Chariot Oil & Gas
Chariot has announced this morning that the CPR on the Anchois discovery in Morocco by Netherland Sewell shows an upgrade of audited total remaining recoverable resource to be in excess of 1Tcf. Within this they include Anchois North as a low risk priority satellite prospect with 308 Bcf of 2U prospective resources with a geological COS of 43%. A further CPR on an additional 5 prospects on the Lixus licence will be completed after 3D seismic reprocessing project is finished.
Chariot CEO described this as ‘exciting and commercially attractive development opportunity which is a significant understatement. He continues ‘ this de-risked resource base in a fast growing energy market with high gas prices’ to which I would add a welcoming Government and an attractive fiscal regime. This is franked by a number of recent deals by other UK companies in Morocco where investment is rewarded by high margin profitable activity.
Chariot has clearly done a very good deal in the shape of Lixus and this CPR adds to that substantial potential, the shares up again today but only to 5.3p have much upside especially if you bear in mind the 4p of cash per share on the books.
Like the market it is always good to see directors buying shares for cash and I note that Bill Higgs, new CEO of Genel has bought 35,000 odd shares in the company. I interviewed Bill a little while ago and he was full of confidence about the future for Genel, it’s good to see him putting his money where his mouth is, so to speak.
Victoria Oil & Gas
I will update more on VOG tomorrow, this blog is already late thanks to rubbish internet on a railway but wanted to comment on the Q1 update.
The update shows gross production up 127% to 10.1mmscfd in the quarter with ENEO making 5.5mmscfd of that. The company signed two new clients that both took thermal and industrial power which is a good way of reducing the reliance on ENEO.
The Weatherford dispute is still in dispute but VOG are working to complete the matter. With Roger Kennedy now Executive Chairman and added to by two more highly experienced non-execs, the balance sheet strengthened by tge £13.6m raise and a doubling in revenues VOG looks in good shape, recent history has meant that the shares remain a bit in the doldrums but the upside now is there for all to see.