http://www.oilcapital.com/companies/stocktube/7349/igas-chief-looking-forward-to-getting-on-with-east-midlands-drilling-7349.html IGas chief 'looking forward to getting on' with East Midlands drilling http://www.oilcapital.com/companies/stocktube/7349/igas-chief-looking-forward-to-getting-on-with-east-midlands-drilling-7349.html Wed, 26 Apr 2017 16:55:00 +0100 Stephen Bowler, chief executive of IGas Energy Plc (LON:IGAS) runs through with Proactive their drilling plans in the East Midlands for 2017.

Bowler also mentions they're looking at sites in England's north west for further projects.

The group's recent financial restructuring was also touched on.

They've exchanged US$40mln of debt for new equity, in addition to a US$49mln bond buy-back as well as amendments being made to the terms for the remaining US$30mln of bonds.

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http://www.oilcapital.com/companies/news/176930/88-energy-is-one-of-the-most-exciting-companies-on-aim-broker-176930.html 88 Energy is one of the most exciting companies on AIM - broker http://www.oilcapital.com/companies/news/176930/88-energy-is-one-of-the-most-exciting-companies-on-aim-broker-176930.html Wed, 26 Apr 2017 12:08:00 +0100 http://www.oilcapital.com/companies/news/176927/obtala-signs-letter-of-intent-to-invest-in-sustainable-agriculture-in-tanzania-176927.html Obtala signs letter of intent to invest in sustainable agriculture in Tanzania http://www.oilcapital.com/companies/news/176927/obtala-signs-letter-of-intent-to-invest-in-sustainable-agriculture-in-tanzania-176927.html Wed, 26 Apr 2017 11:00:00 +0100 http://www.oilcapital.com/companies/news/176921/tullow-oil-first-quarter-production-at-top-end-of-expectations-176921.html Tullow Oil first quarter production at top end of expectations http://www.oilcapital.com/companies/news/176921/tullow-oil-first-quarter-production-at-top-end-of-expectations-176921.html Wed, 26 Apr 2017 09:51:00 +0100 http://www.oilcapital.com/columns/the-pay-zone/27620/oil-price-rockhopper-igas-sundry-sound-interview-falcon-oil-gas-ascent-resources-and-finally-27620.html Oil price, Rockhopper, IGas, Sundry-Sound interview-Falcon Oil & Gas-Ascent Resources- And finally... http://www.oilcapital.com/columns/the-pay-zone/27620/oil-price-rockhopper-igas-sundry-sound-interview-falcon-oil-gas-ascent-resources-and-finally-27620.html Wed, 26 Apr 2017 09:49:00 +0100 Oil price

Yesterday’s first up day in six might prove to be a rarity as crude has opened  this morning a bit weak after a confusing set of API stats. A build of 897/- b’s in crude wasn’t expected, a draw of 1.7m was forecast but at Cushing the 2m draw was better for the constitution. Gasoline stocks built by 4.4m b’s against the forecasts but why can’t these overpaid numpty analysts take a look at the refinery rate, it’s a month til the driving season and that’s what happens…Take a look at the retail gasoline price, $2.45 overnight against only $1.90 on Nov 28th….Those stats btw were after the close, tonight’s EIA numbers will hopefully look a little better/clearer…

Russia is not helping matters with its position taking ahead of the meeting next month, however at the moment I’m sure that’s all it is. Stand by for a joint communique from Moscow and Jeddah…

Rockhopper

RKH is starting to get things done in the Greater Med part of the business and today they announce the spudding of Al Jahraa SE-2X well in Egypt. Targeting the Abu Roash-C reservoir, pre-drill STOIIP of 20 mmbbls might be added to the development lease. Expect news from here in around 40 days after which the company intend to drill Al Jahraa-9 which is a development well aimed at the AR-C deep reservoir with the intention of finding a connection between the Al Jahraa and the South East fields.

IGas Energy

Results today from IGas which are even more inconsequential than ever after the recent raise and Kerogen financing. With a strong balance sheet now and cash flow from the, guided, 2,500 b/d of production things are definitely looking up for IGas. With a modest spring in its step I expect to see more favourable planning decisions on the way and maybe even some drilling this year. IGas has cut hard back on G&A which is creditable, they were hardly overspending before but are now pretty lean, from the board down and with the shares at 4.65p may well be worth taking a serious look at…

Sundry

I met with Philip O’Quigley, CEO of Falcon Oil & Gas yesterday, a good opportunity to catch up during this period of moratorium. Readers know that I am incredibly bullish about its value, assuming that the inquiry goes its way. Only that slight fly in the ointment stops entry to the bucket list to be honest. Timing-wise the enquiry is proceeding quickly, expect an interim report, no more, mid summer and a likely advisory statement for the PM in October. Should this be positive, FOG would be expected to rise sharply again, remember it has already doubled this year so far but it has a wallet full of other people’s cash and is sitting on huge potential reserves.

I also met with Colin Hutchinson, CEO of Ascent Resources yesterday and it was a great pleasure to hear the news in person, of the first gas from Slovenia. With that milestone successfully completed the gas is now able to be sold to INA via the GSA signed last year. With more work to be done, more gas will inevitably flow and there are plans to sell gas into the grid once any final objections can be overcome. This news after such a long time is extremely positive and 2H 2017 should even start to look profitable. It has been a long haul for patient Ascent shareholders but there is a decent light at the end of the tunnel.

Finally yesterday I also managed to catch up in the TipTV studios again with Sound Energy CEO, James Parsons.  With much to talk about, Morocco from East to West, another Schlumberger deal and of course Badile the time went very quickly, the link to the interview is below…

TipTV CEO interview: Sound Energy ties up with Schlumberger for Morocco projects

And finally…

After Chelski dismantled the Saints last night I guess that Spurs have to do the same to the Eagles tonight although Big Sam appears to have them cooking on gas right now. Elsewhere the Gooners host the Foxes, not easy now and the relegation derby is between the Maccams and the Boro with seemingly little to play for…

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http://www.oilcapital.com/companies/news/176920/croda-reports-improved-first-quarter-sales-growth-boosted-by-sterling-weakness-176920.html Croda reports improved first-quarter sales growth boosted by sterling weakness http://www.oilcapital.com/companies/news/176920/croda-reports-improved-first-quarter-sales-growth-boosted-by-sterling-weakness-176920.html Wed, 26 Apr 2017 09:41:00 +0100 http://www.oilcapital.com/companies/news/176916/rockhopper-exploration-starts-new-egypt-exploration-well-176916.html Rockhopper Exploration starts new Egypt exploration well http://www.oilcapital.com/companies/news/176916/rockhopper-exploration-starts-new-egypt-exploration-well-176916.html Wed, 26 Apr 2017 08:28:00 +0100 http://www.oilcapital.com/companies/news/176914/tlou-energy-takes-funding-tally-to-a67mln-after-additional-demand-from-uk-investors-176914.html Tlou Energy takes funding tally to A$6.7mln after additional demand from UK investors http://www.oilcapital.com/companies/news/176914/tlou-energy-takes-funding-tally-to-a67mln-after-additional-demand-from-uk-investors-176914.html Wed, 26 Apr 2017 07:54:00 +0100 http://www.oilcapital.com/companies/news/176911/windar-photonics-adds-more-orders-to-chinese-pipeline-176911.html Windar Photonics adds more orders to Chinese pipeline http://www.oilcapital.com/companies/news/176911/windar-photonics-adds-more-orders-to-chinese-pipeline-176911.html Wed, 26 Apr 2017 07:40:00 +0100 http://www.oilcapital.com/columns/vsa-capital-market-movers/27615/vsa-capital-market-movers-antofagasta-plc-bhp-billiton-plc-fresnillo-27615.html VSA Capital Market Movers - Antofagasta Plc, BHP Billiton plc, Fresnillo http://www.oilcapital.com/columns/vsa-capital-market-movers/27615/vsa-capital-market-movers-antofagasta-plc-bhp-billiton-plc-fresnillo-27615.html Wed, 26 Apr 2017 07:26:00 +0100 Antofagasta (LON:ANTO)

Antofagasta (LON:ANTO) Q1 2017 copper production was up 9.4% YoY although down 16.4% QoQ to 172kt due to expected weaker grades at Los Pelambres. Gold production was also weak, down 6% YoY and 42% QoQ to 53koz. ANTO is, however, on track to meet full year guidance of 685-720kt yet continues the trend of copper production underperformance by the majors in Q1 2017.

The impact of production weakness was naturally negative on cash costs which were up 12.4% QoQ on a net basis to US$1.27/lb, although down 7.3% YoY. Before by-product credits cash costs were up 8.9% QoQ and down 7.6% YoY to US$1.59/lb.

BHP Billiton (LON:BLT)

BHP Billiton (LON:BLT) has announced disappointing operational results as although modest gains were made in bulks production this was offset by significant declines in petroleum and copper production.

Total copper production of 939kt was down 20% YoY largely due to the strike action at Escondida although production at the other mines of 393kt was down 14% YoY also. Petroleum production of 157mmboe was down 15% YoY largely due to curtailments relating to market conditions.

Iron ore production of 171mnt was up 3% YoY as productivity improvements continued. Despite the cyclone impact BLT was able to increase met coal production by 2% to 31mnt YoY. Thermal coal production was unchanged YoY at 21mnt.

Fresnillo (LON:FRES)

Fresnillo (LON:FRES) has produced robust operational numbers for Q1 2017 with total silver production of 13.5mnoz up 10% YoY and 1.6% QoQ. This annual increase reflects the contribution from the San Julian mine although the marginal quarterly increase was a result of weaker ore grades at Saucito which offset improvements elsewhere.

Gold production was, however, weaker as expected and down 3.3% YoY and 17% QoQ to 222koz. FRES previously guided towards lower gold grades at Herradura in 2017. Full year silver production guidance of 58-61mnoz has been maintained along with 870-900koz gold and in order to achieve this the second phase of the San Julian ramp up is required. Currently it is due to be commissioned at the end of Q2.

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http://www.oilcapital.com/companies/news/176910/igas-energy-to-start-midlands-shale-drilling-this-year-176910.html IGas Energy to start Midlands shale drilling this year http://www.oilcapital.com/companies/news/176910/igas-energy-to-start-midlands-shale-drilling-this-year-176910.html Wed, 26 Apr 2017 07:18:00 +0100 http://www.oilcapital.com/companies/news/176900/europa-oil-gas-cleared-to-complete-irish-deal-with-cairn-energy-176900.html Europa Oil & Gas cleared to complete Irish deal with Cairn Energy http://www.oilcapital.com/companies/news/176900/europa-oil-gas-cleared-to-complete-irish-deal-with-cairn-energy-176900.html Wed, 26 Apr 2017 06:39:00 +0100 http://www.oilcapital.com/companies/news/176888/riva-resources-reveals-similarities-to-broad-cobalt-hit-at-tabac-176888.html Riva Resources reveals similarities to broad cobalt hit at Tabac http://www.oilcapital.com/companies/news/176888/riva-resources-reveals-similarities-to-broad-cobalt-hit-at-tabac-176888.html Wed, 26 Apr 2017 02:30:00 +0100 http://www.oilcapital.com/companies/news/176792/empire-energy-group-eyes-oil-producing-formation-in-kansas-us-176792.html Empire Energy Group eyes oil producing formation in Kansas, U.S. http://www.oilcapital.com/companies/news/176792/empire-energy-group-eyes-oil-producing-formation-in-kansas-us-176792.html Tue, 25 Apr 2017 22:00:00 +0100 http://www.oilcapital.com/companies/news/176874/madalena-energy-brings-in-c11mln-via-point-loma-share-sale-176874.html Madalena Energy brings in C$1.1mln via Point Loma share sale http://www.oilcapital.com/companies/news/176874/madalena-energy-brings-in-c11mln-via-point-loma-share-sale-176874.html Tue, 25 Apr 2017 19:19:00 +0100 http://www.oilcapital.com/companies/news/176860/avanti-energy-brings-in-465500-via-private-placing-176860.html Avanti Energy brings in $465,500 via private placing http://www.oilcapital.com/companies/news/176860/avanti-energy-brings-in-465500-via-private-placing-176860.html Tue, 25 Apr 2017 16:59:00 +0100 http://www.oilcapital.com/companies/news/176868/baker-buys-point-loma-resources-shares-176868.html Baker buys Point Loma Resources shares http://www.oilcapital.com/companies/news/176868/baker-buys-point-loma-resources-shares-176868.html Tue, 25 Apr 2017 15:10:00 +0100 http://www.oilcapital.com/companies/stocktube/7338/solo-oil-s-fergus-jenkins-on-major-upgrade-to-gas-in-place-estimates-for-ntorya-7338.html Solo Oil's Fergus Jenkins on 'major upgrade' to gas in place estimates for Ntorya http://www.oilcapital.com/companies/stocktube/7338/solo-oil-s-fergus-jenkins-on-major-upgrade-to-gas-in-place-estimates-for-ntorya-7338.html Tue, 25 Apr 2017 13:49:00 +0100 Fergus Jenkins, Solo Oil PLC's (LON:SOLO) chief operating officer, outlines to Proactive their view of the Ntorya gas project’s contingent resources.

The Ntorya discovery is now estimated to have some 466 BCF of mean gas initially in place (GIIP), up from the previous estimate of 153 BCF. The new estimates range from 62 BCFin the more conservative P90 case to 1.13 trillion cubic feet (TCF) in the P10 scenario.

It follows the successful Ntorya-2 well, drilled earlier this year, with the latest estimates now based upon data from two wells. The estimates do not include any consideration for the adjoining exploration acreage.

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http://www.oilcapital.com/companies/news/176863/baker-hughes-shares-slip-as-gulf-of-mexico-business-wanes-176863.html Baker Hughes shares slip as Gulf of Mexico business wanes http://www.oilcapital.com/companies/news/176863/baker-hughes-shares-slip-as-gulf-of-mexico-business-wanes-176863.html Tue, 25 Apr 2017 13:34:00 +0100 http://www.oilcapital.com/companies/news/176839/northen-petroleum-repositioned-after-pivotal-year--176839.html Northen Petroleum repositioned after 'pivotal year' http://www.oilcapital.com/companies/news/176839/northen-petroleum-repositioned-after-pivotal-year--176839.html Tue, 25 Apr 2017 12:03:00 +0100 http://www.oilcapital.com/companies/news/176849/trinity-exploration-production-looks-for-production-boost-after-financial-overhaul-176849.html Trinity Exploration & Production looks for production boost after financial overhaul http://www.oilcapital.com/companies/news/176849/trinity-exploration-production-looks-for-production-boost-after-financial-overhaul-176849.html Tue, 25 Apr 2017 11:27:00 +0100 http://www.oilcapital.com/companies/news/176850/city-impressed-with-sound-energys-latest-schlumberger-tie-up-in-morocco-176850.html City impressed with Sound Energy’s latest Schlumberger tie-up in Morocco http://www.oilcapital.com/companies/news/176850/city-impressed-with-sound-energys-latest-schlumberger-tie-up-in-morocco-176850.html Tue, 25 Apr 2017 10:37:00 +0100 http://www.oilcapital.com/companies/stocktube/7333/-a-very-good-year-under-difficult-circumstances-says-northern-petroleum-s-keith-bush-7333.html 'A very good year under difficult circumstances', says Northern Petroleum's Keith Bush http://www.oilcapital.com/companies/stocktube/7333/-a-very-good-year-under-difficult-circumstances-says-northern-petroleum-s-keith-bush-7333.html Tue, 25 Apr 2017 10:00:00 +0100 Keith Bush, chief executive of Northern Petroleum Plc (LON:NOP) tells Proactive's Andrew Scott 2016 was a 'pivotal year' for them which saw revenues climb and losses narrow.

Bush also updated investors on their winter as well as upcoming summer work programmes.

