WTI $80.76 -12c, Brent $82.43 +38c, Diff -$1.67 +50c, NG $5.18 +17c, UKNG 245.0p +32.51p

Oil price

Oil has come back to the bottom end of its trading range after President Biden fires off letters about the high gasoline price to all who may be listening. Inventories are all over the place and Covid is increasing again in Europe whilst natural gas prices are rising again after Germany delays the Nord Stream 2 line. It looks like the market is looking a quarter ahead of itself…

Chariot 

Chariot has announced that it has signed binding key terms of a long-term joint development partnership, with Total Eren, a leading France-based renewable energy Independent Power Producer. The agreed terms will set out the relationship between the Partners from 1 January 2022 for the joint origination and development of wind and solar projects for mining clients in Africa.

The Partnership is for three years, with the option to extend for a further two years, Chariot will have a right to invest between 15-49% into the co-developed projects. The Partners also have ambitions to collaborate on other non-mining energy projects and transactions in Africa.

Fabienne Demol, Executive Vice-President & Global Head of Business Development at Total Eren, commented:
“Total Eren is very pleased to implement a strategic partnership with Chariot. We continue to believe that our expertise as a global renewable IPP and our strategic partnership with TotalEnergies, combined with Chariot’s experienced team and wide reach to the African mining industry will bring further value accretive opportunities to our collaboration. Together, we are determined to address the energy needs of African mining companies, and we will collaborate on other renewable energy projects in Africa.”

Adonis Pouroulis, Acting CEO of Chariot, commented:
“I am very pleased to announce that Chariot is partnering with Total Eren, a leading and skilful player in the renewable energy industry. This partnership is looking 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 and we look forward to announcing our significantly progressed projects when appropriate.”

Investors who either managed to get to the recent management presentation, or who have been watching the way that Chariot is changing in the last year or so will not find this exciting announcement much of a surprise. Adonis Pouroulis and his team are leveraging their vast skillset in the African mining industry through this ongoing partnership with Total Eren. 

Whilst the shares are gently rising from the lows, the moves that Chariot are making will be of a far more significant nature, I would suggest that if the plans mature, and I have no reason why they will not this should be at least a five bagger, probably more.

Sound Energy

Sound Energy, the energy transition company, announces that Dr Christian Bukovics will be appointed as Senior Independent Director of the Board to succeed Richard Liddell, who has tendered his notice to step down from the board effective 30 November 2021. Christian will chair the HSE and Remuneration & Nomination committees.

Christian, a geoscientist by background, has succeeded in the oil and gas sector for 40 years, since 2013 as adviser, founder, investor and board member with small-cap oil and gas companies including on the board of London Stock Exchange premium listed JKX Oil & Gas Plc contributing to its turn around. Prior to 2013, he pursued a truly international career with Shell, spanning the globe. Positions included VP Exploration Russia and FSU, VP Commercial in Global Exploration and GD of Shell Temir (exploration and oil production) onshore Kazakhstan.

Graham Lyon, Sound Energy Chairman, commented:
“We are delighted to announce Christian’s proposed appointment to our board. He will bring a wealth of in-depth technical knowledge coupled with a growth driven entrepreneurial spirit. His wide-ranging knowledge, relationships and vast experience in leadership will provide an invaluable aid to the board and as Senior Independent Director.”

Yet again Graham Lyon is continuing to deliver and I would expect more on this front before long. 

KeyFacts Energy Industry Directory: Malcy's Blog