Chariot Share Discussion Threads

[hsfinch] 09/12/2023 21:37

BB...you could be right. Its certainly possible that Jock Wallace has been exaggerating how much gas is down there and downplaying the cost of getting it out. And there aint been a JV partner to keep him straight. And remember how much he's trousering. 600 grand in the last accounts. Where else could he pull in that kind of bread. And the same with Julie. If he wasn't pulling in 600 grand with Chariot he'd be working for one them high street accountants doing the books for local plumbers. But on the other hand Energean have spent a long time looking at this. They aint gonna blow 85million on a prospect they dont like. I see the share price flat from here. Dipping a bit if them onshore wells dont excite. And then up or down after the Energean well. get clise to drilling.

[888icb] 08/12/2023 20:16

CHAR are on record saying they would raise finance separately for the other 2 pillars. They have promised updates on the other 2 pillars in the New Year and perhaps they will deal with the financing then. AP said how well they are doing so let’s see if cash is coming in on particularly the renewables as when they started it they said they would provide the first cash flow.

[brazilnut1] 08/12/2023 10:01

Down another 5%. Fkn disgrace. Why does the markets hate this share so much ? ASHKV I realise you are a figures man, likely a good one, but they have little relevance to this company which is run by cheats and liars who wont listen or react to anything if it doesnt line their pockets. It is what it is. We have been fkd again.

[ashkv] 08/12/2023 09:35

Just doing the math in regards to further cash needs for CHAR

Based on H1 2023 Results -> Cash Outflow for the Half Year was approximately USD 9.5 million

At the end of the Half Year CHAR had USD 2.7 million and subsequently raised USD 18 million

Going forward all costs on Anchois until FID will be carried by ENOG

Therefore other than Morocco Drilling (USD 3 million for initial well as updated by management) - cash burn should only be admin costs and other "two pillars"

On deal close CHAR gets a further USD 10 million plus USD 15 million at Final Investment Decision (FID) and another USD 50 million zero interest rate convertible loan on a successful flow test.

CHAR should have around USD 15 million cash at present add another USD 10 million on close of Anchois Farmout for a total of USD 25 million that should suffice CHAR through to FID/Well Flow Results.

Subsequent to Flow Tests/FID CHAR are eligible for FID payment of USD 15million plus USD 50 million zero interest rate loan that will tide them to First Gas.

CHAR need to update the market as to cost controls and financing for other pillars. As the placement route will be limited for them going forward.

Three raises in the past 2 years and 1 month - Raise prior to Anchois 2 drill results are in the money. However, subsequent raises at 18p and 14p are deeply out of the money - I highly doubt that funding will be so forthcoming going forward.

CHAR need to batten down hatches and undertake massive cost cuts or present a plan to finance the other pillars -> spin off, stake sale etc etc

[hsfinch] 08/12/2023 09:23

Main topic of conversation in Chariot's plush offices in Mayfair is size of bonuses that investors will stomach. Julie bleating that he's already put down a deposit on a shag pad on Marbella. Jock complaining that his wife's got her eye on a Ferrari. And AP has promised a mate he'd buy into a gold mine in SA with his bonus. They should be more concerned about the shady spivs who got suckered into the last cash raise and are now sitting on losses.

[brazilnut1] 08/12/2023 09:10

Another 888.

[ashkv] 08/12/2023 09:03

Simon Thompson Investor's Chronicle

Chariot’s transformational farm-out is underrated

The fall in the company’s share price is a harsh reaction to what looks a good farm-out of its flagship gas project

December 7, 2023

Energean acquires stakes in Lixus and Rissana licences

Option to purchase a further 10 per cent interest

Chariot’s share price falls 15 per cent on news

Chariot (CHAR:11.6p), the Africa focused transitional energy group, has announced a farm-out agreement with Energean (ENOG:995p). The transaction covers its Lixus Offshore licence, which holds the company’s flagship Anchois gas development project, and the nearby Rissana offshore licence in Morocco. Energean is a £1.8bn market capitalisation FTSE 250 company that has a proven track record of successfully developing large offshore gas projects.

The agreement provides funding for both Chariot and the Anchois gas project through upfront consideration, deferred consideration and potentially a full carry to first gas. There is potential to upscale the development and target further exploration prospectivity across the two licences, too.

Energean is acquiring 45 per cent and 37.5 per cent interests in the Lixus and Rissana licences, respectively, to take operatorship. It reduces Chariot’s stakes to 30 per cent (Lixus) and 37.5 per cent (Rissana) with Moroccan state company National Office of Hydrocarbons and Mines maintaining a 25 per cent stake in each licence. In return, Chariot will receive $10mn on completion of the transaction; $15mn on Final Investment Decision (FID); and has an $85mn gross carry that covers its Lixus costs up to FID, including the additional Anchois well being drilled, which will have a gas flow test in 2024.

Following completion of the Anchois well, Energean has the right to acquire a further 10 per cent of Chariot's equity in the Lixus licence for an $850mn gross development carry to first gas; $50mn five-year zero coupon convertible loan note with a strike price of 2,000p or by issuing 3mn Energean shares; and 7 per cent royalty payment on Energean's gas production revenues in excess of a base hurdle on the realised gas price (post transportation costs).

Analyst James McCormack at house broker Cavendish values Chariot’s retained 30 per cent interest in the project at $476mn (35p) on an unrisked basis, or $310mn (23p) on a risked basis using a 65 per cent commercial chance of success. Assuming Energean exercises its option to acquire an additional 10 per cent in Lixus, Cavendish values the 20 per cent fully carried interest at $595mn (risked) or $447mn (unrisked), using a higher 75 per cent commercial chance of success (due to the lower financial risk and result of the Energean carry). This implies a valuation of 29p (risked) to 44p (unrisked).

The conclusion:

“ Clearly, the farm-out transaction fell short of the expectations of some investors as Chariot’s share price fell 15 per cent from 13.7p to 11.6p following the announcement. The share price is also below the 14.75p level when I assessed the farm-out possibilities (‘Chariot could soon announce a 'game-changing' deal’, 20 September 2023), albeit the holding has still delivered a 282 per cent gain in my 2017 Bargain Shares Portfolio.

It’s a very harsh reaction. That’s because Cavendish’s total risked valuation per share of 57.7p for the company is not only five times the current share price, but it rises to 71p assuming Energean exercises its option to acquire a further 10 per cent stake. This highlights the value embedded in the Anchois gas project and which Energean has clearly recognised. So, although the initial reaction to the news is disappointing, expect the heavily oversold shares to bounce when the dust settles. Hold.”

[hsfinch] 08/12/2023 06:39

Totally right. Just thinking on my last post - the blame game. The fiasco goes back to the so-called appraisal well they drilled but did not test. Without a test, it put off the 40 interested parties. Without a test, regulator wouldn't sign off the field plan. Without a test, socgen wouldn't progress the finance package. Without a test gas buyers wouldn't sign a gsa. That's down to Jock. He has to be first out.

[hsfinch] 08/12/2023 06:13

Punters waited years for this deal. And when it arrived the share price fell 15%. Time for the 3 pillocks (AP, Julie and Jock) to fall on their swords. Betcha there's a blame game going on as the whole lot of em thrash around looking for a scapegoat. It woz Putin. He hacked our servers and leaked info to Energean to delay first gas.

[brazilnut1] 07/12/2023 16:14

This company is a disaster. Has AP sold up ?