Chariot Ltd (AIM:CHAR, OTC:OIGLF) has raised £5 million ($6.4 million) of new equity, as it looks to secure a new venture “with multi-billion barrel potential”.
“We have identified a priority target which if successfully secured, would bring material scale to our portfolio and we look forward to providing updates on these developments as soon as we are able to,” chief executive Adonis Pouroulis told investors.
The AIM-quoted energy company, this morning confirmed the successful completion of an oversubscribed placing and subscription, selling new shares at a price of 6.5p each.
A further £1.5 million may be raised through an open offer to existing shareholders, also priced at 6.5p.
Net proceeds will strengthen its balance sheet as it works to secure the new venture opportunity, as well as progress its onshore gas commercialization plans in Morocco.
The share sale also gives investors the opportunity to participate, ahead of key near-term catalysts such as the offshore drilling and testing of the Anchois-East well, in partnership with Energean, where the programme is slated to kick off in mid-August 2024.
"Chariot has a number of key catalysts coming up over the next few months that have the potential to transform the growth profile of the business,” Pouroulis said in a statement.
“The next step for our offshore acreage is the drilling and testing of the Anchois-East well offshore Morocco, in partnership with Energean, which will commence mid-August.
“With this multi-objective well, we are looking to upscale the development of the Anchois gas project by testing two undrilled gas sands with the potential to increase the field resources by 60%, and to move to a Final Investment Decision as quickly as possible.”
He added: “Our flow test at the OBA-1 well on the Loukos licence planned in Q3 will also inform our forward programme onshore, as we look to unlock and develop an early commercial opportunity here, through our recently announced partnership with Vivo.
“Concurrently, we are progressing with the financing of our Transitional Power division which would provide a direct look-through valuation for this business and importantly unlocks large-scale renewable projects in South Africa and expansion of Etana, our electricity trading platform.”