Ferrum Crescent – In Summary …Assets speak louder than words…

Having recent successes with ANGS and TLOU both of which have now bagged,  a recovery play that has really caught my attention is Ferrum Crescent. This share has been battered in the past and I could hear shareholder towels being thrown in – not a great place to be. However those that have stayed the course might be in for a surprise. Now with a change of management strategy, and on-boarding of an experienced exec director in the form of Myles Campion, and a recent placing in which Colin Board (of Galileo resources, Xtract Resources, Jupiter Platinum etc fame) managed to get 12% of the company I am of the opinion that it has turned the corner. I have worked with several companies over the years on their strategy and it makes sense to me to onboard an experienced shareholder unlikely to get emotional and sell on a whim. Not all shareholders will be happy but for the record – I am :-). The Toral asset is going to be great IMO

As usual I am accumulating large volumes on a very small number of companies  – as I always do – and Ferrum is one of them.

If there is one video to watch I would recommend this one …

Rather than reinvent the wheel I also saw this posted on III by Dickie3times (great name :-))  – and it’s a neat summary

Ferrum Crescent Limited tells Proactive they’ve now completed a program of six holes at the Toral project in Spain – all of them returning visually identified lead-zinc intersections.

Results as good as hoped “Every hole gave us visual confirmation on lead-zinc intersection and it doesn’t really get any better than that,”

“We will use that and the historical drilling results to see what’s going on at Toral.”

Plans to drill a further three holes have been shelved after new geologist Myles Campion [and now Executive Director – i.e board member] assessed that it has enough information already, with the next phase of the exploration possibly to be to assay some of the historic core.

Historical drilling
“There has been a large amount of historical drilling conducted at Toral which returned significant lead-zinc intersections, and we are now enhancing our understanding of the structure and definition of the deposit in a cost-effective manner”.

“While the assays from the latest drill campaign are submitted and returned over the next six weeks, the company has sufficient information in the meantime to progress with designing the next stages of further exploration at Toral and to examine economic comparators for a potential future lead-zinc mining operation”. “A key focus for our geological team is to assess the possibility of defining overlapping planes of lead-zinc mineralisation concentrated within the project area. I look forward to providing further updates on our progress in due course.”

Visble intercepts
House broker Beaufort Securities noted that Toral currently has a combined (indicated and inferred) resource of 8.7Mt (million tonnes) with a weighted average grade of 10.7% (lead and zinc).

Intercepts of visible mineralisation from all six drill holes within 200 metres from surface suggest the group’s hypothesis of known mineralisation at depth linked to shallow mineralised features is correct.

Chariot and the Chartists

Posted by Oiltap on III

There are several individuals on the Chariot BB’s who ‘claim’ to be Chartists. I prefer to ignore the charts on low volumes. However this may be of use …

Interesting link for chartists http://www.proactiveinvestors.co.uk/companies/news/168159/is-this-oiler-ready-to-gush-higher-our-chart-man-thinks-so-168159.html

Namibia – Pancontinental and Tullow

Posted by Jimmy on iii

Pancontinental published their annual report yesterday and on page 6 they state that under the terms of the TullowFarm in Tullow arerequired to drill a well by 31 march 2017.

The geology is very similar to that identified by chariot to the south of the wing at oil discovery.

Jimmy

Drilling Costs

Posted by Jimmy on iii

A key factor in farming out a prospect is great geology and huge potential which chariot has in all its areas of interest. But to avoid shareholder dilution these prospects need to be farmed out. The fall in the oil price and the reduction in drilling has dramatically reduced the cost of offshore deep water drilling.  A company called hyperdynamics has just secured a high performance deep water rig at a cost of $225,000 per day.

See:  http://www.energy-pedia.com/news/guinea-republic/hyperdynamics-signs-letter-of-award-with-pacific-drilling-for-168988

Assuming 50 days on location and say another $125.000 per day for consumables and services gives a very rough cost of $17.5 million to drill a giant prospect add say another $10 million it’s still really cheap compared to $100 million cost at the height of the oil prices.

This should make farm outs in Namibia a lot easier and indicates how giant oil discoveries in deep water can still be very economic.

Jimmy

Chariot – 3d Investment to date $115.5m

A useful summary posted by TexDrilla on III

Assets to raise cash and/ or carried wells from via farm outs:

3D seismic investment to date:

Morocco Rabat Deep: 1,075km² & Mohamedia: 375km² ~US$11 million (2014)
Mauritania C-19: 3,500km² ~US$26 million (2013)
Namibia Central Blocks: 6,100km² ~US$41 million (2012 & 2016)
Namibia Southern Blocks 3,000km² ~US$30 million (2009)
Brazil Barreirinhas Basin: 800km² ~US$7.5 million (2016)
Total 14,850km²: ~US$115.5 million

Cash and/or Carry (3D only) received from farmouts to date:

