Will Chariot farmout Lixus by 31st December 2019? Little chance of a farmout IMHO. A small discovery which was let go by the previous operator. Very little global farm in activity in the last couple of years. It hasn’t attracted a deal after months (years?) of marketing. Hope I am wrong!
Will Chariot farmout Lixus by 31st December 2019? Hopefully its Near !
Will Chariot farmout Lixus by 31st December 2019? This bulletin board has been very quiet as of late There has been a lot of news to absorb yet the share price is not responding in the right direction. All the recent communication from the comany has focused on Lixus and rightfully so in my opinion as this licence will create the most value for Shareholders but the question that I am interested in is do you think that Chariot will farmout Lixus by 31st December 2019? YES NO 0 voters I feel its very important that the company concludes the farmout process as the uncertainty surrounding the cash balance will cause a lot of further damage to the share price. The cash balance is estimated to be around $10m (£8.1m, or 2.2p a share) at year end, much lower than expected because of a $6.75m cost that the CFO didn’t mention previously. We could see all time lows if there isn’t a successful outcome to partnering discussions soon. However the current weak share price may be a positive for Shareholders as Chariot Mangement have been cornered, they cannot raise funds due to massive dilution and the only way that they can ensure that the future of the company is safe will be through partnering and/or raising funds through external sources. The BODs know that it will be very difficult to raise funds when the share price is so low. I feel like Chariot’s past performance has alienated the BODs and this is the main reason why the share price is so weak but the acquisition of Lixus is potentially a game changer. This is a vital moment for Chariot and I feel like there’s a very good chance that Management will achieve partnering in Lixus soon. Partnering will bring third party validation of the asset/s and should bring with it a higher demand for shares. The bigger question for me is how much of Lixus Chariot will give away and for what. The asset will need a large cash injection and its important to conclude the best deal possible. During an interview a couple of months ago, the CFO confirmed that 100+ oil companies have been approached and the CEO recently reiterated that interest from potential farmin partners is - all this bodes well for a successful conclusion to partnering discussion. To get the best deal we need at least 2 bidders competing against each other. It has been 3.5 years since the company partnered but I feel like there wasn’t much appetite from oil companies to partner on higher risk exploration assets, the CEO did say that the group of potential farm in partners for the exploration assets is much lower than the interested parties to farmin to Lixus. Lixus is a very strong asset and a completely different proposition. What are your throughts?
Chariot’s North African adventure Summary from Simon Thompson’s article: • Success with any of the data rooms should fund what could be transformational drilling programmes and potentially as early as 2020 • A number of third-party wells are expected to be drilled off the coast of Namibia over the course of next year, including one that is adjacent to Chariot’s Central Blocks • Chariot expected to end 2019 with net cash of $10m (£8.1m, or 2.2p a share) • Analysts valuing the company’s exploration portfolio at £151m (40.8p a share) on a risked basis • Successful farmout on any one of Chariot’s prospects has potential to propel the share price northwards • Chariot’s shares rated as a speculative buy
Chariot’s North African adventure The BODs can’t seem to create any excitement but Simon Thompson seems to be having a positive impact on the share price again with a new article.
H1 2019 Results HelpOthersToo, you’ve just beaten me on being a long-termer… I’ve ‘only’ been here since 2012 (just looked at my records and my first purchase was at 29p… ouch!) so I’m used to all the shennanigans and failures of CHAR. But Lixus is a different proposition so, potentially, “this time will be different” (famous last words…!)
H1 2019 Results Affs, I have been here since 2011… The only ‘significant’ thing CHAR has delivered are dry wells. New hype with Morocco yet the SP is around 3.6p… no one believes CHAR can deliver… the proof will be in the pudding!
H1 2019 Results I like what Larry says in this bit: “…with the significant interest received in our data rooms, we are confident about our ability to achieve on our near-term goals in Morocco” I reckon ‘significant’ is more positive than ‘encouraging’ (as used in last week’s RNS) re the farmout discussions so maybe progress is actually being made and the conference call should be worth listening to.