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http://www.oilcapital.com/companies/stocktube/7331/zak-mir-80p-the-best-case-scenario-for-sdx-energy-inc--7331.html Zak Mir: '80p the best case scenario for SDX Energy Inc' http://www.oilcapital.com/companies/stocktube/7331/zak-mir-80p-the-best-case-scenario-for-sdx-energy-inc--7331.html Tue, 25 Apr 2017 09:24:00 +0100 New wells are planned by SDX Energy Inc (LON: SDX) for Morocco later this year, while the technicals suggest that after a great run this year the best case scenario is 80p and any dips towards 60p are a buying opportunity.

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http://www.oilcapital.com/companies/news/176841/magnolia-petroleum-to-participate-in-a-further-16-us-onshore-wells-176841.html Magnolia Petroleum to participate in a further 16 US onshore wells http://www.oilcapital.com/companies/news/176841/magnolia-petroleum-to-participate-in-a-further-16-us-onshore-wells-176841.html Tue, 25 Apr 2017 08:12:00 +0100 http://www.oilcapital.com/companies/news/176835/88-energy-kicks-off-hotly-anticipated-icewine-2-drilling-176835.html 88 Energy kicks off hotly anticipated Icewine-2 drilling http://www.oilcapital.com/companies/news/176835/88-energy-kicks-off-hotly-anticipated-icewine-2-drilling-176835.html Tue, 25 Apr 2017 07:26:00 +0100 http://www.oilcapital.com/columns/vsa-capital-market-movers/27606/vsa-capital-market-movers-metal-tiger-27606.html VSA Capital Market Movers - Metal Tiger http://www.oilcapital.com/columns/vsa-capital-market-movers/27606/vsa-capital-market-movers-metal-tiger-27606.html Tue, 25 Apr 2017 07:13:00 +0100 Metal Tiger (LON:MTR) has announced drill assay results from four further holes at the T3 copper project in Botswana. The current drilling is focused on the area at depth immediately below the existing Zone 1 resource; known as Zones 2 and 3.  Highlights from the latter two zones include 5.6m at 1.4% Cu and 20g/t Ag from 243m, 8.9m at 1.7% Cu and 29g/t Ag, 13m at 0.8% Cu and 9g/t Ag from 460m and 13m at 1% Cu and 18g/t Ag from 220m. Results on a further 19 holes are outstanding which are a mixture of geotechnical and infill drilling.

The drill results which demonstrate further mineralisation at depth mean there is potential for an expanded resource and enlarged PFS. However, we believe there is further potential in the surrounding license areas and recent geophysics surveys have identified further chargeable anomalies which will be drill tested as soon as approvals are granted. In addition, airborne electromagnetic surveys are due to be carried out in May 2017 in order to assess the broader area (100km2).

The PFS appears to be progressing well with geotechnical drilling complete and metallurgical testing underway. In addition, pump testing and environmental impact assessment work is due to commence soon.

We reiterate our Buy recommendation and 4p target price.

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http://www.oilcapital.com/columns/the-pay-zone/27603/oil-price-sound-energy-sdx-energy-savannah-petroleum-and-finally-27603.html Oil price, Sound Energy, SDX Energy, Savannah Petroleum. And finally... http://www.oilcapital.com/columns/the-pay-zone/27603/oil-price-sound-energy-sdx-energy-savannah-petroleum-and-finally-27603.html Tue, 25 Apr 2017 07:09:00 +0100 Oil price

The oil price started ok but drifted during the day, as I said yesterday it’s a month to the Opec/Non-Opec meeting and the market only has a limited amount of patience, a bit like a goldfish…Inventory stats will be key, as ever at this time of the year.

Sound Energy

Sound has announced that it has signed binding heads of terms with Schlumberger which expands the relationship between the two companies into Meridja and the Tendrara relinquished areas of Eastern Morocco. In exchange for a full carry on SOU’s forthcoming Eastern Moroccan geophysical survey programme, estimated at $27.2m and subject to completion of the acquisition of these assets from OGIF the deal will go ahead.

This means that the existing Field Management Agreement between the two companies will be extended to include these two areas of Meridja, and the area of Tendrara relinquished under the Morrocan Hydrocarbon code . Schlumberger will be granted a 27.5% NPI in both areas and in return will contribute ‘services in kind’ to cover the agreed scope of the geophysical programme mentioned above. This will include the acquisition and processing of approximately 2,600km of new 2D seismic and 24,000 sq km of Gravity Gradiometry, the seismic of which will cover the TAGI and Paleozoic across both Tendrara and Meridja areas.

Yet again Sound have managed to acquire and share really interesting acreage securing a full carry on a key programme of work. With a supportive partner creating a key, strategic relationship, their options in the area are still multi-faceted.

SDX Energy

A Morocco update today from SDX, with so much exciting news from Egypt it is easy to forget that particularly since the Circle deal SDX has significant exposure to exciting production and exploration in country. The Lalla Mimounia Nord and Sud permits have been extended to March 2018 with drilling on two exploration wells planned for 2H 2017. At Sebou several extensions for production and exploration have been granted over the next eight years with a number of wells planned this year which, if successful are close to pipeline infrastructure. Overall these developments provide significant potential to increase both production and reserves with plenty of exploration upside. Things at SDX are still going from strength to strength.

Savannah Petroleum

I have picked up on a very interesting article in the Niger press which is extremely exciting for the country and in our case Savannah Petroleum. Talking about the five major discoveries, and ‘smaller ones of the order of 200m barrels’ in the second half of 2016 in the southern part of the Agadem block, the article suggests that CNPC will intensify their drilling.

The good news doesn’t end there, talk of fast track exports of oil to the Kaduna refinery growing from a starting 5/-b/d to 10/- b/d, ‘gradually’ by truck means that prospects are bright. In addition the Niger Oil Minister has spent time in Nigeria recently holding talks with his counterpart also discussing a new pipeline between the two countries. For Savannah, the pipeline options are either via Chad-Cameroon or to Kaduna in Nigeria and news that both of these routes are becoming more of a reality is extremely good news.

News from Savannah is coming thick and fast, a rig has been selected and work on the camp has begun, yesterday  we heard that there will soon be a Capital Markets Day and a call for retail investors, as the article concludes ‘a succession of good news’ is due from Niger, as SAVP prepares to spin the drill bit at Agadem, exciting times indeed..

Primeline

Primeline has announced that CFO Stuart Joyner is leaving ‘to pursue other interests’ which I hope means spending more time in the UK and looking after his asparagus harvest… Stuart is a great bloke and i’m sure that if he wants to he will pick off a very senior position in the sector and it will be good to have him back…

And finally…

A bit briefly but Newcastle fans will be delirious this morning as they have secured promotion to the Premier League for next season. At least that means the bookies can install them as early favourites to go down and Rafa to be the first manager to get the sack, only joking….

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http://www.oilcapital.com/companies/news/176834/sdx-energy-on-track-for-2017-drilling-in-morocco-176834.html SDX Energy on track for 2017 drilling in Morocco http://www.oilcapital.com/companies/news/176834/sdx-energy-on-track-for-2017-drilling-in-morocco-176834.html Tue, 25 Apr 2017 07:03:00 +0100 http://www.oilcapital.com/companies/news/176829/premier-oil-secures-lock-ins-from-majority-of-convertible-bondholders-refinancing-process-continues-176829.html Premier Oil secures ‘lock ins’ from majority of convertible bondholders, refinancing process continues http://www.oilcapital.com/companies/news/176829/premier-oil-secures-lock-ins-from-majority-of-convertible-bondholders-refinancing-process-continues-176829.html Tue, 25 Apr 2017 06:57:00 +0100 http://www.oilcapital.com/companies/news/176825/sound-energy-expands-its-schlumberger-collaboration-in-a-deal-worth-us27mln-176825.html Sound Energy expands its Schlumberger collaboration in a deal worth US$27mln http://www.oilcapital.com/companies/news/176825/sound-energy-expands-its-schlumberger-collaboration-in-a-deal-worth-us27mln-176825.html Tue, 25 Apr 2017 06:46:00 +0100 http://www.oilcapital.com/companies/news/176826/europa-oil-gas-set-for-summer-seismic-offshore-ireland-176826.html Europa Oil & Gas set for summer seismic offshore Ireland http://www.oilcapital.com/companies/news/176826/europa-oil-gas-set-for-summer-seismic-offshore-ireland-176826.html Tue, 25 Apr 2017 06:38:00 +0100 http://www.oilcapital.com/companies/news/176822/tullow-oil-confirms-success-of-600mln-rights-issue-176822.html Tullow Oil confirms success of £600mln rights issue http://www.oilcapital.com/companies/news/176822/tullow-oil-confirms-success-of-600mln-rights-issue-176822.html Tue, 25 Apr 2017 06:19:00 +0100 http://www.oilcapital.com/companies/news/176816/primeline-energy-appoints-li-as-interim-finance-chief-as-joyner-steps-down-176816.html Primeline Energy appoints Li as interim finance chief as Joyner steps down http://www.oilcapital.com/companies/news/176816/primeline-energy-appoints-li-as-interim-finance-chief-as-joyner-steps-down-176816.html Mon, 24 Apr 2017 19:26:00 +0100 http://www.oilcapital.com/companies/news/176803/simba-energy-starts-life-as-simba-essel-energy-after-essel-deals-approved-176803.html Simba Energy starts life as Simba Essel Energy after Essel deals approved http://www.oilcapital.com/companies/news/176803/simba-energy-starts-life-as-simba-essel-energy-after-essel-deals-approved-176803.html Mon, 24 Apr 2017 17:06:00 +0100 http://www.oilcapital.com/companies/news/176795/aminex-shares-advance-on-major-upgrade-for-ntorya-gas-project-176795.html Aminex shares advance on major upgrade for Ntorya gas project http://www.oilcapital.com/companies/news/176795/aminex-shares-advance-on-major-upgrade-for-ntorya-gas-project-176795.html Mon, 24 Apr 2017 14:40:00 +0100 http://www.oilcapital.com/companies/news/176804/halliburton-boosted-by-rapid-rise-in-first-quarter-activity-176804.html Halliburton boosted by rapid rise in first quarter activity http://www.oilcapital.com/companies/news/176804/halliburton-boosted-by-rapid-rise-in-first-quarter-activity-176804.html Mon, 24 Apr 2017 13:13:00 +0100 http://www.oilcapital.com/companies/stocktube/7325/-the-rovuma-basin-continues-to-deliver-says-aminex-boss-following-ntorya-upgrade-7325.html 'The Rovuma Basin continues to deliver', says Aminex boss following Ntorya upgrade http://www.oilcapital.com/companies/stocktube/7325/-the-rovuma-basin-continues-to-deliver-says-aminex-boss-following-ntorya-upgrade-7325.html Mon, 24 Apr 2017 13:12:00 +0100 Aminex plc (LON:AEX) has told investors of a major upgrade to the gas resource estimates for the Ntorya project in Tanzania.

Chief executive Jay Bhattacherjee says the Ntorya discovery is now estimated to have some 466bn cubic feet of mean gas initially in place (GIIP), up from the previous estimate of 153bn cubic feet.

The new estimates range from 62bn cubic feet in the more conservative P90 case to 1.13 trillion cubic feet in the P10 scenario.

''Not only do we have a large gas resource in play but we also have the potential here for liquids and what we're looking to do now is just to go through the basin model we currently have, update that and  then build a development programme which we anticipate will be very important for the country''.

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http://www.oilcapital.com/companies/news/176798/falcon-oil-gas-has-seen-success-but-investors-await-binary-beetaloo-decision-176798.html Falcon Oil & Gas has seen success but investors await binary Beetaloo decision http://www.oilcapital.com/companies/news/176798/falcon-oil-gas-has-seen-success-but-investors-await-binary-beetaloo-decision-176798.html Mon, 24 Apr 2017 10:59:00 +0100 http://www.oilcapital.com/columns/vsa-capital-market-movers/27596/vsa-capital-market-movers-anglo-american-27596.html VSA Capital Market Movers - Anglo American http://www.oilcapital.com/columns/vsa-capital-market-movers/27596/vsa-capital-market-movers-anglo-american-27596.html Mon, 24 Apr 2017 07:35:00 +0100 Anglo American (LON:AAL) has reported robust production results for Q1 2017 with strong production of bulks and diamonds offset by weakness in base metal production. Iron ore production at Kumba of 10.5mnt was up 17% YoY due to ongoing mine plan improvements whilst at Minas Rio the ramp up continued with a 30% YoY increase in production to 4.3mnt. Meanwhile, met coal production of 5.2mnt was up 28% YoY while thermal coal production was up 6% YoY to 6.5mnt.

De Beers also reported strong operational performance with diamond production of 7.4mnct up 8% YoY, as curtailments were partially relaxed due to improving trading conditions. Meanwhile, copper production of 143kt was down 6% YoY due to weak grades at Los Bronces and a temporary suspension at El Soldado. We note that AAL is the second of the majors to realise weak copper production results in Q1. Nickel production, down 12% to 9.9kt was also impacted by unplanned maintenance. Platinum production was largely unchanged at 572koz.

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http://www.oilcapital.com/companies/news/176771/eland-oil-gas-borrowing-base-confirmed-by-review-of-opuama-field-review-176771.html Eland Oil & Gas borrowing base confirmed by review of Opuama field review http://www.oilcapital.com/companies/news/176771/eland-oil-gas-borrowing-base-confirmed-by-review-of-opuama-field-review-176771.html Mon, 24 Apr 2017 06:56:00 +0100 http://www.oilcapital.com/companies/news/176768/solo-oil-outlines-its-view-of-ntorya-gas-projects-contingent-resources-176768.html Solo Oil outlines its view of Ntorya gas project’s contingent resources http://www.oilcapital.com/companies/news/176768/solo-oil-outlines-its-view-of-ntorya-gas-projects-contingent-resources-176768.html Mon, 24 Apr 2017 06:37:00 +0100 http://www.oilcapital.com/companies/news/176762/aminex-unveils-major-resources-upgrade-for-ntorya-gas-project-in-tanzania-176762.html Aminex unveils major resources upgrade for Ntorya gas project in Tanzania http://www.oilcapital.com/companies/news/176762/aminex-unveils-major-resources-upgrade-for-ntorya-gas-project-in-tanzania-176762.html Mon, 24 Apr 2017 06:21:00 +0100 http://www.oilcapital.com/companies/news/176756/altech-chemicals-on-track-at-malaysian-high-purity-alumina-plant-176756.html Altech Chemicals on-track at Malaysian high purity alumina plant http://www.oilcapital.com/companies/news/176756/altech-chemicals-on-track-at-malaysian-high-purity-alumina-plant-176756.html Mon, 24 Apr 2017 02:30:00 +0100 http://www.oilcapital.com/companies/news/176742/schlumberger-disappoints-but-boss-points-to-rapid-acceleration-in-depletion-of-developed-reserves-176742.html Schlumberger disappoints but boss points to rapid acceleration in depletion of developed reserves http://www.oilcapital.com/companies/news/176742/schlumberger-disappoints-but-boss-points-to-rapid-acceleration-in-depletion-of-developed-reserves-176742.html Fri, 21 Apr 2017 15:53:00 +0100 http://www.oilcapital.com/columns/the-pay-zone/27591/oil-price-amerisur-ithaca-energy-and-finally-27591.html Oil price, Amerisur, Ithaca Energy. And finally... http://www.oilcapital.com/columns/the-pay-zone/27591/oil-price-amerisur-ithaca-energy-and-finally-27591.html Fri, 21 Apr 2017 10:26:00 +0100 WTI $50.27 -17c, Brent $52.99 +6c, Diff -$2.72 +23c, NG $3.16 -3c


Oil price


The news was fairly good yesterday but despite that, crude oil trade was lacklustre. Both the Saudis and the Kuwaitis suggested that production cuts should be ‘prolonged’ but Kuwait added that they could be reduced if 2H demand rises as expected. Finally it was reported that Iraqi output is down at the moment by around 140/- but that hasn’t affected markets yet either.

