Chariot Ltd (AIM:CHAR, OTC:OIGLF), in its interim results statement, told investors that its pivot towards producing oil assets is expected to begin generating cashflow in 2027, with two Angola transactions set to give it economic exposure to around 8,000 barrels per day.
The Africa-focused energy group said the first deal, supporting Etu Energias' acquisition of Azule Energy interests in offshore Blocks 14 and 14K, is expected to complete in the second half of 2026. A second transaction involving interests being acquired from Chevron is expected to follow in early 2027.
Chariot puts the base-case indicative net NPV10 of the resulting exposure at more than $200 million using a $60-a-barrel oil price.
The transition has come with higher near-term spending. Chariot reported a first-half loss of $8.1 million, compared with $4.7 million a year earlier, as administrative expenses more than doubled to $7.2 million, primarily because of transaction costs associated with the Angola strategy.
Cash stood at US$4.7 million at June 30 following March's $24.3 million equity raise, of which $12 million was advanced as deposit funding to Etu Energias.
Chief executive Adonis Pouroulis said the transactions had created "a new platform for value creation and growth" as Chariot builds a cash-generative upstream business.
The company expects a material recovery of transaction and administrative costs when the first Angola deal closes, while its renewable power disposal has attracted multiple offers and is moving towards selection of a preferred bidder.
