WTI $90.27 +$2.01, Brent $91.11 +$1.64, Diff -84c, NG $4.89 -61c, UKNG 197.0p +7.0p

Oil price

So what can we say about the oil price this morning? For certain there is no sign to indicate that it is showing any signs of running out of steam any time soon. Iraq announced that it produced 4.16m b/d in January against its quota of 4.3m not something that is good for the upside potential.

Also Exxon said in its earnings call yesterday that it was planning to up production from the lucrative Permian Basin by some 25% following Chevron’s 10% hike last week. All this will help but it’s not game changing, however the week also saw an Opec+ meeting that lasted 16 minutes, stocks drawing again and cold weather across the USA.

Chariot

Total Eren, a leading renewable energy Independent Power Producer based in France and Chariot, the African focused transitional energy company, are pleased to announce the signing of a Memorandum of Understanding with Tharisa plc, the platinum group metals and chrome producer, listed on the Johannesburg and London stock exchanges, to develop, finance, construct, own, operate and maintain a solar photovoltaic (PV) project for the supply of electricity to the Tharisa mine, in the North West Province, South Africa.

The solar PV project is initially anticipated to be 40 MWp with demand expected to increase over the life of the Tharisa Mine. This MoU is the first step towards implementation of the Project and signing of a long-term Power Purchase Agreement for the supply of electricity on a take-or-pay basis.

Fabienne Demol, Executive Vice-President & Global Head of Business Development of Total Eren, commented: 

“We are very pleased to be entering into this MoU with Tharisa. Through our partnership with Chariot, we are keen to assist mining companies in Africa to reduce their carbon intensity and energy costs, via implementing renewable power solutions into their operations. We are eager to bring our global expertise in solar generation to Tharisa mine and we look forward to delivering further renewable projects for our mining customers in Africa and worldwide.”

Benoit Garrivier, Chariot Transitional Power CEO, commented: 

“This is a great outcome for Chariot’s Transitional Power division and demonstrates the financial and sustainable benefits that our offering can bring to mining companies operating in Africa. The Tharisa team are very forward looking and understand that the addition of a solar PV project at their mine in South Africa will bring significant benefits to the business. Together with Total Eren, we are excited to start working on the financing and development of the project and we will update the market further on this and other opportunities that we are progressing in due course.”

This is more very good news for Chariot as it continues to increase its spread across Africa and in both transitional gas and power. In its partnership with Total Eren, Chariot Transitional Power, looking to transform the energy market for mining operations in Africa and this is another important, substantial step along that road. 

What is more, and what I really don’t think that the market has yet to appreciate, is quite what the sheer size of the potential prize is in providing mining operations with power from solar PV projects across the continent of Africa. With its first mover position and partnerships Chariot is in a very strong situation and is also in a strong  in its gas business in Morocco where it is poised to be a key player in the country’s power generation capacity. Accordingly I remain convinced that the shares will rise by a factor as this prize is achieved in coming years. 

Kistos

Yesterday I sat down with Andrew Austin and talked about his recently announced deal with TotalEnergies at the Greater Laggan Area. The link below leads to the discussion which also covered the operational update and thoughts for the future.

Core Finance CEO Interview: Andrew Austin, Kistos Plc

Angus

Angus has announced that, further to its announcement of 3 February 2022 , it has successfully completed and closed the Placing. The Placing has raised, in aggregate, gross proceeds of £1,400,000 through the placing of 175,000,000 Ordinary Shares to certain institutional and other investors at a price of 0.8 pence per share.

The net proceeds of the Placing will be applied towards:

·    Increased contingency for Saltfleetby budget (now 90% finalised);

·    Geothermal Subsurface and potential site acquisition work; and

·    Working capital and general costs.

Admission and Total Voting Rights

Application will be made to the London Stock Exchange for admission of the 175,000,000 Placing Shares to trading on AIM. It is expected that admission will become effective and dealings in the Placing Shares commence on AIM at 8.00 a.m. on 10 February 2022 (or such later date as may be agreed between the Company and the Bookrunner, but no later than 28 February 2022).

The Placing Shares will be issued fully paid and will rank pari passu in all respects with the Company’s existing Ordinary Shares.

Following Admission, the total number of Ordinary Shares in the capital of the Company in issue will be 1,268,086,880 with voting rights. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company’s share capital pursuant to the Company’s Articles.

Capitalised terms used but not otherwise defined in this announcement shall have the meanings ascribed to such terms in the Company’s announcement made at 5.17pm on 3 February 2022, unless the context requires otherwise.

George Lucan, CEO, commented: 

“Expressed interest in the Company and its principal gas asset remains strong with five bona fide participants engaged in due diligence in the Company’s data room.  We expect a definitive result from our Formal Sales Process within a sensible period of time.  It is critical that that the Company is able to negotiate from a position of strong liquidity, remaining fully compliant with the terms of its development loan facility, and able to face all contingencies during the run-up to First Gas.”

A slight surprise to the market seeing a raise at such a discount yesterday but credit is certainly due to George Lucan who has underwritten Angus and thus can, as he says, negotiate from a position of strength. With five bidders in the room one would normally expect a sale to be expedited at a decent price especially with an asset so easy to value. Whichever way it goes, those lucky people who bought in this raise should be quids in.

Far

The bid situation at Far is hotting up and overnight we see that Meridian Capital International Fund, owner of 19.28% of Far stock rejected the Offer at the Offer Price as being ‘opportunistic and wholly inadequate’. In particular, in MCIF’s view, the Offer does not offer shareholders any benefit from the RSSD Contingent Payment, (from the sale of its interest in the RSSD project) let alone the cash backing and the existing oil and gas interests. 

It comes as no surprise to see this statement from MCIF who know an opportunistic bid when they see one as do I. Overnight the level of the shares had risen to the A65c level and should be higher, there are too many upside imponderables here… 

And finally…

The Fa Cup returns this weekend with no absolute thrillers in the offing but I’m sure some of the ties will turn into something big. Tonight the Red Devils are playing badly and are short of players as they visit the ‘Boro. Tomorrow Plymouth visit Stamford Bridge, Kidderminster host the Hammers, The Cottagers make the trip to the Emptihad and the Canaries go to Wolves. Tomorrow Liverpool host the Bluebirds, the East Midlands derby sees the Foxes at Forest  and the Cherries host Boreham Wood.

And the return of the Six Nations sees Ireland v Wales and Scotland v England tomorrow and France v Italy on Sunday.

Racing from Sandown if you avoid that rubbish from Ireland…

And I’m sitting here seeing the Opening Ceremony for the Winter Olympic games…