REG - Chariot Limited - H1 2024 Results
27/09/2024 07:00
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RNS Number : 9198F Chariot Limited 27 September 2024
27 September 2024
Chariot Limited
("Chariot", the "Company")
H1 2024 Results
Chariot (AIM: CHAR), the Africa focused transitional energy company, today
announces its unaudited interim results for the six-month period ended 30 June
2024.
Adonis Pouroulis, CEO of Chariot commented: "We are providing an update on our
Interim results today, but the main news recently has been around the drilling
campaign offshore Morocco. As reported, the preliminary results of the
Anchois-3 well did not deliver as expected. Post-well analysis is now underway
and we will collaborate with our joint venture partners to determine the
forward plan for the project. We still see a lot of potential within the
Anchois field and the wider licence area, across Lixus and Rissana, and these
drilling results need to be further analysed and incorporated into our
understanding of the area.
Alongside this work, we continue to unlock the value of the other projects in
our portfolio. We are making good progress on the financing of the
Transitional Power business in South Africa, we have the onshore Loukos
licence in Morocco, Project Nour and the electrolyser project in our Green
Hydrogen pillar as well as the new venture opportunity.
The unexpected Anchois-3 well results have clearly had a significant impact on
our share price therefore we have decided to take stock and consider our next
steps with the project. We will provide further updates on forward plans
across the business as soon as we are able to."
Highlights during and post period
Transitional Gas
Offshore Morocco:
· Partnership agreements completed with Energean plc ("Energean")
on the Lixus and Rissana licences offshore Morocco with Energean taking
Operatorship and carrying the drilling campaign up to a gross cost of US$85m
· Drilling campaign commenced at the Anchois-3 well in August and
completed in September, having drilled safely and efficiently to target depths
o Multiple gas bearing reservoirs were discovered in the B sand appraisal
interval in the main hole, although with thinner associated gas pays than
anticipated, and other target reservoirs were found to be water wet. Post-well
evaluation underway
Onshore Morocco:
· Two well drilling campaign successfully conducted in May 2024
safely and efficiently
o The RZK-1 well drilled on the Gaufrette prospect confirmed good quality
reservoir and multiple gas shows, though was sub economic
o Gas discovery confirmed from drilling the OBA-1 well at the Dartois
prospect - gross interval approximately 70m of primary interest identified
o OBA-1 well cased and cemented with a Christmas tree installed for rigless
flow testing and potential use as a future producer
· Heads of Terms agreement signed with Vivo Energy to progress
future commercialisation of onshore gas to industry business
Transitional Power:
· Strategic Review initiated to look to secure funding at the
subsidiary level and enable ongoing growth and development of the portfolio
· Multiple expressions of interest received from South African
focused investors to finance both the Etana platform and generation assets
o Financing negotiations are progressing well
o Potential financing terms will provide a read through valuation for the
business
Electricity Trading:
· Increased holding to 49% stake in South African electricity
trading joint venture Etana Energy (Pty) Limited (Etana)
o Provides end to end electricity solutions by generating and trading energy
through South Africa's national grid
o Many generators to many offtakers business model - electricity offtake
agreements signed with a range of large consumers including Growthpoint
Properties, Autocast, Petra Diamonds and Tharisa
o Enables Chariot's participation in large renewable generation projects -
400MW of gross wind generation capacity identified
Power to Mining Projects:
· Operational Essakane 15MW solar project at IAMGOLD's
gold mine in Burkina Faso
· Developments ongoing at three key projects in Africa:
o Tharisa - 40MW solar project in South Africa
o Karo - 30MW solar project in Zimbabwe
o First Quantum Minerals - 430MW solar and wind projects in Zambia
Water:
· Water desalination project in Djibouti running well
· Other projects under evaluation in areas of water scarcity across
the continent
· Also pursuing funding for this business at the subsidiary level
Green Hydrogen:
· Feasibility studies in Mauritania completed with partner TEH2 (80%
owned by TotalEnergies and 20% owned by the EREN Group) and its in-house
'OneTech' engineering unit
o Confirmed scale and scope of project and outlined phased development
approach
o Progressing offtake discussions
· Ongoing development of green hydrogen pilot project in Morocco in
partnership with Oort Energy and University Mohammed VI Polytechnic ("UM6P")
· Pursuing financing options at the subsidiary level
Corporate and Financial
· Cash position as at 30 June 2024 of US$3.6 million supplemented
by a fundraise completed in July 2024 which raised circa US$9 million (gross)
Enquiries
Chariot Limited +44 (0)20 7318 0450
Adonis Pouroulis, CEO
Julian Maurice-Williams, CFO
Cavendish Capital Markets Limited (Nomad and Joint Broker) +44 (0) 131 220 9778
Derrick Lee, Adam Rae
Stifel Nicolaus Europe Limited (Joint Broker) +44 (0) 20 7710 7760
Callum Stewart, Ashton Clanfield
Celicourt Communications (Financial PR) +44 (0) 20 7770 6424
Mark Antelme, Jimmy Lea
Chariot Limited
Chief Executive's Review
Today we present our interim results outlining the workstreams and progress
across our business pillars through to June and post period to date. Within
each of these verticals we are looking to develop domestic energy resources
that can provide accessible, sustainable solutions and help alleviate power
poverty across the African continent. This is the ethos that underpins the
Chariot strategy and business model and whilst recent events have had a
material impact on our share price, we maintain the importance and positioning
of our portfolio within the energy transition.
