Chariot Share Discussion Threads

[888icb] 11/1/2022 12:26

The slight dip in the price has started to pull in some decent sized buys as the volume reaches 28 million and buys still apparently exceeding sells 2/1.

[sev22] 11/1/2022 12:16

(free access after registration)

[rabito79] 11/1/2022 12:06

Does anyone have a link to the Broker note?

[jfreshfield] 11/1/2022 12:02

The broker note from Finncap mentions the potential here for Anchois and the licence providing 50pc of Morocco's gas needs.

[smithie6] 11/1/2022 11:59

"Morocco produces small volumes of oil and natural gas from the Essaouira Basin and small amounts of natural gas from the Gharb Basin. Consequently, Morocco is the largest energy importer in northern Africa."

From Wiki.
----
There are 2 nat. gas pipelines from Africa to Spain, carrying Algerian gas. Algeria to Almeria, Spain & Morocco to Cadiz area of Spain (Algerian gas).

"Following the breakup of diplomatic relations between Algeria and Morocco in August 2021, Algeria decided not to renew the 25-year MGE operation contract, which expired at midnight on 31 October 2021, opting instead to supply Spain through the Medgaz pipeline.[8][9]"

So Morocco currently has gas supply problems since Algeria is not selling it gas. LNG facilities ? LNG shipping supplies are difficult to get at the moment I think.
So, Govt of Morocco (equals their king, dictator with puppet Govt. that does what he tells them !) will , surely be super flexible to agree all deals to move gas production along quickly.....& I think they own 25% so that gives more incentive.

[smithie6] 11/1/2022 11:39

Jungmana
wrote

"This huge gas field is on Europe's doorsteps and no wonder funding for development is not an issue"

I am sure that there are 2 existing gas pipelines to Europe in this general region of Africa. From Algeria to Spain. Spain imports >97% of the gas it uses. (for residential & business use, & for powering gas fired electricity generators which power a % of the electricity demand.
A lot of Spain is cold in the winter so a good amount of gas is used for heating. And in the summer some is used for residential hot water heating.

Spain also gets gas as LNG by ship, which I guess is more expensive than via a pipe from a source.

But Morocco might want this gas for its own use since so far it does not have its own gas, I believe.

[edgein] 11/1/2022 11:14

Look at their presentation, they have a long list of what next in their time line, looks like hydrogen project partnership and acquisition of gas production is next. the recent placing was for Anchois drilling and alt power. It seems there is a possibility that current drill operations may come in under time and budget as up to 40 days takes us to around 25th, can't see it taking 2 weeks to reenter and test A-1.

Regards,
Ed.

[thejaba] 11/1/2022 11:13

excellance

i dont think youve understood the strategy or seen the interview, bank funding and partners are chomping at the bit

[jungmana] 11/1/2022 11:13

"With the recently announced key terms of gas offtake with a prominent international energy group, interest from two highly regarded institutional lenders to provide debt finance, an ongoing collaboration with a leading constructor of offshore gas projects and now this successful gas well result, the Anchois project is getting closer to helping provide a clean transitional fuel to support Morocco's industrial and economic growth."

[ngms27] 11/1/2022 11:13

Excellance. They aren't drilling deeper at all. Just exposing the A sands to test.

The next move will be to farmout the licence, as they cannot drill further targets without massive dilution.

I seriously doubt Anchois will be developed without a test of adjacent prospects as it likely could be a major gas hub / development project for a bigger fish.

[jungmana] 11/1/2022 11:11

They already have 2 institutions ready to fund development of the field and have also signed up gas offtake with a major European Energy supplier .Do some reading. The plan has always been to drill these 2 wells and then move to development phase .This huge gas field is on Europe's doorsteps and no wonder funding for development is not an issue

[excellance] 11/1/2022 11:03

The rig is going back to hole 1 to retest, and maybe drill deeper?

But what next?

Will CHAR drill another round of 6 holes or go straight into development?

Either way they'll need more cash!

[edgein] 11/1/2022 11:03

Yeah if you were Shell or Total and had an unlimited budget drill as deep as you like. Even back then CHAR was valued at £300-500m but didn't have an unlimited budget. The deeper they do the higher the budget the more risk of technical difficulties.

Well that's debatable too, I think Repsol drilled to exactly the right depth and luckily they found gas rather than oil. If Anchois had been oil it would potentially still been a Repsol asset. But with the European gas market at a tipping point, Morocco in severe need of energy supplies its the right time at the right place for CHAR. No wonder two banks interested in funding.

Regards,
Ed.

[jungmana] 11/1/2022 10:58

Still going through the churn of 7p placing shares. Volume is big which will help clear the overhang soon imo. After yesterday's transformational news, this is a no brainer at GBP 90m market cap

[excellance] 11/1/2022 10:56

I agree.

Interesting you say the previous Namibia well may not have been deep enough, but same can be said of Repsol in Morocco.

Wouldn't you think that since all the hard work was done raising the cash and getting a rig on site that they'd drill fully and not merely scratch the surface, at least in one hole, to fully understand the geology?

[brazilnut1] 11/1/2022 10:54

So when is all this bluster going to turn into a real hike in the SP, because it hasnt yet. Too much ramping again. 30p ?, lets have it.

[edgein] 11/1/2022 10:45

Excellance,

Until now CHAR was largely uninvestable, its was pure Namibia exploration and didn't find commercial hc's from the multiple wells they drilled. Ultra high risk and a pure gamble. I entered here on the day the 5.5p placing and open offer was announced as it was cheap and was about to drill their best prospect to date (the Anchois appraisal). That was moderate to low risk. I was hoping the A,b, perhaps C and O sands would come in, didn't expect a fully house or over twice the previous net pay. Well came in way beyond my top level of expectations. Gas column in terms of pay for A, B, C, M and O sands between A-1 and A-2 circa 400ft. Great stuff as the Anchois structure is over a large area and is adjoined by Anchois North. Also updip is now clear of the gas water contact. More significant is that Anchois and all of the other targets have a similar seismic signature so the likelihood that Anchois is alone on this and the surrounding licences is low. This is a company transformational well to CHAR, certainly by far the most significant well in its history.

From the annual report:

"Whilst fully written down, Chariot has retained its interest in Namibia and Brazil
with no work commitments going forward and will continue to host data-rooms for
marketing of both assets"

These are now non-core legacy assets and already written off. They may be written back on though if both Shell and Total hit large oil in their current wells. Already reports that Shell has hit oil in the Upper Cretaceous. CHAR's previous wells were perhaps just not deep enough. Namibia could once again become a hot area very quickly but the company's focus is very rightly on Moroccan gas and alt power.

Regards,
Ed.

[excellance] 11/1/2022 10:32

Isn't yesterday's news the most significant well CHAR have ever drilled?

I can't recall them having any success anywhere else ever with a drill, and now they are moving towards green energy so the focus is less on oil and gas.

Do they still hold oil assets or are they disposing of them?

[ant15] 11/1/2022 09:53

Jfreshfield, SPOT ON !!

[888icb] 11/1/2022 09:51

CHAR’s market cap is now £85 million and following the deriding as a result of yesterday’s RNS one would imagine that Institutional Investors will start to show strong interest in a stake in CHAR.

[888icb] 11/1/2022 09:32

Don’t wait to long now Up 4.2% at 11.15 on volume of 17.5 million with buys exceeding sells 2/1.

[pally12] 11/1/2022 09:27

Hope they keep price low so I can get some more

[jungmana] 11/1/2022 09:17

I believe more institutions joining us this morning after digesting the reports. This buying is not pi's alone