Chariot, the Africa focused transitional energy company, today announces its audited final results for the year ended 31 December 2020.

2020 and Post Period Highlights

Building an African focused Transitional Energy Group

• Strategy updated with new mission to have a positive impact on the environment, the countries and the communities that we operate in.
• Name changed to Chariot Ltd and rebranding under the strapline Chariot Transitional Energy, with a focus on Africa through the twin business streams of Transitional Gas and Transitional Power.
• Transitional Gas holds the Moroccan licences Lixus Offshore, containing the Anchois gas development, and the soon to be formally awarded Rissana Offshore, with operatorship and 75% working interest.
• Transitional Power, a second business stream, launched in Q1 2021 with the acquisition of African Energy Management Platform ("AEMP"). The recently completed acquisition, initially looks to transform the energy market for mining operations in Africa, providing a giant largely untapped market with cleaner, sustainable, and more reliable power.
• Recapitalised Company through successful placing, subscription and open offer, raising net US$18.8 million in Q2 2021 with a further US$4.2 million underwritten by Magna Capital LDA (of which Adonis Pouroulis is a substantial shareholder); funded to progress both business streams.

Transitional Gas

• Anchois appraisal drilling planned for Q4 2021 with 3 distinct objectives: (1) reconfirm the original discovery A&B sands; (2) provide a producer well location to be suspended for future use; (3) potentially drill the additional prospective sands and potentially establish a larger resource base for longer term growth.
• Rig tender process underway; assembling key team members from the 2018 drilling campaign that delivered a well on time and within budget.
• The Anchois gas development's 2C base case resource has a net NPV10 of approx. US$500 million with an IRR in excess of 30% yielding expected annual revenues of up to US$200 million.
• Reprocessing of 3D seismic data across Lixus completed; Upgrade of audited total remaining recoverable resource to in excess of 1 Tcf for Anchois, representing a 148% increase (comprising 361 Bcf 2C contingent resources and 690 2U prospective resources).
• Expression of Interest Letters to debt finance the development received from African Finance Corporation ("AFC"), a pan-African multilateral development financial institution with over US$6 billion in assets, and a major multinational investment bank, which is a leading provider of finance in the energy sector.
• Key terms agreed on new Rissana Offshore Licence, Morocco, with formal award expected in 2021, capturing prospective acreage surrounding the core Anchois 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.  
• 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.

Transitional Power

• Acquisition completed in Q2 2021 of AEMP for consideration of up to US$2 million payable primarily in Chariot Ordinary Shares.
• Whole AEMP team to join Chariot, including founders Benoit Garrivier and Laurent Coche who become shareholders in Chariot.
• Acquisition meets Chariot's key environmental, social and corporate governance ("ESG") values of positive impact on the environment, countries, and communities where it operates.
• 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 and scale-up.
• Recovery of overhead costs as part of the partnership provides an immediate post-acquisition revenue stream to finance ongoing costs.
• 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.
• Funded for next project, expected to reach financial completion in the near term.

Other licences:

As announced in September 2020, the Company will likely only proceed with exploration if nearby adjacent drilling de-risks the basin sufficiently to generate partnering.

• Non-cash impairments of US$66.7 million made in respect of Namibia and Brazil and US$0.5 million. against remaining drilling inventory reflective of change in strategic direction and Management's approach to non-core assets in the current challenging market environment.
• Whilst fully written down, Chariot has retained its interest in Namibia and Brazil with no work commitments going forward and will continue to host data-rooms for marketing of both assets.

Corporate

• 2020 year-end cash position of US$3.7 million, no debt, with no remaining work commitments.
• Restructuring in April 2020 reduced annual cash overheads from US$4.5 million to US$2.5 million.
• New executive team appointed in July 2020 with Adonis Pouroulis, previously Non-Executive Director and the Company founder, taking over as Acting CEO and both Julian Maurice-Williams and Duncan Wallace joining the Board as executive directors in roles of Chief Financial Officer and Technical Director respectively.
• Moroccan Country Director, Pierre Raillard appointed and local office opened.
• Rebranding completed with name changed to Chariot Ltd under the tagline of "Chariot Transitional Energy" in the post period.

Outlook:

• Secure rig in low cost environment, drill appraisal well on Anchois to confirm resource base and test deeper prospects.
• Strategic partnering on Lixus to share in risks and rewards of high value, low risk gas development project with strong ESG credentials in a fast-growing emerging economy with a clear route to early monetisation.
• Progress near-field Anchois tie-back prospects and Rissana area surrounding Lixus.
• Integration of Transitional Power business, investment in next project in partnership with Total Eren and development of 500MW pipeline with expected conveyor belt of projects.
• Evaluate further value-accretive new ventures in energy transition according to the Company's values.

Adonis Pouroulis, Acting Chief Executive Officer of Chariot, commented:
"We are now entering an exciting and important phase in the growth of the Company. The recently completed fundraising will give us the capital required to turbocharge our growth ambitions and capitalise on the high value opportunities we see in front of us in both our transitional gas and transitional power businesses.

At Anchois, we intend to further progress the commerciality of the licence by drilling an appraisal well. We firmly believe that Anchois ticks a number of boxes when it comes to key investment criteria, such as low project risk, robust potential returns and strong ESG credentials. The focus on transitional energy can be seen clearly at Anchois, where Chariot has the potential to provide the Kingdom of Morocco with a domestic source natural gas to power and industry, enabling the country to achieve its target of decarbonising its economy and reducing its dependence on imported fuels. We look forward to commencing with the drilling of a safe, efficient and cost-effective appraisal well as fast as practically possible.

The launch of Chariot Transitional Power places the Company in a unique position in the market. This acquisition will see us work with our partner, Total Eren, one of the world's largest players in the renewable energy space, to provide clean, sustainable, and more competitive energy to operational mines in Africa. A market of significant scale, that is largely untapped, where Chariot's management has a deep understanding and high-level commercial networks. As the AEMP team integrates into Chariot, we look forward to investment into the next project with Total Eren and further progress to the strong pipeline of projects in excess of 500MW.

The Board are firmly aligned with shareholders and the Directors of Chariot have subscribed for a material amount of the recent Fundraise. This reinforces not only the Board's belief in the Chariot story, but also its commitment to ensuring that Chariot achieves the growth targets it sets out."

KeyFacts Energy company/country profiles: Namibia   l   Morocco   l   Brazil