Certainly if the refinery run figure we saw this week continues demand for crude will rise but then the bears will say that product stocks will rise, let’s see what happens come the Driving Season which starts May 29th. Finally, whilst it’s not an oily matter there are elections in France at the weekend in which 11 candidates are whittled down to 2. As they stand at the moment, the polls who should not be trusted,give an order of Macron, Le Pen, Fillon and Melenchon, most of whom fill with despair but a Le Pen v Melenchon final would take some choosing…


Amerisur Resources


Plenty of news around from AMER at the moment and it is good to see the share price at long last picking up, it has been unjustifiably low recently. The promised wells are now coming thick and fast and today they announce the spudding of Platanillo-21 on Pad 2N. This is a short deviation directional well aimed at the crest of the mapped structure aimed at getting better information about the structure in the northern part of the field. They will do logging while drilling and use wireline techniques and intend to acquire core data through the entire Villeta sequence. Expect the well to take around 27 days subject to data gathering and dry hole costs area modest $3m. Finally the company has announced that the AGM is to be held on 9th May, I might even make the trip this year…


Ithaca Energy


Last week I had been planning to write another interim report on IAE but heard that it was all over bar the shouting so didn’t in the end. Today the company has announced that 70.3% of the non-Delek votes have accepted the offer. This reminds me of the Centrica offer for Venture Production where shareholders also sold the company down the river. Of course the VP directors stood and fought, unlike the IAE directors who have taken their 30 or so pieces of silver. Now don’t get me wrong, I have immense respect for Les Thomas and team which is why I have said that they should have stayed and taken the company to the next level and I do appreciate that they have to assess the risks involved in making that decision, I would at least like to see Les and team reappear with another ‘venture’. Date extended to 3rd May, after which I will need a new bucket list participant, might even be a company run by someone who was on the board of Venture…


And finally…


After a hard fought game with what seemed like endless chances the Red Devils finally beat Anderlecht last night but injuries and tiredness will likely take their toll. Back home it’s the FA Cup semi-finals with Chelski v Spurs and the Gooners v the Noisy Neighbours. It looks like Arsene is keeping his job which will be made easier if he wins the Cup but that is far from a certainty.

In the remaining Premiership games the Eagles go to the HubCap Stealers and Burnley host the Red Devils whilst at the bottom of the table the Hull City Tigers take on the Boro.

And whilst talking about football it is very sad to see that Ugo Ehiogu died this morning at the age of 44 having most recently been coaching at Spurs.

Rugby sees the Semi-Finals of the European Champions Cup, tomorrow is Munster v Sarries and on Sunday it is Clermont Auvergne v Leinster.

And of course a mention for all those dedicated runners taking part in the London Marathon on Sunday. A special shout out to Tim Gregory, Founder of Vermeer Investment Management, and of course Catherine Berrow who is raising money for the Anthony Nolan Trust which we hold very close…

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http://www.oilcapital.com/companies/news/176722/election-uncertainty-among-factors-leading-macquarie-to-downgrade-british-gas-owner-centrica-to-hold--176722.html Election uncertainty among factors leading Macquarie to downgrade British gas owner Centrica to 'hold' http://www.oilcapital.com/companies/news/176722/election-uncertainty-among-factors-leading-macquarie-to-downgrade-british-gas-owner-centrica-to-hold--176722.html Fri, 21 Apr 2017 09:57:00 +0100 http://www.oilcapital.com/columns/vsa-capital-market-movers/27589/vsa-capital-market-movers-metal-tiger-27589.html VSA Capital Market Movers - Metal Tiger http://www.oilcapital.com/columns/vsa-capital-market-movers/27589/vsa-capital-market-movers-metal-tiger-27589.html Fri, 21 Apr 2017 07:35:00 +0100 Metal Tiger (LON:MTR)
Metal Tiger  has announced that its private placing with Sprott has closed, raising £4.85m at a placing price of 3p/sh via the issuance of 161.7m shares with an equal number of warrants which have an exercise price of 6p/sh and five year exercise period. The funds will go towards the development of the T3 copper project in Botswana.

We reiterate our Buy recommendation although reduce our target price by 17% to 4p to reflect the dilution.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27585/vsa-capital-market-movers-goldplat-27585.html VSA Capital Market Movers - Goldplat http://www.oilcapital.com/columns/vsa-capital-market-movers/27585/vsa-capital-market-movers-goldplat-27585.html Fri, 21 Apr 2017 07:18:00 +0100 Goldplat (LON:GDP)
Goldplat has announced an operational update for Q3 FY 2017 and reiterated its targets for the full year. Production of 6.7koz in the quarter was down 45% QoQ and 7% YoY, however, this is largely due to a delay in the receipt of processing material in Ghana. Indeed, on a nine month basis, production of 28koz which is up 14% YoY is on track to meet the target of 45koz for group FY 2017 production.

In Ghana 803oz was produced with 5.5koz sold. The discrepancy between gold sold and produced had been expected due to an outstanding license which was received towards the end of Q2 FY 2017. However, this difference was exacerbated by a delay in the receipt of material for processing which negatively impacted production in Q3. Production in Ghana had been expected to be lower in H2 versus H1, however, and with the arrival of the first shipment of material from South America we expect a more normalised production level in the final quarter. Capital projects in Ghana are progressing on target, including the construction of the additional 4t elution column.

The South African operations delivered a robust performance with 5koz produced, up 2% YoY although down 30% QoQ due to a particularly strong prior quarter. Following the recent announcement regarding the legal proceedings with Rand Refinery, GDP has confirmed that it has identified an alternative refinery as well as Aurubis in Germany where shipments can be processed meaning it has largely mitigated the associated operational risk.

At Kilimapesa the ramp up is performing well with quarterly production of 964oz up 70% QoQ and 92% YoY. Stage Two is expected to be completed by the end of April 2017 with the crusher installed by the end of May 2017.

Overall, we remain positive on GDP’s operational performance and our forecasts remain unchanged.

We reiterate our Buy recommendation and 11.2p/sh. target price.
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http://www.oilcapital.com/companies/news/176708/powerhouse-energy-reports-first-gas-production-from-recommissioned-g3-uht-unit-following-its-move-to-the-uk-176708.html PowerHouse Energy reports first gas production from recommissioned G3-UHt unit following its move to the UK http://www.oilcapital.com/companies/news/176708/powerhouse-energy-reports-first-gas-production-from-recommissioned-g3-uht-unit-following-its-move-to-the-uk-176708.html Fri, 21 Apr 2017 07:07:00 +0100 http://www.oilcapital.com/companies/news/176712/ithaca-energy-takeover-set-to-clear-176712.html Ithaca Energy takeover set to clear http://www.oilcapital.com/companies/news/176712/ithaca-energy-takeover-set-to-clear-176712.html Fri, 21 Apr 2017 07:04:00 +0100 http://www.oilcapital.com/companies/news/176695/greenland-minerals-and-energy-advances-permitting-176695.html Greenland Minerals and Energy advances permitting http://www.oilcapital.com/companies/news/176695/greenland-minerals-and-energy-advances-permitting-176695.html Fri, 21 Apr 2017 02:00:00 +0100 http://www.oilcapital.com/companies/news/176686/octant-energy-excited-about-drilling-in-world-class-basins-as-it-completes-kenya-acquisitions-176686.html Octant Energy excited about drilling in world class basins as it completes Kenya acquisitions http://www.oilcapital.com/companies/news/176686/octant-energy-excited-about-drilling-in-world-class-basins-as-it-completes-kenya-acquisitions-176686.html Thu, 20 Apr 2017 18:58:00 +0100 http://www.oilcapital.com/companies/news/176681/avanti-energy-increases-previous-financing-to-700000-176681.html Avanti Energy increases previous financing to $700,000 http://www.oilcapital.com/companies/news/176681/avanti-energy-increases-previous-financing-to-700000-176681.html Thu, 20 Apr 2017 14:53:00 +0100 http://www.oilcapital.com/companies/news/176673/broker-looks-forward-to-a-busy-time-for-jersey-oil-gas-176673.html Broker looks forward to a ‘busy time’ for Jersey Oil & Gas http://www.oilcapital.com/companies/news/176673/broker-looks-forward-to-a-busy-time-for-jersey-oil-gas-176673.html Thu, 20 Apr 2017 12:49:00 +0100 http://www.oilcapital.com/columns/the-pay-zone/27582/oil-price-amerisur-jersey-oil-gas-thalassa-echo-energy-and-finally-27582.html Oil price, Amerisur, Jersey Oil & Gas, Thalassa, Echo Energy. And finally... http://www.oilcapital.com/columns/the-pay-zone/27582/oil-price-amerisur-jersey-oil-gas-thalassa-echo-energy-and-finally-27582.html Thu, 20 Apr 2017 12:27:00 +0100 WTI $50.44 -$1.97, Brent $52.93 -$1.96, Diff -$2.49 +1c, NG $3.18 +4c


Oil price


A bit of a tumble for crude yesterday which was mainly down to the EIA inventory stats. Whilst crude drew 1m barrels which was close enough to the whisper, it was the gasoline numbers which showed a build of 1.5m barrels that put the cat amongst the pigeons, a draw of 1.9m b’s was forecast. With a rise of 1.9% to 92.9% refinery rates were indeed high but no more than can be expected given that we are only about a month away from the start of the driving season. Interestingly, distillates drew by 2m barrels showing that the product markets are in a bit of a quandary.


Amerisur Resources


The good news from AMER just keeps on coming and today’s announcement is no exception. The well on Platanillo-22 has flow tested at 613 bopd ‘materially’ in excess of the pre-drill estimates of 300-400 b/d. (it was also slightly better crude at 31.5º API than the main Platanillo field) The crude is already on production and is being trucked the short distance to the OBA pipeline. It gets better, it seems that PAD 2N is a separate closure to the PAD 3N and the greater Platanillo field and the oil/water contact is deeper than the main field.

Accordingly, the PAD 2N recoverable reserves are now calculated at 7.82mmbo up from 1.4m and with the rig now mobilising to drill Platanillo-21 from PAD 2N more good news might be around the corner. The shares are up 7% on the news but at 22.5p are still significantly undervalued.


Jersey Oil & Gas


Results today from JOG and like all results they are history and more so as it is a company with all in front of it. New news since the period end is that mean prospective recoverable resources are at 162 mmboe up from 118m and the COS is up to 29%. With the various carries, the company is fully funded for the drilling programme and it is still out there looking to buy some production. The shares which are in the bucket list, have been strong this year as the market prices in the chance of a success at Verbier, with the ‘lucky’ Transocean Spitsbergen on their  side, the next few months promise to be an interesting ride.


Thalassa Holdings


After yesterday’s  announcement I picked up the phone this morning to Duncan Soukup to try and catch up on what exactly is going on. Always a refreshingly honest and intelligent view on the oil market is forthcoming and today was no exception. There are discussions ongoing about a potential sale of either WGP Group or ARL although I get the feeling that DS wouldnt shed a tear if nothing were to come of it. The company has a terrific record at the moment with activity in most key areas of the North Sea which gives predictable cash flow and of course ARL has potential across a much broader bunch of sectors than just oil  and gas. Always an interesting ride, whatever happens to THAL you know that it is in good hands.


Echo Energy


I attended the EE strategy launch on Tuesday but most of the presentation had been in the announcement that I wrote about then. Briefly, the aim is for EE to become a mid-Cap Latin American exploration company focusing on a regional gas strategy in certain key markets. Initially the suggestion  regarding countries appears to centre on Bolivia, Brazil and Colombia but nowhere has been ruled out as many potential deals are clearly being evaluated.

The question on everybody’s lips was whether, with its similar management and cornerstone investor, Echo is going to be another Sound? There is no doubt that as they describe it ‘the DNA is cloned from Sound Energy’ with its technical focus, and gas based agenda similarities will be clear. Greg Coleman stays on as CEO from IRG and he has experience in the region as do other members of the board coming over from SOU as non-execs. Chairman James Parsons has spent a long time in Brazil and Stephen Whyte has long time regional experience with Galp, BG and Shell. Also on the board is Marco Fumagalli who is the Founding Partner of Continental Partners who cornerstoned Sound and is performing the same task here. Expect more directorial and operational appointments as the company looks to open its first regional office, probably in Bolivia.


And finally…


The Lions touring side for the summer has been announced and as one might expect contains plenty of surprises. To look at it one could hardly guess that Wales came 5th out of 6 in the 6 Nations Championship this spring, only above Italy who were to be frank, only making up the numbers. Former Wales coach Gatland has certainly looked after his own…

No luck for Barca last night who couldnt score in either leg and went out to a highly organised Juve whilst Monaco also progressed and look likely to score all the time. Tonight the Red Devils host Anderlecht in the Boropa Cup, maybe the only way in the CL next year…

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http://www.oilcapital.com/companies/news/176659/nostra-terra-raises-500000-in-share-placing-176659.html Nostra Terra raises £500,000 in share placing http://www.oilcapital.com/companies/news/176659/nostra-terra-raises-500000-in-share-placing-176659.html Thu, 20 Apr 2017 09:42:00 +0100 http://www.oilcapital.com/companies/news/176656/usop-raises-additional-working-capital-176656.html USOP raises additional working capital http://www.oilcapital.com/companies/news/176656/usop-raises-additional-working-capital-176656.html Thu, 20 Apr 2017 09:41:00 +0100 http://www.oilcapital.com/companies/stocktube/7306/-a-transformational-year-for-us-says-jersey-oil-gas-scott-richardson-brown-7306.html 'A transformational year for us', says Jersey Oil & Gas' Scott Richardson Brown http://www.oilcapital.com/companies/stocktube/7306/-a-transformational-year-for-us-says-jersey-oil-gas-scott-richardson-brown-7306.html Thu, 20 Apr 2017 08:42:00 +0100 Scott Richardson Brown, finance director at Jersey Oil & Gas Plc (LON:JOG) runs Proactive through their financial results statement for 2016, telling Andrew Scott they're looking forward to summer drilling.

Partnered with Statoil the company will be part of a high impact exploration programme, to test the Verbier prospect which has the potential to contain some 162mln barrels of oil.

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http://www.oilcapital.com/companies/news/176637/statoil-farm-out-and-well-promise-are-the-highlights-of-jersey-oil-gass-results-for-a-transformational-year-176637.html Statoil farm-out and well promise are the highlights of Jersey Oil & Gas’s results for a ‘transformational’ year http://www.oilcapital.com/companies/news/176637/statoil-farm-out-and-well-promise-are-the-highlights-of-jersey-oil-gass-results-for-a-transformational-year-176637.html Thu, 20 Apr 2017 06:30:00 +0100 http://www.oilcapital.com/companies/news/176616/citigroup-downgrades-energy-giants-on-crude-pricing-concerns-176616.html Citigroup downgrades energy giants on crude pricing concerns http://www.oilcapital.com/companies/news/176616/citigroup-downgrades-energy-giants-on-crude-pricing-concerns-176616.html Wed, 19 Apr 2017 16:34:00 +0100 http://www.oilcapital.com/companies/news/176603/us-energy-titan-conocophillips-mulling-multi-billion-dollar-gas-expansion-in-northern-territory-176603.html US Energy titan ConocoPhillips mulling multi-billion dollar gas expansion in Northern Territory http://www.oilcapital.com/companies/news/176603/us-energy-titan-conocophillips-mulling-multi-billion-dollar-gas-expansion-in-northern-territory-176603.html Wed, 19 Apr 2017 13:01:00 +0100 http://www.oilcapital.com/companies/news/176587/oil-majors-bp-and-royal-dutch-shell-blighted-by-citigroup-rating-downgrades-176587.html Oil majors BP and Royal Dutch Shell blighted by Citigroup rating downgrades http://www.oilcapital.com/companies/news/176587/oil-majors-bp-and-royal-dutch-shell-blighted-by-citigroup-rating-downgrades-176587.html Wed, 19 Apr 2017 08:09:00 +0100 http://www.oilcapital.com/columns/the-pay-zone/27570/oil-price-president-energy-and-finally-27570.html Oil price, President Energy, And finally... http://www.oilcapital.com/columns/the-pay-zone/27570/oil-price-president-energy-and-finally-27570.html Wed, 19 Apr 2017 07:45:00 +0100 WTI $52.41 -24c, Brent $54.89 -47c, Dif -$2.48 -24c, NG $3.14 -2c


Oil price


A lacklustre day yesterday with little trade and few signs of position taking. The US shale production story from Monday was bearing down on the price whilst the Saudis are rumoured to be cutting more than they have to. The API stats showed a draw but not as big as hoped so the EIA numbers today may move the market.