Transitional Gas
Lixus and Rissana Offshore licences (Energean, Operator, holding 45% in Lixus
and 37.5% in Rissana, Chariot 30% and 37.5% respectively, ONHYM 25% in both
licences)
As we announced on the 16 September, the Anchois East drilling campaign
conducted at the Anchois gas project in the Lixus Offshore licence along with
our partners Energean and ONHYM was safely and efficiently drilled to target
depth in both the Pilot and Main Holes. This evaluated all of the pre-drill
reservoir targets however the results did not deliver as anticipated or in
line with the excellent results of the previously drilled Anchois-2 well.
As stated in our press release, multiple good quality gas bearing reservoirs
were found in the B sand appraisal interval in the Main Hole, but the
associated gas pays were interpreted to be lower than the pre-drill geological
model and other target reservoirs beneath the B sands were also encountered
but were water wet. The appraisal target reservoirs of the C and M sand were
drilled deeper than the gas bearing sands in the Anchois-2 well and into the
water-leg at this down-dip location. The Anchois North Flank exploration
prospect was found to have well-developed O sand reservoirs, with associated
gas shows, but also water wet. Both holes were plugged and abandoned, without
flow testing the Main Hole, and the drill ship was demobilised.
The primary exploration objectives were unsuccessful however, we did
demonstrate the extension of gas bearing reservoirs in the B sand interval and
the data acquired from the other reservoirs will be useful for our
understanding of the field as well as establishing the impact on pre-drill
estimates.
Our team have worked very hard over the past few years on this asset, from
drilling the Anchois-2 discovery, completing the FEED, securing Energean as a
partner and taking it through this drilling campaign. Whilst there is always
risk in drilling, the successful farm-out process provided validation of the
pre-drill prospectivity and potential of the targets and we were looking to
deliver an expanded development following this campaign. Clearly the results
were below expectations but Chariot still believes the Anchois field and the
surrounding licence areas have a lot of potential. Post well analysis is
underway and we will work with our joint venture partners to determine the
next steps for the project.
Loukos Onshore Licence (Chariot, Operator, 75%, ONYHM, 25%)
We successfully drilled two wells in the onshore Loukos licence in May with a
discovery at the OBA-1 well which reported an approximate 70m gross interval
of primary interest, with elevated resistivities coincident with elevated mud
gas readings and interpreted gas pays. The team have also been interpreting
reprocessed seismic across the acreage and have identified a number of
additional exploration targets not evident on previous data. The uplift in
quality of this dataset has helped define new amplitude-supported target
structures as well as potential commercial opportunities within and around the
historic discoveries situated on block.
Our partnership agreement with Vivo Energy announced in June has the potential
to play a key part in commercialising future onshore production as it will
enable the build out and distribution of gas via a virtual compressed natural
gas ("CNG") pipeline. CNG is a low cost, flexible development solution and gas
would initially be delivered into the high demand local Kenitra industrial
market which is just 40km from Loukos. The partnership would also be able to
trade third party gas which could drive further expansion and growth into
regional hubs and generate an additional future value stream for both parties.
In light of the results from the Anchois-3 drilling campaign, we are reviewing
our work programme for the Loukos licence as we look to preserve capital and
utilise funds in the most optimal way. We will provide an update on this and
the forward plans in due course.
