Proactive Investors - Run By Investors For Investors

Chariot Oil and Gas - Capital Network: Large-cap Portfolio with Small-cap Leveraged Upside

Chariot Oil & Gas (LON:CHAR) is a UK-based oil and gas exploration company listed on the AIM market of the London Stock Exchange. The company has assembled a very prospective portfolio of assets located on both sides of the Atlantic in West Africa and South America, and has carried out the necessary adjustments to weather the commodity downturn, reducing staff from 22 to 12 and cutting G&A to less than US$5M. With a US$22M cash position significantly exceeding commitments, and no debt, Chariot Oil&Gas (LON:CHAR) is now in a position to drill three company-making wells in Morocco and Namibia in the near-term. Chariot Oil & Gas (LON:CHAR) intends to remain an exploration company, returning value to shareholders from the proceeds of the divestment of future discoveries at the point of maximum monetisation potential. We believe this is an opportune time for potential investors to revisit the equity story.
Chariot Oil and Gas - Capital Network: Large-cap Portfolio with Small-cap Leveraged Upside

We understand from the company that, in the success case, the cash breakeven oil price for most of their targets would be US$20-25 /bbl which we reckon would place them in a favourable position on the global oil projects cash costs curve.

As such, Chariot would be able to easily monetise any potential discovery in the portfolio. However, for the purpose of this note we have not run our own economic analysis.

Full report is available via Capital Network website
View full CHAR profile View Profile

Chariot Oil and Gas Timeline

Related Researches

no_picture_pai.jpg
March 05 2018

G3 Exploration (LON:G3E), previously Green Dragon Gas, published an operational update for its Baotian-Qingshan (GGZ) Block, located in the Guizhou Province of Southern China.

no_picture_pai.jpg
June 25 2018

Rose Petroleum (LON:ROSE) announced on June 22nd the result of the competent person's report ("CPR") by Gaffney Cline & Associates ("GCA") relating to Rose Petroleum’s acreage in the Paradox Basin, Utah. The CPR analyses the results of a 3D seismic acquisition completed in late 2017. The report provides a classification of Rose’s contingent resources, outlined in the table below. A useful summary of definitions is contained in the following web link. Details are also in the Rose Petroleum press release of June 22nd.

no_picture_pai.jpg
February 07 2018

Rose Petroleum (LON:ROSE) announced the completion of the initial structural interpretation of the 3D seismic data it acquired over its Gunnison Valley Unit (GVU) which is part of its larger lease holding in the Paradox Basin, Utah, U.S.A. As a result of this work, key geological structures and multiple drilling targets have been identified, with to date 53 well locations identified in the Cane Creek reservoir zone alone.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use