Auctus Advisors analyst Stephane Foucaud, in a research report published on May 20, 2024, provided an update on Chariot Ltd. (CHAR:AIM) following the company's announcement that it has started drilling the Dartois prospect onshore Morocco. The analyst reiterated a target price of £0.50 per share, implying a total return of 525% from the share price at the time of the report of £0.08.
"Chariot has started to drill the Dartois prospect onshore Morocco. The well is targeting a different reservoir system and trapping style than the Gaufrette prospect," Foucaud noted.
The main target at Dartois is estimated to hold 12 bcf of gross prospective resources, and a successful drilling campaign would de-risk a total of 20 bcf of gross prospective resources (+8 bcf) in the Dartois area.
In the event of a successful drilling outcome, Chariot plans to run a rig-less well test.
"Our unrisked NAV for the well is £0.05 per share with a ReNAV of £0.02 per share," Foucaud stated.
The analyst also highlighted the importance of the upcoming Anchois East well, which is expected to spud in the third quarter of 2024 (3Q24).
"Anchois East is a very important well that could increase the size of Anchois to over 1 tcf (300 bcf net to Chariot). Our overall unrisked NAV for Anchois, including Anchois East Footwall and Anchois East North Flank, is £0.42 per share. This represents 4.5 times the current share price," Foucaud commented.
Auctus Advisors' valuation of Chariot remains unchanged, with a Core NAV of £0.28 per share and a Sum of the Parts valuation of £0.49 per share.
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Disclosures for Auctus Advisors, Chariot Ltd., May 20, 2024
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