New Venture
As flagged when we undertook our fundraise in July, we are in the process of
progressing a multi-billion barrel new venture opportunity in a basin where we
have extensive operational and technical expertise. We applied for this as a
priority new venture target as it could catalyse further scale and growth of
our portfolio and ties in with our focus on developing domestic resources on
the African continent. Should we secure this asset we will look to partner and
fund this at the asset level to fast track an exploration and drilling
programme.
Transitional Power
Since we increased our interest in Etana Energy to 49%, along with partners H1
Holdings who hold 51%, this renewable energy trading platform has grown faster
than we expected. With one of only five electricity trading licences granted
by the National Energy Regulator in South Africa, Etana has access to a sector
that is rapidly de-regulating and can tap into the huge supply and demand need
from both generation and consumer markets. Etana can trade both output from
renewable energy generators across the country as well as power generated by
Eskom and it provides an end to end solution by buying electricity and selling
it to business customers through wheeling it across the national grid. As well
as generating and delivering cost effective, lower carbon energy this business
model helps companies reduce their carbon footprint and facilitates the build
of large-scale generation infrastructure which will be important for ongoing
future output.
In recent months, Etana has announced multiple power purchase agreements with
some of South Africa's largest energy users, including Growthpoint, Autocast,
Petra Diamonds and Tharisa, with many more in negotiation. The wide interest
we have received to fund this business is indicative of the solid fundamentals
and value that can be created here. We are looking to retain a material stake
and we look forward to finalising the financing as it will both provide us
with a read-through valuation and enable Etana to ramp up trading and
generation activity.
Our renewable power to mining projects also continue to progress with
operations ongoing in Burkina Faso at IamGold's Essakane solar plant and
progress being made at the Buffelspoort project in South Africa with Tharisa
(which is connected to the Etana platform through its power purchase agreement
as well as our stake in the solar generation asset), the solar plant in
Zimbabwe with Karo Mining, and the wind and solar projects in development in
Zambia with First Quantum.
We are very proud of our water desalination project in Djibouti, which is
providing clean, potable desalinated water to local communities, powered by
solar energy. This will provide access to water for the next 20 years and we
are looking to replicate this business model in other regions whilst also
looking to finance this at the subsidiary level.
Green Hydrogen
At our flagship green hydrogen project, Project Nour in Mauritania, we
completed our Feasibility Study alongside our partners TE H2 (80% owned by
TotalEnergies and 20% owned by the EREN Group) in March which confirmed the
world class scale of the project and outlined a phased approach for domestic
and export development. We continue to work closely with Total Energies' One
Tech engineering team and the Government of Mauritania who recently published
its Hydrogen Code. With this Code now ratified, we can progress the signature
of our Investment Convention and thereafter conduct concept studies which will
further inform our development plans going forward. We also continue to
progress with our pilot project with Mauritania's national iron ore mining
company, SNIM, and TE H2 where we are scoping options to decarbonise local
iron ore train transportation.
In Morocco, we look forward to the installation of the 1MW PEM electrolyser
which we will be testing in an industrial setting at the Jorf Lafsar
facilities in partnership with Oort Energy and UM6P. Whilst this is also pilot
scale, the objective of this test is to produce green hydrogen and would be
the first of its kind within Morocco. These pilot projects are important to us
but are also key building blocks of the ongoing research and development
across the wider hydrogen sector. As with our Power division, we are looking
to fund this at the subsidiary level and we continue to progress financing
avenues for this business.
Financial Review
The Group remains debt free and had a cash balance of US$3.6 million at 30
June 2024 (US$6.0 million at 31 December 2023) which was further increased in
the post-period following the equity fundraising completed in August 2024
which raised gross proceeds of circa US$9 million.
Hydrogen and other business development costs of $1.0 million (30 June 2023:
$0.9 million) comprise non-administrative expenses incurred in the Group's
business development activities within the Green Hydrogen pillar, the majority
of which relate to Project Nour feasibility studies and the proof of concept
electrolyser project with Oort Energy and UM6P.
Other administrative expenses of US$5.1 million (30 June 2023: US$3.3 million)
are higher than the prior period reflecting the scaling up of the team to
progress the Loukos onshore licence and work on new venture opportunities,
together with continued progress on the Transitional Power project portfolio.
Finance income of US$0.1 million (30 June 2023: US$0.2 million) is lower than
the prior period due reduced foreign exchange gains on non-US$ cash.
