| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 22.60 | 1453 |
| Intrinsic value (DCF) | 0.56 | -62 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Chariot Limited (LSE: CHAR.L) is a Guernsey-based energy company focused on oil and gas exploration and appraisal, as well as mining power projects in Africa. The company operates through two segments: Transactional Gas and Transactional Power. Chariot holds key offshore licenses in Morocco, including the Rissana license (8,489 sq km) and the Lixus license (2,390 sq km), positioning it strategically in North Africa's emerging energy sector. Formerly known as Chariot Oil & Gas Limited, the company rebranded in 2021 to reflect its broader energy transition ambitions, including renewable power initiatives. With a market capitalization of approximately £17 million, Chariot targets high-potential exploration assets while navigating the challenges of frontier markets. The company's dual focus on hydrocarbons and clean energy solutions aligns with Africa's growing energy demand and the global shift toward sustainable resources.
Chariot Limited presents a high-risk, high-reward proposition for investors comfortable with frontier market exposure and early-stage resource development. The company's negative EPS (-0.0155) and operating cash flow (-£8.57M) reflect its pre-revenue exploration phase, though its £4.97M cash position provides near-term runway. With no debt burden (£1.34M) and zero dividends, capital is directed toward license development. The negative beta (-0.701) suggests low correlation to broader energy markets, potentially offering portfolio diversification. Key risks include exploration failure, Moroccan regulatory changes, and competition for African energy projects. Upside hinges on successful resource monetization in Morocco's underexplored offshore basins and strategic partnerships in renewable power projects.
Chariot competes in the niche segment of Africa-focused junior explorers with transition energy ambitions. Its competitive edge lies in first-mover positioning in Morocco's offshore, where majors have limited presence, and partnerships like the Energean collaboration for gas commercialization. The company's small scale allows agility in securing licenses but limits financial resilience compared to diversified peers. Unlike larger E&Ps with producing assets, Chariot lacks cash flow diversification, making it dependent on successful exploration. Its renewable power initiatives differentiate it from pure-play oil juniors but face competition from dedicated clean energy developers. Technical capabilities in frontier offshore geology (demonstrated through prior Namibia operations) provide subsurface advantage, while its Guernsey structure offers tax efficiency but may complicate African stakeholder engagement. The dual hydrocarbon-renewable strategy risks being perceived as unfocused by sector-specialized investors.