President Energy


There is much going on at President both in Argentina and in the US, today is the turn for news from Louisiana. PPC has announced that it acquiring incremental production in its Triche well, East Lake Verret property in Louisiana which makes a lot of sense. The gain will be around 150 b/d and they will take on the operatorship which means no increase in G&A costs. The cost of the deal is $2.5m plus $400/- earn out which means that this will pay back in 30 months at $50 oil.

The deal takes PPC to production of 1,100  b/d and the work in Argentina continues so expect that figure to rise as workovers and cleanups deliver value added throughput. Overall this is very good news, with no further G&A, PPC can use their detailed knowledge of the well and the benefit of operatorship to take this production rapidly to the bottom line. One way and another there is mounting evidence that things are changing at President and for the better, weather apart, the good news shines through and patient shareholders can expect some decent upside in the coming months.


And finally…


Bad news for the Foxes as they were knocked out of the Champions League last night at the QF stage. Going behind early almost finished them as the away goal made the task almost impossible. With Real going through courtesy of a Ronaldo hat-trick the semis will be worth watching.

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http://www.oilcapital.com/companies/news/176583/magnolia-petroleum-to-invest-in-12-new-us-wells-176583.html Magnolia Petroleum to invest in 12 new US wells http://www.oilcapital.com/companies/news/176583/magnolia-petroleum-to-invest-in-12-new-us-wells-176583.html Wed, 19 Apr 2017 07:41:00 +0100 http://www.oilcapital.com/columns/vsa-capital-market-movers/27569/vsa-capital-market-movers-altyn-27569.html VSA Capital Market Movers - Altyn http://www.oilcapital.com/columns/vsa-capital-market-movers/27569/vsa-capital-market-movers-altyn-27569.html Wed, 19 Apr 2017 07:33:00 +0100 Altyn (LON:ALTN)
Altyn  has provided an update on Q1 2016 production highlighting the ramp up progress. Ore milled, grades and recoveries have all improved through the first quarter resulting in production of 5.2koz gold compared to 7.3koz in the entire of H2 2016.

The monthly ramp up demonstrates a clear positive progression with ore milled at 17.8mnt followed by 18.1mnt and 28.5mnt in each month through the quarter. Grades and recoveries of 1.79g/t, 2.59g/t and 2.55g/t and 73%, 86%, and 87% respectively demonstrated similar progression.

Through the year we anticipate further improvement in grades as higher grade ore is accessed while the improvement in recoveries is expected to be sustained now that the company is focussed on processing ore solely from the underground mine. Q2 production is expected to benefit from the addition of a load haul dumper for filling underground trucks which was delivered in March. Furthermore, a prospect drilling machine delivered in April will be operational in May 2017. This should enable more accurate definition of mineralisation and reduced dilution.

We believe that the company is on track to achieve its guidance for 2017F of 40-45koz and our estimates remain unchanged.

We reiterate our Buy recommendation and 5p target price.

To read our recent initiation report please click here.
Sula Iron & Gold (LON:SULA)
Sula Iron & Gold has announced that the first batch of samples to be assayed have been dispatched for analysis at the ALS laboratories in Ireland. Currently two rigs are on site with one focusing on the Sanama Hill area where the JORC Exploration Target was previously defined and the second on the significant IP anomaly known as the Eastern Target.

We reiterate our Speculative Buy recommendation and 1.6p target price.

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http://www.oilcapital.com/companies/news/176581/oil-explorer-san-leon-energy-gives-report-card-on-first-six-months-in-nigeria-176581.html Oil explorer San Leon Energy gives report card on first six months in Nigeria http://www.oilcapital.com/companies/news/176581/oil-explorer-san-leon-energy-gives-report-card-on-first-six-months-in-nigeria-176581.html Wed, 19 Apr 2017 07:11:00 +0100 http://www.oilcapital.com/companies/news/176549/zeta-petroleum-plc-to-reveal-acquisition-176549.html Zeta Petroleum PLC to reveal acquisition http://www.oilcapital.com/companies/news/176549/zeta-petroleum-plc-to-reveal-acquisition-176549.html Tue, 18 Apr 2017 22:00:00 +0100 http://www.oilcapital.com/companies/news/176501/gas-exploration-specialist-sound-energy-readying-to-start-work-on-second-morocco-licence-176501.html Gas exploration specialist Sound Energy readying to start work on second Morocco licence http://www.oilcapital.com/companies/news/176501/gas-exploration-specialist-sound-energy-readying-to-start-work-on-second-morocco-licence-176501.html Tue, 18 Apr 2017 14:29:00 +0100 http://www.oilcapital.com/companies/stocktube/7294/-an-exciting-time-for-green-dragon-gas-says-chairman-following-gcz-development-plan-approval-7294.html 'An exciting time for Green Dragon Gas', says chairman following GCZ development plan approval http://www.oilcapital.com/companies/stocktube/7294/-an-exciting-time-for-green-dragon-gas-says-chairman-following-gcz-development-plan-approval-7294.html Tue, 18 Apr 2017 14:28:00 +0100 Randeep Grewal, chairman and founder of Green Dragon Gas Ltd. (LON:GDG) tells Proactive their development plan for the Qinshui Basin Chengzhuang Cooperative CBM Block (GCZ) has been approved by the Consultation Center of China National Petroleum Corporation (CNPC).

''What the plan does is allow us to get on with the execution ... with our close working partners CNPC over 2017/2018'', Grewal says.

''It's quite an exciting time for Green Dragon ... we've been waiting on this for quite a long time''.

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http://www.oilcapital.com/companies/news/176537/sdx-energy-shares-advance-on-encouraging-new-gas-discovery-176537.html SDX Energy shares advance on ‘encouraging’ new gas discovery http://www.oilcapital.com/companies/news/176537/sdx-energy-shares-advance-on-encouraging-new-gas-discovery-176537.html Tue, 18 Apr 2017 13:56:00 +0100 http://www.oilcapital.com/companies/stocktube/7291/confirmation-of-second-gas-discovery-at-south-disouq-a-pretty-positive-result-ceo-paul-welch-7291.html Confirmation of second gas discovery at South Disouq 'a pretty positive result'' - CEO Paul Welch http://www.oilcapital.com/companies/stocktube/7291/confirmation-of-second-gas-discovery-at-south-disouq-a-pretty-positive-result-ceo-paul-welch-7291.html Tue, 18 Apr 2017 11:33:00 +0100 Paul Welch, chief executive of SDX Energy Inc (CVE:SDX, LON:SDX) tells Proactive they've now confirmed a new gas discovery at the South Disouq project.

The SD-1X well encountered conventional natural gas bearing horizons in the Abu-Madi targets.

It hit some 65 feet of net pay with average porosity of 25% in line with pre-drill estimates.

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http://www.oilcapital.com/companies/news/176528/premier-oil-city-analyst-points-to-potential-short-term-drag-on-share-price-176528.html Premier Oil: City analyst points to potential short-term ‘drag’ on share price http://www.oilcapital.com/companies/news/176528/premier-oil-city-analyst-points-to-potential-short-term-drag-on-share-price-176528.html Tue, 18 Apr 2017 11:30:00 +0100 http://www.oilcapital.com/companies/stocktube/7290/lgo-energy-s-neil-ritson-pleased-with-production-from-second-new-goudron-well-7290.html LGO Energy's Neil Ritson pleased with production from second new Goudron well http://www.oilcapital.com/companies/stocktube/7290/lgo-energy-s-neil-ritson-pleased-with-production-from-second-new-goudron-well-7290.html Tue, 18 Apr 2017 11:12:00 +0100 Neil Ritson, chairman of LGO Energy PLC (LON:LGO) runs Proactive through the announcement today that their second new well at the Goudron field has come online - adding 80 barrels to daily oil production.

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http://www.oilcapital.com/columns/the-pay-zone/27565/oil-price-sdx-energy-sound-energy-independent-resources-and-finally-27565.html Oil price, SDX Energy, Sound Energy, Independent Resources, And finally... http://www.oilcapital.com/columns/the-pay-zone/27565/oil-price-sdx-energy-sound-energy-independent-resources-and-finally-27565.html Tue, 18 Apr 2017 11:12:00 +0100 WTI $52.65 -53c, Brent $55.36 -53c, Diff -$2.71 n/c, NG $3.16 -6c


Oil price


As predicted, the oil market was very quiet on thursday with few positions being taken ahead of the weekend especially with events in North Korea warming up. New oil rigs were up 11 units which was in line and the IEA are becoming more positive about the world supply and demand position. The EIA has slightly put a spanner in the works by predicting a big May for US shale but to be frank, not much more than expected.


SDX Energy


When it was first thought of, South Disouq was just a gas prospect but fresh mapping meant that the seismic showed the potential of a deeper target that might contain oil. Today’s result therefore has effectively delivered everything that was expected from the well and the company can drill on for oil as an added bonus.

Having reached 7,777 ft the well has found conventional natural gas bearing horizons in the Abu Madi with 65′ of net pay with a porosity of 25%. This was in line with pre-drill estimates and proved with remarkable accuracy the company’s mapping ability which bodes well for future targets here and elsewhere. Next here the well will continue to the deeper Abu Roash and AEB sections, targeting oil and in the meantime shareholders can stand by for some recoverable volume estimates which should make very pleasant reading indeed. The statement rightly points out that this is only part of the bigger plan, although this has been an excellent start it looks like there is much more to come…


Sound Energy


Sound has mobilised its Saipem rig from TE-8 and it is now on its way to drill Sidi Moktar which those with a long memory will remember Longreach for. Initially the rig will re-enter and test the two Kechoula discoveries and may side-track if it looks interesting. With the farm-out having been left behind Sound feels that it can use its strong financial position to retain its 75% WI and participate in any upside from the well. This strategy appears, well, sound as the Sidi Moktar licences expire on 28 August this year and with any luck the results should enable the company to renew for another eight year period.


Independent Resources


IRG has announced that following its earlier news regarding ownership etc it will proceed with a strategy based on a regional gas focus in South and Central America. They are planning an exploration and production campaign based on a ‘multi TCF, low cost onshore gas programme’ piping to high value markets on the continent. Initially they are to concentrate on Bolivia, Colombia and Brazil where the management have many years of experience.

Funding is to start with £10m of equity from Spartan Fund and €15m of debt from Greenberry both which will have warrants attached. These funds are intended to be used to evaluate, drill and develop assets acquired by the company and it is planned that, with approval, the shares will be consolidated by 25:1. Existing assets in Italy and Egypt are for sale and in Tunisia are under review.

I will write more tomorrow as I am heading now to the GM and strategy launch for what will become Echo Energy, however with such a strong team of backers, regional knowledge and significant potential this may become very much one to watch…


And finally…


Briefly, I suppose the news from the Prem is that with Chelski losing at the Theatre of Dreams Spurs may feel that they have a chance to mug them on the way to the party but looking at the run-in’s it may be easier said than done. Aftera  miserable run the Gooners won away from home but at ‘Boro it’s not much to shout about…

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http://www.oilcapital.com/companies/stocktube/7289/new-gas-discovery-another-very-good-result-for-sdx-energy-says-analyst-sam-wahab-7289.html New gas discovery 'another very good result' for SDX Energy, says analyst Sam Wahab http://www.oilcapital.com/companies/stocktube/7289/new-gas-discovery-another-very-good-result-for-sdx-energy-says-analyst-sam-wahab-7289.html Tue, 18 Apr 2017 09:55:00 +0100 Cantor Fitzgerald's Sam Wahab talks through the significance of SDX Energy Inc (CVE:SDX, LON:SDX) confirming a new gas discovery at the South Disouq project.

The company told investors that the SD-1X well has encountered conventional natural gas bearing horizons in the Abu-Madi targets.

It hit some 65 feet of net pay with average porosity of 25% in line with pre-drill estimates.

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http://www.oilcapital.com/companies/news/176516/echo-energy-new-sound-to-raise-23mln-ahead-of-first-acquisition-176516.html Echo Energy: ‘New Sound’ to raise £23mln ahead of first acquisition http://www.oilcapital.com/companies/news/176516/echo-energy-new-sound-to-raise-23mln-ahead-of-first-acquisition-176516.html Tue, 18 Apr 2017 07:44:00 +0100 http://www.oilcapital.com/columns/vsa-capital-market-movers/27560/vsa-capital-market-movers-lgo-energy-27560.html VSA Capital Market Movers - LGO Energy http://www.oilcapital.com/columns/vsa-capital-market-movers/27560/vsa-capital-market-movers-lgo-energy-27560.html Tue, 18 Apr 2017 07:27:00 +0100 LGO Energy (LON:LGO)
LGO Energyhas announced that the second development well of its drilling campaign in the Mayaro Sandstone is now on production. It was drilled to a total depth of 1,250ft and perforated over a 269ft interval of net oil pay before flowing at an initial rate of 80bopd, above company guidance of 45bopd. Once the natural flow period ends the well will be placed on pump at an initial stabilised rate of c65bopd.

LGO has approvals in place for the next three wells in its campaign and is now evaluating the drilling contracts before embarking on the next 3-5 wells in its programme. We maintain our BUY recommendation.
Benchmark Prices
- Brent:   US$55.36/bbl -US$0.53/bbl
- WTI:   US$52.65/bbl -US$0.53/bbl
- Henry Hub:   US$3.16/MMBtu -US$0.06/MMBtu

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27557/vsa-capital-market-movers-metal-tiger-27557.html VSA Capital Market Movers - Metal Tiger http://www.oilcapital.com/columns/vsa-capital-market-movers/27557/vsa-capital-market-movers-metal-tiger-27557.html Tue, 18 Apr 2017 07:22:00 +0100 Metal Tiger
Metal Tiger (LON:MTR) has announced that the closing date for the previously announced placement of £4.29m with Sprott Private Wealth has been extended from the 17th April to the 20th April. The placement is subject to certain conditions being met ahead of closing.

We reiterate our Buy recommendation and 4.8p/sh. target price.

