Deepwater transactions growing offshore-mag.com Overall farm-ins down, but deepwater transactions growing Conventional exploration farm-in/farm-out activity has fallen by around two-thirds from 2012 to 2017 according to Westwood Global Energy Group, matching the reduction in overall drilling activity. “Higher oil prices, cheaper deal terms, improved success rates and recent large farm-in discoveries are all positives for supporting a recovery in activity in the exploration farm-out sector, the analyst concluded. But with farm-ins taking on average ~330 days between an opportunity coming to market and a deal being completed, and then a further ~250 days before an exploration well is drilled, the quality of today’s opportunities will not be fully apparent for at least two more years.” However if one has secured a rig on favourable rates, targeting to drill a near term high quality low risk prospect, ready to farm out to non-operators then farm-ins/outs can take much less time to be completed. But from the Farm-in Company’s perspective it should be completed a few months or at least few weeks ahead of drilling to satisfy its shareholders needs of having an pre drill impact on shareprice… I remain confident of Chariot striking a deal or two in the very near term - ~100 days until Spud of prospect “S” 459mmbbls with >2bnbbl upside potential and a Chance of Success as high as 29%. GLA
Pre-Drill Catalyst We’ll be drilling in November 2018 - now is the time to partner and generate some significant Cash to advance our exploration programme… Chariot programme.png905x317 110 KB …we currently own 100% of our license in Brazil, 75% of our license in Morocco and 65% of our license in Namibia - partnering process underway, for comparison PCL sold 10% of its Namibian license for US$7.7 Million, in 2013 we farmed out 35% of our license in Mauritania for US$26 million - any farmout deal should have a great impact on Shareprice Pre-Drilling in November… GLA!
23.80p Yes. The current—new— website is horrible. No focus groups used to test. Just a mid-level software guys idea in action.
23.80p I’m confident we’ll strike at least one deal, maybe already in the very near term - which is why I topped up earlier than planned. Should achieve ~US$5 million for every 10% imo (taking PCL/AEC deal as a reference).
23.80p To TD and TM from TP Always good to balance enthusiasm with realism. Been here a long time, with a low average, happy to hang on now till the drill bit turns for whatever percentage to CHAR. 100%, 50% or any other figure we end up with, partner or no partner. After so long waiting someone has to get the tea leaf reading right and drill in the right place. TP
23.80p laughing is good for your health… Anyway I am looking forward and see the positives outweigh the negatives by far! Have tripled my holdings here and am ready to ride the wave GLA
23.80p “don’t need an operator to farm-in anymore - another positive” Maybe an idea to have a quick look at how this positive was achieved and what its side effects were? Raising funds by increasing the number of shares - see TP’s post. So on balance was the positive effect you see negated by the negative one? Raising the funds at 13p a share when the current price was significantly higher. The share ended up at circa 12p a share prior to drilling RD-1, somewhat lower than that anticipated by those who were hoping for a wave of anticipation before that drill. So was that negative effect on those hopes balanced out by the positive one you see? I hope you were having a laugh!
23.80p don’t need an operator to farm-in anymore - another positive! We have a high quality low risk prospect and every reason to ask for favourable terms. AEC, a non-operator, paid US$7.7 million for a 10% free carry on Tullow’s drill targeting 124mmbbls with 15% chance of success, valueing the block @ ~US$42 million to US$52 million. Prospect S has a resource estimate of 459mmbbl with a 29% chance of success… by the way - AEC has raised US$45 million in April this year, our partnering process is underway…
23.80p summer break? think there’s always less traffic over the summer months, but I expect higher volume from Investors wanting to ride the anticipation wave…
23.80p 27.6% more shares in issue… but 57.4% lower Market Cap… despite 100% more Cash 289% bigger prospect to be drilled (net) 98% higher success case valuation 500% higher multi bagger potential …can we beat 2018 high of 23.80p?
23.80p TP, not only more shares in issue since that day, we now know we had a duster and no operator wanted to join us on our terms for Prospect S. Nothing more to discuss IMO until we get an update form the Company on one or more key issues.
23.80p This board is so quiet now…has everyone been put off by the changes to the ii website
23.80p But on the downside we have more shares in issue! TP
23.80p Chariot O&G 23.80p.png758x397 4.49 KB Can we beat 2018 high of 23.80p? After all we have double as much Cash and are targeting to drill a Prospect with much greater Net Prospective Resources and Chance of Success… Chariot 1H18 vs 2H18.png747x309 7.08 KB GLA
Cost Pools showing Cash generating potential? brazil-banner-1.jpg2000x649 196 KB As at 31 December 2017 the net book values of the cost pools are: Namibia US$50.5 million Morocco US$7.8 million Brazil US$14.5 million Remember Cairn paying US$26m for 35% in Mauritania? A year earlier Chariot paid more or less the same amount on acquiring 3,500km² of 3D seismic, US$7,429 per km². A few years later Chariot took full advantage of historic low acquisition costs paying only US$2,500 per km² for 2,600km² of 3d seismic in Namibia - since then costs to acquire 3d offshore Namibia have increased back to US$6,500 per km². We own 6,100km² of 3D seismic in Namibia, worth US$39 million (@ current acquisition rates) and have unlocked prospect “S”, a 29% Chance of Success prospect with 459mmbbls of pmean prospective resources and a massive 2.2bnbbls of upside potential - Drilling scheduled for 4Q18. Partnering process underway… GLA