Chariot Oil & Gas Limited (LON:CHAR) share price has been volatile in recent months as investors have reacted to news flow surrounding the company. In May, the shares fell sharply after Chariot announced that it had failed to find commercial quantities of oil at its exploration well off the coast of Namibia. However, they have recovered some ground since then on the back of speculation that the company could be a takeover target.
Chariot Oil & Gas Limited today announced that it has agreed a $75 million senior debt facility with funds managed by Oaktree Capital Management, L.P. (“Oaktree”).
The agreement is for a three-year term with an interest rate of LIBOR plus 9.0%. The loan is secured by a first ranking charge over the Company’s shareholdings in its subsidiaries, Chariot Energy Inc. and Namibian Ventures Limited, which hold the Company’s interests in offshore Namibia.
The net proceeds of the loan will be used to provide working capital and for general corporate purposes. This will include funding the majority of the costs associated with the ongoing Front End Engineering Design (“FEED”) study for the Orca field development in Block 1711 offshore Namibia as well as further reducing short term indebtedness within the group.
This is positive news for Chariot shareholders as it provides more certainty around funding for the company’s key Orca project.
With this latest move, Chariot has taken another step forward in progressing towards its goal of becoming a mid-tier independent oil and gas company operating in multiple jurisdictions across Africa.
Chariot Oil And Gas Share Price Forecast
Chariot Oil and Gas share price forecast is an estimate of where the Chariot Oil and Gas shares are likely to trade in the future. The share price forecast is based on a number of factors, including the company’s financial performance, current share price and market conditions.
The Chariot Oil and Gas share price has been volatile in recent months, due to a number of factors.
These include the falling oil price, which has impacted the company’s revenue and profit margins; concerns about the company’s debt levels; and worries about its exposure to political risk in North Africa.
Despite these challenges, Chariot Oil and Gas remains a strong company with significant potential. Its portfolio of assets includes some of the most prospective offshore oil exploration acreage in the world, including in countries such as Namibia, Morocco and Ghana.
In addition, the company has a strong balance sheet with low levels of debt relative to its peers.
As such, we believe that the Chariot Oil and Gas share price could rebound strongly over the medium to long term as oil prices recover and investors gain greater confidence in the company’s prospects.
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Is Chariot Oil a Publicly Traded Company
Chariot Oil & Gas is a London-listed oil and gas exploration company with a portfolio of assets in the Atlantic Margin, offshore Morocco and Namibia.
The company was founded in 2007 by CEO Paul Welch and COO David Horgan, who together have over 50 years’ experience in the oil and gas industry. Chariot’s strategy is to build a diversified portfolio of high quality oil and gas assets through a combination of greenfield exploration, strategic acquisitions and farm-ins.
The Company is headquartered in London, UK with an office in Perth, Australia and has approximately 60 full time employees.
When was Chariot Oil & Gas Limited Founded
Chariot Oil & Gas Limited is an oil and gas exploration company that was founded in 2007. The company has its headquarters in London, United Kingdom. Chariot Oil & Gas Limited is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
Chariot Oil & Gas big turnaround – char share price
Conclusion
Chariot Oil and Gas share price has been volatile in recent months, however the company announced some great news that has investors optimistic about the future. Chariot recently signed a deal with Total SA which will see the French oil giant take a 60% stake in two of Chariot’s offshore blocks in Morocco. This is a huge vote of confidence from one of the world’s leading energy companies and should help to attract more investment into Chariot’s operations.
The share price has already started to recover and with more good news expected in the coming months, now could be a good time to buy shares in this exciting oil exploration company.