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http://www.oilcapital.com/companies/news/176510/lgo-energy-latest-gourdron-field-well-comes-online-176510.html LGO Energy latest Gourdron field well comes online http://www.oilcapital.com/companies/news/176510/lgo-energy-latest-gourdron-field-well-comes-online-176510.html Tue, 18 Apr 2017 07:09:00 +0100 http://www.oilcapital.com/companies/news/176505/green-dragon-gas-says-qinshui-basin-development-plans-gets-china-s-approval-176505.html Green Dragon Gas says Qinshui Basin development plans gets China's approval http://www.oilcapital.com/companies/news/176505/green-dragon-gas-says-qinshui-basin-development-plans-gets-china-s-approval-176505.html Tue, 18 Apr 2017 06:58:00 +0100 http://www.oilcapital.com/companies/news/176508/sdx-energy-hits-new-gas-discovery-in-egypt-drilling-continues-to-oil-targets-176508.html SDX Energy hits new gas discovery in Egypt, drilling continues to oil targets http://www.oilcapital.com/companies/news/176508/sdx-energy-hits-new-gas-discovery-in-egypt-drilling-continues-to-oil-targets-176508.html Tue, 18 Apr 2017 06:57:00 +0100 http://www.oilcapital.com/companies/news/176484/magnis-resources-locks-in-battery-deal-176484.html Magnis Resources locks in battery deal http://www.oilcapital.com/companies/news/176484/magnis-resources-locks-in-battery-deal-176484.html Tue, 18 Apr 2017 01:30:00 +0100 http://www.oilcapital.com/companies/news/176477/pan-pacific-petroleum-nl-secures-us5m-from-asset-sale-to-repsol-176477.html Pan Pacific Petroleum NL secures US$5M from asset sale to Repsol http://www.oilcapital.com/companies/news/176477/pan-pacific-petroleum-nl-secures-us5m-from-asset-sale-to-repsol-176477.html Mon, 17 Apr 2017 22:30:00 +0100 http://www.oilcapital.com/columns/power-talk/27448/battle-of-britain-what-do-hurricane-energys-successes-tell-us-about-scotlands-oil-future-27448.html Battle of Britain - what do Hurricane Energy’s successes tell us about Scotland’s oil future http://www.oilcapital.com/columns/power-talk/27448/battle-of-britain-what-do-hurricane-energys-successes-tell-us-about-scotlands-oil-future-27448.html Mon, 17 Apr 2017 06:34:00 +0100 http://www.oilcapital.com/companies/news/176467/magnificent-7-these-aim-oil-stocks-have-at-least-doubled-in-2017-so-far-176467.html Magnificent #7: These AIM oil stocks have at least doubled in 2017 so far http://www.oilcapital.com/companies/news/176467/magnificent-7-these-aim-oil-stocks-have-at-least-doubled-in-2017-so-far-176467.html Sun, 16 Apr 2017 11:00:00 +0100 http://www.oilcapital.com/companies/news/176079/premier-oil-what-can-investors-expect-once-refinancing-completes-176079.html Premier Oil: What can investors expect once refinancing completes? http://www.oilcapital.com/companies/news/176079/premier-oil-what-can-investors-expect-once-refinancing-completes-176079.html Sun, 16 Apr 2017 08:33:00 +0100 http://www.oilcapital.com/companies/stocktube/7282/-growth-projects-emerging-for-oil-juniors-says-proactive-s-jamie-ashcroft-7282.html 'Growth projects emerging' for oil juniors, says Proactive's Jamie Ashcroft http://www.oilcapital.com/companies/stocktube/7282/-growth-projects-emerging-for-oil-juniors-says-proactive-s-jamie-ashcroft-7282.html Sat, 15 Apr 2017 06:45:00 +0100 ''It's been a good start to the year'', says Proactive Investors Oil Correspondent Jamie Ashcroft.

''We've obviously seen support from  crude prices after the volatility of recent years  - there's now a bit more stability at the moment and the companies that have survived the downturn are looking at $50+ a barrel  and that's probably decent enough for a lot of their plans''.

Ashcroft also runs through 'the magnificent seven' - the oil juniors who've now more than doubled in value.

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http://www.oilcapital.com/columns/power-talk/27526/falcon-oil-gas-has-seen-success-but-investors-await-binary-beetaloo-decision-27526.html Falcon Oil & Gas has seen success but investors await binary Beetaloo decision http://www.oilcapital.com/columns/power-talk/27526/falcon-oil-gas-has-seen-success-but-investors-await-binary-beetaloo-decision-27526.html Fri, 14 Apr 2017 06:34:00 +0100 http://www.oilcapital.com/companies/news/176428/victoria-oil-gas-worth-200p-as-sales-hit-record-176428.html Victoria Oil & Gas 'worth 200p' as sales hit record http://www.oilcapital.com/companies/news/176428/victoria-oil-gas-worth-200p-as-sales-hit-record-176428.html Thu, 13 Apr 2017 14:10:00 +0100 http://www.oilcapital.com/companies/stocktube/7284/-it-s-been-a-terrific-year-and-a-great-quarter-says-victoria-oil-gas-kevin-foo-7284.html 'It's been a terrific year and a great quarter', says Victoria Oil & Gas' Kevin Foo http://www.oilcapital.com/companies/stocktube/7284/-it-s-been-a-terrific-year-and-a-great-quarter-says-victoria-oil-gas-kevin-foo-7284.html Thu, 13 Apr 2017 13:37:00 +0100 As part of an operational update for the three months to the end of March 2017, Victoria Oil and Gas Plc (LON:VOG) executive chairman Kevin Foo tells Proactive: ''It couldn't have been better''.

As part of the update Foo mentioned they've hit a large gas pocket at one of two development wells drilled recently at its Logbaba field in Cameroon.

The well, La-108, hit 125m net pay of high permeability, high porosity gas bearing sands that should result in a significant increase in proven reserves.

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http://www.oilcapital.com/companies/news/176449/conocophillips-unveils-a-us3bn-us-disposal-two-weeks-after-selling-its-canadian-oil-sands-assets-176449.html ConocoPhillips unveils a US$3bn US disposal, two weeks after selling its Canadian oil sands assets http://www.oilcapital.com/companies/news/176449/conocophillips-unveils-a-us3bn-us-disposal-two-weeks-after-selling-its-canadian-oil-sands-assets-176449.html Thu, 13 Apr 2017 12:19:00 +0100 http://www.oilcapital.com/columns/the-pay-zone/27550/oil-price-victoria-oil-gas-range-resources-ascent-resources-and-finally-27550.html Oil price, Victoria Oil & Gas, Range Resources, Ascent Resources, And finally... http://www.oilcapital.com/columns/the-pay-zone/27550/oil-price-victoria-oil-gas-range-resources-ascent-resources-and-finally-27550.html Thu, 13 Apr 2017 10:39:00 +0100 Oil price

Definitely a pre-holiday sort of day in crude markets yesterday, marked down from the start as traders were unwilling to carry too many long positions over the weekend, even the better than expected inventory stats couldnt revive the patient. An increase in US production started it all but this should be no surprise as we have weeks of warnings from the EIA and more importantly the rig count, also due today, one day early.

The EIA stats showed crude oil drawing 2.2m barrels vs a forecast of 772/- which should have been encouraging but the overall products news was even better falling by 4.1m b’s. Gasoline drew 3m and distillates 2.2m against expectations of a 1m fall for both, higher demand should be noted here and still no mention of you know what…

Victoria Oil & Gas

A Q1 2017 operational update today from VOG which has been a stellar performer of late as the market tags on to just how much the stock is undervalued. The key features are, production up, again, two Logbaba wells currently drilling, the Bowleven farm-in under way and initial positive news from Matanda where early seismic shows ‘considerable gas in place potential’.

So, Logbaba gas production is up 10.7%to 14.57 mmscf/d as the dry season continues and thus sales remain on an upward track. Drilling two new wells continues and La-108 has encountered gross pay of 125m of high permeability, high porosity gas bearing sands which should result in a ‘significant increase in proven reserves’. ( Bear in mind that the La-105 well pay was only 84m) The well has since been side-tracked after a ‘well control incident’ that was safely dealt with but will add around five weeks and $8m to the overall cost of the well but will be recouped from revenue. La-107 has been drilled and casing set to 1618m, both wells will be tested in Q2 and complete in Q3. A high pressure gas flowline is being installed to enable early production.

The Q1 revenue was $8.1m (Q4 4.6m) and the current cash position is $14.1m. With record gas sales in March one can remain genuinely optimistic about the future, especially as the company has completed phases 11 and 111 of the pipeline making 50km in total and added six new customers with two more waiting to tap in. This confirms that there is large, unsatisfied energy demand in Cameroon and VOG is very well placed to profit from it.

I have just returned from a visit to see VOG in Cameroon and its subsidiary Gaz du Cameroun (GDC) where I was extremely impressed by the set up and its local management. We visited the Logbaba gas project including seeing the two wells currently drilling and saw the pipeline from Logbaba all the way through Douala. In the process we saw a number of GDC’s key clients, including the ENEO power stations using GDC gas. ( a contract that is shortly due to expire but I am convinced will rollover as negotiations are ‘well advanced’)   Other clients we saw were a palm oil factory, two huge brewing operations at Guinness and SABC as well as Chococam which is part of Tiger Brands, chocolate and beer, what more could you ask for? Finally we visited Bomono which is intended to supply gas to the other end of the pipe in Douala where significant expansion is already under way. This would complete this part of the jigsaw and whilst subject to Government approval, should mean that either of the existing wells at Moambe and Zingana or even new wells, could supply gas to the rapidly expanding Douala customer base. The existing pipeline is only 9.5km away and most of the route could be constructed through a rubber plantation that has been untapped for several years making the infrastructure much easier.

The VOG format in Cameroon is rapidly becoming a significant money making operation, supplying gas to power projects and substantial commercial customers. There is no sign of any slowdown and the ‘cradle to grave’ utility model is proving to be a highly successful. Cameroon is seeing considerable inward investment, particularly from Chinese companies in the area and I see the total available market for gas to be growing faster than GDC can supply it. It would not be stupid to suggest that some such clients might even help finance the pipeline construction in order to be at the front of the queue for gas. Accordingly, providing the Bomono deal completes, then further gas supplies can be easily and cheaply brought on stream ensuring considerable increases in revenue and profitability. The longer term but potentially huge opportunities provided by the Matanda block can only add to the model which already looks in very good shape. Recent operational problems aside, I continue to view VOG as a significant opportunity and remain with my current target price of 200p.

Range Resources

A Q1 update from Range where all is continue to go as planned. Production is 567 b/d up 4% and the RRDSL RTO is continuing. Production is under way at the Beach Marcelle waterflood project at 60 b/d and Range has struck a deal with Petrotrin to use their water for injection here and at Morne Diablo when necessary. Whilst RRL is suspended for a while until the deal completes there seems still to be good things going on behind the scenes.

Ascent Resources

The flags are out at AST as first commercial production from Pg-10 in Slovenia has been announced. After 10 years and €45m it must surely be worth the wait but I congratulate Colin Hutchinson and team who certainly believed more than most in the project…

And finally…

Last night the Foxes went to Madrid and came away with a 1-0 only, might have been better but for a hooky pen but I suspect that they would have settled for that score, might have been half a dozen…

Tonight the Red Devils go to Anderlecht in the Boropa Cup but they might need it, the top of the Prem is very tight. At the weekend they also have the top tie as they welcome Chelski to the Theatre of Dreams. Also at the weekend the Noisy Neighbours go to the Saints, the HubCap Stealers are at the Baggies and Spurs host the Cherries.

In F1 it’s the Bahrain GP and for once, very open.

And some good rugby as we get to the vinegar strokes, best of them probably Saints v Sarries and Quins v the Chiefs.

And of course for the next 8 weeks its the Snooker World Championships……………

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http://www.oilcapital.com/companies/news/176432/ascent-resources-delighted-as-it-reports-first-gas-sale-in-slovenia-176432.html Ascent Resources “delighted” as it reports first gas sale in Slovenia http://www.oilcapital.com/companies/news/176432/ascent-resources-delighted-as-it-reports-first-gas-sale-in-slovenia-176432.html Thu, 13 Apr 2017 10:14:00 +0100 http://www.oilcapital.com/companies/news/176435/range-resources-updates-on-quarterly-production-in-trinidad-176435.html Range Resources updates on quarterly production in Trinidad http://www.oilcapital.com/companies/news/176435/range-resources-updates-on-quarterly-production-in-trinidad-176435.html Thu, 13 Apr 2017 08:30:00 +0100 http://www.oilcapital.com/companies/news/176433/scapa-group-says-full-year-results-are-ahead-of-expectations-176433.html Scapa Group says full year results are ahead of expectations http://www.oilcapital.com/companies/news/176433/scapa-group-says-full-year-results-are-ahead-of-expectations-176433.html Thu, 13 Apr 2017 07:57:00 +0100 http://www.oilcapital.com/columns/vsa-capital-market-movers/27541/vsa-capital-market-movers-millennial-lithium-sula-iron-and-gold-plc-27541.html VSA Capital Market Movers - Millennial Lithium, Sula Iron and Gold PLC http://www.oilcapital.com/columns/vsa-capital-market-movers/27541/vsa-capital-market-movers-millennial-lithium-sula-iron-and-gold-plc-27541.html Thu, 13 Apr 2017 07:10:00 +0100 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (SULA LN) has announced that the holdings of Madini Occidental (304.6m shares), a subsidiary of Madini Minerals, have been transferred entirely, including warrants (304.6m warrants) to Galactic Tide. Madini does continue to hold 38.1m shares through a different subsidiary, “Ongeza Mining”. Aside from the initial US$400k cash investment, Madini’s contribution has been technical and capital markets advice which has primarily come from Roger Murphy and Iain Macpherson in their executive roles for SULA. Roger and Iain remain committed to SULA and there is no operational change as a result of the share transfer.

With 304.6m shares Galactic Tide, its interest in Sula is now approximately 13.76%. Galactic is a private investment company incorporated in the Seychelles. This means that despite the transfer, SULA, continues to have a strategic partner as a key shareholder. Indeed, Iain Macpherson holds an indirect shareholding in Galactic meaning his combined direct and indirect interest represents 5.8%. Furthermore, Mike Warren, an experienced mining professional and 100% owner of Equity Drilling, the drill contractor on the current programme, has a non-controlling shareholding in Galactic (meaning a personal indirect interest in SULA of 6.9%).

We reiterate our Spec Buy recommendation and 1.6p target price

Millennial Lithium (CVE:ML)

Millennial Lithium (ML CN) has announced positive results from its recent geophysical survey at its Cauchari East project, as expected. The survey identified high resistivity upper zones and low resistivity lower zones. Low electrical resistivity is likely an indication of brine bearings sediments based on the evidence of technical studies on adjacent properties owned by Lithium Americas (LAC US) and therefore likely represent a continuation of the same brine bearing aquifers.

The results demonstrate continuous block of between 72-105m thick running north south. Towards the southern end of ML’s tenement the thickness increases beyond capability of the measuring equipment whilst there is also indications of further confined low resistivity zones. An application for a permit to drill has been applied for and is expected in Q2 2017.

We reiterate our Speculative Buy recommendation

 

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http://www.oilcapital.com/companies/news/176429/hurricane-energy-is-strategically-important-to-the-longevity-of-north-sea-production-broker-176429.html Hurricane Energy is strategically important to the longevity of North Sea production - broker http://www.oilcapital.com/companies/news/176429/hurricane-energy-is-strategically-important-to-the-longevity-of-north-sea-production-broker-176429.html Thu, 13 Apr 2017 07:01:00 +0100 http://www.oilcapital.com/companies/news/176414/riva-resources-commences-drilling-at-cobalt-project-176414.html Riva Resources commences drilling at cobalt project http://www.oilcapital.com/companies/news/176414/riva-resources-commences-drilling-at-cobalt-project-176414.html Thu, 13 Apr 2017 01:00:00 +0100 http://www.oilcapital.com/companies/news/176410/pan-pacific-petroleum-in-an-asx-trading-halt-176410.html Pan Pacific Petroleum in an ASX trading halt http://www.oilcapital.com/companies/news/176410/pan-pacific-petroleum-in-an-asx-trading-halt-176410.html Thu, 13 Apr 2017 00:30:00 +0100 http://www.oilcapital.com/companies/news/176407/altech-chemicals-places-shares-with-cornerstone-investor-176407.html Altech Chemicals places shares with cornerstone investor http://www.oilcapital.com/companies/news/176407/altech-chemicals-places-shares-with-cornerstone-investor-176407.html Wed, 12 Apr 2017 23:30:00 +0100 http://www.oilcapital.com/companies/news/176386/tlou-energy-s-partner-in-joint-venture-with-civil-engineering-heavyweights-176386.html Tlou Energy's partner in joint venture with civil engineering heavyweights http://www.oilcapital.com/companies/news/176386/tlou-energy-s-partner-in-joint-venture-with-civil-engineering-heavyweights-176386.html Wed, 12 Apr 2017 14:26:00 +0100 http://www.oilcapital.com/columns/the-pay-zone/27535/oil-price-providence-resources-hunting-thalassa-enteq-upstream-and-finally-27535.html Oil price, Providence Resources, Hunting, Thalassa, Enteq Upstream, And finally... http://www.oilcapital.com/columns/the-pay-zone/27535/oil-price-providence-resources-hunting-thalassa-enteq-upstream-and-finally-27535.html Wed, 12 Apr 2017 11:36:00 +0100 Oil price

Well, it doesnt get much better than this at the moment and unless the EIA stats rain on oil’s current parade tonight then all should remain in an upward trajectory. Yesterday saw both the Russians and the Saudis giving genuinely positive information out. The Russian Oil Minister called for an extension to the agreement but also said that his country were now at 250/- b/d down in the quest for a fall of 300/- b/d. The Saudi Minister also called for a rollover of quotas but also said that compliance was now 104% which should start to make an impact on the stock levels.

