Chariot (CHAR), the Africa focused transitional energy company, announces its unaudited interim results for the six-month period ended 30 June 2021.
- Appraisal drilling at Anchois, offshore Morocco, anticipated to commence in December 2021; a key step in early monetisation path for Anchois gas development project.
- Key contracts and team in place with the signing of a contract for the Stena Don rig and award of well services contract to Halliburton.
- Acquisition of Africa Energy Management Platform ("AEMP") completed in Q2 2021 under the new Transitional Power business stream looking to transform the energy market for mining operations in Africa, providing a largely untapped market with cleaner, sustainable and more reliable power.
- Memorandum of Understanding ("MoU") signed with the Government of Mauritania to progress a potential green hydrogen development.
- Recapitalised Company through successful placing, subscription and open offer.
Adonis Pouroulis, Acting CEO of Chariot commented:
"We have achieved significant progress in the first half of the year as we aim to deliver on the strategy in place across our two business streams. We are fully focused on delivering a successful, safe and cost-effective appraisal well in Morocco that meets the objectives set out in our earlier fundraising. The acquisition of AEMP has brought a pipeline of high-value accretive clean energy investment opportunities and we are making great strides in our relationship with Total Eren to bring these projects to investment stage.
We are on track for drilling operations to commence in December 2021 and look forward to an exciting period of newsflow from our Moroccan operations and across the wider group with the progression of our exciting new power business stream."
Highlights during and post-period:
The Anchois Development Project
- Rig contract awarded to Stena Drilling to use the Stena Don, a semi-submersible rig, suitable for drilling, completion, and workover operations. Anchois appraisal drilling operations are anticipated to commence in December 2021 and expected to take up to approximately 40 days.
- Appraisal drilling objectives:
- Unlock the development of the discovered sands by confirming the gas resource volumes, reservoir quality and well productivity.
- Provide a future production well for the development of the field.
- Potentially deepen the well into additional low-risk prospective sands with the aim of establishing a larger resource base for longer term growth.
- Gas Market Memorandum of Understanding ("MOU") signed in March 2021 with partner the Office National des Hydrocarbures et des Mines ("ONHYM") and the Ministry of Industry, Trade and Green and Digital Economy ("Ministry") in Morocco to support the Anchois Gas Development.
- Collaboration agreement with Subsea Integration Alliance signed in February 2021, a developer of
offshore gas projects, to progress the front-end design, engineering, procurement, construction,
installation and operation of the Anchois Gas Development.
- Rissana Offshore Licence, Morocco, capturing prospective acreage surrounding the core Anchois development, in process of formal award.
- Acquisition completed of AEMP in Q2 2021.
- Acquisition meets Chariot's key environmental, social and corporate governance ("ESG") values of positive impact on the environment, countries, and communities where it operates.
- Entire AEMP team fully integrated into Chariot, under the Transitional Power business stream, including founders Benoit Garrivier and Laurent Coche.
- Right to invest in up to 15% project equity at cost in projects developed in strategic partnership with Total Eren, a global renewable IPP to develop low-risk mining power projects in Africa.
- Partnership has built a pipeline of 500MW of African mining power projects; Chariot's management is also looking to leverage its other significant business interests in multiple mining operations across Africa to rapidly grow the pipeline.
- First project in operation, the largest hybrid solar plant in Africa, at the Essakane gold mine in Burkina Faso, successfully completed and currently generating returns providing proof of concept.
- Green hydrogen project given exclusivity over an onshore and offshore area in Mauritania totalling approximately 14,400 km2 to carry out pre-feasibility and feasibility studies with the intention of generating electricity from solar and wind resources to be used in electrolysis to split water to produce green hydrogen and oxygen.
- Transitional Gas and Transitional Power teams continue to evaluate new opportunities that play to our strengths as energy professionals and our long-standing presence and experience across the African continent
- Unaudited cash balance as at 30 June 2021 of US$18.0 million
- Successful fundraise completed H1 2021 to fund Gas and Power work programmes
- No debt or remaining work commitments