Finance expenses of US$0.2 million (30 June 2023: US$0.02 million) are higher
than the prior period reflecting the increased unwinding of the discount on
the lease liability under IFRS 16, and the unwinding of the discount on the
contingent consideration payable for the increased holding in Etana Energy
(Pty) Limited.
Share-based payments charges of US$2.0 million (30 June 2023: US$3.9 million)
are lower than the prior period due to diminishing charges on share options
issued in previous periods.
We were very pleased with the support we received during our successful
fundraise in August from new and existing investors as well an oversubscribed
open offer. We thank our shareholders for their ongoing support.
Outlook
I would like to take this opportunity to say thank you as always to our
employees, the Board and all our stakeholders across all of the different
projects in our portfolio. We will now take the time to evaluate and process
the post well analysis from Anchois and will carefully consider our forward
plans. A more detailed update on the wider business will be provided in due
course.
Adonis Pouroulis
Chief Executive Officer
26 September 2024
Chariot Limited
Consolidated statement of comprehensive income for the six months ended 30
June 2024
Six months Six months Year ended
ended 30 ended 30 31 December
June 2024 June 2023 2023
US$000 US$000 US$000
Notes Unaudited Unaudited Audited
(note1- restated)
Revenue 3 80 - 80
Share based payments (2,019) (3,862) (5,652)
Hydrogen and other business development costs (1,046) (905) (1,285)
Other administrative expenses (5,109) (3,281) (8,680)
Total operating expenses (8,174) (8,048) (15,617)
Loss from operations (8,094) (8,048) (15,537)
Finance income 60 150 202
Finance expense (178) (15) (236)
Loss for the period before and after taxation (8,212) (7,913) (15,571)
Other comprehensive income:
Items that will be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations 2 13 (14)
Other comprehensive income for the period, net of tax 2 13 (14)
Total comprehensive loss for the period (8,210) (7,900) (15,585)
(Loss)/profit for the period attributable to:
Owners of the parent (8,221) (7,912) (15,578)
Non-controlling interest 9 (1) 7
(8,212) (7,913) (15,571)
Total comprehensive (loss)/profit attributable to:
Owners of the parent (8,219) (7,899) (15,592)
Non-controlling interest 9 (1) 7
(8,210) (7,900) (15,585)
Loss per Ordinary share attributable to the equity holders of the parent - 4 US$(0.01) US$(0.01) US$(0.02)
basic and diluted
Chariot Limited
Consolidated statement of changes in equity for the six months ended 30 June
2024
For the six months ended 30 June 2024 (unaudited)
Total attributable to equity holders of the parent Non-controlling interest
Share based payment reserve
Other components of equity Total equity
Share capital Share premium Retained deficit
US$000 US$000 US$000 US$000 US$000 US$000 US$000 US$000
As at 1 January 2024 15,714 431,292 10,605 779 (389,517) 68,873 5 68,878
- - - - (8,221) (8,221)
(Loss)/profit for the period
9 (8,212)
Other comprehensive income - - - 2 - 2 - 2
Loss and total comprehensive loss for the period - - - 2 (8,221) (8,219)
9 (8,210)
11 190 (201) - - -
Issue of capital - -
Share based payments - - 2,019 - - 2,019
- 2,019
As at 30 June 2024 15,725 431,482 12,423 781 (397,738) 62,673 14 62,687
For the six months ended 30 June 2023 (unaudited - restated note 1)
Total attributable to equity holders of the parent Non-controlling interest
Share based payment reserve
Other components of equity Total equity
Share capital Share premium Retained deficit
US$000 US$000 US$000 US$000 US$000 US$000 US$000 US$000
As at 1 January 2023 14,263 413,843 6,099 935 (374,081) 61,059 (2) 61,057
- - - - (7,912) (7,912)
Loss for the period
(1) (7,913)
Other comprehensive income - - - 13 - 13 - 13
Loss and total comprehensive loss for the period - - - 13 (7,912) (7,899)
(1) (7,900)
48 566 (614) - - -
Issue of capital - -
Movements on shares to be issued - - - (142) 142 - -
-
Share based payments - - 3,862 - - 3,862
- 3,862
As at 30 June 2023 14,311 414,409 9,347 806 (381,851) 57,022 (3) 57,019
For the year ended 31 December 2023 (audited)
Total attributable to equity holders of the parent
Share based payment reserve
Other components of equity Non-controlling interest
Share capital Share premium Retained deficit Total equity
US$000 US$000 US$000 US$000 US$000 US$000 US$000 US$000
