Another good day for Namibia and Morocco focused oil explorer, Chariot oil and gas, creeping up a further 11% to 34.75p, making it a 21% in the last week and on strong volume as the chart below shows.
After the failure of the Kabeljou well last September and Tapir South well in May in offshore Namibia, the shares collapsed from over £2 in April. A few days before the Kabeljou exploration well the price started falling heavily, yet the company responded with an RNS, “The results of the well are not yet known. Once the well has reached TD and the results have been logged a further announcement will be made.” – An expensive mistake for those still holding when the duster result was subsequently made since someone seems to have known something…
There seems to be no clear reason for the rises of today and last week, since no exploration or appraisal wells are due anytime soon and funding for the company remains somewhat under a cloud. There are plenty of rumours of a takeover bid, but nothing more than rumours, and the volume though higher than usual, is not explosive. A “pump and dump” or substance to the rise? Unclear for now! But, as all the high drama around the September exploration well shows, Chariot is seldom lacking excitement at times, and there does seem to be something fishy in this company looking at historic price actions. One things for sure, IF there is an RNS over thext several days the FSA should certainly take a very close look at those trading in the last 5 days. In any event, give the cash backing of the company, sub-30p looks a solid bottom after a disastrous 2012.
Contrarian investor UK