H1 2019 Results Interim Results Investor Call 25 September at 12 noon (BST) Dial in number: +44 (0)330 336 9125 Conference Code: 8736798 chariotoilandgas.com Interim-Financial-Statements-2019_Chariot-Oil-Gas-Limited.pdf 346.67 KB
Malcy on Chariot Malcy's Blog – 18 Sep 19 Malcy's Blog: Oil price, Rockhopper, Chariot, SDX, Europa - And finally... Malcy's Blog: Malcy's reaction to oil sector news as it arises. Oil price, Rockhopper, Chariot, SDX, Europa - And finally... “The acquisition of Lixus is turning out to look better every time it brings something more to the party, this CPR update does just that and more.”
No. 1 broker on Aim finncap with 41p Target price (upside: 1,115%) on Chariot O&G TexDrilla: We would expect a development with these parameters to be highly profitable, generating annual net cash flow of ~$150m at plateau, an unrisked NPV10 to Chariot of $298m (65p/sh or $7.8/boe), and a post-tax project IRR of 22%. We also estimate the project has a gas price break-even of ~$5.5/mcf. A conservative Valuation considering the parameters used are only from the Anchois A&B Sands. According to the latest presentation Chariot is targeting a plateau production of 90 mmcfd (+28.6%) from Phase 1 development for 10 years (A, B & C sands) and extend it to over 20 years following Phase 2 development (Anchois Satellites). Anchois Field.jpg1263x943 509 KB
CEO @ proactive investors (youtube) Still commercially attractive in even the most pessimistic of circumstances… Sounds promising, and still trading at cash only.
CEO @ proactive investors (youtube) The video has a much more positive message than the recent downbeat RNS
CEO @ proactive investors (youtube) twitter.com Chariot Oil & Gas (Chariot_Oil) Chariot Oil & Gas reports more than 2 TCF of gas at Morocco project #char #chariotoil [link] via @YouTube 2:47 AM - 18 Sep 2019
No. 1 broker on Aim finncap with 41p Target price (upside: 1,115%) on Chariot O&G twitter.com Chariot Oil & Gas (Chariot_Oil) Following the release of a CPR on Additional Prospects at the Lixus Licence, offshore Morocco, @finnCap have published a research note reaffirming their price target on the Company of 41p/sh. The note can be found on the finnCap investor portal: [link] 2:12 AM - 18 Sep 2019 Plenty of running room. This 280 bcf increase to Chariot’s net prospective resources does not change our 41p/sh risked-NAV, as we only include the Anchois A, B and C sands, plus the Anchois North prospect in our valuation at this stage. However, it demonstrates the material running room for drilling available on this licence. If we were to include all of the nine additional prospects on the Lixus licence in our valuation, our risked-NAV would increase by $108m or 24p/sh (unrisked 230p/sh). Encouraging farm-out progress. Chariot has a data room open for this licence as it seeks to farm-in a strategic partner to help fund appraisal activity on the Anchois discovery. Management has been encouraged by the feedback so far from this partnering process, which has received interest from a wide range of potential partners, and it is progressing several ‘interesting leads’ as a result. We have adopted the following main assumptions when modelling the development of the discovered Anchois A & B sands: * 2C resources of 307 bcf, in-line with Netherland & Sewell. * Field start-up in 2023. * Plateau production of 70 mmcfd for 10 years from four wells. * Drilling & completion costs per well of $50m. * Total capex, including abandonment, of $673m ($13/boe). * Opex of $23m p.a. ($5.40/boe at plateau). * A long-term gas price of $9/mcf. We would expect a development with these parameters to be highly profitable, generating annual net cash flow of ~$150m at plateau, an unrisked NPV10 to Chariot of $298m (65p/sh or $7.8/boe), and a post-tax project IRR of 22%. We also estimate the project has a gas price break-even of ~$5.5/mcf.