As at 1 January 2023 14,263 413,843 6,099 935 (374,081) 61,059 (2) 61,057
(Loss)/profit for the year - - - - (15,578) (15,578) 7 (15,571)
Other comprehensive income - - - (14) - (14) - (14)
Loss and total comprehensive loss for the year - - - (14) (15,578) (15,592) 7 (15,585)
Issue of capital 1,451 18,733 (1,146) - - 19,038 - 19,038
Issue costs - (1,284) - - - (1,284) - (1,284)
Movements on shares to be issued reserve - - - (142) 142 - - -
Share based payments - - 5,652 - - 5,652 - 5,652
As at 31 December 2023 15,714 431,292 10,605 779 (389,517) 68,873 5 68,878
Chariot Limited
Consolidated statement of financial position as at 30 June 2024
30 June 30 June 31 December 2023
2024 2023
US$000 US$000 US$000
Notes Unaudited Unaudited Audited
(note 1) (restated - note 1) (note 1)
Non-current assets
Exploration and evaluation assets 5 60,078 57,650 62,956
Investment in power projects 220 448 334
Goodwill 380 380 380
Equity-accounted investments 6 1,850 - 58
Property, plant and equipment 645 663 646
Right of use asset: office lease 1,018 118 1,242
Total non-current assets 64,191 59,259 65,616
Current assets
Trade and other receivables 2,222 1,153 1,205
Inventory 2,147 1,424 1,808
Cash and cash equivalents 7 3,558 2,725 6,016
Total current assets 7,927 5,302 9,029
Total assets 72,118 64,561 74,645
Current liabilities
Trade and other payables 7,304 7,392 4,429
Lease liability: office lease 583 150 430
Total current liabilities 7,887 7,542 4,859
Non-current liabilities
Lease liability: office lease 672 - 908
Other liabilities: contingent consideration 6 872 - -
Total non-current liabilities 1,544 - 908
Total liabilities 9,431 7,542 5,767
Net assets 62,687 57,019 68,878
Capital and reserves attributable to equity holders of the parent
Share capital 8 15,725 14,311 15,714
Share premium 431,482 414,409 431,292
Share based payment reserve 12,423 9,347 10,605
Other components of equity 781 806 779
Retained deficit (397,738) (381,851) (389,517)
Capital and reserves attributable to equity holders of the parent 62,673 57,022 68,873
Non-controlling interest 14 (3) 5
Total equity 62,687 57,019 68,878
Chariot Limited
Consolidated cash flow statement for the six months ended 30 June 2024
Six months ended 30 Six months ended 30 Year ended 31 December 2023
June 2024 June 2023
US$000 US$000 US$000
Unaudited Unaudited -(restated - note 1) Audited
(note 1) (note 1)
Operating activities
Loss for the period before taxation (8,212) (7,913) (15,571)
Adjustments for:
Finance income (60) (150) (202)
Finance expense 178 15 236
Result from equity accounted investments 109 5 17
Change in value of investment in power project 114 - 114
Depreciation and amortisation 255 233 485
Share based payments 2,019 3,862 5,652
Net cash outflow from operating activities before changes in working capital (5,597) (3,948) (9,269)
(Increase) in trade and other receivables (1,014) (422) (482)
Increase / (decrease) in trade and other payables (728) 486 1,251
Increase in inventories (340) - -
Cash outflow from operating activities (7,679) (3,884) (8,500)
Net cash outflow from operating activities (7,679) (3,884) (8,500)
Investing activities
Finance income 60 40 93
Payments in respect of property, plant and equipment (30) (311) (400)
Farm-in proceeds 10,000 - -
Payments in respect of exploration and evaluation assets (3,553) (5,052) (14,246)
Payments made to increase holding in equity-accounted investments (1,027) - -
Funding provided to equity-accounted investments (78) - (70)
Net cash inflow from / (used in) investing activities 5,372 (5,323) (14,623)
Financing activities
Issue of ordinary share capital net of fees - - 17,754
Payment of lease liabilities (75) (209) (432)
Finance expense on lease (59) (8) (43)
Net cash (outflow) / inflow from financing activities (134) (217) 17,279
Net (decrease) / increase in cash and cash equivalents in the period (2,441) (9,424) (5,844)
Cash and cash equivalents at start of the period 6,016 12,052 12,052
Effect of foreign exchange rate changes on cash and cash equivalent (17) 97 (192)
Cash and cash equivalents at end of the period 3,558 2,725 6,016
Chariot Limited
Notes to the interim financial statements for the six months ended 30 June
2024
1. Accounting policies
Basis of preparation
The interim financial statements have been prepared in accordance with UK
adopted International Accounting Standards.