The inventory stats from the API also helped after hours, crude drew by 1.3m barrels when analysts had been guessing at a rise but products also helped, gasoline drew 3.7m against a forecast of -1.7m and distillates drew 1.6m against expectations of 885/-.

Providence Resources

Results today from PVR and a conference call with a new presentation added a bit but as ever with financial results there isnt much to add to current sum knowledge. The company is cashed up from the raise and ready to drill Druid/Drombeg in June having farmed out 30% to Cairn recently. Seismic this summer on Dunquin may prove interesting and the data room is still very busy we hear but none of the old favourites such as Barryroe or Spanish Point have yet been farmed-out.

Hunting

AGM trading statement today from Hunting which was fairly predictable but revenues are ahead of expectations primarily due to the busy state of the US shale market. Underlying EBITDA was $5.5m and stars were in perforating systems, premium connections and trenchless and speciality businesses. There is still no growth offshore and this is likely to remain so as per Dennis Proctor’s comments at the time of the results. On the subject of DP, when I was away last week i’m sure I read that he was going to step down as CEO later this year but put it down to deliria. I havent had a chance to speak to anyone at Hunting since I returned but I am presuming that this was not a decision that he made himself and now that things are looking better the board have felt more empowered, as it were. More if and when I get it…

Thalassa Holdings

The trouble with writing long and ethereal statements, especially when the bumf at the top is all about world economies is that sometimes people dont get down to the good bits about your company. When I saw the THAL price first thing I feared the worst, indeed I was about to fling myself overboard until I progressed past the economics lesson. If you do that you get to see that the Chairman has ‘cautious but unpredictable optimism’ and that  ‘in 2016 we exceeded performance expectations at every level from sales to the bottom line’. Other positive comments include that the company has the same, asset light, model and its flexible management structure gives remarkable competitive advantages over the competition. So, the shares should be up, not down as the operating side of the company has performed very creditably and continues to do so…..Top stuff Duncan…

Enteq Upstream

It’s been a long haul for Martin Perry and Enteq but the shares have doubled as a tribute to their stickability quotient. Today’s year end trading update is hardly milk and honey but as at Hunting, the management do acknowledge a pickup in US onshore activity. Cash has been preserved and remains at around $15m so I would hope to see some sort of geared recovery at some stage. For those of you who have stayed the distance with NTQ you deserve a medal and I still think that you will do ok, I do not advise standing on one leg whilst you wait however…

Hurricane Energy

Yesterday I did a TipTV CEO interview and caught up with Dr Robert Trice of Hurricane following Friday’s Capital Markets Day. The longest but probably the best ever chat can be seen on the link below…

Tip TV CEO Interview: Lancaster and Halifax oil fields are actually one body – Hurricane Energy

And on Monday I did my usual Voxmarkets Podcast in which I talked about my trip to VOG, Hurricane, Amerisur Resources and FAR Limited, this link is below and I will be writing about VOG at more length shortly.

VOX Markets podcast: Malcy on Victoria Oil & Gas, Hurricane Energy, Amerisur Resources and Far Limited

And finally…

With the bombing of the Borussia Dortmund coach last night the game was moved to tonight, leaving just Barca playing and they will need to do another lazarus like trick having lost 3-0 at Juve. Tonight the Foxes go to Athletico and it’s a good night as Bayern take on Real…

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http://www.oilcapital.com/companies/news/176353/providence-resources-is-making-preparations-for-more-appraisal-drilling-at-barryroe-176353.html Providence Resources is making preparations for more appraisal drilling at Barryroe http://www.oilcapital.com/companies/news/176353/providence-resources-is-making-preparations-for-more-appraisal-drilling-at-barryroe-176353.html Wed, 12 Apr 2017 06:46:00 +0100 http://www.oilcapital.com/companies/news/176336/petsec-energy-offers-compelling-value-at-this-price-176336.html Petsec Energy offers compelling value at this price http://www.oilcapital.com/companies/news/176336/petsec-energy-offers-compelling-value-at-this-price-176336.html Wed, 12 Apr 2017 00:00:00 +0100 http://www.oilcapital.com/companies/news/176326/transerv-energy-invests-in-producing-oil-gas-assets-in-canada-176326.html Transerv Energy invests in producing oil, gas assets in Canada http://www.oilcapital.com/companies/news/176326/transerv-energy-invests-in-producing-oil-gas-assets-in-canada-176326.html Tue, 11 Apr 2017 22:00:00 +0100 http://www.oilcapital.com/companies/news/176316/primeline-energy-appoints-broker-clsa-as-advisor-176316.html Primeline Energy appoints broker CLSA as advisor http://www.oilcapital.com/companies/news/176316/primeline-energy-appoints-broker-clsa-as-advisor-176316.html Tue, 11 Apr 2017 15:55:00 +0100 http://www.oilcapital.com/companies/stocktube/7272/iofina-s-tom-becker-talks-through-a-pretty-good-start-to-the-new-year-7272.html Iofina's Tom Becker talks through 'a pretty good start' to the New Year http://www.oilcapital.com/companies/stocktube/7272/iofina-s-tom-becker-talks-through-a-pretty-good-start-to-the-new-year-7272.html Tue, 11 Apr 2017 13:37:00 +0100 Tom Becker, president and chief executive of Iofina plc (LON:IOF), walks Proactive through the company's trading update for the first three months of 2017.

Becker says they performed well despite having to deal with a couple of challenges.

The firm’s IOsorb plants have performed solidly so far this year and are producing crystalline iodine at forecast rates, while its Iofina Chemical division benefitted from strong demand for non-iodine halogen derivatives.

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http://www.oilcapital.com/companies/news/126996/iofina-poised-to-expand-once-iodine-prices-rally-126996.html Iofina poised to expand once iodine prices rally http://www.oilcapital.com/companies/news/126996/iofina-poised-to-expand-once-iodine-prices-rally-126996.html Tue, 11 Apr 2017 10:05:00 +0100 http://www.oilcapital.com/columns/the-pay-zone/27519/oil-price-rockhopper-savannah-petroleum-and-finally-27519.html Oil price, Rockhopper, Savannah Petroleum, And finally... http://www.oilcapital.com/columns/the-pay-zone/27519/oil-price-rockhopper-savannah-petroleum-and-finally-27519.html Tue, 11 Apr 2017 07:46:00 +0100 Oil price

As I commented some days ago the oil price is a one way street at the moment and so far no amount of inventory worries can overturn that feeling. Yesterday saw Libya shutting in its Shahara field after a terrorist attack on the pipeline but anyone who cites Libya producing more anytime soon needs a trip to the funny farm. The Kuwaiti Oil Minister said yesterday that Opec adherence to the agreement was actually ‘higher’ than quota in March and a rollover is increasingly in the price., again as I said a few days ago the risk in the oil price has been being short, a problem that might get worse before it gets better…

Rockhopper

FY results from RKH this morning but as always on these occasions there is little or no news in the numbers or Chairman’s comments. Probably of most import is the continued growth of the Greater Mediterranean portfolio and the focus on reducing costs, now down to$14pb.

Cost savings at Sea Lion continue with life of field costs down to $35 and break even to $45 which at current oil prices gives some headroom. Cynics will remain of course but surely the sight of a debt agreement at Premier must accelerate the situation one way or another. Comparisons are futile as I have noted before, but costs of a development here are attractive if you were to compare with roughly similar sized finds in, say, Senegal but with Sea Lion being several years ahead on points…

RKH has $81m in a strong, debt free balance sheet and is fully funded for current commitments, but cost savings continue to be made across the board. The action against the Italian Government continues and is at an early stage but advisors remain confident, investors should keep an open mind.

Savannah Petroleum

SAVP has announced an update of its drilling campaign scheduled to start this quarter in Niger. Unsurprisingly they have opted to focus the initial three well drilling campaign on the R3 PSC which appears to be ideally located in the ‘sweet spot’ of the basin. With large discoveries both to the north and south and producing fields and infrastructure nearby this is ideal, as is the decision to keep this phase of the exploration programme within R3 in order to minimise expensive rig movements.

The R3 East seismic survey is still being evaluated and I understand more data will be released before long but they must be pleased with the initial indications on this block, declaring as they have that they ‘confirm the existence of multiple fault blocks’.

The company also announce that they are using the GW 215 rig instead of the GW 89 unit, this has to be good news, the new rig is ‘warm’ and coming off another contract and has an experienced crew which must help matters. In addition the camp construction has commenced and drilling is on target to commence in 1H of this year.

Savannah is strongly financed and has been supported by its blue chip shareholder base which includes CEO Andrew Knott with significant skin in the game. Now that things are starting to happen at SAVP I expect much more news from the company as they get closer to giving more news on seismic and of course when the drill bit turns. This ‘slow burner’ is about to get a whole lot more exciting, when a space in the bucket list appears it might just be the perfect time to be a ‘super-sub’.

And finally…

It’s all about Arsene this morning after the Gooners went down 3-0 to the Eagles last night, what appears to be most irritating to the fans is the uncertainty, a new contract appears to have been offered and signed but still no comment which is odd….

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27518/vsa-capital-market-movers-egdon-resources-plc-27518.html VSA Capital Market Movers - Egdon Resources Plc http://www.oilcapital.com/columns/vsa-capital-market-movers/27518/vsa-capital-market-movers-egdon-resources-plc-27518.html Tue, 11 Apr 2017 07:45:00 +0100 Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) reported H1 2017 results with revenues decreasing 51% YoY to £0.51m (H1 2016: £1.05m) owing to the shut-in at Ceres. Despite this, EDR narrowed the loss per share of 0.31p from a loss of 0.90p per share in H1 2016, due to one off charges in H1 2016.

Having successfully completed a £5.06m placing and open offer in November 2016, EDR substantially strengthened its balance sheet. EDR remains debt free with a strong cash position (H1 2017: £6.80m vs. H1 2016: £5.26m.

EDR’s production during the period was c94boepd and therefore broadly in line with the revised production guidance for FY 2017 of c.100-110boepd. The revision was due to Ceres having remained shut-in since the end of the maintenance shut-down in September/October 2016.

A series of acquisitions of additional interests has been made in PEDL068, PEDL201, PEDL306 and PEDL334 and the farm-in agreement on PL161/162 has been extended to December 2018. Post period-end EDR acquired an additional unconventional resource interest in PEDL209, an a revised Opt-in agreement was also secured with Total on PEDL209.

Wressle Development - Appeal and New Planning Application Update

EDR has announced today that it will start the appeal process in respect of North Lincolnshire County Council’s decision to refuse planning consent for development of the Wressle Oil Field. We expect the Planning Inspectorate to validate the submitted appeal documentation within the next 1-2 weeks and will then notify Egdon and the Council of the start date and timetable for the appeal process.

In parallel, EDR intends to submit a new planning application during April for the Wressle development. This new application is expected to include even more detailed information to address the specific points raised by the Council in their refusal. It is also anticipated that the Environmental Permit for Wressle should be issued by the end of April, subject to the outcome of the current consultation process on the draft permit which closes shortly.

We maintain our BUY recommendation and 34p TP.

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http://www.oilcapital.com/companies/news/176283/rockhopper-exploration-says-focus-will-shift-onto-sea-lion-financing-176283.html Rockhopper Exploration says focus will shift onto Sea Lion financing http://www.oilcapital.com/companies/news/176283/rockhopper-exploration-says-focus-will-shift-onto-sea-lion-financing-176283.html Tue, 11 Apr 2017 07:26:00 +0100 http://www.oilcapital.com/companies/news/176281/niger-focused-savannah-petroleum-sketches-in-some-detail-to-drilling-plans-176281.html Niger-focused Savannah Petroleum sketches in some detail to drilling plans http://www.oilcapital.com/companies/news/176281/niger-focused-savannah-petroleum-sketches-in-some-detail-to-drilling-plans-176281.html Tue, 11 Apr 2017 07:21:00 +0100 http://www.oilcapital.com/companies/stocktube/7266/savannah-petroleum-s-andrew-knott-confirms-r3-psc-area-to-be-focus-of-initial-drill-campaign-7266.html Savannah Petroleum's Andrew Knott confirms R3 PSC area to be focus of initial drill campaign http://www.oilcapital.com/companies/stocktube/7266/savannah-petroleum-s-andrew-knott-confirms-r3-psc-area-to-be-focus-of-initial-drill-campaign-7266.html Tue, 11 Apr 2017 07:04:00 +0100 Andrew Knott, chief executive of Savannah Petroleum PLC (LON:SAVP) outlines their upcoming drilling campaign in Niger.

''Alongside confirmation that R3 will be the starting point for our campaign ... the company we have awarded the rig contract to is Great Wall Drilling'', Knott says.

''Consistent with our previous guidance we're very much on track to start our operations in the first half of the year so from us it's a very positive update''.

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http://www.oilcapital.com/companies/news/176278/tlou-energy-extends-deadline-share-purchase-plan-176278.html Tlou Energy extends deadline share purchase plan http://www.oilcapital.com/companies/news/176278/tlou-energy-extends-deadline-share-purchase-plan-176278.html Tue, 11 Apr 2017 06:56:00 +0100 http://www.oilcapital.com/companies/news/176276/strong-performance-from-iofina-in-q1-despite-couple-of-niggles-176276.html Strong performance from Iofina in Q1 despite couple of niggles http://www.oilcapital.com/companies/news/176276/strong-performance-from-iofina-in-q1-despite-couple-of-niggles-176276.html Tue, 11 Apr 2017 06:44:00 +0100 http://www.oilcapital.com/companies/news/176271/europa-oil-gas-looks-forward-to-start-of-formal-appeal-process-for-wressle-field-176271.html Europa Oil & Gas looks forward to start of formal appeal process for Wressle field http://www.oilcapital.com/companies/news/176271/europa-oil-gas-looks-forward-to-start-of-formal-appeal-process-for-wressle-field-176271.html Tue, 11 Apr 2017 06:32:00 +0100 http://www.oilcapital.com/companies/news/176242/buru-energy-closing-in-on-oil-production-restart-176242.html Buru Energy closing in on oil production restart http://www.oilcapital.com/companies/news/176242/buru-energy-closing-in-on-oil-production-restart-176242.html Mon, 10 Apr 2017 22:00:00 +0100 http://www.oilcapital.com/companies/news/176257/transerv-energy-to-reveal-acquisition-176257.html Transerv Energy to reveal acquisition http://www.oilcapital.com/companies/news/176257/transerv-energy-to-reveal-acquisition-176257.html Mon, 10 Apr 2017 22:00:00 +0100 http://www.oilcapital.com/companies/news/176254/simba-s-new-deal-with-national-oil-company-of-liberia-doubles-acreage-176254.html Simba's new deal with National oil company of Liberia doubles acreage http://www.oilcapital.com/companies/news/176254/simba-s-new-deal-with-national-oil-company-of-liberia-doubles-acreage-176254.html Mon, 10 Apr 2017 19:00:00 +0100 http://www.oilcapital.com/companies/news/176245/point-loma-set-to-boost-output-with-5mln-new-joint-venture-deal-176245.html Point Loma set to boost output with $5mln new joint venture deal http://www.oilcapital.com/companies/news/176245/point-loma-set-to-boost-output-with-5mln-new-joint-venture-deal-176245.html Mon, 10 Apr 2017 16:18:00 +0100 http://www.oilcapital.com/columns/the-pay-zone/27512/oil-price-amerisur-hurricane-cape-wentworth-and-finally-27512.html Oil price, Amerisur, Hurricane, Cape, Wentworth. And finally... http://www.oilcapital.com/columns/the-pay-zone/27512/oil-price-amerisur-hurricane-cape-wentworth-and-finally-27512.html Mon, 10 Apr 2017 11:01:00 +0100 Oil price

I should go away more often, last week the oil price rallied further, WTI being up $1.64 and Brent +$1.71. The reasons are two-fold, obviously the US involvement in Syria stepped up the geo-political temperature but the fundamentals were also positive. High adhesion to the quotas and an increasingly likely rollover of the agreement meant that high US stocks and a further increase in the rig count was discounted. Asian demand remains mainly strong with Indian demand in March up 4.9% y/y although the rest of the continent is a bit mixed. This week will provide a number of key moments, G7 in Rome today after which Rex T flies off to Moscow, a place it seems that Boris is too scared to go….

