Billion Barrel Play Openers CHAR… XXXX It did not on reflection a good slice two weeks on . Showing 11% up spread 18% waste of time looking at it.
Morocco Tendrara Gas Sales Agreement Sound Energy receives gas sales proposal from Morocco’s state power firm Proactiveinvestors UK Sound Energy receives gas sales proposal from Morocco’s state power firm Sound Energy PLC (LON:SOU) - The offer envisages a variable price linked to Brent plus a fixed element to cover gas transportation costs. The offer envisages a variable price linked to Brent plus a fixed element to cover gas transportation costs. Sound provided an example, based on current Brent pricing at US$70-75 per barrel, which would see it receive between US$8.50 and US$9 per million British thermal units. It also assumed the pipeline fee to be US$1 per mln BTU. [link]
Exxon Acquires Northern Licences in Namibia “given that a new licence would entail significant additional investment both in capital and time, management considered it too high risk to justify further near term exploration expenditure. Whilst Chariot considers the acreage to remain prospective, this decision was made in line with the Company’s focus on portfolio management and capital discipline.” (Oct 14) I wonder how much that additional investment would have amounted to? I suppose it would have been a fraction of the ~US$80m we’ve spent to drill Tapir South! Annoying, but anyway, it’s all water under the bridge now. I see much more shareprice upside potential coming from the development of our 70mmboe Anchois discovery than we would get from acquiring those Exxon Blocks in Namibia. Looking forward to the release of Anchois CPR in May & Anchois development feasibility study in June.
Exxon Acquires Northern Licences in Namibia Chariot previously owned the Northern Blocks 1811A&B that covered an area of 5,481km² and are located to the north of the Walvis Ridge in the Namibe Basin. They drilled a unsuccessful well in 2012, gained an approval to move to Second Renewal Phase on 31st October 2012 but on 23rd October 2014 opted not to apply for a new exploration licence for the blocks.
Exxon Acquires Northern Licences in Namibia [link] ExxonMobil acquires more exploration acreage offshore Namibia IRVING, Texas – ExxonMobil said today it will increase its exploration acreage in Namibia with the addition of approximately 7 million net acres (28,000 square kilometers) following the signing of an agreement with the government of Namibia and the National Petroleum Corporation of Namibia (NAMCOR) for blocks 1710 and 1810, and farm-in agreements with NAMCOR for blocks 1711 and 1811A. Adds approximately 7 million net acres in four additional deepwater blocks Enhances footprint in frontier acreage Exploration activities to commence in 2019 The blocks extend from the shoreline to about 135 miles (215 kilometers) offshore Namibia in water depths up to 13,000 feet (4,000 meters). ExxonMobil plans to begin exploration activities in 2019, including acquisition of seismic data and analysis. “These agreements provide ExxonMobil with an opportunity to explore for hydrocarbons using advanced technology in the frontier Namibe basin,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil. “We will employ our significant upstream experience and technological expertise and work in close collaboration with NAMCOR in exploring these blocks.” ExxonMobil will operate blocks 1710 and 1810 and hold a 90 percent interest; NAMCOR will hold a 10 percent interest. ExxonMobil will assign 5 percent of its interest to a local Namibian company. ExxonMobil will be operator of blocks 1711 and 1811A, and will hold an 85 percent interest. NAMCOR will retain a 15 percent interest. ExxonMobil also holds a 40 percent interest in the PEL 82 license offshore Namibia, comprising about 2.8 million gross acres (11,500 square kilometers).
Billion Barrel Play Openers CHAR… XXXXXX Sliced that last top for 4.5 today. Hope it continues above my other buys.
Chariot’s North African adventure Good to see volume returning with a decent rise in SP. Simon T has a decent following and as you say, will have certainly contributed to what we saw today. I’m hoping it won’t be long before the penny drops for some bigger fish to turn up.
Chariot’s North African adventure Also worth mentioning: Estimated drilling & completion costs per well of US$50m, which seems to high to me considering we’ve drilled deepwater prospect S for US$16m. State oil company and 25% partner ONHYM is carried through the exploration and appraisal phase, but will have to pay its share of development costs. Plateau production of 70mmcfd for 10 years from 4 wells @ US$9/mcf amounts to US$2.3bn.
