Some of the best investment opportunities sit outside the market’s crowded trades. Chariot Ltd.*, a London listed energy company largely unknown to Canadian investors, may be approaching a turning point that could fundamentally reshape its business and earnings potential.
As manager of Purpose Global Resource Fund (PGRX), we began following Chariot when Azule Energy agreed to sell its 20% interest in offshore Angola Blocks 14 and 14K to BW Energy and Maurel & Prom. Etu Energias, Angola’s largest private oil company and an existing partner in the blocks, held a right of first refusal. Angola was already familiar territory for us through Corcel PLC, one of our key frontier onshore exploration investments.
Chariot was working closely with Etu to assemble a financing package that would give it an economic interest equivalent to approximately 4,000 barrels per day. This represented the kind of “sea change” we look for, with Chariot potentially shifting from an exploration focused company to a production focused business with meaningful cash flow.
The market initially paid little attention. More recently, Etu exercised another right of first refusal on an Angolan asset being sold by Chevron. Shell Trading is funding the entire transaction, avoiding dilution for Chariot and effectively doubling its potential net production exposure from 4,000 to 8,000 barrels per day.
At a Brent price of US$90 per barrel, that represents more than US$250 million in illustrative annualized revenue across the two transactions. The stock has gained approximately 100% over the past six months, ending August 28, but we believe the story may still have further to go. Chariot also owns power assets it is seeking to monetize, which could be worth roughly half of its current market capitalization.
Looking Beyond the Fairway
The point is not simply that we identified a stock that outperformed. It reflects our willingness to look beyond the traditional fairway and go elephant hunting for companies with significant potential but very little institutional attention. When we believe we have an edge and strong conviction, we are prepared to build a meaningful position.
We currently own approximately 2.8% of Chariot (as of September 2, 2026) and do not see another recognizable Canadian investment firm among its major disclosed holders.
We took a similar approach with Tenaz Energy*, where we deployed significant capital before the broader market recognized the opportunity. We remain its largest institutional fund holder outside of index funds*, and Tenaz has become one of Canada’s top performing stocks over the past several years.
*Largest institutional holder is based on SEDI filings / Bloomberg
About Blocks 14 and 14K
Block 14 is a producing offshore oil asset in Angola. Block 14K is an adjacent unitized area that crosses the maritime border between Angola and the Republic of Congo and connects back to Block 14.
Chevron has operated Block 14 since 1995, and the licence has been extended through 2038. The fields have produced more than 900 million barrels of high-quality crude since 1999 and currently produce approximately 40,000 barrels per day ¹. The existing production profile, remaining licence life and attractive fiscal terms are expected to support strong cash flows over the medium term.
Chariot is still early in its transformation, but that is what makes the opportunity compelling. In our view, it is an overlooked company moving from exploration to meaningful production, with additional value still waiting to be unlocked. These are the stories we look for: off the fairway, underfollowed and capable of changing quickly when the right catalyst arrives.
¹ Chariot Limited, “Increasing Economic Exposure to Oil Producing Assets Offshore Angola,” company announcement, September 1, 2026.
Date of Publication: September 4, 2026
*Chariot and Tenaz are selected illustrative examples, not intended as a recommendation to trade in any security, are not representative of the fund's overall holdings or performance. Not all positions in the fund have performed similarly. There may be geopolitical/frontier-market, and exploration-stage risks and other risks related to the resource industry associated with the positions discussed.
Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the prospectus before investing. If the securities are purchased or sold on a stock exchange, you may pay more or receive less than the current net asset value. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated. Certain statements in this document are forward-looking.
The content of this document is for informational purposes only and is not being provided in the context of an offering of any securities described herein, nor is it a recommendation or solicitation to buy, hold or sell any security. The information is not investment advice, nor is it tailored to the needs or circumstances of any investor. Information contained in this document is not, and under no circumstances is it to be construed as, an offering memorandum, prospectus, advertisement or public offering of securities. No securities commission or similar regulatory authority has reviewed this document, and any representation to the contrary is an offence. Information contained in this document is believed to be accurate and reliable; however, we cannot guarantee that it is complete or current at all times. The information provided is subject to change without notice.
Forward-looking statements (“FLS”) are statements that are predictive in nature, depend on or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” intend,” “plan,” “believe,” “estimate” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are, by their nature, based on numerous assumptions. Although the FLS contained in this document are based upon what Purpose Investments and the portfolio manager believe to be reasonable assumptions, Purpose Investments and the portfolio manager cannot assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on the FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed, that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.
