Chariot Limited ($CHAR)

Good morning. Welcome to the Chariot Investor Meeting. Your host this morning are Adonis Pouroulis, CEO; Julian Maurice-Williams, CFO; and Duncan Wallace, Technical Director. The team will give a short presentation, and then we'll answer questions. [Operator Instructions]. I'll now hand over to Adonis.

Thank you, Mark. Good morning all, and welcome to Chariot's April 2026 Investor Webcast. Thank you for joining us today. The title of today's presentation is Focused on the Upstream, and that really does capture where we are as a business right now. Over the next hour or so, my colleagues and I will walk you through what we believe is a genuinely pivotal moment for Chariot, one that reflects both the progress we have made and the significant opportunity that lies ahead of us. So let's get into it. Next slide, please. Before we begin in earnest, I'll draw your attention to the disclaimer slide. As with all presentations and in your time, I'd like to ask you to read this carefully. But let's move on to the next slide. Today, as Mark has said, you'll be hearing from the 3 members of our leadership team. My name is Adonis Pouroulis, for those of you who don't know me, I'm the CEO and one of the founders of Chariot. I have worked across the African Natural Resources sector for over 30 years, and driving Chariot's growth strategy is something I remain deeply committed to. Joining me today is Julian Maurice-Williams ian Morris Williams, our CFO. Julain is a charted accounted of 20 years of experience in the energy sector, and he brings a wealth of expertise in financing transactions and listed markets. And we also have Duncan Wallace, our Technical Director; Duncan is a [indiscernible] With over 25 years of experience. having held senior leadership roles across [indiscernible] , development and production. Next slide, please. So let's look at where we stand strategically Chariot operates across 2 broad pillars, Upstream Oil and Gas and Renewable Power. And I'm pleased to say that we are making progress on both fronts. On the Upstream side, the headline is our production transaction, a material oil production deal offshore Angola, which I'll go into detail in the next slide. Alongside that, we have our Moroccan portfolio, with strategically located development and exploration opportunities and our new ventures pipeline, which spans exploration, development and production across a number of growth projects. On the Renewable side, through our Chariot Transitional Power business, we have Etana Energy, our rapidly growing licensed electricity trader in South Africa. We have 2 wind projects now under construction in partnership with [ Acciona ] Energia, and we are actively underway with a process to maximize value from this business and possibly to use the proceeds to fund further upstream growth. In short, we are executing. We are not standing still. Every pillar of this business has something meaningful to report to today. Next slide. And now to the headline in what we genuinely believe is a game-changing transaction for Chariot Upstream business. We have supported [indiscernible] Energias in their acquisition of a 20% interest in Block 14 and a 10% working interest in Block 14K offshore offshore Angola and Congo, respectively. These blocks are currently producing around 40,000 barrels of oil per day, of which the 20% represents 8,000 barrels of oil per day. Chariot is getting exposure to 50% of the 8,000 barrels of oil a day, so 4,000 barrels of oil a day economic exposure is what we have today. The acquisition financing package of up to $170 million was provided by Shell trading and working alongside a super major of that caliber is a real testament of the quality and credibility of this transaction. Chariot provided a cash deposit of $12 million on the signature of the sale and purchase agreement. The numbers here speak for themselves. Gross remaining 2P reserves of 93 million barrels, additional upside of over 500 million barrels and the Chariot NPV10 of over $100 million calculated using $60 a barrel for oil, and we consider that a very conservative assumption. If we take today's current prices, of oil and gas between $90 and $100 and having surpassed over $100 in recent days. I think we could quite easily see a scenario where the net free cash flow post debt over a 2-year period surpasses the NPV $100 million mark. Beyond the existing production, we see significant value creation through production optimization and further development options. Critically, this collaboration with Shell and our Angolan partners could unlock further growth opportunities for Chariot down the line. I'm also pleased to confirm that we recently completed a successful fundraise of approximately $24 million to finance our participation in this deal. It demonstrated strong investor confidence in exactly this kind of upstream opportunity, and we also welcomed new shareholders. This is truly a transformational moment for Chariot and I'm going to ask Duncan to take you through the deal in more detail. Over to you, Duncan.