The interim financial information has been prepared using the accounting
policies which were applied in the Group's statutory financial statements for
the year ended 31 December 2023. The Group has not adopted IAS 34: Interim
Financial Reporting in the preparation of the interim financial statements.
There has been no impact on the Group of any new standards, amendments or
interpretations that have become effective in the period. The Group has not
early adopted any new standards, amendments or interpretations.
At 30 June 2024 the group had cash balance of US$3.6 million and on 13 August
2024 the Group announced that, following shareholder approval, it had raised
US$9 million through the successful Placing of, and Subscription for
106,704,899 New Ordinary Shares.
On the Group's Transitional Power business, multiple expressions of interest
have been received from South African focused investors to finance the
business, and negotiation are progressing well with the potential to provide
near-term financing for the Power business.
The Green Hydrogen and Water businesses are progressing financing options
ahead of making any significant capital commitments.
On the Group's Offshore Anchois development, Final Investment Decision ("FID")
and associated cashflows is subject to the results of the recent drilling and
post-well analysis, in collaboration with our joint venture partners.
Whilst the Directors are confident of progressing the different business
streams, managing costs and concluding the related subsidiary financings in a
timely manner, these outcomes are not solely at the discretion of the Group
and therefore there exists a material uncertainty which may cast significant
doubt about the Group's ability to continue as a going concern, and its
ability to realise its assets and discharge its liabilities in the normal
course of business.
The Directors have made a judgement that the necessary funds to adequately
support the Group's current and future obligations will be secured.
Accordingly, the Directors have adopted the going concern basis in preparing
the interim financial statements.
Investments accounted for using the equity method
In the consolidated statement of financial position, investments accounted for
using the equity method have been separately presented as at 30 June 2024 to
reflect the increased significance of the asset to the group. This item was
previously included within trade and other receivables due to its
insignificance. The comparative figures as at 30 June 2023 and 31 December
2023 for the carrying value of investments accounted for using the equity
method have also been represented in the consolidated statement of financial
position, with a corresponding decrease in trade and other receivables of
US$nil as at 30 June 2023 and US$58,000 as at 31 December 2023. In the
consolidated cash flow statement the associated result from equity accounted
investments and the investing activity cashflows have been separately
presented, including a representation of the comparative balances between
operating activities and investing activities. See note 6 for further
details.
ENEO Water PTE Limited
The comparative figures for 30 June 2023 have been restated to reflect the
accounting treatment of the asset purchase agreement for the assets purchased
from ENEO Water PTE Limited in the audited financial statements to 31 December
2023, treating the transaction as a share-based payment arrangement rather
than a business combination.
In the consolidated statement of comprehensive income the restatement
increased the share based payments charge by US$0.4m and decreased
administrative expenses for the period by US$0.2m, resulting in a net increase
in loss for the period of US$0.2m. In the consolidated statement of financial
position, the share-based payment reserve decreased by US$0.1m, the shares to
be issued reserve decreased by US$0.1m, and goodwill decreased by US$0.4m.
There is no change to the total net movements in cash flows or loss per share
for those periods
2. Financial reporting period
The interim financial information for the period 1 January 2024 to 30 June
2024 is unaudited. The financial statements also incorporate the unaudited
figures for the interim period 1 January 2023 to 30 June 2024 and the audited
figures for the year ended 31 December 2023.
The financial information contained in this interim report does not constitute
statutory accounts as defined by sections 243-245 of the Companies (Guernsey)
Law 2008.
The figures for the year ended 31 December 2023 are not the Group's full
statutory accounts for that year. The auditor's report on those accounts was
unqualified and did not contain a statement under section 263 (3) of the
Companies (Guernsey) Law 2008.
3. Revenue
Six months ended 30 June 2024 Six months ended 30 June 2023 Year ended 31 December 2023
US$000 US$000 US$000
Supply of desalinated water 80 - 80
The group's revenue is derived from one fixed price contract held by its
Mauritian subsidiary Oasis Water Limited to provide desalinated water in
Djibouti. Commercial operations started in July 2023.
4. Loss per share
The calculation of the basic earnings per share is based on the loss
attributable to ordinary shareholders divided by the weighted average number
of shares in issue during the period.
