Tom Winnifrith Bearcast: No longer a down and out old man but a throwback to the 1970s & I hate James Hay
Tim Kempster beats me to it: Letter to AIM Regulation & FCA re Versariens' shambles of an RNS today & Neill Ricketts share deals
Oil exploration is very different to the boom we had back in 2010 in terms of the share price movements that we see for companies that are engaged in drilling.
From the FCA's spreadsheet of short positions required to be disclosed to it, the following shows the shorted AIM shares with positions from 2017 and thus far in 2018 (by net short position %) - and if this position has increased (red), reduced (green) or remained unchanged (black) since last week...
Chariot Oil and Gas (CHAR) has begun to get my attention again recently as it has plenty going on operationally during the next year or so, and could well become a popular share to be in once again.
If you want me to analyse a stock for you just drop me a line at email@example.com - Today I look at shares in Chariot Oil & Gas (CHAR), Eland Oil & Gas (ELA), Lekoil (LEK) and set share price targets for all three.
Featuring shares of Chariot Oil & Gas (CHAR), Edge Resources (EDG), Gulf Keystone (GKP), Kenmare Resources (KMR), Solo Oil (SOLO), W Resources (WRES), together with some share price targets.
On Wednesday, Chariot Oil & Gas (CHAR) issued its “pre-close update”. It described both the challenges and opportunities it faces in the current climate, in a bid to soothe investor concerns about the company’s declining share price. At 7.85p, Chariot is near its 52-week low and is worth £20.8million, well below the expectations of many shareholders. Frustration has been growing at a perceived lack of progress, but is this fair? I caught up with CEO Larry Bottomley to hear his views on how he plans to navigate the oil sector’s troubled waters.
After my recent interview with Chariot Oil & Gas (CHAR) CEO Larry Bottomley, I predicted the company wouldn’t relinquish its Central Blocks licence, offshore Namibia. Although I wasn’t far off the mark in this, what I didn’t anticipate was that Chariot would renegotiate the terms of the licence and remove the requirement for an exploratory drill in the next phase.
On Friday, I published the first part of my interview with Chariot Oil & Gas (CHAR) CEO, Larry Bottomley. I led with my view of the Namibian Central Block licence, as the deadline for the First Phase Renewal Extension is on August 31st. However, this aspect of Chariot’s business was only a small part of our discussion. I spent far more time talking with Mr Bottomley about developments in Brazil and why July’s placement was a necessity for the company. Remember that when I first wrote a response to this £8.8million fund raising I concluded that it looked like a product of poor planning. I don’t mind admitting now that I think I was wrong about this and the rationale for July’s foray into the market was better founded than it initially appeared. Even if the price was terrible.
A month ago, I wrote a critical piece about Chariot Oil & Gas (CHAR) in reaction to its £8.8million placement. The company has responded perfectly. It didn’t petulantly jump up and down, demanding a retraction, but instead approached me, asking if I’d like to talk directly with CEO Larry Bottomley. I thought this was a risky move on Chariot’s part, as our reputation here for not taking prisoners is well deserved. However, the request was courteous and seemed genuine. I was happy to take the call on the understanding everything we discussed would be on the record and I wouldn’t write a PR puff piece. Chariot agreed and Mr Bottomley was refreshingly candid in his answers. In this first piece I deal with the looming deadline for the company’s Central Block licence, offshore Namibia.
The price of Chariot Oil & Gas’ (CHAR) placement yesterday would have come as a shock to most holders. After a year of apparent progress across its portfolio of Atlantic Margin oil exploration assets, including three farm-outs, few would have expected the company to place at a 52 week low. What damage this transaction does to sentiment towards this stock remains to be seen, but Chariot is now likely to face an uphill battle convincing investors of its inherent value.
It pays for a company not to have all its eggs in one basket. The way that Chariot Oil and Gas (CHAR) has diversified makes it even more attractive. All eyes are focused on the forthcoming exploration activity in Namibia targeting multi-billion barrels of oil, and, although Chariot have no direct involvement in the drill by Repsol and Tower Petroleum (TRP), which is due to spud in a few weeks time, a successful result finding commercial oil would give a massive boost to its own share price.
Perhaps I am a mug punter, an inveterate gambler or just plain stupid, but I can’t help shake the feeling that 2014 could be a good year for AIM Oil & Gas exploration stocks. When writing, one of my favourite rants is about how the Alternative “Investment” Market is investment death. This view isn’t universally popular, yet you will have a hard time convincing me that anyone who puts money into AIM isn’t a speculator, pure and simple.
Given the way that there has been a couple of false breaks to the upside in the recent past at Chariot Oil & Gas, the first in January and the second last month it may appear to be wise to hold back on calling the stock a lasting recovery play.
Chariot Oil & Gas is yet another of those in the E&P area where given the benefit of the doubt to the bull argument would have come around and bitten you with all the grace of a Liverpool striker.
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