Great. Thank you. So progressing forward, please. Thanks. It's a pleasure to update all our shareholders and the progress we've made in the Upstream business, and we'll start by providing more details on this recently announced Angola transaction and the underlying asset. I'll also then provide a brief update on Moroccan portfolio and the progress on the delivery of our new venture strategy. And it is this new venture strategy, which was implemented over 1 year ago, which has ultimately led to us being able to pen this first deal in Angola. On the next slide, Slide 7, further details of this transaction are provided. As Adonis described, to get with Shell rating, we provide finance to Etana [indiscernible] Its acquisition of a 20% stake in [indiscernible], a 10% stake in Block 14K. These assets are long-established producing areas, which still have significant upside potential and the competition for them has been intense. Our new [indiscernible] Strategy has been one focused on avoiding competitive processes and instead finding creative solutions to build a diversified Upstream business. By partnering with Shell, we're providing the debt finance to support Angola's leading independent in this transaction, we've demonstrated how our approach and a focus on building true mutually beneficial partnerships within the industry and most importantly, with local partners, has created such a valuable deal for us. The transaction itself as an economic date at the 1st of January 2025 with a headline price of $195 million and an expected completion date in the second half of 2026. As you'll see later on in the presentation, thanks to the positive cash flow generation through the interim period. The final consideration is expected to be much lower than this. There are contingent payments related to higher oil prices and also to the success of a development project However, these are nice problems to have and are easily funded out of the associated incremental cash flows generated in those scenarios. On the next slide, is an overview of the Block 14 and 14k assets. These are located offshore from the Cabinda province Angola, an area which has been in the hands of Chariot's operator for several decades. The crude from these fields is also a very good quality and trades in line with Brent. This is one of the key drivers for Shell Trading's interest in providing financing to this asset in exchange for these barrels. And which, of course, also provides further external validation to the asset in the transaction. The value of this asset is not only, however, from the value of the crude, but also comes from the long established history of production with nearly 1 billion barrels of oil having been delivered from the fields over the past 25 years, picking at nearly 200,000 barrels of oil a day. Production today remains strong and is currently at around 40,000 barrels a day gross. What's also important is that there was a recent license extension from 2028 to 2038, with those 10 years providing additional time for all recovery from the fields to be maximized and which unlocks the potential for reinvestment in production optimization work to add to the existing producing gross reserve base estimated at around 93 million barrels. This license extension is also important to provide the runway for delivery of the exciting upside in the asset. So progressing to the next slide, which summarizes these upsides. The potential of these upsides has been highlighted by the growing importance of the PKBB discovery, which was made in 2024. The discovery well was then put on production and has shown strong performance to date. And it's this success, which supports the drilling of an early multi-well development phase with the potential to add approximately a 50% incremental production to the current producing rates from Block 14. This development is important for several reasons. Firstly, shown by the schematic on the upper right-hand side, the location of this discovery is in the Pinda reservoir, which lies directly beneath the more established producing tertiary sandstone reservoirs and the vicinity of one of the 2 fixed platforms on the field. This means that the cost of drilling and the associated paybacks through production is quick. Thanks to the existing processing infrastructure, which can be leveraged and utilized. The data from the early campaign can then be used to derisk the planning of further development activity which may include subsea wells, and we see the potential here for potentially hundreds of millions of barrels of recoverable resources from this discovery. The success at the Pinda reservoir and Block 14 unlocks additional development and exploration within the same reservoir in the surrounding areas. The Pinda is a prolific reservoir regionally, and there are already proven undeveloped discoveries such as Melange sitting in the neighboring areas. Melange itself having tested nearly 8,000 barrels a day from the original discovery well. Altogether, there are significant undeveloped resources of greater than 0.5 billion barrels of oil, which could support the longer-term growth from the Block 14 block area, which all can leverage off the existing field infrastructure. On Slide 10, there is some further information on the transaction metrics and also how the impact of the recent increases in oil price is anticipated to impact the deal. As mentioned earlier and as shown on the waterfall chart in the lower part of the slide. The initial consideration was $195 million at an economic date at the 1st of January 2025. The final completion amount is then adjusted first, by the $12 million, which we provided to [indiscernible] And they paid across the SPA deposit in March; and secondly, by the interim good cash flows between economic date and the final completion date. This is essentially the positive net free cash flow generated from oil production from the asset in that interim period. Based upon an estimated completion at around the end of Q3 2026, in February, we estimated this interim period adjustment to be greater than $100 million thereby reducing the final consideration to under $100 million. But now using the current Brent forward curves sitting here in April, we now estimate the interim period adjustment to be much more substantial and therefore, the final consideration will be significantly lower than originally expected. Remembering that this final consideration is fully funded by the Shell financing facilities, which provide certainty of funding. The good thing for us is that the debt draw is likely to be lower than anticipated. Therefore, our distributions and returns, including the repayment of the deposit will be much, much quicker. The second important consideration will also be the asset value at close with higher long-term oil price forecast. This will be significantly higher than originally anticipated, meaning we not only pay less for more value as part of the deal, but it will also give us the ability to change or increase this financing to cover broader activity, including investment in the project upside, thanks from an increased debt capacity associated to the asset value. Whilst Angola is clearly the big news as the first step in delivery of our new venture strategy, we also want to share important updates on our Moroccan portfolio, starting with the Anchois development on the next slide. Following the results of the Anchois- 3 drilling in late 2024, we've refocused the development plan to start with the gas found in the first 2 Anchois wells drilled by Repsol originally in 2009 and then Anchois-2 drilled by Chariot in 2021 to 2022. This revised plan is supported by what is fundamentally unchanged, and this is the high strategic value of gas in Morocco and also the incredible fiscal terms. Morocco still imports up to 100 million cubic feet a day of gas. And as we've all seen and as shown on the TTF gas price chart, global prices are volatile. And the Ukraine price shock, although unprecedented scale is not a unique event. And certainly, today, gas is a strategic importance again. What we're focused on, since Anchois-3 on a technical basis is the simplification of the development. and also looking at alternative contracting options. Through this, we've seen a dramatic reduction in the expected CapEx for the development, targeting up to 50% reduction in some of the project scopes. Our plan now is to start with 2 producer wells. We still have [indiscernible] Productive [indiscernible] And the potential to deliver rate and are shown in the production chart to fund additional development and exploration drilling and if successful, to tie those back to the facilities and use those to maintain production through the long term. So looking at reducing the initial scope and the initial CapEx to development and then deferring further drilling to fund those organically out of cash flows in future phases. This is a mature development plan, and we're now discussing with ONHYM and the Ministry around the potential next steps and in parallel with potential international and domestic investment partners to join us in funding the next stages of the project. Beyond Anchois, what also excites us is the increased industry focus on exploration, particularly in Africa and in Morocco on Slide 12, the recent entry of Murphy Oil in the neighboring block to our offshore acreage is a positive affirmation of the exploration potential in these plays that we have long believed in. These places covered both the tertiary gas play in the same petroleum system proven by the Anchois field, but also importantly, an oil-focused play in older Jurassic and Cretaceous reservoirs. These are focused in the southern part of the Rissana acreage and our interpretation is that this is where the reservoirs of these plays enter into the basin, and we map a variety of exploration targets from shallow to deepwater depositional settings with a multibillion barrel portfolio already supported on existing 3D seismic data. As we've seen a resurgence of interest in our data room, partner will be key to take these projects forward. And though our focus is on the Offshore, where the potential is more material, we're also looking into partnering options in the onshore sector where we're discussing the possible next steps for the Locos onshore area with ONHYM. The next Slide 13 shows our new venture strategy, which we launched over a year ago, which was focused on diversifying our portfolio into oil projects and more widely across Africa with the objective to deliver producing assets but also exposure to growth through development and exploration, but where there is possibility for external funding and for short cycle times. This first Angola deal gives us exposure to both existing production and also a meaningful immediate development project in one deal. Our future pipeline provides further opportunities across production, development and exploration, including our position in Namibia, where we see the soon-to-be ratified changes in governance of the petroleum sector to be the catalyst to the resumption of activity. We're very excited about the opportunities within this pipeline and to continue to build a highly cash-generative Africa growth-focused upstream business. I'll now hand over to Jules to talk you through the renewables pillar of the business.