Amerisur Resources

Results today from AMER which as usual tell us little about the forward investment case. Key to everything is the OBA which came online last year and is now jacking up throughput. Volumes are key here, at 5/- b/d cash opex falls from $26 to $15 changing all the economics and that milestone is now within reach. Indeed a peak flow rate of 5,008 was achieved on the 6th April and should be par for the course from now on. Guidance for this year is now 6-7/- b/d, exiting 2017 at 7/- b/d rising to 20/- b/d by 2019.

The company has nine, fully funded wells planned in the next 18 months and are creating the much discussed ‘Putumayo Cluster’ which should provide focus and economic strength. The company had $40.1m of cash at the year end and an undrawn RBL facility if needed so remain in a strong position on this front. I remain of the view that this potential good news is not reflected in the price and that upside is substantial particularly once the technical situation in the market is sorted out, more after con call which is at 2.30.

Hurricane Energy

HUR had its long-awaited Capital Markets Day on Friday and there was a huge amount of data to take in. I guess that the headline was the Lancaster reserves base case of 593m bbls and the use of a 25% recovery rate which is conservatively comparable with similar developments. Opex is down to $20 per barrel,  from $26 and every time one looks at this whole area it seems to grow. (Small finds get smaller, big ones get bigger) The company is evaluating the data from the most recent well, particularly as the DST was a bit awry with the drilling fluid compromised, we saw a picture of a lot of gunk rather spoiling the party. Having said that 1km of hydrocarbons is exceptional and will add considerably to the reserves in due course. The EPS is very much underway but the management stressed that this is very much a low risk way of developing what might turn into a full field development, ie a preliminary, money making, data gathering process towards much bigger potential.

As the FID is expected in 1H of this year it will likely go ahead before all data has been analysed but that is only as there is so much of it, also any CPR will be on a preliminary basis with, I imagine plenty of upside. Another good thing is that services have been procured early and cheaply,also around 75% of the capex is lump sum keeping costs under control and risks transferred back to service providers. The funding is also being worked on, whilst there will be an element of equity as one might expect, there are a number of debt options and of course farm-out possibilities. I understand that the data room has been full, with many re-entries and a phase one partner could easily emerge quite soon, this may not be one of the many circling super majors but possibly a service company or even an oil trader looking to balance some risk.

For a company with only 15 employees much has been going on lately but careful subcontracting should reduce risk and keep a control on costs. The main message I took from the conference was that this is a low-risk, high reward process over a very long timescale, there is no way the anything will be compromised for early bucks and reservoir management is key. With reserves eventually being likely north of 2 billion barrels Hurricane’s value should now be way in excess of my current 100p target price. An upcoming interview with Dr Trice should be of significant interest to all.

Cape

Cape has announced that it has reached a litigation settlement with Aviva regarding its employer liability with all claims withdrawn and no admission of liability. Good news and means that the board can continue to carry on with its excellent work as proved by recent trading announcements.

Wentworth Resources

Things are beginning to look up for Wentworth as production from Mnazi Bay delivers in line with guidance. With expectations of between 40-50 mmscf/d the outturn of 43 was fine. Payments from the TPDC are being made and new clients such as the Goodwill Tile factory are a bonus. Things are picking up for Wentworth and it is very much on my radar screen…

And finally…

What a weekend of sport that was! Sergio broke his Major’s duck, beating Rose in a play-of on what would have been Seve’s 60th birthday.

In the F1 in China Lewis managed to pull off a piece of tactical genius as he discovered that he could change his tyres behind the safety car and not be overtaken. The Ferrari wasnt going to catch him but being stuck behind his own teammate must have annoyed Vettel.

The Brits shone again at the motorcycle Argentinian MotoGP. In the Moto3 race, Plucky Brit , John McPhee rode to another superb second place behind Joan Mir whilst in the top class the ever improving Cal Crutchlow managed a superb 3rd behind the factory Yamahas of ‘Wonder Kid’ Maverick Vinales ( 40/1 to win the Championship before the season commenced with William Hill !) who was never challenged for the lead ahead of his team mate Valentino Rossi. Both works Hondas of Danny Pedrosa and Marc Marquez crashed out whilst Jorge Lorenzo’s pay packet of a reported 12 million is beginning to look like a poor investment for Ducati as he got no further than the first bend.

Great Britain got trounced in the Davis Cup and not surprisingly as the team chose a player who by his own admission couldnt play on clay. Sometimes these managers need their heads knocking together eh?

In the Prem, Chelski, Spurs, the Noisy Neighbours, the HubCap Stealers, Red Devils and the Toffees all won so no pressure on the Gooners at the Eagles tonight then…

The Grand National ended with all 40 horses and jockeys coming home safely which is good and also good to see the British horse called One for Arthur bringing home the bacon…

Finally I was captivated by the Wasps v Saints game yesterday afternoon which could have gone either way…

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http://www.oilcapital.com/companies/news/176226/rose-petroleum-recovered-us321000-from-mexican-tax-authorities-last-month-176226.html Rose Petroleum recovered US$321,000 from Mexican tax authorities last month http://www.oilcapital.com/companies/news/176226/rose-petroleum-recovered-us321000-from-mexican-tax-authorities-last-month-176226.html Mon, 10 Apr 2017 10:36:00 +0100 http://www.oilcapital.com/companies/news/176200/gas-exploration-specialist-sound-energy-making-headway-in-italy-176200.html Gas exploration specialist Sound Energy making headway in Italy http://www.oilcapital.com/companies/news/176200/gas-exploration-specialist-sound-energy-making-headway-in-italy-176200.html Mon, 10 Apr 2017 10:15:00 +0100 http://www.oilcapital.com/companies/news/172368/dekeloil-readies-itself-for-a-big-2017-as-production-continues-to-grow-172368.html DekelOil readies itself for a big 2017 as production continues to grow http://www.oilcapital.com/companies/news/172368/dekeloil-readies-itself-for-a-big-2017-as-production-continues-to-grow-172368.html Mon, 10 Apr 2017 10:10:00 +0100 http://www.oilcapital.com/companies/news/176202/record-first-quarter-performance-for-dekeloil-176202.html Record first quarter performance for DekelOil http://www.oilcapital.com/companies/news/176202/record-first-quarter-performance-for-dekeloil-176202.html Mon, 10 Apr 2017 09:32:00 +0100 http://www.oilcapital.com/companies/news/123636/haydale-gets-the-graphene-ball-rolling-123636.html Haydale gets the graphene ball rolling http://www.oilcapital.com/companies/news/123636/haydale-gets-the-graphene-ball-rolling-123636.html Mon, 10 Apr 2017 09:19:00 +0100 http://www.oilcapital.com/companies/news/176215/haydale-graphene-industries-plc-receives-third-payment-form-everpower-176215.html Haydale Graphene Industries PLC receives third payment form Everpower http://www.oilcapital.com/companies/news/176215/haydale-graphene-industries-plc-receives-third-payment-form-everpower-176215.html Mon, 10 Apr 2017 07:31:00 +0100 http://www.oilcapital.com/columns/vsa-capital-market-movers/27506/vsa-capital-market-movers-centamin-plc-27506.html VSA Capital Market Movers - Centamin PLC http://www.oilcapital.com/columns/vsa-capital-market-movers/27506/vsa-capital-market-movers-centamin-plc-27506.html Mon, 10 Apr 2017 07:29:00 +0100 Centamin (LON:CEY)

Centamin (LON:CEY) has announced soft Q1 2017 production data which was down 20% QoQ and 13% YoY to 109koz. The company has, however, maintained its full year guidance of 540koz. The weakness was primarily due to weak grades at the open pit which were below the reserve grade and the company’s forecast. In 2016 open pit grades averaged 0.95g/t Au whilst in Q1 2017 they averaged 0.58g/t. In addition underground ore grades were also weaker; down from an average of 9.04g/t in 2016 to 7.44g/t in Q1 2017, however, these were ahead of the company’s forecasts for the full year of 7.26g/t.

The weakness in grades is likely to result in higher unit costs for the period although CEY has maintained its full year guidance of US$580/oz and US$790/oz for AISC.

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http://www.oilcapital.com/companies/news/176211/highlands-natural-resources-confirms-colorado-permit-approval-176211.html Highlands Natural Resources confirms Colorado permit approval http://www.oilcapital.com/companies/news/176211/highlands-natural-resources-confirms-colorado-permit-approval-176211.html Mon, 10 Apr 2017 07:16:00 +0100 http://www.oilcapital.com/companies/news/176206/hague-and-london-oil-unveils-transformative-dutch-acquisition-176206.html Hague and London Oil unveils ‘transformative’ Dutch acquisition http://www.oilcapital.com/companies/news/176206/hague-and-london-oil-unveils-transformative-dutch-acquisition-176206.html Mon, 10 Apr 2017 06:56:00 +0100 http://www.oilcapital.com/companies/news/176205/egypt-focused-centamin-maintains-2017-guidance-despite-sharp-drop-in-quarterly-output-176205.html Egypt-focused Centamin maintains 2017 guidance despite sharp drop in quarterly output http://www.oilcapital.com/companies/news/176205/egypt-focused-centamin-maintains-2017-guidance-despite-sharp-drop-in-quarterly-output-176205.html Mon, 10 Apr 2017 06:49:00 +0100 http://www.oilcapital.com/companies/news/176201/magnolia-petroleum-bullish-amid-rise-in-new-well-proposals-from-us-operators-176201.html Magnolia Petroleum bullish amid rise in new well proposals from US operators http://www.oilcapital.com/companies/news/176201/magnolia-petroleum-bullish-amid-rise-in-new-well-proposals-from-us-operators-176201.html Mon, 10 Apr 2017 06:37:00 +0100 http://www.oilcapital.com/companies/news/176182/assemblebay-to-reveal-acquisition-176182.html AssembleBay to reveal acquisition http://www.oilcapital.com/companies/news/176182/assemblebay-to-reveal-acquisition-176182.html Mon, 10 Apr 2017 00:00:00 +0100 http://www.oilcapital.com/companies/news/176152/fusionex-rises-as-it-secures-another-giant-contract-176152.html Fusionex rises as it secures another GIANT contract http://www.oilcapital.com/companies/news/176152/fusionex-rises-as-it-secures-another-giant-contract-176152.html Fri, 07 Apr 2017 11:02:00 +0100 http://www.oilcapital.com/companies/news/176148/numis-bullish-on-wood-group-s-bold-opportunistic-bid-for-amec-foster-wheeler-176148.html Numis bullish on Wood Group's "bold, opportunistic" bid for Amec Foster Wheeler http://www.oilcapital.com/companies/news/176148/numis-bullish-on-wood-group-s-bold-opportunistic-bid-for-amec-foster-wheeler-176148.html Fri, 07 Apr 2017 09:54:00 +0100 http://www.oilcapital.com/companies/news/176142/88-energy-all-clear-to-start-new-drilling-in-alaska-176142.html 88 Energy all clear to start new drilling in Alaska http://www.oilcapital.com/companies/news/176142/88-energy-all-clear-to-start-new-drilling-in-alaska-176142.html Fri, 07 Apr 2017 08:23:00 +0100 http://www.oilcapital.com/companies/stocktube/7251/gulf-keystone-seem-to-have-turned-a-corner-says-analyst-sam-wahab-7251.html Gulf Keystone 'seem to have turned a corner', says analyst Sam Wahab http://www.oilcapital.com/companies/stocktube/7251/gulf-keystone-seem-to-have-turned-a-corner-says-analyst-sam-wahab-7251.html Fri, 07 Apr 2017 08:19:00 +0100 Gulf Keystone Petroleum Ltd (LON:GKP) boss Jón Ferrier said he is “strongly encouraged” by the stable performance of the Shaikan field, which is in-line with expectations.

Having reset its finances, with a dilutive debt-for-equity swap, the company is now funded for the next programme of work – which first aims to stabilise output at around 40,000 bopd, before growing to 55,000 bopd.

Cantor Fitzgerald analyst Sam Wahab tells Proactive: ''They're cash flow positive ... I would agree they seem to have turned a corner''

''The results were very pleasing and the share price has obviously reacted well this morning''.

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http://www.oilcapital.com/columns/the-pay-zone/27491/oil-price-cairnfar-amerisur-resources-president-energy-range-resources-sundry-and-finally-27491.html Oil price, Cairn/FAR, Amerisur Resources, President Energy, Range Resources, Sundry - And finally... http://www.oilcapital.com/columns/the-pay-zone/27491/oil-price-cairnfar-amerisur-resources-president-energy-range-resources-sundry-and-finally-27491.html Thu, 06 Apr 2017 13:41:00 +0100 Oil price

I am just back from a trip to West Africa, Cameroon to be exact where I was fortunate to see the Victoria Oil & Gas operation in action and to visit Bomono and the Bowleven wells now mostly, part of VOG. Much more on that in due course but it is safe to say that I was most impressed with the whole set up.

Having had a couple of good days, oil is slightly easier this morning after the EIA stats poured cold water on the better numbers from the API. Higher than expected stocks didnt go down well and the US domestic production numbers were up by 52/- b/dto 9.2m b/d.

Cairn/FAR

Two pieces of news out whilst I have been away, one on the drilling front and one more in a financing vein. Cairn announced that the VR-1 well which was a  5km away step-out had successfully encountered better and slightly thicker sands than before which was the primary target of the well. The secondary target, the VR Aptian carbonate prospect did not provide commercial quantities of crude which is a shame but well offset by the news on the primary target.

FAR has announced that it is raising $80m at 8c which is a very modest discount of less than 5%. The proceeds will go towards development of Senegal, spending on the recently acquired blocks in The Gambia and other general expenses. With all the activity in this area in only the last few weeks those who have been given the chance to participate in the placing are fortunate indeed.

Amerisur Resources

Two pieces of news from AMER this week, one was the monthly production data  from Colombia which is creeping up nicely, and is now heading for the 5/- b/d mark through the OBA pipeline and the other was in the form of a new director. Dana Coffield joins the board after an exhaustive search and he becomes a new independent non-executive Director and brings with him a wealth of knowledge from his time at Gran Tierra but more directly the Putumayo Basin. AMER is way too cheap at these levels and is oversold, something that will, almost certainly change before long.

