Proactive Investors
Philip Whiterow
“Lixus allows lows us to ally elephant hunting with low-risk product and exploration targets.
Quick facts: Chariot Oil and Gas plc
Price: 1.8525 GBXAIM:CHAR
Market: AIM
- Junior oiler with acreage in Morocco, Brazil and Namibia
- Traditionally specialised in Frontier or wildcat exploration for huge targets
- Added production assets in Morocco with Lixus acquisition
What it does
Chariot Oil & Gas Ltd (LON:CHAR) traditionally has targeted blue-sky discoveries.
The Lixus licence acquisition broke from the tradition, as the company picked up new acreage that already has a discovery.
It is a switch from high-risk wildcat drilling to a lower risk appraise-and-explore approach.
There’s still the requisite upside potential and blue-sky to keep Chariot’s stock market following engaged, though this time it is grounded in more certainty than the big-hit-or-big-miss type projects that have been pursued in the past.
How it’s doing
In June, Chariot highlighted its continuing work to advance the Anchois gas field on the Lixus licence to define the project and unlock debt financing.
Posting its full-year 2019 results, the company confirmed that completion of pre-FEED work for the gas field is the key strategic focus for the group through the remainder of 2020.
It is working to progress concept testing, selection and definition, along with engineering modelling and design.
Meanwhile, commercially, it is aiming to secure heads of terms agreement with potential offtake partners.
Chariot said it had a cash balance of US$9.6mln at the end of December with no remaining work commitments. It said it expects annual cash overheads to be significantly lower following extensive cost-cutting, down to US$2.5mln from US$4.5mln.
What the boss says: Larry Bottomley
“Studies undertaken have highlighted the technical feasibility and economic viability of a development and the gas market analysis confirms the potential to deliver gas into Morocco and/or Spain at a price that delivers strong returns on the capital invested,”
Video
Inflexion points
- Farm-out opportunity in Namibia, Brazil and Morocco
- Fully funded for work programmes to get Lixus into production
- That can be with a single or multi-stage process
Add related topics to MyProactiveDeep diveChariot Oil and Gas plcSign up for Newsletter
Create your account: sign up and get ahead on news and events
NO INVESTMENT ADVICE
Proactive Investors Australia Pty Ltd ACN 132 787 654 (the Company, we or us) provides you with access to the content set out above, including any news, quotes, information, data, text, reports, ratings, opinions,…FOR OUR FULL DISCLAIMER CLICK HERE
Most read
NA Proactive news snapshot: WeedMD, MGX Minerals, Champignon Brands,…
1 day, 15 hours agoHealth
NA Proactive news snapshot: Chemesis International, Gatling Exploration,…
3 days, 14 hours agoHealth
UK government orders 30mln doses of Pfizer and BioNTech COVID-19 vaccine
5 days, 22 hours agoIndustry & services
British Airways’ owner IAG confirms it is considering undertaking an equity…