Thanks Duncan, next slide. And just next slide, please. So this slide shows the renewable business, where we are focused on trading and generating electricity primarily in South Africa. Looking at the slide itself, trading on the left-hand side, that is held through our joint venture, Etana Energy. We are buying electricity from multiple large renewable wind and solar projects, transmitting that electricity through the National Grid in South Africa and then on selling that to multiple large energy users. It's a great business with a fixed margin with low OpEx CapEx. And Etana is now the leading traders in South Africa, in effect, creating a private utility in a large, rapidly deregulated market. On the right-hand side of the slide summarizes our generation business. And this is really broken down in our to Etana. So selling electricity to Etana, our trading vehicle, but also selling power directly to mines. And we're targeting a 15% return on equity. We get an additional kicker, so an additional trading margin when that electricity is also sold to Etana. We've reached financial close on 2 large utility scale wind projects just back at the end of last year in December of last year. And on both of these business streams, both the trading and the generation, we funded these business at a subsidiary level with hundreds of millions of dollars of capital through debt, through equity and through balance sheet support. With some of the biggest financing organizations and banks within South Africa. The next slide, please. So this slide shows the generation projects in more detail. On the left-hand side, you can see the projects which are selling electricity to Etana or trading vehicle, where 5 projects have now reached financial close with 4 projects under construction and one project which is actually completed. And that's made up of 2 wind, 2 solar and 1 hydro project. And then on the right-hand side, you can see our power to mine projects. And that's in Zambia, South Africa and Zimbabwe. We believe this trading and generation is a great and valuable business, but it's also a different business to the upstream business that Duncan has just described, with different risks different returns, different types of investors to the upstream business. And so we're now planning to release the value of this business and use those funds released to fund the next Upstream deal. With that, I'll hand over to Adonis.

