TIDMCHAR
RNS Number : 0120W
Chariot Limited
07 December 2023
7 December 2023
Chariot Limited
("Chariot", the "Company" or the "Group")
Partnership Agreements Signed with Energean plc on Moroccan
Offshore Licences
Focused on delivery and expansion of Anchois gas development
project
Chariot Limited (AIM: CHAR), the Africa focused transitional
energy group, is pleased to announce that it has signed Partnership
Agreements with Energean plc group ("Energean") (LON: ENOG), on the
Lixus Offshore licence ("Lixus"), where the Anchois gas development
project ("Anchois") is located, and on the Rissana Offshore licence
("Rissana") in Morocco.
Partnering Rationale:
-- Provides funding for both Chariot and the project through
upfront consideration, deferred consideration and potentially a
full carry to first gas, with Chariot retaining a material stake in
the project
-- Secures an experienced operator for the development of
Anchois - Energean is a FTSE 250 company with a proven track record
in successfully developing large offshore gas projects
-- Accelerates growth from the portfolio, with the potential to
significantly upscale the development and target further
exploration prospectivity in the Lixus and Rissana licences
Project Development:
-- Leveraging their combined expertise to co-develop Anchois,
the parties are aligned on the next steps for the project
development, including:
o Drill a further well, in the east of the Anchois field and
conduct a gas flow test in 2024, with rig contract negotiations
advanced. Multi-objective well:
-- Evaluate undrilled low-risk deeper sands, to potentially
materially increase the resource base for a development above 1
Tcf
-- Optimise development scheme through a production flow
test
-- Provide a future producer well
o Expansion of the existing offshore development plan, to
accommodate potentially significantly higher production
o Finalise ongoing gas sales negotiations with focus on meeting
Moroccan energy needs
-- Progress exploration together across Lixus and Rissana, including a 2024 seismic campaign
Key Deal Terms:
-- Energean to acquire 45% and 37.5% interests in the Lixus and
Rissana licences respectively, and take operatorship of both
licences
-- Chariot will retain a 30% and 37.5% interest in Lixus and
Rissana respectively, with ONHYM maintaining a 25% stake in each
licence
-- Chariot will receive:
o US$10 million payable on completion of the transaction
o US$15 million payable on Final Investment Decision ("FID")
o US$85 million gross carry including:
-- All Lixus costs up to FID, including the additional Anchois
well with a gas flow test
-- Planned Rissana seismic acquisition costs separately capped
at US$7 million
-- Following completion of the Anchois well, Energean will have
the right to acquire a further 10% of Chariot's equity in the Lixus
licence for:
o US$850 million gross development carry to first gas (including
the US$85m gross carry)
o US$50 million 5-year zero coupon convertible loan note with a
strike price of GBP20 adjusted down for dividends or issuance of
three million Energean shares, at Chariot's option on FID
o 7% royalty payment on Energean's gas production revenues in
excess of a base hurdle on the realised gas price (post
transportation costs)
-- Energean's carry of Chariot's costs is non-recourse, and has
a coupon of 7% over the one year Secured Overnight Financing Rate
(SOFR), with the carry including interest repayable from 50% of
Chariot's future net sales revenues from the Lixus licence
-- Completion of the transaction is subject to standard Moroccan regulatory approvals
Dr Leila Benali, Minister of Energy Transition and Sustainable
Development commented: "This agreement is pivotal for the wider
acreage offshore Morocco, on its Atlantic coast, a key energy asset
for the Kingdom. We welcome Energean on these licences as the
important investments will contribute greatly to the monetisation
of the country's resources and to our ambitious energy
strategy.
Mrs Amina Benkhadra, General Director Office National des
Hydrocarbures et des Mines commented: "I would like to congratulate
both parties on signing this agreement. The discovery and extensive
work to date has set an excellent foundation on which the project
can be developed and this partnership will now be instrumental in
financing and taking it through the next phase. We look forward to
working alongside Energean and Chariot in bringing the project to
first gas."
Mathios Rigas, CEO of Energean commented: "This is an exciting
step in the next stage of our development, one that can only
enhance our position as the pre-eminent independent natural gas
producer listed in London. These assets are particularly attractive
as we understand the core geological, commercial and political
drivers of the region, we have a track record in developing
material gas resources prioritised for the domestic market and they
are a complementary fit with our broader portfolio, not least the
potential for surplus supply to other markets. We look forward to
working with our partners Chariot and ONHYM, and developing an
outstanding resource for the benefit of all parties, including
Morocco and its people."
Adonis Pouroulis, CEO of Chariot commented: "In Energean, we
have secured a partner with a proven track record of rapidly
building and delivering this kind of offshore development. Energean
also shares our view that Anchois and its surrounding acreage
offers significant upside potential and we are aligned with our
plans moving forward. The new partnership is a key step in bringing
the development of the Anchois field to reality and we are looking
forward to continuing the extensive work undertaken so far to reach
Final Investment Decision."
We are excited about the next phase of drilling which has the
potential to both unlock significant additional resources and
upsize the production profile. It is intended that this well will
be used as a producer well when development commences. We retain a
material stake in this basin opening opportunity where both parties
are keen to optimise the project's fundamentals, enable expansion
and undertake further exploration. We also look forward to drilling
on our Loukos Onshore licence which is anticipated to commence in
early 2024."
Investor Webcast
Chariot will be hosting a webcast for investors at 10.00am GMT
today. Investors are able to register for the event ahead of time
and can do so by clicking on the below link. There will be a
Q&A session at the end and participants will be able to submit
their questions during the webcast.
https://stream.brrmedia.co.uk/broadcast/65705f5f85e1630925165801
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014, as retained in the UK
pursuant to S3 of the European Union (Withdrawal) Act 2018.
Enquiries
Chariot Limited
Adonis Pouroulis, CEO
Julian Maurice-Williams, CFO +44 (0)20 7318 0450
Cavendish Capital Markets Plc (Nomad and Joint
Broker)
Derrick Lee, Adam Rae + 44 (0)131 220 9778
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart, Ashton Clanfield +44 (0) 20 7710 7760
Celicourt Communications (Financial PR)
Mark Antelme, Jimmy Lea +44 (0) 20 7770 6424
NOTES FOR EDITORS:
About Energean
Established in 2007, Energean is a London Premium Listed FTSE
250 E&P company with operations in eight countries across the
Mediterranean and UK North Sea. Since IPO, Energean has grown to
become the leading independent, gas-focused E&P company in the
Eastern Mediterranean with a strong production and development
growth profile. The Company explores and invests in new ideas,
concepts and solutions to produce and develop energy efficiently,
at low cost and with a low carbon footprint.
www.energean.com
About Chariot
Chariot is an Africa focused transitional energy group with
three business streams, Transitional Gas, Transitional Power and
Green Hydrogen.
Chariot Transitional Gas is focused on high value, low risk gas
development projects in Morocco, a fast-growing emerging economy,
with a clear route to early monetisation, delivery of free cashflow
and material exploration upside.
Chariot Transitional Power is focused on providing competitive,
sustainable and reliable energy and water solutions across the
continent through building, generating and trading renewable
power.
Chariot Green Hydrogen is partnering with TEH2 (80% owned by
TotalEnergies, 20% by the EREN Group) and the Government of
Mauritania on the potential development of a 10GW green hydrogen
project, Project Nour in Mauritania, and are progressing pilot
projects in Morocco.
The ordinary shares of Chariot Limited are admitted to trading
on the AIM under the symbol 'CHAR'.
https://chariotenergygroup.com
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END
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