Don't like doing threads but have been alerted to this one as it trades well below cash position and allegedly has directorate links with the massive Petrobas. Last broker target was something like 165p - currently 26! The bates is in.

The sp will recover.....big fund raising can do this......the amount of possible oil in the ground is mind blowing ; 13 billion barrels....only the Saudis have something like that !.

as a layman, i'm pretty suspicious of that "big number" ..... if i understand correctly, that is just the amount they THINK is there but has yet to be proved, and further, the % then recoverable, once anything at all is found, is perhaps 40% of that

It does seem rather large.....TRP is another oilie in that area worth keeping an eye on....

recollect getting rather singed on TRP a while back ...... while they will of course rocket if they ever find anything worthwhile, i'ld have thought CHAR to be a better bet in that region - being well counter-balanced by AFR (other coast!) and TLW

Do you not think the board think it was at a at silly overhauled price and thought lets raise a huge amount of money which they did and have played a blinder.

Still overhauled!!!

perhaps, but quite possibly a turn to be made

Again, just a cautionary note from The FT sector watcher:
"CHAR this morning announces a 90m ($146m) equity fundraising at 250p/share, a hefty 18% discount to Fridays close. I mentioned a couple of weeks ago that there was a good chance of a sizeable fundraising happening soon, hence todays news is no huge surprise. The cash will be used to fund the groups initial drilling activities on its offshore Namibian acreage, including the drilling of a well on its 100%-owned Northern acreage ($65m), a second well on its 50%-owned Southern acreage ($25m net CHAR), as well as the acquisition of 5,000 sq km of 3D seismic ($50m). The first well is due to commence drilling in Q4 this year, although Im not aware that a rig has actually been signed yet.
Id be cautious of getting involved with this one, I suspect that the reason the group has gone to the equity market for cash is that it has not been able to attract decent farm-out terms from industry CHAR has had a data-room open since February 2010. The group maintains that it will conclude a farm-out deal by the end of this month, Ill be interested to see the terms. Whilst the group claims it is targeting over 10bn barrels of prospective resources (net) across 12 exploration leads, these all appear extremely high-risk, and the stock remains a long-term sell in my view.

I am cancelling the FT from tomorrow.

i suspect this is just the FT BB and not the pink paper itself

No, not the discussion board, but the oil sector watcher for the FT. He can be a bit bearish!

just got out in closing auction for b/e ..... stock seems disinclined to head north

Is CHAR a buy or sell now?

I guess it's a sell, 215p now, on a daily drop recently.

needs to break 220 otherwise expect further southerly movement

Looks like 180p support, if that breaks further downtrend.

UBS broker note:
We initiate coverage with Buy ratings on three small-cap, Africa-focused E&Ps Chariot, Cove and Bowleven where we see significant upside
potential through exploration and M&A. To assess this potential, we look at:
The geological history of the basins to which these companies are exposed, and the potential for further or future oil/gas discoveries. Political, fiscal, financing and commercial risks, and management track record. The valuation of the companies based on a NAV approach, and the upside that each company offers in the event of further near-term discoveries.
M&A potential: the attractiveness of each company to a corporate buyer.
We believe the best opportunity lies with Chariot Oil & Gas (Buy, PT 450p), which offers 1630% upside to the current share price for two successful wells, is trading at a significant discount to NAV (60%), and has seen recent share price weakness relating to comments by Namibias minister of mines which we believe do not affect the outlook for Chariot.

Thanks for that Harry.

do they have their percentages right?
regards
jkd

I think it is just badly worded. Their current PT (price target) is 450p, but (I think) their next statement implies that should the next two wells be successful, they would anticipate a 1630% increase in the sp (taking it to 3260p from 200p). Maybe?

? Surely not! Even shares in Shell are not that much!

More likely to be 163% - though even that doesn't work as it would bring the price to 355p from the current 218p.