Investment bank Stifel sees “significant upside” for Chariot Ltd (AIM:CHAR, OTC:OIGLF) shares should Chariot’s Anchois-East well off the shore of Morocco move to investment approval as planned.
Chariot recently raised £5 million in a share sale and another £1.5 million in an oversubscribed offering to support the Anchois project
“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,” chief executive Adonis Pouroulis told investors said of the project.
The “risk/reward remains high risk, but attractive”, Stifel said while giving the stock a buy rating with a 33p price target.
This target suggest significant upside given Chariot’s current share price of 6.8p