Chariot Advances Key Energy Projects in Morocco and Africa, Eyes Near-Term Cash Flows

In a year marked by significant strides in energy development, Chariot, an Africa-focused transitional energy company, has reported impressive advancements across its gas, renewables, and green hydrogen projects, particularly in Morocco. The company's audited final results for 2023 highlight a series of strategic moves poised to secure its place in the continent's burgeoning energy sector.

"In Morocco, we secured a highly experienced partner for our offshore Anchois gas project, secured new acreage, and successfully drilled in the contiguous Loukos Onshore license," stated CEO Adonis Pouroulis in the financial report. The statement underscores Chariot's commitment to de-risking its divisions, especially in Morocco and South Africa, and lays out a roadmap for future growth.

Strengthening Moroccan Ties

Chariot has bolstered its presence in the Moroccan energy landscape by partnering with Vivo Energy and Energean plc to advance the Anchois gas project. This collaboration marks a significant step towards harnessing Morocco’s offshore energy potential. The award of the Loukos Onshore license further cements Chariot's foothold in the region, with initial drilling at the Dartois prospect already confirming a gas discovery.

The Anchois gas development has achieved several critical milestones, including the completion of the Front End Engineering and Design (FEED) and securing a rig contract with Stena Drilling. An appraisal and development well is slated for drilling in the third quarter of 2024, signaling tangible progress towards production.

Expanding Footprint in South Africa

South Africa remains a key focus, with Chariot increasing its stake in Etana Energy to 49%, marking a notable expansion in its renewable energy portfolio. The company also achieved a significant milestone by wheeling renewable energy through Cape Town’s grid for the first time.

Solar Projects Across the Continent

Chariot is advancing major solar initiatives across Africa, with projects including a 40 MW installation in South Africa, a 30 MW project in Zimbabwe, and an ambitious 430 MW solar and wind project in Zambia. The operational Essakane 15 MW solar project in Burkina Faso continues to deliver strong performance, exemplifying the company's growing impact in renewable energy.

Green Hydrogen Ventures

In the burgeoning green hydrogen sector, Chariot has completed a feasibility study for Project Nour in Mauritania, confirming its potential for both domestic use and export. The company is also making headway in Morocco through collaborations with the Mohammed VI Polytechnic University (UM6P) and Oort Energy, a UK-based green hydrogen systems manufacturer.

Financial Fortitude and Future Prospects

Chariot's financial health remains robust, bolstered by a $19.1 million raise through an oversubscribed open offer in June 2023 and an additional $10 million from the completion of the Energean deal in April 2024. The company reported a strong balance sheet with $6.0 million in cash and no debt at the end of 2023.

Looking forward, Chariot aims to generate near-term cash flows from its gas business while continuing to expand its renewable and hydrogen projects. The company is committed to returning capital to shareholders and exploring new opportunities within its existing asset base.

Chariot's 2023 results showcase a company on the rise, strategically positioning itself at the forefront of Africa's energy transformation. With a blend of traditional and renewable energy projects, Chariot is poised to play a crucial role in addressing the continent’s energy needs while paving the way for sustainable development.