Morocco – Sound Energy

A fantastic 2016 for Sound Energy as the graph below shows. Zippo action with no doubt some keen accumulation by the silent savvy during this phase.  whilst the bulletin boards had their usual toll of de-ramping  ‘I told  you so’s ;-).  He who laughs last and all that .. and then kaboom! Congratulations to all the shareholders who held on for the Tendrara 7 success. No doubt there is more oil exploration success to come in Morocco.


 

At the point of drilling you could have got them for around 30p, and if you had been accumulating you could have got them for 12-16p. A  nice multi bagger for sure.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

And courtesy of guerrilla investing

 

 

Morocco – Pura Vida

MAZAGAN PERMIT, OFFSHORE MOROCCO (PURA VIDA 23%, SUBSIDIARY OF FREEPORT-MCMORAN OIL & GAS LLC OPERATOR)
On 12 September 2016, the Company announced that it had entered into a conditional settlement with a subsidiary of Freeport-McMoRan Oil & Gas, PXP Morocco B.V. (PXP) in relation to the second well obligation under the farmin agreement with PXP. The agreement is conditional upon PXP and PVD reaching a further agreement (and obtaining any required approvals thereto) with the Office National des Hydrocarbures et des Mines (ONHYM), the regulator acting on behalf of the Government of the Kingdom of Morocco, in relation to the second well commitment under the Petroleum Agreement between ONHYM, PXP and PVD.
Under the terms of the settlement, PXP paid to the Company an unconditional and non-refundable deposit of US$ 1.5 million (A$2 million).
 The joint venture is in discussions with the regulator to finalise the matter and satisfy the conditionality for the completion of the PXP settlement.  The current exploration phase of the Mazagan permit is scheduled to expire mid-December 2016, accordingly the Company is seeking to resolve the matter as soon as possible.  Concluding the PXP settlement will deliver an important value outcome for Pura Vida.

Morocco – Sound Energy

Sound Energy, the European and African focused upstream gas company is pleased to provide the following update in relation to TE-7, the Company’s second well at the Tendrara licence area, onshore Eastern Morocco.

 As announced by the Company on 7 October 2016, the Company’s second Tendrara well (TE-7) was drilled to a total measured depth of 3,459 metres corresponding to a vertical depth of 2,611 metres.  The well has a total contact length through the TAGI reservoir of some 837 metres, including a 700 metres sub-horizontal section.

 The Company has now completed TE-7  and performed an initial, unstimulated, open hole well test of the first 28% of the gross reservoir interval. After 24 hours of continuous flow with a 32/64 choke, a rate of 8.8 MMscf/d was achieved with strong pressure build up post test. The rate is significantly better than the Company’s estimates

The Company will now complete the planned mechanical stimulation and well test of the entire sub-horizontal section.  The post stimulation flow rate results are expected mid November 2016.  Thereafter the Company will initiate the planned Extended Well Test to confirm production sustainability and to aid comprehensive field development planning.

 This announcement is inside information for the purposes of Article 7 of Regulation 596/2014″

 

Chariot – Latest Interims & Presentation

A very good set of interim results was accompanied by a very interesting September presentation that bodes well for Morocco and Namibia. There are some elephant sized opportunities in Chariot’s acreage for sure.

The market seems to like what it is seeing.

 

 

Morocco – Mohammedia

Chariot has just got a exploration permit for Mohameddia in Morocco. See here

 

Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins focused oil and gas exploration company, is pleased to announce that its wholly owned subsidiary, Chariot Oil & Gas Investments (Morocco) Limited, has been awarded a 75% interest and operatorship of the Mohammedia Offshore Exploration Permits I – III (“Mohammedia”), Morocco in partnership with the Office National des Hydrocarbures et des Mines (“ONHYM”) which holds a 25% carried interest. The Mohammedia permits sit in the nearshore and cover an area of approximately 4,600km2 with water depths less than 500m. They are adjacent to the Company’s Rabat Deep Offshore Exploration Permits on which Chariot recently announced success in partnering

Senegal – Woodside – Buys into Acreage owned by Impact oil and Gas

Woodside Petroleum, Chariot’s Moroccan partner along with ENI,  has further expanded its exploration acreage in Africa with the acquisition of interests in waters off Senegal and Guinea-Bissau, signalling it is very much still in the market for smaller asset deals even as it turns its back on larger corporate …  “This builds on recent acquisitions in Cameroon, Gabon and Morocco [with Chariot ] and reflects our disciplined and strategic approach to studying regional petroleum systems,” … “the company would continue to seek exploration and deepwater petroleum assets that could come onto the market amid the slump in oil prices, but signalled a cooling toward larger corporate deals because of the uncertainty in the market outlook”

Morocco – Offshore – Mubadala to evaluate Morocco’s hydrocarbon potential

Mubadala Petroleum has signed an agreement with Morocco’s Office National des Hydrocarbures et des Mines (ONHYM) to carry out an evaluation of the hydrocarbon potential of a large area offshore Morocco’s Mediterranean coast.

The signing ceremony

Chariot – a great week – one of many to come.

Chariot had an outstanding week this week and the Penny has started to drop on its massive transformational potential.

With a free carry announced the week before on Morocco with ENI, in addition to Woodsides involvement,  and then Tullow entering the drilling phase with Pancontinental in nearby Nambia acreage and in the current climate, it sends a massive vote of confidence on both Moroccan and Namibian acreage.  The cash back (to be disclosed) from ENI to Chariot will bolster its already good cash pile. Chariot therefore has a strong cash position,  more cash to come, a free carry – and that’s just the start. The increase in share price has been great – but the market has not yet valued the free carry! yet ….. and that’s a massive opportunity.

The Morocco farm out has, however,  released the pressure valve for long term shareholders a tad, and will play into Larry’s negotiations for further farm-outs. You can bet on it. Larry is a tough negotiator which has been painful at times, but will pay off going forward. (FYI: See here for an idea of potential back costs we are looking at in farm-out negotiations).

The change in share price trend could be seen a few weeks back although I must admit, I thought it was due to the Mauritania and Senegal success of Kosmos and Cairn and their respective partners. Given Kosmos and Cairn have had some of the largest discoveries in the world of both Oil and Gas in the last few years – and Chariot is in the same oil and gas fairway – you have to wonder what Larry will get for the Mauritania acreage! I expect it to be farmed out soon – and I expect more cash. Interestingly, Cairn are also our partner in Mauritania. DYOR and check how  many small AIM oil companies have a significant interest in Mauritanian acreage with its massive upside .. hint – there are only two. Chariot is one of them.

Chariot therefore, in my personal opinion,  has a very realistic chance of getting another RNS in the next 2 quarters for another free carry – and its most likely to be Mauritania. It might also be sooner than we think.

Imagine a situation of an AIM exploration company having two free carries on elephant prospects running simultaneously. Imagine what would happen if Namibia or Brazil then got a free carry and/or cash back. And if Tullow strike oil in Namibia …!!.

Chariot is now the best frontier exploration company on AIM. Period. And I bet Newlands capital think the same. Add to this the reducing free float and it becomes a perfect storm for a sustained trend upwards in share price.

I continue to accumulate – on pull backs – and took a massive chunk in the 4’s and 5’s not so long back. I am sure this was helped by plenty of de-rampers’ with clever sarcastic debating points. Thank you 😉 and  I will keep on accumulating up to £1.

The day traders will come and go – I am more of a long term accumulator investor. I am convinced this will be life changing for those with a similar strategy. You know who you are . Good luck…