Six months ended 30 June 2024 Six months ended 30 June 2023 Year ended 31 December 2023
(restated - note 1)
Loss for the period US$000 (8,221) (7,912) (15,578)
Weighted average number of shares 1,073,868,099 962,067,995 1,007,791,040
Loss per share, basic and diluted* US$(0.01) US$(0.01) US$(0.02)
*Inclusion of the potential ordinary shares would result in a decrease in the
loss per share and, as such, is considered to be anti-dilutive. Consequently a
separate diluted loss per share has not been presented.
5. Exploration and evaluation assets
30 June 2024 30 June 2023 31 December 2023
US$000 US$000 US$000
Balance brought forward 62,956 51,795 51,795
Farm-in proceeds (10,000) - -
Additions 7,122 5,855 11,161
Net book value 60,078 57,650 62,956
The Group has two cost pools being the Offshore Moroccan geographical area and
the Onshore Moroccan geographical area. As at 30 June 2024 the net book value
of the Offshore Moroccan geographical area US$51.9 million (31 December 2023:
US$61.8 million, 30 June 2023: US$57.6 million), and the Onshore Moroccan
geographical area US$ 8.2 million (31 December 2023: US$1.2 million, 30 June
2023: US$NIL).
On 7 December 2023 the Group announced a Sale and Purchase Agreement to sell a
portion of its interest in, and transfer operatorship of the Lixus Offshore
Licence, where the Anchois gas development project is located, and the Rissana
Offshore licence in Morocco, to Energean plc group ("Energean"). Completion
of the agreement was announced on 10 April 2024.
Following the completion, the Group's interest in the Lixus licence is 30%
(Energean: 45%) and in the Rissana licence is 37.5% (Energean: 37.5%). The
Office National des Hydrocarbures et des Mines retains its 25% carried
interest in both licences.
The Group received US$10 million on completion of the transaction and, could
receive further elements of consideration dependant on Anchois Final
Investment Decision and Energean's right to acquire a further 10% interest in
the Lixus licence.
6. Investments accounted for using the equity method
On 1 January 2024 the Group completed the transaction to increase its holding
in Etana Energy (Pty) Limited from 24.99% to 49%. Etana Energy (Pty) Limited,
which is a separate structured vehicle incorporated and operating in South
Africa. The primary activity of Etana Energy (Pty) Limited is to hold an
electricity trading licence. The contractual arrangement provides the group
with only the rights to the net assets of the joint arrangement, with the
rights to the assets and obligation for liabilities of the joint arrangement
resting with Etana Energy (Pty) Limited.
Future success based contingent payments are payable of net (undiscounted)
c.US$1.6 million on financial close of a 250MW generation project and a
further consideration of net (undiscounted) c.US$2.6 million payable in 2028,
subject to further significant generation projects reaching financial close.
Management anticipates these deferred payments to be met by financing at the
subsidiary level.
30 June 2024 30 June 2023 31 December 2023
US$000 US$000 US$000
Balance brought forward 58 5 5
Shareholder loan to Etana in the period 78 - 70
Payments made to increase holding 1,027 - -
Group's share of comprehensive loss for the period (109) (5) (17)
(included in administrative expenses)
Contingent consideration (as calculated and discounted at 1 January 2024 796 - -
completion date)
Balance carried forward 1,850 - 58
As at 30 June 2024, contingent consideration (as discounted to the reporting
date) is calculated as US$872,000.
7. Cash and cash equivalents
As at 30 June 2024 the cash balance of US$3.6 million (31 December 2023:
US$6.0 million) contains the following cash deposits that are secured against
bank guarantees given in respect of exploration work to be carried out:
30 June 2024 30 June 2023 31 December 2023
US$000 US$000 US$000
Moroccan licences 675 750 1,050
675 750 1,050
The funds are freely transferrable but alternative collateral would need to be
put in place to replace the cash security.
8. Share capital
Allotted, called up and fully paid
At At At At At At
30 June 30 June 2024 30 June 2023 30 June 2023 31 December 2023 31 December 2023
2024
Number US$000 Number US$000 Number US$000
Ordinary shares of 1p each
1,074,179,156 15,725 963,694,463 14,311 1,073,269,384 15,714
Details of the Ordinary shares issued during the six month period to 30 June
2024 are given in the table below:
Date Description Price per share US$ No of shares
1 January 2024 Opening Balance 1,073,269,384
23 January 2024 Issue of share award 0.25 100,000
23 January 2024 Issue of share award 0.22 24,783
23 January 2024 Issue of share award 0.12 41,494
11 March 2024 Issue of share award 0.22 743,495
30 June 2024 Closing balance 1,074,179,156
The ordinary shares have a nominal value of 1p. The
share capital has been translated at the historic rate at the date of issue,
or, in the case of the LTIP, the date of grant.
