29 January 2024
Chariot
Limited
("Chariot", the "Company" or the "Group")
Operational Update
Business Outlook for 2024
and Morocco Onshore Drilling Update
Chariot Limited (AIM: CHAR),
the Africa focused transitional energy group, today
provides an update on the outlook for 2024 and near-term plans
across its three pillars, Transitional Gas, Transitional Power and
Green Hydrogen.
Transitional
Gas
Onshore Morocco
Loukos Licence (Chariot, Operator 75%, ONHYM,
25%)
· First
drilling campaign of two wells is on track to commence around the
end of Q1 2024.
o Planning activity is well advanced including
§ signature
of a contract with Star Valley Drilling, for provision of the 101
rig which is already operating in country
§ imminent
approval expected of the environmental permit for up to 20 well
operations across the licence area, allowing flexibility and
efficient planning of future campaigns
§ delivery
of long lead items to Chariot's newly established storage
yard
§ land
access approvals nearing completion, with site construction
activities to commence thereafter
o Gaufrette prospect confirmed as the first drilling
target
§ up dip of
an existing gas discovery and supported by similar seismic
anomalies to those successful in Chariot's offshore
operations
§ success
will potentially unlock multiple similar prospects totaling 26 Bcf
of Best Estimate recoverable prospective resources (preliminary
internal estimate)
o Dartois prospect has been high-graded as the most likely
second drilling target
§ located
along trend from a historic gas discovery which tested gas from the
same reservoir interval
§ has the
potential to unlock a trend of prospects with over 20 Bcf of total
Best Estimate recoverable prospective resources (preliminary
internal estimates)
· Early
fast-track product from the 3D seismic reprocessing project has
allowed identification of secondary objectives for the upcoming
wells, which are under evaluation.
· Precise timing for the drilling campaign will depend upon rig
schedule and further updates will be provided in due course, along
with any further updates regarding the reprocessed 3D seismic data
analysis.
· Work
is also continuing with our partner ONHYM on success-case
fast-track industrial commercialisation opportunities, with the
possibility to deliver near-term cash flows.
Offshore Morocco
Anchois Gas Development Project within the Lixus licence
(Energean, Operator 45%, Chariot 30%, ONHYM 25%); Rissana licence
(Energean, Operator 37.5%, Chariot 37.5%, ONHYM 25%) - working
interest post-completion of transaction
· Moroccan regulatory approval of the Energean partnership
transaction is expected shortly. On
completion, US$10 million will be payable to
Chariot.
· Chariot and Energean technical teams are working closely
together on the Anchois development project delivery,
including:
o Negotiation of the offshore drilling rig contract and services
for the 2024 drilling and testing campaign, which is targeting the
increase of the development to >1 Tcf
o Field development FEED updates
o Gas
commercialisation agreements, including anchor contract
negotiations with ONEE
·
Progressing exploration
work programme plans across the wider Lixus and Rissana
acreage
Transitional
Power
· Having
increased our stake in the South African electricity trading
platform, Etana Energy (Pty) Limited ("Etana") in December 2023,
Chariot now owns 49% of this business alongside partners H1
Holdings (Pty) Limited which holds 51%.
· Etana
aims to provide competitive and sustainable end to end electricity
solutions through connecting new and existing energy generation
projects to corporate and industrial users
· With
rapid deregulation of South Africa's energy market and high demand
for electricity in the country, this "many generators to many
customers" business model is well positioned for growth
o Trading platform enables Chariot's participation in large
renewable generation projects - 400MW of gross wind generation
capacity has been identified
o The
Etana team is currently securing multiple electricity offtake
agreements with a range of consumers
o Project, mezzanine and other debt finance options to fund the
above are also progressing in Q1
· Operations at the 15MW Essakane solar project in Burkina Faso
are running well and the development of the 40MW solar project at
Tharisa continues to move forward. Further updates on the projects
in development with Karo Platinum and First Quantum Minerals will
also follow as they progress towards Final Investment
Decision.
Green
Hydrogen
· Feasibility Study at Project Nour in Mauritania, in
partnership with TEH2 (Total Energies 80%, Total Eren 20%) has now
been completed and will be presented to the Government of
Mauritania in Q1 2024
· Further studies and pilot projects are also moving forward
which include:
o Working with TEH2 and SNIM (Mauritanian National Mining
Company) on the decarbonisation of the transport of Mauritania's
largest train
o Partnering with Mohammed VI Polytechnic University
and Oort Energy on a 1MW electrolyser project in
Morocco
· Range
of further opportunities under evaluation with focus on nearer term
production
Adonis Pouroulis, CEO of Chariot commented:
"We enter the
new year with multiple important catalysts for the Group over the
coming months. In kickstarting the drilling campaign at the Loukos
licence we are focused on unlocking an overlooked onshore basin
that has near term production potential with immediate access to
industrial markets. Importantly this asset also has a growing
portfolio of follow-on opportunities which give meaningful scale
and value to the project, at a time when industrial gas demand and
associated gas pricing is at an unprecedented high. Drilling at
Anchois later in the year will be a key milestone in determining
the possibility to scale up this development and we are working
closely and constructively with our new partners Energean in
preparing all the workstreams necessary to permit a Final
Investment Decision post-drilling as soon as feasible. We thank
ONHYM and the Ministry of Transitional Energy and Sustainable
Development for their continued support for the transaction and
look forward to confirming Energean on to the project
shortly.
"We are also excited about the opportunities that we see
within our Power and Hydrogen businesses. We continue to build on
our presence across the transitional energy sector, we remain fully
focused on looking to maximise value for all stakeholders and will
continue to provide updates on all our further
developments."
Enquiries
Chariot Limited
Adonis Pouroulis, CEO
Julian Maurice-Williams,
CFO
|
+44 (0)20 7318 0450
|
Cavendish Capital Markets Limited (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 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