Chariot Limited (AIM: CHAR): Anchois-3 encounters gas in the appraisal target but one of the exploration targets is dry
• The Anchois-3 well has 3 objectives. While the initial pilot hole encountered the targeted reservoirs at the Anchois Footwall prospect, they were interpreted as water wet. Our ReNAV for this prospect was £0.03/sh.• The well was sidetracked in the B sands which are the main appraisal targets. Preliminary interpretation indicates the presence of gas in these sands. Our unrisked NAV for the 2C resources is £0.27/sh. We carry 75% probability of development.
• Drilling is ongoing towards the deeper targets. This includes the Anchois North Flank prospect (O sands) with an additional 2U Prospective Resources estimate of 213 bcf. Importantly the North Flank prospect is deeper than the Footwall prospect and part of a different structure separated by a fault. As a result, the fact that the Footwall prospect was water wet has limited impact on the risking of the North Flank prospect. Our unrisked NAV for North Flank is £0.07/sh with a 49% chance of success.
• A success at Anchois North Flank will also de-risk the nearby Anchois South Flank prospect with a 2U Prospective Resource estimate of 372 bcf with an unrisked NAV of £0.11/sh and 57% chance of success.
• As we remove Footwall from our ReNAV, we have changed our target price for Chariot to £0.40/sh. Further details on the well results are expected next week.
Chariot Oil & Gas is an independent oil and gas exploration company focused offshore in West Africa with a portfolio of assets located in the under-explored regions of Namibia, Mauritania and Morocco.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
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