Chariot (LSE:CHAR) has arranged financing that will give it economic exposure to producing offshore oil assets in Angola by supporting Etu Energias’ acquisition of stakes in Blocks 14 and 14K. The company has provided a US$12 million deposit and related transaction costs to help fund Etu’s purchase of a 20% working interest in Block 14 and a 10% stake in Block 14K. The transaction is also supported by an acquisition financing facility from Shell Western Supply and Trading, which will be repaid through future oil offtake.
The funding package fully supports the acquisition and positions Chariot to benefit from long-term production-linked cash flows equivalent to roughly 4,000 barrels of oil per day. At an assumed oil price of US$60 per barrel, the arrangement is estimated to represent a net asset value exceeding US$100 million. The deal represents a strategic step for Chariot as it moves into material production within Angola’s established offshore basin, leveraging existing infrastructure operated by Chevron. Completion of the transaction is expected in the second half of 2026, subject to regulatory approvals.
From an outlook perspective, the company continues to face financial pressures, including ongoing losses and bearish technical indicators. However, strategic developments such as partnerships and the company’s expanding focus on renewable energy projects may provide potential for longer-term improvement. Valuation remains constrained by the company’s current lack of profitability.
More about Chariot Limited
Chariot Limited is an Africa-focused energy group with two main business areas: upstream oil and gas and renewable power development. Its oil and gas portfolio spans Angola, Morocco and Namibia, while its renewable energy division focuses on power generation and trading in South Africa as well as advancing power-to-mining and green hydrogen projects, including Project Nour in Mauritania.
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