Thank you, Julian. And if we can move to the next slide. And so today, as we bring our webcast to a close, I want to leave you with a clear picture of where Chariot stands and more importantly, where we are going. This slide really does distill the investment case into 3 core pillars: partnership, cash flows and experience. On partnership, we're not doing this alone. We have to Etana Energeas, as our in-country operator and partner in Angola, and we have the financial backing of Shell trading, one of the world's leading commodity trading houses and of course, Shell being one of the world's largest hydrocarbon companies. And they provided acquisition financing as we've said, of up to $170 million for this transaction. That is not the kind of support you attract with a weak asset. It is a powerful endorsement of the quality of what we have here. On cash flows, this is now producing business. From day 1, Caret has net entitlement exposure to 40,000 barrels of oil per day from Block 14 and 4K. Those are real barrels, produced real revenues generating material cash flows. On the experience front, this management team has been through its ups and downs, and the shareholders know that. We've been through our various cycles, but we have executed on transactions. And we have built businesses and successful businesses in Africa before. We know how to turn assets like this into value. And as we grow further and we will grow further we will augment the team with the additional skills we needed to achieve our goals. But I want to address the elephant in the room, something that I know that it's on many of your minds. And that is the value and our price per share, our share price. So I've said it before, and I said it earlier, I'm going to repeat it because it's a fundamental number. The NPV10 of our Angola stake is estimated at over $100 million. And that figure was calculated using $60 a barrel of oil. Brent crude is trading at between, what, $90 and $100 a barrel today. And at the current price level, the economics of this asset are materially more compelling than even in our base case that we assumed. When you apply current oil prices to the production profile and the reserve base, 93 million barrels of gross 2P reserves with over 500 million barrels of additional upside, the value that's locked inside this transaction is substantial. I just want to repeat that. 93 million barrels of gross 2P reserves with over 500 barrels of additional upside, there is serious value locked inside of this transaction. And to put that into context for you, Chariot's current share price is approximately 1.3p to 1.4p per share and implies a market cap of roughly GBP 35 million to GBP 40 million. Well, at an NPV, $10 million of $100 million at $60 per barrel, it just shows you the upside here. There is more than double our entire current market capitalization from a single asset using a deliberately cautious oil price assumption. And if you use today's barrel price of over -- well, $90 to $100 a barrel, the implied value uplift is even more dramatic. So to our shareholders, we're not asking you to take a leap of faith on exploration or on an unproven concept. The barrels are in the ground, the production is real, the cash flows are real. And in our view, the share price has a very, very long way to travel to reflect that reality. But here is what I think truly differentiates Chariot from many of its companies our size and our peers. And this is the point that I really want to leave with you. We do not only have one role of the dicier. We have many value triggers in Chariot. Angola gives us a producing cash generative foundation. Morocco, gives us development and exploration optionality in a strategically located and well understood basin. Our new ventures pipeline gives us exposure to the next generation of Upstream opportunities across Africa. And the value realization of our Transitional Power business with Etana Energy and the wind projects with Anchois Energia will when completed deliver additional capital to accelerate the upstream growth strategy further. Each of these represents a distinct independently available opportunity, together to create a portfolio that is genuinely balanced across risk, geography and strategic development. If one asset surprises on the upside, it rerates the whole company. If multiple assets deliver, the outcome for shareholders is truly transformational. So we have the assets, we have the partners, we have the team, and we have the financial foundation probably for the first time in Chariot's history, we got the financial foundation to execute and grow at scale. And so we're now focused on the upstream, as we've said. And we've never been better positioned to deliver on that promise. So we thank you very much for your time today. And Mark will hand over to you now, so that we can take some questions.

Thank you, Adonis. What is the forward plan and time line for the Anchois development?

