Chariot's Angola deal "transforms the narrative" and takes the firm upstream - ICYMI

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CEO Adonis Pouroulis described as a “transformative deal” and a pivotal step in the company’s upstream strategy.The company has agreed to provide $12 million in acquisition funding, alongside transaction costs, to support Etu Energias in securing a 20% interest in Block 14 and a 10% interest in Block 14K offshore Angola. The funding will be repaid from future cash flows, while Chariot will gain exposure to production economics equivalent to up to 4,000 barrels of oil per day.Pouroulis said the transaction delivers on the company’s previously stated objective of bringing oil production into its upstream portfolio. He described the agreement as “the seed of a company maker,” adding that it “transforms our narrative” by introducing a cash-generative production stream.The Chariot boss joined us in the Proactive studio to tell us more, here we take a closer look at what was said.Proactive: Adonis, it's very good to speak with you today and exciting updates out after the market closed yesterday. Can you talk us through your announcements, please?Adonis Pouroulis: Yes, of course. Thank you. We announced our plans to provide the acquisition funding for an oil-producing asset offshore Angola. We've just completed an oversubscribed placing. We are working alongside Shell Trading to provide finance and support to Etu Energias, a 100% owned Angolan E&P company, to secure a material interest in a producing asset offshore Angola.Etu is acquiring a 20% interest in Block 14 and a 10% interest in Block 14K, and we are supporting the transaction by providing $12 million of funding, along with transaction costs, which will be repaid from future cash flows. In return, we secure exposure to the economics of material production equivalent to up to 4,000 barrels of oil a day.Fundamental to this deal is the backing from Shell Trading, one of the world’s largest energy traders, which is providing an acquisition financing package of up to $170 million in return for future offtake of barrels. This marks a new era for the company, introducing economic exposure to a cash-generative production stream into the portfolio and significantly transforming the upstream business.Proactive: What does this transaction mean for the company and its strategy?Adonis Pouroulis: Last year, we announced that we were going to rescope our upstream remit and bring oil production into the portfolio for the first time. With this transaction, we are delivering on our strategy. 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