REG - Chariot Limited - Operational Update

ChariotAnnouncement

29/01/2024 07:00

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RNS Number : 1337B  Chariot Limited  29 January 2024

 

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                                              +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

 

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 (https://chariotenergygroup.com)

 

 

 

 

 

 

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