Chariot Limited (AIM: CHAR): EIA awarded at Anchois. Imminent partner on track
• Chariot has received approval for its Environmental Impact Assessment (EIA) for the Anchois project.• The EIA covers all aspects of the development including future wells and offshore infrastructure, the onshore Central Processing Facility and the link to the GME pipeline. This is an important step that derisks the project further.
• We understand that negotiations on partnering are in the final stages. A partner could be announced very soon.
• The drilling campaign at the Loukos onshore permit continues to be expected to start in early 2024.
• We re-iterate our target price of £0.50 per share.
Eni also drilling in Morocco
Eni spudded the Cinnamon-1 exploration well in shallow water Morocco in the Tarfaya Offshore Shallow license to the northeast of the Cap Juby field in early September. While the play is different from Anchois, the decision of Eni to drill an exploration well highlight the potential materiality of the hydrocarbon basins in the country. Positive news would also have a beneficial impact on the attractiveness of Morocco for the oil and gas sector. We note that the drilling rig on the Cinnamon-1 well appears to still be on site.
Industry partner to unlock deep value
Announcing an industry partner and taking FID at the Anchois project remain the key near-term catalysts and would take our Core NAV to ~£0.60 per share. Each onshore prospect has an unrisked value of £0.02 per share. Our Sum of the Parts valuation is unchanged at £0.51 per share and includes only two onshore wells with a conservative 50% chance of drilling success.
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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