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

Chariot – Wheepo’s opinon on iii

Posted by Wheep0 on III

I’ve been asking around. I have a few contacts….

Chariot are/ have been playing hard ball it seems, Data rooms are attracting quality customers, customers are liking what they see, (Or at least see massive potential, albeit with the normal industry risk) however it seems potential farm in T’s and C’s being mooted / offered are not to Chariots liking in their view of maximising shareholder value. I know this is a joke just now compared to the carnage that shareholders have seen in the last few years…

This coupled to Larry Bottomley almost going into an aneurysm at the interim when he vehemently defended Chariots stance on low ball offers or partners trying to changes T’s and C’s ( Azilat) on them after signing, makes a lot of sense to me. They wont enter low ball and if they need to shut down and hibernate ( which we have seen) until the market improves.. they will..and are. !We have in my view a stalemate / impasse/ mexican stand off , what ever you wish to call it..

I am convinced ( 100%) that we have had indicative proposals ( farminee bias) put to us for farm ins over the last year, I am also pretty sure we have knocked them back due to the bias on the farminees Ts and Cs due to the sector weakness.This is like an acutely weak housing market, Sellers reluctant to wake up and take on board if they want to move their property they will need to discount it, compared to what it was worth a few years ago..stubbornness plays a key part, or in fact if funds are not needed ( and we dont need funds) then holding out for better terms is the right thing to do..
If however they want to hold out and wait for market improvement, they will of course get a better price, however it may take a while….I can look at this and totally see the pros and cons involved here.

Chariot have gone into stonewall lock down, I am sure they have set their stand out and will not farm out for detrimental conditions , even in this weak climate…The flip side to this, is…. I have been reliably informed there have been many quality mid and majors in the data rooms with most of them liking what they see….

As Oil price increases with demand and capex slashing into16-17 >>>, which it will, ( anyone who thinks this is the new long term norm, really should not be invested in the sector, we are approaching the cyclical stage 1 of a new oil cycle now, stage 5- capex capitulation/ cut backs, redundancies, shut downs, insolvencies, is just ending) IMO only….. the scramble will return to scoop up quality drill ready prospects… T’s and C’s will improve , slightly at the start, but as soon as a market is created, there will be a clamour…Any junior sitting on quality drill ready , multi target, deep water assets is going to be very much in demand…..

Coupled to all of this however, is the very critical lack of IR/ PR and the fact that if this is what they are actually doing with out a risk off portfolio addition ( which funds were raised for in 14) which would see the company ticking over then the following should be done ASAP IMO..The above IR/PR lack of updates is inexcusable…..This is the focus that every Shareholder should be sending rockets to the company over…

1- Scaled back share buy back circa £ 2,000,000 get the SP back into the teens and support it there… Could be done so easily.. why is not happening… who benefits from not doing this ?

2 -Further reduction in G & A including remuneration for all across the board, cut them again, from the tea lady to Larry Bottomley… Bottomley should be set to a further cut of 50 % of what he is on plus 50 pence share options.

3- Extensive IR /PR overview release to investors on where the company is at, why it is not lowering its terms for farm outs and the perceived benefits this will bring to shareholders when the sector improves …EGM for 2016, Yes… I want the company to adopt a full investor and shareholder charter so this utter contempt shown of keeping investors completely in the dark ends..

I think the Chariot investors group if resurrected would be sitting at around 4% of company, not much more needed to call for an EGM folks…..
Natalia Erikssen, on your bike as well….. you bring nothing to the table. My daughter in her second year journalism course could offer more than you.