So I'll start you and then hand over to Duncan. So as Duncan mentioned earlier on, Anchois is very important to us. And we've relooked at the project, and we've looked at the success of wells, Anchois-1, Anchois-2, where we know we've got a resource around there. We have resized the CapEx and are looking at a new field development plan. And at the same time, we're looking at partnering. We're in discussions with partners to bring them in to help us go in there and see best of how we can -- within an economic envelope develop an economic project, albeit smaller than what was originally envisaged with but we believe Anchois-1 and 2, there's something special there, and you could have a highly valuable smaller development as we originally anticipated after Anchois-2. And the new CapEx numbers that we're getting definitely are more favorable than what we had in the past. I think what is important is that there have been 2 gas shocks in the last 4 years. And I think what Anchois does, should you bring it into production, it's a project of national security for -- or national interest for Morocco because it gives security of supply at a stable price. Duncan, I don't know if you want to add to that.

Sure. Thanks, Adonis. I mean the work we've done since the drilling of Anchois-3, which was in late 2024. And clearly, we had to reestablish our position and control in the Lixus license from which Anchois is located, and we announced that just under a year ago that we've taken back those interests. The key thing for us first to do was to demonstrate that we could reduce the CapEx, the development cost. That is one of the the elements that really led us to drill a further exploration well before an FID, it was fighting that increasing costs in the sector. So we've looked at reducing those costs. We've got the confidence we can bring those down. And so now is the moment to bring all of the other pieces of the puzzle together, the gas commercialization and also the partner to help us advance and progress to the next step. So, we can't give a time line of how long it will take to deliver on that, but we're in the perfect position now to meaningfully reengage with those potential investors.

Thank you, Duncan. Next question, what's the specific holdup on the development of Loukos?

So again, I'll start here. So we drilled 2 wells on Loukos. One was not successful. The other was more successful. When Anchois-3 came at the end of 2024, we had to look at our portfolio and see where best to spend our resources and where we could get maximum value for every dollar we spend. So Loukos definitely is important to us, but we have to look at the whole portfolio and see what we needed to progress further. And it was at that time, we also took a view as a company that we needed to get revenue in and we needed to focus on producing assets and bringing them in. So Loukos is there. We're relooking at it with our partners on the and obviously, the ministry and seeing how best to take it along the development line and probably bring in -- possibly bringing in some partners to help us with that development, but we're in discussions with the Moroccan partners to see how we can further develop that project. But in the scale of our Moroccan portfolio, clearly, the priority is Anchois-1 and Lixus It's above Loukos because of its potential to produce way more volumes of gas on a daily basis. And it was about looking at the priorities at the time of rationalizing we could spend on. There hasn't been hold up deliberately. It was that we had limited resources to push all the buttons at the same time. Duncan, if you want to add to that, please do.

Yes. No, I would totally concur with that. We had to look at where we put every single dollar. And not only did that include prioritization on material assets within the Moroccan portfolio, I think we also needed to take a look at diversification of the Upstream business and looking at different investments, which we could invest our dollars at lower risk for greater reward. So also, we need to balance the reinvestment of the capital we have within the Moroccan portfolio, but also in terms of our new venture strategy as well. And I think that the Angola deal with producing oil from day 1, I think, is a very, very different materiality and risk proposition. So yes, we remain interested in the onshore of Morocco, and we're looking to see how we can progress. But I think, yes, I think we've put the money where it is best being served over the last 18 months.

Can you provide more details for realizing value in renewables, i.e., you're looking to sell part of it, demerge, et cetera?

So I'll start off and then hand over to Jules. Look, we've employed a company to help us look at how we can maximize value from this business. And so we have just started and we're running an analysis and a process on what is the best way for Chariot shareholders to realize value over here. I think one thing that has come out over the analysis over the last sort of 6 to 9 months, is that in order to have an independent IPO, we need scale. And the question is, do we need to grow further to get that scale organically first or by buying something? -- because I think consensus as it stands at the moment, while it's a growing business, it might not be big enough for an independent IPO at this stage. But we're looking at all options and including a sale of the business as well. But I'll hand over to Julian to add to that.

Thanks, Adonis. Just I think you said most of it. We're doing that process now. We're getting on with it. It's worth noting we did have offers for this business last year, and that was before we did all these very large financings. In fact it's about maximizing value for this business. It's about getting all with it, so we're doing it now and getting those funds and using it to reinvest in the Upstream opportunities that we now see ahead.

Thank you, Jules. Does the current increase in the oil price has a significant impact on the final balance for the Angola acquisition? Or is it limited due to the contingent payments triggered by the price exceeding the threshold?