Morocco Rabat Deep: ENI 40%: so far undisclosed sum of cash & carried well (2016)
Morocco Rabat Deep: Woodside 25% ~US$13 million (2014)
Mauritania C-19: Cairn 35%: ~US$26 million (2013)
Namibia Central Blocks: Azinam 10%: ~US$12.5 million (2011)
Namibia Southern Blocks: PetroBras 50%: ~US$15 million (2009)
Total US$66.5 million

Interest left to generate Cash & Carry from:

Morocco Rabat: 50% (farmed out 40% to ENI, awaiting approvals)
Morocco Mohamedia: 75%
Mauritania C-19: 55%
Namibia Central Blocks: 65%
Namibia Southern Blocks: 85%
Brazil Blocks: 100%

Stockopedia Post – Mentions Chariot in the thread…

Posted on Stockopedia by Squaremilejunky

Thanks Gus. You are right on David Newlands. There are other companies as well that they take >3% interests in.

Re ‘may well pony up on some of the other prospect fields’. Its an interesting one for sure and I have wondered in the past if Woodside (the other Morocco partner) would farm in to Chariot in Mauritania (Woodside pulled out of Mauritania way back in the day – but are now set on coming back to the Atlantic margin). The previous chairman of Chariot now works for Woodside.

There are several companies in the other data rooms – Mauritania, Namibia and Brazil at the moment. I am sure the market were thinking Mauritania (because of the Mauritania/Senegal successes of late with Cairn/Far/Conoco in Senegal, and Kosmos in Mauritania) would be farmed out next. It makes it even more interesting now as to when not if on Mauritania. Larry and the technical team have proved again that they know how to get acreage, do the IP work, and farm it out. I bet Larry feels he now has more leverage on Mauritania because a) he can bide his time to an extent, and b) he has just landed a carry in Morocco.

There is an interesting video on the Chariot website that is well worth a watch : http://bc.video.brrmedia.com/services/player/bcpid4810178583001?bckey=AQ~~,AAAAsC7blrk~,X9VcU7f9F9_4FmMCSoAuKLBleJjYrC_D

Chariot – Longer Term

Posted by Wheep0 on iii
By the time the masses fully realize the re-rate is here, things will be very different with the SP. Long term holders who have felt the pain, should be simply asking themselves…
What is my exit strategy, should I be adding in to it…This will move very quickly when it does… by that time 1 penny rises could be realising thousands /10s of thousands of gains for the very few who are adding sizeable positions down here.

Chariot – GMP Summary

posted by riteastafrica on LSE re the pre-close operational update

17 December 2015
Chariot Oil & Gas
(CHAR LN, last price 5.2p/sh, market cap US$20m)

SUBJECT: Chariot continues to have a good balance sheet relative to its small-cap peers with $39m cash and no debt vs its market cap of $20m. Chariot is currently trading at a 50% discount to its current cash position and even after adjusting for $20m spending in 2016 on our estimates, Chariot’s market cap is currently equal to its expected 2016-end cash position. Chariot has dataroom open across its exploration portfolio and is looking for partners in return for drilling carry.

OUR VIEW: Chariot’s 2015-end cash position of $39m is higher than our estimates mainly due to management’s focus on reducing corporate and G&G costs. Chariot has a good balance sheet relative to its small-cap peers. Chariot continues to look for new venture opportunities and we believe the low oil price environment could provide Chariot with attractive and material opportunities. Chariot is looking for partners across its exploration portfolio, including Mauritania and Morocco in order to move ahead to the drilling phase. We remain confident in Chariot’s ability to deliver on its strategy of taking operated positions in frontier exploration areas and then partnering with companies in return for past costs and drilling carries. Chariot has successfully farmed out its exploration acreage previously and brought Cairn Energy into Mauritania, Woodside into Morocco and AziNam in Namibia.

DETAILS:

• Morocco: Chariot currently has dataroom open for its Rabat Deep licence (Chariot 50%, partnered with Woodside). Based on the 3D seismic shot last year, Chariot has identified a material four-way dip faulted Jurassic carbonate prospect, JP-1, with Pmean resource estimate of 768mmbbl gross. Chariot and its partners have got a nine-month extension on the current exploration period to complete analysis of the recent seabed coring programme. In the Mohammedia Reconnaissance Licence (Chariot 75%), Chariot has applied for converting the licence into an Exploration Permit. Also in Morocco, Chariot has decided to not enter into the next exploration period in the Loukos Exporation Permit (Chariot 75%) in order to focus on its Rabat Deep and Mohammedia licences.
• Brazil: Chariot has a 100% interest in four blocks in the Barreirinhas Basin offshore Brazil. Chariot has now secured Environmental Impact Assessment approval by the Brazilian authority Ibama and it plans to shoot 768sqkm of 3D seismic in Q1 2016.
• Mauritania: Chariot has an operated 55% interest in Block C-19 and its partners are Cairn (35%) and SMH (10%). Chariot has a dataroom open and plans to farm-out its interest in block C-19 in return for well carry. Chariot has mapped four prospects based on 3D seismic and this was affirmed by NSAI, an independent resource auditor, earlier in May this year. The four prospects are estimated to hold between 431mmbbl to 588mmbbl. In term