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
- 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
- The RZK-1 well drilled on the Gaufrette prospect confirmed good quality reservoir and multiple gas shows, though was sub economic
- Gas discovery confirmed from drilling the OBA-1 well at the Dartois prospect - gross interval approximately 70m of primary interest identified
- 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
- Financing negotiations are progressing well
- 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)
- Provides end to end electricity solutions by generating and trading energy through South Africa's national grid
- 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
- 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:
- Tharisa - 40MW solar project in South Africa
- Karo - 30MW solar project in Zimbabwe
- 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
- Confirmed scale and scope of project and outlined phased development approach
- 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)