No, it has a material impact. As Duncan referred to earlier on the higher the oil price come to completion date, the less the bids outstanding to Shell. It has a material effect. Of course, there will be deferred payments made at high oil prices, but that is offset. There's a fab, I mean, the net positive is significant for Chariot. So depending on when the deal completes and depending on what the oil price does between now and then, we're definitely going to have less debt at the end of all. Which means that we've got more available headroom to to do other things. And obviously, it means you pay it off quicker, which we end that you get free cash flow quicker, which the company can use in the best way it can. And at the same time, you could probably use that unused debt to further grow the business if you need it. So it does have a material positive impact on the company and as Duncan mentioned, the value of the asset also increased significantly well. Duncan, have I said it all or you want to add to that?

No, I think that's all clear. And just to reiterate, that the incremental cash flows generated at higher oil prices are far in excess of any oil price-related contingent payments. So we will be in a positive position at higher oil prices, even if there are some contingent payments to be made.

And just to give a little bit more clarity, wells obviously in the earlier slide, you saw the total Shell facility is $170 million. Now that gives us absolutely deal certainty to close the deal, which is very, very important. But actually [ $60 ] we only needed a small portion of that. So actually, with a higher price, and we're earning revenues today, effectively, so that's reducing the debt. It will be a fraction of what we initially anticipated, the final debt position.

Why didn't we consider a loan for the Angolan transaction of paybacks short, was dilution the only option?

So it was a timing thing. We didn't have time. This deal was presented to us just over Christmas last year. And because of the nature of the deal and remember, we have an economic exposure to this deal, there were certain time triggers with regards to the way the deal was structured. And there was no time to fund on a subsidiary level or to use debt or get other mechanisms in place in order for us to close the transaction in the time that was prescribed. And whilst, yes, there is dilution, and we acknowledge that at the same time, as I mentioned earlier on, when you look at the actual asset value and the cash flow value here, it is hugely value accretive to the business. It's not being shown in the price today, but it will be shown. It will come forward because cash flows and revenue speak loudly. So there just wasn't time. There wasn't time to look at alternatives because of the nature of the deal.

Just to just add a couple of other points there. Obviously, on the asset itself, there obviously was debt, and that was higher then that was a really high kind of debt-to-equity margin, so significantly above 70-30 when we did the initial transaction. So minimizing the amount of cash that we get in. And just to highlight that cash -- that equity cash that we do put in, which is $12 million plus in transaction costs, we get that money back as well from the asset.

Okay. Your Angola NPV of USD 114 million assumes completion in H2 this year. What regulatory approvals are still outstanding? And if completion slips to 2027, what's the downside case for cash flow and your commitment to not raise equity?

So we still anticipate that it will be H2 completion. If it closes later, I'm not sure there is a lot of downside because basically you accumulating the cash in the interim period. And so you could say that actually your debt payments go down even further, your debt or your debt whatever is remaining of the debt, if any, goes down further. So -- but we are confident that that will close second half of this year.

And will Chariot receive a material cash payment at closing? And based on that expected inflow plus potential renewables proceeds, can you state unequivocally that Chariot will not require any further equity raise at current depressed share prices?

We don't intend to come back to the market for capital raises and indeed, that is why we did this deal. This deal provides cash flow at meaningful cash flow to Chariot for its first time in its history, which avoids the need to use the capital markets as we've done in the past. It's not to say we're ever going to use the capital markets again, but the point of doing this transaction is that we don't come back to shareholders for money. And so the cash flows from here and whatever we do with the renewables, I think, gives us comfort that we don't need to come back to the market for equity. There was a first part to that question, Mark, please repeat it.

Just whether there's material cash inflow on closing?

Yes. It depends, of course, on when the completion takes place. And we know we can't definitively say when completion will take place. And also we don't know exactly know where the oil price will be for the rest of the year. But obviously, it is very sensitive to where the oil price is. And obviously, when completion takes place.

Just to add another point just on the set of renewables, also the intention is to realize value there, get cash back into the business. But what it also does is reduce our ongoing G&A. So just to sort of reiterate that point as well.

Does management have a view on the potential arrival of energy in into Block 14 in Angola?

Look, it's public. They've announced a deal with [ Chevron ] and we're all all about the business. We had to maximize value for the Chariot shareholder. Our partner [indiscernible] Energies, that's who we deal with and [indiscernible] Is the -- with this transaction has a significantly bigger stake in the -- they already had 29% stake in the business. So they go up here. And we're about creating value for our shareholders. We will -- as long as things are value accretive, we'll work with anybody provided us within the rules.