Chariot’s North African adventure investorschronicle.co.uk – 17 Apr 19 Chariot’s North African adventure The Aim-traded minnow has been awarded a new licence offshore Morocco and one that could lead to news flow to narrow the deep share price discount to risked net asset value I think some of today’s volume and rise can be attributed to Simon Thompson’s new article released in the Investors Chronicle. He says that no value has been attributed to Chariot’s licenses, he rates it a speculative buy. Confirms that finnCap has a risked net asset value (NAV) per share of 19.6p for the Anchois discovery. Jonathan Wright from finnCap estimates total capital expenditure, including abandonment, of $673m (£518m) on the project. Mr Wright estimates that Anchois has an operating break-even of $5.5/mcf, so well below typical Morrocan gas prices of $9 to $10.5/mcf. Morocco is the largest energy importer in North Africa, importing around 90 per cent of its energy needs and at a cost of $6.6bn in 2018 ST says that Chariot will need a heavyweight partner to fund the project to the next level. He says Chariot has attracted major partners before and has the potential to do it again given that the project offers potential partners attractive tax incentives FinnCap’s time line for news flow on Anchois is as follows: Release of the Component Person’s Report (CPR) in May Development feasibility study in June Moroccan gas marketing study over the summer Lixus seismic reprocessing at the end of the year Potential partnering discussions in late 2019/early 2020 with a view to a field start up in 2023.
Youtube: Chariot O&G CFO Julian Maurice-Williams (04/17/2019) …sorry already posted by PM Chariot Oil & Gas expands Morocco footprint with new Lixus licence Market Discussions
Youtube: Chariot O&G CFO Julian Maurice-Williams talks Proactive London's Andrew Scott through their 2018 results as well as their new asset acquisition offshore Morocco
Courtesy of BigBiteNow Also, in my opinion there is little value in proclaiming what the CHAR cash balance will be at Christmas 2019 because the actions planned over the next few months are the true catalyst here. By Christmas 2019 the Lixus license will be much further advanced and with it highly likely the SP. There is no drill commitment currently planned for 2019 and the company has clearly stated that it will be partner driven. I have found enough documented evidence to demonstrate that the Lixus discovery is viable and highly profitable at current Morrocan gas prices. Morroco still imports the vast majority of its gas and is driving these sorts of developments to help alleviate that. So there is going to be great interest in a new phase 1 90MMscf/d gas supply. So the demand will be there. Therefore, it is going to find interest and likely quite a lot of it. Everything therefore points to a partner being found and the drill happening at reduced costs to CHAR. Therefore, if they do raise it will be for a material reason (likely the appraisal drill but as I demonstrated on Friday, this cost should be around $15m and so is well within the cash levels of CHAR, if they farm out a percentage of the sdrill, which they have said they will). Said drill will highly likely also come at a much higher SP, because it will be post CPRs, post feasability study, post market study, and post partner sign up. All of which have the ability to drive the SP and all of which to date, are likely to prove positive and support the de-risking of this project and! the current SP is still only at cash levels. Trust issues and pereceived previous poor management performance aside, Lixus is a lot bigger than simply re-rating the SP to current cash levels, end of. So its a strong buy for me based on my research. But always always DYOR
Courtesy of BigBiteNow @MrJinx It is interesting that out of all of that information you decided to focus in on my example of a means to realise the development. It was the least factually based part of the entire post. The reality is this is all about fair value and the potential for realising a development at Lixus. How on earth do investors in a company that to now has gone after ‘giant’ oil plays, expect said small company to achieve this by retaining the majority of the ownership, and to do it without substantial dilution. The best way they can do this is to find a partner who is willing to drive the project and the majority of the costs involved. To do that with a wildcat requires a great deal more of the potential prize, and that is all it is when nothing has been drilled yet, to be given up to make it worth the partner’s while. With Lixus CHAR have effectively been given 75% an oil discovery that is better than the one that CORO have bought 15% of for nearly $5m in shares and cash, which means they have a far better bargaining position. The work currently being conducted on the CPRs, the feasability study, and the Morrocan gas market, will futher de-risk the play and enhance the bargaining position that the company holds. I have clearly demonstrated in my posts from Friday and yesterday that there is a great deal of profitability to be had from this discovery, which should improved greatly as the above plans etc are released. Whether that means that CHAR agree a free carry, or that they retain a greater percentage of the development wasn’t the key message for me. What the CORO figures clearly show is that even with a limited retained interest, CHAR has an asset that demands an NPV of several multiples of what we are currently seeing, and as these plans are released we should start to see some of that value in the SP. I am very much aware of the past dilution of lack of trust that LTHs have in the management team, but this management team never had a +300BCF dikscovery off the coast of Morroco before, a market that right now would deliver substantial netbacks. It remains to be seen what they do with it but at the very least their position is far stronger and so the percentages are very much in their favour, and at 4p a share and still just current cash levels, there is not enough value in the MC for what has been achieved, what will happen in the next few months, and hoe strong an asset the Lixus license is.
Chariot Oil & Gas expands Morocco footprint with new Lixus licence
Courtesy of BigBiteNow Yes, quite surprising especially with Malcy singing from the rooftops.