Business
Strategic Update and Response to Market Conditions
Strategic Update and Response to Market Conditions.
About this update from Chariot Limited
[{"type":"text","content":"\n \n \n RNS Number : 2626J\n Chariot Oil & Gas Ld\n 09 April 2020\n \n \n \n \n \n \n \n \n \n \n 9 April 2020\n \n \n Chariot Oil & Gas Limited\n \n \n (\"Chariot\", the \"Company\" or the \"Group\")\n \n \n Strategic Update and Response to Market Conditions\n \n \n Chariot Oil & Gas Limited (AIM: CHAR) today provides an update on its strategic direction and response to current market uncertainty related to COVID-19 and commodity price weakness.\n \n \n \n \n \n \n \n \n · \n \n Corporate strategy to focus on monetising near term potential of the Lixus licence and maximising value for investors by developing a Moroccan gas business. \n \n \n \n · \n \n Organisation restructured to deliver this strategy with a continued focus on capital discipline:\n \n \n \n · \n \n Retain key skills and operational capabilities.\n \n \n \n · \n \n Board of Directors cash reduction of fees and salaries by 50%, replaced by share awards.\n \n \n \n · \n \n Organisational and other savings to reduce annual running costs by ca. 45%, from US$4.5 million to US$2.5 million.\n \n \n \n · \n \n 2019 year-end unaudited cash position of US$9.6 million, no debt, no remaining work programme commitments.\n \n \n \n \n \n \n Strategy:\n \n \n Corporate strategy updated to fit with changing market dynamics as the risk profile of investors and the industry has evolved. Elephant scale exploration activity in frontier regions has, aside from a few notable exceptions, fallen out of favour with the market and industry appetite is now focused on the environmental and social impact of energy projects and their governance (\"ESG\").\n \n \n \n \n \n Chariot has responded to these changes by refocusing its near-term strategy to develop a Moroccan gas business through the delivery of the Anchois gas development. The project contains significant upside exploration potential and the Company will look to manage the remainder of its portfolio in Morocco, Brazil and Namibia, with a focus on value, quality and fit. The Company recognises that current market conditions may expose value-accretive growth assets with strategic fit and will remain open to such opportunities.\n \n \n \n \n \n Capital Discipline:\n \n \n The Company will retain its focused risk and capital management strategies. With unaudited 2019 y...