On 27 January 2023 Chariot Limited entered into a sales agreement for the
acquisition of the business and loan receivable assets of an independent water
producer, ENEO Water PTE Limited, an African company focused on delivering
clean water solutions using renewable energy. The agreement includes
contingent payments linked to the achievement of financial close on pipeline
projects payable in Chariot Ordinary shares. As at 30 June 2024 remaining
contingent payments representing a maximum of 1,824,595 new ordinary shares
are potentially payable to ENEO Water Pte Limited.
Under the terms of the June 2021 Africa Energy Management Platform share
purchase agreements, target conditions attached to the issuance of remaining
contingent payments have lapsed. As at 30 June 2024 there are no new ordinary
shares potentially payable.
9. Other components of equity
The details of other components of equity are as follows:
Shares to be issued reserve Foreign exchange reserve
Contributed equity
Total
US$000 US$000 US$000 US$000
As at 1 January 2024 796 - (17) 779
Loss for the period - - - -
Other comprehensive income - - 2 2
Loss and total comprehensive loss for the period - - 2 2
As at 30 June 2024 796 - (15) 781
Shares to be issued reserve Foreign exchange reserve
Contributed equity
Total
(restated - note 1)
US$000 US$000 US$000 US$000
As at 1 January 2023 796 142 (3) 935
Loss for the period - - - -
Other comprehensive income - - 13 13
Loss and total comprehensive loss for the period - - 13 13
Transfer of reserves due to lapsed share based deferred consideration - (142) - (142)
As at 30 June 2023 796 - 10 806
Shares to be issued reserve Foreign exchange reserve
Contributed equity
Total
US$000 US$000 US$000 US$000
As at 1 January 2023 796 142 (3) 935
Loss for the period - - - -
Other comprehensive loss - - (14) (14)
Loss and total comprehensive loss for the year - - (14) (14)
Transfer of reserves due to lapsed share based deferred consideration - (142) - (142)
As at 31 December 2023 796 - (17) 779
10. Events after the balance sheet date
Placing, subscription and open offer
On 13 August 2024 the Company announced the approval by shareholders at a
General Meeting of an equity fundraising which comprised an oversubscribed
Placing and Subscription and an oversubscribed Open Offer. The Company raised
a gross total of US$9 million (£7 million) through the issue of 106,704,899
New Ordinary Shares.
The net proceeds from the fundraising will be used to strengthen the balance
sheet to continue to progress and deliver value from Chariot's portfolio of
projects, secure a material new venture opportunity with multi-billion barrel
potential and progress onshore gas commercialisation plans in Morocco to
build a gas to industry supply.
Anchois-3 Drilling Campaign Offshore Morocco
On 20 August 2024 the Company announced the commencement of drilling
operations at the multi-objective Anchois-3 well (previously named Anchois
East well) at the Anchois gas project in the Lixus Offshore licence, offshore
Morocco.
On 11 September 2024 the Company gave an update on operations ongoing and
announced the results of the initial Pilot Hole exploration objective to
evaluate the upside exploration potential of reservoirs in the Anchois
Footwall prospect, which were found but are interpreted to be water bearing.
The hole was plugged and abandoned prior to sidetracking and drilling the Main
Hole.
On 16 September 2024 the Company announced the conclusion of the Anchois-3
Drilling Campaign and preliminary results. In the Main Hole, preliminary
interpretation indicates multiple good quality gas bearing reservoirs were
found in the B sand appraisal interval as anticipated, but the associated gas
pays are interpreted to be lower than the pre-drill geological model. Other
target reservoirs beneath the B sands were also encountered but were water
wet. The appraisal target reservoirs of the C and M sand were drilled deeper
than the gas bearing sands in the Anchois-2 well and into the water-leg at
this down-dip location. The Anchois North Flank exploration prospect was found
to have well-developed O sand reservoirs, with associated gas shows, but also
water wet. The Main Hole has been plugged and abandoned, without flow
testing.
Further detailed work by the partnership will be done to define the next steps
for the project.
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