Why is the proposed transaction in Namibia taking so long? And there's a follow-up question, if you can shed some light on how we might fund it.

So Namibia, it's -- any news that one sees today about activity in Namibia is our licenses that were awarded a while ago and I would say, more than a couple of years ago. We've definitely seen a slowdown in activity of new licenses or renewal of licenses in the last 18 months to 2 years. We are not alone in this. I'm not aware of 1 new license actually being issued or any major activity with regards to renewals. So this is something that the whole industry is experiencing. It's not specific to chart. The second part of the question is how would one fund it? Is that it?

Yes.

So look, we have an automatic 10% back in right with NAMCO on our historical blocks. So that's taken for granted. If we decide that we would like to increase our stake, we think that the location of these box is attractive enough to bring in third parties as well to help us partner here. And I think it's compelling. The area and the positioning of these blocks, the location of these blocks in the Orange River Basin. It's a compelling story right now. I think I heard one of the CEOs of the major oil companies describe this area as the golden triangle today of exploration. So we think we'll have significant interest in what we're doing there. I think it's very important for our shareholders to remember that we have an extensive database, that we developed on our blocks and in this area through our drilling campaign of years ago. And we understand the space pretty well. Duncan, would you like to add?

No, I think you've covered all the key elements there, Adonis, I think when you look at the acreage map of the Orange Basin, much of the acreage is now locked up. And when you look there, you can see that our legacy assets that we have here, these are sitting in an ideal location, and it's next door here to the acreage where they found the [indiscernible] Field and where there was a recently announced deal to bring Total into that area. So we are in pretty much the hottest basin in terms of exploration, and we look forward to the next steps there.

Okay. How do you think about share price catalysts in the year ahead?

Well, I think it's going to be a surprise when looking at our financial statements because you're going to see revenue for the first time on our financial statements. And I think that is meaningful. So I think the catalyst is actually seeing that cash flow come into Chariot. And seeing that this is a sustainable business. I think the value triggers or what further we can do in this region in Angola. And I think what the catalyst was development and progress on the Moroccan portfolio and hopefully, at least the announcement of one of our new Upstream deals. And then, of course, progress on the monetization or the, call it, value realization of the Renewables Energy business. So it's going to be a very busy year ahead.

Can you share what cost cuttings taken place on G&A over the last 12 months?

Well, after the Anchois-3 well, there were significant cost cuts. And the basically, I would say, on the upstream side of the business, 40% cost cuts there. And with regards to the executive and the Board of Directors, everyone took a shave a haircut in their salaries, and that still remains in place. As Julian has said, is when the renewables are spun out and sold off there will be probably a further 33% overhead saving there. So there is room for further efficiencies. And the normal measures that we've done to -- we're running a very lean team here at the moment.

Given the debt drawdown is going to be significantly lower than anticipated previously, can the balance be used for other projects?

We -- yes, is the answer.

Are there any deals in the pipeline with Aqua?

So Aqua our Saudi friends and they're the largest renewable energy business outside of China. We're talking to them about a broader grander collaboration in Southern Africa. Of course, this has slowed down because of the problems in the Middle East at the moment. And so we're still in discussions, but things have slowed down a little bit over there.

What is the potential drilling cost for Angola and who's going to be responsible for it?

I want to hand over to Duncan, because I'm not sure what drilling costs precisely you're referring to, but Duncan?

Yes. Yes. So on the assets in Angola, there are no sanctioned projects or commitment wells budgeted. So there is no -- yes, no insignificant CapEx that is currently being sanctioned that needs paying for. As I mentioned, there is this -- the development plan or early stages of the development plan for PKBB. And that essentially is a drilling project. The facilities are in place and the wells can potentially be drilled from the drilling platform. It is there already or the producing platform that is ready. So it means that the cost drilling and time are relatively [indiscernible] Sort of scale. The cost that campaign are likely to be able to be funded heavily through external financing because there are already reserves associated to that field. And so therefore, the cash calls required to fund that drilling commitment could be used with external financing. So yes, there's no single well cost that's coming up in the next year to 18 months. It's going to take longer to plan than that. So there's plenty of time to ensure that the funding is in place to cover the material part of any development drilling activity.

Just sort of add to that, obviously, we've spoken about the debt on the asset likely to be very low now, so we could use that potentially to fund it, but you would use -- you would look to raise debt to fund further cash flows, which would be positive for the overall cash flow to the business.

Adonis has consistently backed his conviction with open market purchases. Would you agree that visible open market purchases from the full Board was in the powerful signal?

