Chariot Oil & Gas Ld Expression of Interest Letters (3770D)
October 28 2020 - 3:00AM
UK Regulatory
TIDMCHAR
RNS Number : 3770D
Chariot Oil & Gas Ld
28 October 2020
28 October 2020
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
Expression of Interest Letters with Africa Finance Corporation
and a Multinational
Investment Bank to Debt Finance the Anchois Gas Development
Project in Morocco
Demonstrates Fundability of Value Accretive Project
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins
focused energy company, is pleased to announce that it has received
a non-binding Expression of Interest Letter ("EOI") from Africa
Finance Corporation ("AFC"), a pan-African Multilateral Development
Financial Institution, for the provision of development debt
finance for the Anchois Gas Discovery, located within the Lixus
Offshore Licence, Morocco ("Lixus"), and the development of future
discoveries from the wider prospect portfolio of the Licence.
In addition, Chariot has received a non-binding EOI for the
provision of Reserves Base Lending for the development of the
Anchois Gas Discovery with a Multinational Investment Bank.
Both EOI's take into account the estimated capex required to
bring the development online, anticipated to be in the region of
US$300-500 million, but they also identify Lixus as being an
important strategic asset, with strong Environmental, Social and
Governance ("ESG") credentials, that has the potential to help
Morocco transition to a low carbon economy, as it seeks to satisfy
an anticipated doubling in domestic demand for energy over the next
20 years.
Adonis Pouroulis, Acting CEO, commented:
"Following on from the recent Anchois resource upgrade, I am
very pleased to announce that we have received expression of
interest letters from two highly regarded institutional lenders.
Africa Finance Corporation has played a pivotal role in helping to
unlock some of Africa's most promising energy projects, with AFC
currently having investments of over US$1 billion in projects
ranging from upstream/midstream oil & gas, to power generation.
The Multinational Investment Bank is a leading provider of finance
in the oil and gas sector with both global reach and profound
market expertise within the EMEA region. Both Expression of
Interest Letters further endorse our view that the Anchois
development is a high value project, with the potential to deliver
near term cash flows to Chariot and also transform Morocco's power
sector.
Today's announcement is also further evidence of the Company
delivering on what it said it would do, namely, advancing the
commerciality of the Lixus asset and generating value to
shareholders in the process. This is an important first step
towards securing financing for the project and we look forward to
updating our stakeholders on further developments during the
remainder of 2020."
For further information please contact:
Chariot Oil & Gas Limited
Adonis Pouroulis, Acting CEO
Julian Maurice-Williams, CFO +44 (0)20 7318 0450
finnCap (Nominated Adviser and Broker)
Christopher Raggett (Corporate Finance)
Andrew Burdis (ECM) +44 (0)20 7220 0500
Celicourt Communications (Financial PR)
Mark Antelme
Jimmy Lea +44 (0)20 8434 2754
NOTES TO EDITORS
ABOUT AFRICA FINANCE CORPORATION
AFC is a Pan African-focused infrastructure finance institution
established in 2007 by a treaty between independent sovereign
states and it currently, has over US$6 billion in total assets and
a long-term international credit rating of A3 assigned by Moody's
Investors Service. AFC provides advisory services, equity and
mezzanine financing, long-term debt and other debt instruments to
various projects across Africa. AFC has demonstrated strong
principal investing appetite and capacity for infrastructure
projects and natural resource transactions, combining significant
in-house technical and structuring capability with a willingness to
commit its balance sheet.
AFC's hybrid business model combines public and private
ownership, country membership and a private sector governance and
decision-making structure. This allows the corporation to combine a
deep understanding of African governments (i.e. resources,
constraints and key objectives) with a commercially driven
investment process, which provides flexibility, innovation, faster
decision making and more robust project and financing structures.
AFC currently has investments of over US$1 billion in projects
ranging from Upstream/Midstream Oil & Gas, to Power
generation.
The Corporation is a leading investor in the oil & gas
industry on the continent and has financed several projects in this
sector.
ABOUT CHARIOT
Chariot Oil & Gas Limited is an independent energy company
which holds a high value, low risk gas development project with
strong ESG credentials in a fast growing emerging economy with a
clear route to early monetisation, delivery of free cashflow and
material exploration upside.
The ordinary shares of Chariot Oil & Gas Limited are
admitted to trading on the AIM Market of the London Stock Exchange
under the symbol 'CHAR'
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