Page 20 - AfrOil Week 39

AfrOil NEWS IN BRIEF AfrOil

Cash and cash equivalents as at September 18,
2020 was $22.6mn ($6.8mn is restricted and held
in escrow for the Oza transaction).
During 2020 to date, $41.5mn (June 30, 2019:
$10.7mn) has been received in relation to pay-
ments due to San Leon under the Loan Notes.
The Company is scheduled to continue to be
repaid against the Loan Notes, the balance of
which is currently $88.7mn, on a cash receipts
basis.
A share repurchase of $2.0mn of Company
shares was completed between October 2019
and January 2020.
A special dividend of $33.3mn was declared
in May 2020, giving a dividend yield of
approximately 30% as at the date of dividend
announcement.
Loss from continuing operations for the
period ended June 30, 2020, was $20.3mn (June
30, 2019: loss of $6.8mn). For clarity, this figure
does not reflect Loan Notes cash received.
Operational: An update on OML 18 activity
during the first six months of 2020 is provided
below. Eroton completed its three well drilling
programme in early 2020, with the final com- operator have been relatively stable over the past 690 bcf or 19.54 bcm 2U prospective resources);
pletion and flow of these wells impacted by year (June 30, 2020: 20%; June 30, 2019: 18%). new ventures are being evaluated, defined by
COVID-19. The recent lower oil price has led In the longer term, the export Pipeline and FSO Chariot’s values, strengths and the scalability of
Eroton to improve capital discipline and the pru- system mentioned above are expected to reduce the opportunities.
dent deferral of the next drilling campaign, now losses significantly. Adonis Pouroulis, Acting CEO of Chariot,
expected to commence towards the end of 2021. Chief Executive Officer of San Leon, Oisín commented: “This is an exciting phase in the
Eroton informs the Company that it has taken Fanning, commented: “The Company’s position evolution of the Company, as the new team
all appropriate precautions for its operations and and outlook [remain] strong. Whilst the world takes action to drive the Lixus opportunity
people, with regards to COVID-19. and the industry has been through turbulent forward and bring in value-accretive new ven-
Oil delivered to Bonny terminal for sales was times, we have taken advantage of the opportuni- tures that play into the energy transition theme.
approximately 25,200 barrels per day (bpd) of oil ties presented by this as well as utilising our cash With each day that passes more potential in the
in H1-2020 (32,000 bpd in H1-2019) and contin- position to further build our portfolio in Nigeria Lixus licence is uncovered, delineating a major
ues to be affected by combined losses and down- in line with our strategy. Our investment in ELI gas resource with strong ESG credentials and
time of approximately 32%. The 2020 figure has will support the reduction in pipeline losses and national significance for Morocco.
also been affected by OPEC oil production quota downtime at OML 18 whilst also providing loan “Africa is the one continent where population
restrictions. Together, the losses, downtime and note repayments as well as equity returns. growth and demand for power are rising rapidly
OPEC restrictions cause the majority of the dif- “Our strong position is expected to continue and are projected to continue to rise throughout
ference between gross production when there is in the year ahead as we receive further Loan Note this century. With this, Chariot is ideally placed
no disruption to production, and oil is received payments and deliver upon our strategy.” with its Moroccan gas development foothold to
at Bonny terminal for sales. San Leon Energy, September 25 2020 reach out and invest into other alternative pro-
Gas sales averaged 39.1mn cubic feet jects that embody our core values, demonstrate
(1.107mn cubic metres) per day in H1-2020 after Chariot Oil & Gas releases our vision and create value for shareholders as
downtime (34.3 mcf or 971,300 cubic metres per we seek to make the Company more relevant to
day in H1-2019). H1-2020 results future energy needs.
Production downtime of 15% in H1-2020 “The work the team has undertaken to
was caused by third party terminal and gather- Chariot Oil & Gas, the Atlantic margins-focused advance the Anchois project during the period,
ing system issues. Such issues in the third-party energy company, today announces its unaudited in what is shaping up to be a multi-tcf prospec-
export system are expected to be substantially interim results for the six-month period ended tive licence area, has served to enhance its com-
resolved by the implementation of the new June 30, 2020. merciality and bring a highly scalable, fundable
ACOES for the purpose of transporting, stor- Highlights: New Executive Team appointed development opportunity onto the radar of insti-
ing and evacuating crude oil from the OML with new values, mission and energy to create tutional financing. We look forward to further
18 export Pipeline. The Pipeline will run from growth and deliver positive change through project endorsements and hope to announce
within the OML 18 acreage to a dedicated investment in projects that are driving the more progress in the coming months as the gap
Floating Storage and Off-loading (FSO) vessel energy revolution; upgrade of audited total narrows between the market’s perception of the
in the open sea, approximately 50 km offshore. remaining recoverable resource to in excess of Company and what management feel is cur-
Expected timing for the commencement of 1tn cubic feet (28.3bn cubic metres) for Anchois, rently a vastly undervalued clean energy invest-
operations is in the coming quarters. representing a 148% increase (comprising 361 ment proposition.”
Pipeline losses by the Bonny Terminal bcf or 10.223 bcm 2C contingent resources and Chariot Oil & Gas, September 29 2020

P20 www. NEWSBASE .com Week 39 30•September•2020