Yes. So we continue to back this business and the family continues back this business and in the last fundraise of $24 million. I think the family put in over $5 million of that fund raise. But I will say this, every single fundraise that we have done, the Board has participated in those that were allowed to participated. And not only did the Executive Directors participate to the level that they could and afford, but also senior management participated. And I've been involved in many public companies before and I very seldom seen that at every fund raise, the directors and senior management to participate where they can. And I am confident that we're all aligned here and people put in the money that they can afford to put it at the time. Everybody in Chariot is a shareholder in Chariot. And as I say, it's on every fund raise, no matter how big or small, the directors if they could were and were allowed to participated as did all senior management.

Okay. back to Angola. Can you please talk through the economics of the [ 4,000 BOPD ] net entitlement?

So Duncan and Jules, I'm going to hand this over to you.

I think just one, I think we've talked quite a bit around the valuation and given some indications through the presentation. I think the precise numbers relating to the transaction, the metrics of the transaction and the asset value, those will become clearer and clearer as we get to completion date. Once we know what the final consideration is likely to be what we know the long-term oil price is going to be at that point. So yes, we can get much more granularity and details as we approach the completion date. I think one clarification is that, that 4,000 barrels a day economic exposure is related to the current production of 4,000 barrels. So we're not capped or limited at all by a 4,000 barrel a day number. That is having a 50% economic exposure to a deal to acquire 20% of Block 14 and 10% of Block 14K. So yes, whatever the gross production is at the asset, we will then earn our pro rata percentage.

And just to add 1 other point to that, as I said, we -- the money that we've invested, so the [ 12 plus ] the transaction costs, we get that cash back on a prioritized basis, first of all.

And I think it's fair to say that these are very well-established operations, been very well run by on over decades. And the cost of production is relatively low. So I think there's enough margin here in these barrels.

Adonis Pouroulis, can I hand back to you for any closing remarks, please?

Well, again, thanks, Mark, and thank you to all of our shareholders who participated in the webcast this morning. I think if I can leave you with one message and just have a look at Chariot, have a look at the portfolio and have a look at this transformational deal we have done. I mean, there is -- if you took Imagine a world where we didn't have Morocco, we didn't have the renewable energy portfolio, and we didn't have the new venture portfolio. And one only had this exposure at the moment, 4,000 barrels per day economic exposure on 40,000 barrels a day. You could at this -- and I'm going to [indiscernible] limb over here, all right, post paying your debt back and if oil prices stay between that $80 to $100 a barrel, it's not inconceivable that you'll have between $30 million and $50 million of free cash coming back to you a year, all right? So you didn't need -- you don't need anything else. I mean you've got a business there on its own. That is definitely not understood or reflected in our share price today. And I think the frustrating part for us is Chariot is derisked now. We have revenue, we have cash flow. It's derisk. There's no -- the business is not going anywhere, it's here to stay. After we drilled the Anchois-3 well, we're in a very difficult position, and we had to reinvent the business, which is what's just happened. Chariot is a totally new business today, and it's been reinvented with real cash flows. Now if you can grow that economic interest of 4,000 barrels a day equivalent, up, which you can see from this concession, there's significant upside. That all comes to the carrot shareholders. So when you look at our market cap today and you look at just the Angolan asset, there is huge upside of end -- and look at our peers and what our peers trade. And do they have this diversification of portfolio and this sort of well-established asset, 93 million barrels of 2P reserves, 500 million barrels of upside. So this is no longer, as I said earlier on, it is that you're not rolling the dice once and hoping you get a 6. You -- this is a well-established production platform we're growing from. And I think the minute people understand that that, and they realize that Chariot is here to stay, the risk of the business going -- landing in difficulty is low. We can now dial-up, dial-down, depending upon how we see and we want to grow on. We've got many options of how to grow the business. And I think to leave shareholders, as I said in the statement on the last slide is we've got many, many value triggers right now. And it's just for the market to realize that the Angolan transaction is truly transformational and provides us with cash flow. I make a joke with the finance team in London, saying they're going to have to go back to their accounting sort of articles to learn what revenue is because we're going to be getting revenue in our income statement for the first time in the history of this business from production. And so it's truly a different company today, and we're focusing on the Upstream. So I'd like to leave that with shareholders. But we see, I mean, immense upside and the mere fact that myself and my family committed over $5 million to this last fundraise should speak volumes.

Thank you to the management team for joining us today. That concludes the Chariot's Investor Presentation. Please take a moment to complete a short survey following this event. The recording of this presentation will be made available on Engage Investor. I hope you enjoy today's webinar.