rig in 381m of water.

· Comprehensive evaluation of the well has been undertaken through wireline logging, including petrophysical evaluation, subsurface formation testing including reservoir pressures and gas sampling, sidewall cores and well bore seismic profiles.

· Preliminary interpretation of the data confirms the presence of significant gas accumulations in the appraisal and exploration objectives of the Anchois-2 well with a calculated net gas pay totalling more than 100m, compared to 55m in the original Anchois-1 discovery well.

Appraisal Target

Gas Sand B has a calculated total net gas pay of more than 50m in two stacked reservoirs of similar thickness. The upper reservoir is a continuation of a reservoir drilled in the original discovery well, Anchois-1, with the lower reservoir being newly identified.

Exploration Targets

Gas Sands C, M & O were successfully encountered with multiple gas-bearing intervals across a gross interval of 250m measured distance with no water-bearing reservoirs identified, materially exceeding pre-drill expectations.

· Previously discovered Gas Sand A was not targeted in the Anchois-2 well, due to the intention of evaluating it in the subsequent Anchois-1 re-entry operations, however, the Anchois-2 well encountered gas bearing sands at this level providing important additional subsurface data.

· High quality reservoirs were encountered in all gas sands.

· Further analysis will be undertaken to fully understand the positive implications on:

o Gas resources within the expanded Anchois field and the scale of the potential gas development.

o De-risking of numerous additional material exploration prospects within the Lixus licence area with similar seismic attributes to the Anchois discovery now considered to be low risk.

· The well will now be suspended for potential future re-entry and completion as a production well in the development of the field.

· The Stena Don rig will then move to the Anchois-1 gas discovery well to perform re-entry operations with the objectives of assessing the integrity of the previously drilled well, and if successful, providing a future potential production well for the development of the field.
This is an awesome announcement from Chariot and the 45% rise in the shares as I write is just the start, even back of envelope calculations make me realise why I have been so positive about Anchois let alone the rest of the company’s operations.

Success at the B sands is good with the bonus of one new reservoir but it is the outstandingly good news at the C, M and O exploration sands where ‘multiple gas-bearing intervals’ which ‘materially exceeded’ pre-drill expectations. This drilling de-risks so many prospects with these sands equivalent to a multi TCF block even before the upcoming well is drilled.

The next well is planned to re-enter Anchois-1, see if it is good condition and was originally to check on the A sands which werent expected to be tested in this recent well. However the well clipped them which has provided valuable technical information.

There is much to expect from Chariot and it has laid the groundwork for this well and significant and swift development in the future in recent months. The announcement indicates that there is an international bank lined up to lead the debt financing and with gas sales agreements already in place and the partnering process well under way, the way forward is extremely bright.

But that is not quite all of the Chariot story, we know that there is much going on in the pan-African mining and hydrogen parts of the business as well as at Rissana and of course other new ventures promised within Total Eren. This looks like being just the start for Chariot and the share price should increase very substantially from here.

[excellance] 10/1/2022 16:14

I like the "energy transition" angle CHAR have adopted, similar to AFENTRA.

Africa is very keen on gas to help transition to greener fuels than coal or oil.

[ngms27] 10/1/2022 16:02

I agree, farm out 50% for further explo wells and first gas would be a great outcome.

[excellance] 10/1/2022 16:00

That remains to be seen, but an easy solution would be to farm out for a free carry.

Why did Repsol back out?

[edgein] 10/1/2022 16:00

CEO seems quite clear about it:



Regards,
Ed.

[ngms27] 10/1/2022 15:53

$300m they suggested for a two well development and tie back to shore in a prior presentation with payback in less than 2 years.

However given the adjacent prospects we could be at the start of a major Gas hub, far too big for CHAR.

[flyinghorse1] 10/1/2022 15:47

Edge in- Re the water depth- 320m is to deep for a jack up (if feet yes some of the super jack ups).
This means it’s likely a subsea development, but there are reasonable low cost solutions/ trees these days.

FH

[ngms27] 10/1/2022 15:42

excellance, I hope this makes it really clear:




All the sand packages can in with no detected water.

Couldn't have been better.

[mariopeter] 10/1/2022 15:39

"now this successful gas well result, the Anchois project is getting closer" Found this statement almost contradictory to the hype. Maybe reading too much into it.

My gut feel is C M and O sands are difficult but there is a good new layer below B.
Wonder what Repsol are thinking having walked away after 6 years.

[excellance] 10/1/2022 15:02

Thanks for that clarification.

My guess is that many people will be looking at today's news and trying to work out what it means, as only a select few sre already invested, many prefer to wait and reduce risk.

I hope this result turns into a company maker at long last.