President Energy

The news from PPC earlier in the week was also mainly strong as the company announced that the latest workover well the DP 1001 was performing a lot better than had been expected. Without the need for a pump yet the well is still flowing at around 350 b/d making the PG area around 800 b/d. Now, clearly the well will need pumping but this is excellent news from the area. Not so good news is the weather where torrential flooding has made roads into rivers and impossible to yet move the rig to the next project, the three well frac programme but it won’t be long i’m sure.

Range Resources

When is a PSC not a PSC? When the Georgian Government try to sell the VIA block which is partially owned by RRL and on which the minimum work programme has been completed. Whilst this is no longer a ‘material asset’ for Range it is still important and Governments cannot surely behave like this wherever they are located. If they do attempt to ‘re-sell’ the block I would advise any potential purchaser to stand by for incoming legal action…

Sundry

Other notable things this week while I have been away, BP confirmed that they had indeed sold the Forties pipeline system to Ineos for $250m, half now, half on an earn-out over 7 years.

Providence Resources have announced that they and their partners on 3/04 have agreed to underwrite the cost of some more 3D seismic.

Premier has done a handy deal by selling the Pakistan business for $65.6m with a fair bit up front to ensure the deal gets done. The price seems to be in line with market expectations but above Premier’s own internal NAV. This progresses the non-core disposal programme and reduces net debt, a little!

Cape has announced an insulation and passive fire protection contract in Kuwait. There is no value announced but you can be sure that it will be worthy of celebration for such a good contract.

And surprise surprise Wood Group have already found another $40m of savings in the Amec deal, given how cheap they got it I wouldnt be surprised to see more costs coming out of the deal.

And finally…

One of the most exciting weekends of the sporting season and in both the action starts early. The Masters will have already teed off as I write this, increasingly tired after the flights but very much worth the while.

The same goes for the Grand National meeting at Aintree and as I know that there is a party of oil leaders going tomorrow I wish them luck…

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http://www.oilcapital.com/companies/stocktube/7245/aminex-working-on-development-plan-to-monetise-ntorya-gas-7245.html Aminex 'working on development plan' to monetise Ntorya gas http://www.oilcapital.com/companies/stocktube/7245/aminex-working-on-development-plan-to-monetise-ntorya-gas-7245.html Thu, 06 Apr 2017 10:08:00 +0100 Jay Bhattacherjee, chief executive of Aminex plc (LON:AEX) tells Proactive they're keen to monetise gas from the Ntorya project, on the Ruvuma acreage in Tanzania, as quickly as possible.

Bhattacherjee also ran through the company's financial results telling Andrew Scott 2016 was a transformative year with Aminex achieving first gas production from its Kiliwani North field, the introduction of a strategic investor and spudding the Ntorya-2 appraisal well.

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http://www.oilcapital.com/companies/stocktube/7241/greka-drilling-up-67-today-and-heading-for-7p-claims-zak-mir-7241.html Greka Drilling up 67% today and heading for 7p, claims Zak Mir http://www.oilcapital.com/companies/stocktube/7241/greka-drilling-up-67-today-and-heading-for-7p-claims-zak-mir-7241.html Thu, 06 Apr 2017 08:05:00 +0100 Shares in Greka Drilling Ltd (LON:GDL) are up 67% in early trading to 4.5p and technical analyst Zak Mir reckons they’re on track to hit 7p over the next couple of months.

You can see that there’s been a decent basing for the stock over the last year and a half towards the 2p zone…breaking back above the 50 and 200-day moving averages with the latest announcement,” explains Mir in the latest Proactive Investors Bulletin Board segment.

“The best case scenario target over the next couple of months as high as 7p towards the 2015 resistance line projection, especially while we hold above the 200-day line at 3p.”

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27483/vsa-capital-market-movers-lgo-energy-plc-27483.html VSA Capital Market Movers - LGO Energy PLC http://www.oilcapital.com/columns/vsa-capital-market-movers/27483/vsa-capital-market-movers-lgo-energy-plc-27483.html Thu, 06 Apr 2017 07:46:00 +0100 LGO Energy (LGO Energy)

LGO Energy (LON:LGO) has announced that its second new development well in the 2017 drilling programme successfully reached a total depth of 1,250ft. Electric log interpretation of the Mayaro Sandstone target interval confirms the presence of oil and will shortly be put into production over a net oil pay of 269ft.

The previous well in this programme, completed in Mid-March was perforated over a 273ft net pay interval producing an initial 55bpd. Three further wells have been approved by the Ministry of Energy and Energy Industries.

Our target place and recommendation remain under review.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27482/vsa-morning-agri-comment-27482.html VSA Morning Agri Comment http://www.oilcapital.com/columns/vsa-capital-market-movers/27482/vsa-morning-agri-comment-27482.html Thu, 06 Apr 2017 07:37:00 +0100 VSA Morning Agri Comment, 06/04/17

The 2017 Extel Survey is Now Open!

We hope that you have valued the service we have delivered this year. Please vote for us in the 2017 Extel Survey under the 'UK Small & Mid Caps: Consumer Goods' category. We appreciate your support. Click here to vote

 

MP Evans: FY 2016 Results

MP Evans (MPE LN), the Indonesian palm oil producer with residual Malaysian property interests, has released its annual results for the period ended 31 December 2016 (FY 2016).

• Revenue: US$83.9m, +15.6% YoY (FY 2015: US$72.5m)

• Profit from continuing operations: US$16.4m, +110% YoY (FY 2015: US$7.8m)

• Own fresh fruit bunches (FFB): 399,300t, -5.8% YoY (FY 2015: 423,900t)

• Smallholder fresh fruit bunches (FFB): 92,400t, -8.2% YoY (FY 2015: 100,700t)

• Outside crop purchases of fresh fruit bunches (FFB): 52,000t, +37.9% YoY (FY 2015: 37,700t)

• Crude palm oil (CPO) produced: 117,300t, +14.8% YoY (FY 2015: 102,200t)

Total dividend: 20p per share, including 5p special dividend (FY 2015: 8.75p).

VSA Comment

Given the torrid time experienced by many palm oil producers during 2016, MPE needs to be commended for its full year results, which certainly supports our view, maintained from the start of last year, that it was the most attractive of the London-listed palm oil producers. 

Crops fell (as expected and mirrored across the whole sector) due to exceptionally dry weather, but it is worth noting that H1 saw a YoY decrease of 9%, whereas for the FY this had reduced to a fall of 6%, which suggests that production is now moving towards a more normal state. This has accelerated into 2017 with its own crops to the end of March standing at 99,900t, +15% YoY.

MPE also had planting success, with a total of 3,600ha planted during the year (2,100ha group, 1,500ha smallholder co-operatives) and an additional 800ha cleared for planting entering 2017.

Away from the numbers, the real story for MPE in 2016 was the attempted acquisition from Kuala Lumpur Kepong (KLK MK) and MPE’s strong rebuttal in the last few months of the year (at a cost of cUS$2m). As we wrote at the time, we believe both the initial bid and the revised bid significantly undervalued the company. In the end, MPE was very successful in its defence, with the revised KLK bid attracting just 13.2% shareholder acceptances However, KLK has since bought c11% in the market and is free to try again in nine months (at the end of December).

As part of its defence strategy, MPE has paid a 5p special dividend, announced an increased dividend policy (minimum 25p total dividend in FY 2017) and commenced a £5m share buy-back scheme (c50% complete). It has also disposed of its JV PT Agro Muko for US$100m and will likely dispose of its other JV PT Kerasaan in due course.

Looking forward, investors are waiting to see MPE deploy its surplus cash (net cash US$75.3m at 31 December 2016), which may include additional land near its existing Kalimantan project (+5000ha to 20,000ha) and a potential new 10,000ha project. In particular, investors should examine the price MPE will be required to pay to acquire these new assets, as prices have been increasing as CPO prices moved upwards last year.

On pricing, the benchmark European CPO price increased almost 40% in 2016 with the Malaysian benchmark increasing almost 25% as the impact of El Niño-induced dryness continued to linger on regional palm oil production. This strength continued through January but prices have been decreasing since.

This has slightly surprised us given that this has occurred during the low production months, as we had expected weaker pricing to start in H2 given that the palm oil market was reacting to facts, not in anticipation of facts, through much of 2016. However, Malaysian CPO production saw its only YoY increase last year in December and this has been followed up with a 13% YoY increase in January and a 21% YoY increase in February. This suggests production is starting to bounce-back strongly and traders are clearly anticipating greater supply over the rest of 2017, despite another likely fall in Malaysian stockpiles for March (data due Monday).

On the demand side, exports have remained lacklustre, +1.2% YoY for the first two months of the year. With Europe the second largest importer of palm oil (behind India) investors should note Tuesday’s vote in the European Parliament in favour of certain resolutions to eliminate palm oil use in biofuels by 2020 and enforce stricter regulations on production and certification. Despite, the measures still needing to be enforced, this has the potential to impact medium-term consumption growth.

The first point is more important (if it ends up being enforced) than the second (the trend is for stricter regulations in any case), with c45% of European palm oil consumption currently used in biofuels (c3 million tonnes), compared with biofuel’s share of global palm oil consumption at 10-15%.

Global consumption of palm oil is growing at about 3% (c4% if you exclude the EU), which is about two million tonnes a year. So, assuming that all of that European palm oil consumption disappears overnight, then this accounts for the removal of about one and a half years of global consumption growth. In reality, this would likely be spread over a number of years, so the impact would likely be more muted but is still a fairly significant factor and may have negative implications for pricing. However, the potential impact could also be offset if Indonesia carries through on its promise to fully roll-out its palm-based biodiesel strategy.

The announcement that US farmers are likely to plant a significantly increased area with soybeans, a rival vegetable oil, in the coming season is also adding to the current negative sentiment in the sector.

MPE has impressively maintained its bid premium since late 2016, despite an immediate drop when the bid lapsed. This has been largely as a result of investors realising that KLK remains in the shadows but MPE’s share buy-back has also helped, accounting for c25% of an average day’s total trading volume. With c50% of the share buy-back now complete, three months into the programme, investors need to consider what happens after this (although the board may look to extend it). Any sensible acquisitions will certainly help and we expect positive cropping updates in 2017, but we suspect KLK’s continuing interest will remain the biggest influence on the share price.

We would remain holders of MPE having been strong buyers through 2016. However, although the share price seems well supported at the current level, we think it is unlikely to see much upside from here, except in the case of a stronger bid from KLK once its bid restriction period ends.

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http://www.oilcapital.com/companies/stocktube/7227/europa-oil-gas-hugh-mackay-confident-of-closing-further-farm-out-deals-in-2017-7227.html Europa Oil & Gas' Hugh Mackay 'confident' of closing further farm-out deals in 2017 http://www.oilcapital.com/companies/stocktube/7227/europa-oil-gas-hugh-mackay-confident-of-closing-further-farm-out-deals-in-2017-7227.html Tue, 04 Apr 2017 14:04:00 +0100 Europa Oil & Gas Holdings PLC (LON:EOG) tells Proactive they've had a busy first-half and the rest of 2017 looks to be just as exciting, with further farm-out deals expected offshore Ireland, and strong potential from its onshore UK assets.

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http://www.oilcapital.com/companies/stocktube/7220/can-tlou-energy-break-10p-before-june-7220.html Can Tlou Energy break 10p before June? http://www.oilcapital.com/companies/stocktube/7220/can-tlou-energy-break-10p-before-june-7220.html Tue, 04 Apr 2017 09:30:00 +0100 Zak Mir certainly thinks so. The technical analyst is tipping the Tlou Energy Ltd (LON:TLOU) share price to add more than 50% in a matter of weeks.

“We had a decent technical signal in July with a gap higher through the 50-day moving average and since then, the 6p zone has come in as support,” explains Mir in the latest Proactive Investors Bulletin Board.

“We’ve got an uptrend line from this time last year…and while we’re above that line a re-test of February resistance through 10p is possible over the next one to two months.”

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27463/vsa-capital-market-movers-egdon-resources-plc-27463.html VSA Capital Market Movers - Egdon Resources Plc http://www.oilcapital.com/columns/vsa-capital-market-movers/27463/vsa-capital-market-movers-egdon-resources-plc-27463.html Tue, 04 Apr 2017 08:00:00 +0100 Egdon Resources (LON;EDR)

Egdon Resources (LON:EDR) has acquired a 12% interest in the unconventional resources exploration rights in UK Onshore licence PEDL209 located in one of its core areas, the Gainsborough Trough, from Stelinmatvic.

• As part of the consideration for the acquisition, EDR has transferred 12% out of its interest in the remaining conventional prospects on the PEDL209 licence to Stelinmatvic

• It has also issued 580,646 ordinary shares (£54k) to Stelinmatvic, representing 0.22% of EDR’s enlarged share capital

EDR has also entered into a new opt-in agreement with Total E&P UK to provide an option for Total to farm-in to unconventional resources exploration in PEDL209 and to earn a 36% interest in the licence by paying EDR’s remaining 36% (together with Total's own 36% interest) of an exploration programme of up to £13.47m, which would include seismic acquisition and the drilling of a well. The option is exercisable until 31 December 2018 and supersedes the previous agreement announced on 30 January 2014.

The acquisition from Stelinmatvic adds a total of 1,898 net acres to EDR’s unconventional resources exploration acreage holdings (949 net acres post-option exercise).

We maintain our BUY recommendation and 34p TP.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27459/vsa-capital-market-movers-goldplat-plc-27459.html VSA Capital Market Movers - Goldplat plc http://www.oilcapital.com/columns/vsa-capital-market-movers/27459/vsa-capital-market-movers-goldplat-plc-27459.html Tue, 04 Apr 2017 07:06:00 +0100 Goldplat (LON:GDP)

Goldplat (LON:GDP) has provided an update on the dispute with Rand Refinery relating to a batch of by-product material treated in 2016. Although the results of the Independent review support GDP’s position, in the company’s view, the Rand Refinery have not accepted the findings of the report. Consequently, GDP will now take the dispute to court. The disputed sum owed to GDP is ZAR13.5m (£640k at time of the original announcement although with the weaker pound this is now valued at around £780k).

Much of GDP’s focus in the past 12 to 18 months has been to reduce its single refiner risk by sending material to Aurubis, a European refinery, as well as the five-fold increase in elution capacity in South Africa. Therefore whilst disappointing we believe that the strong operational turnaround, as well as the recently secured US$2m loan mean that GDP is in a robust operational and working capital position, minimising any potential negative impact. Indeed, we expect no material operational impact and we continue to expect GDP to receive the full amount and a negative resolution remains unlikely, in our view.

We reiterate our Buy recommendation and 12.2p/sh. target price.
 

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http://www.oilcapital.com/companies/stocktube/7215/lgo-energy-s-neil-ritson-keen-to-keep-drilling-momentum-going-following-25mln-raise-7215.html LGO Energy's Neil Ritson 'keen to keep drilling momentum going' following £2.5mln raise http://www.oilcapital.com/companies/stocktube/7215/lgo-energy-s-neil-ritson-keen-to-keep-drilling-momentum-going-following-25mln-raise-7215.html Mon, 03 Apr 2017 11:31:00 +0100 Neil Ritson, chief executive of LGO Energy PLC (LON:LGO) talks Proactive Investors through the company's recent £2.5mln of new funding as well as drilling which has just got underway on the GY-683 well - so far it's reached 350 feet.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27454/vsa-capital-market-movers-lgo-energy-plc-27454.html VSA Capital Market Movers - LGO Energy PLC http://www.oilcapital.com/columns/vsa-capital-market-movers/27454/vsa-capital-market-movers-lgo-energy-plc-27454.html Mon, 03 Apr 2017 07:41:00 +0100 LGO Energy (LON:LGO)

On Friday LGO Energy (LGO)# announced that it had raised £2.5m by the issue of c113.6m new ordinary shares at an issue price of 2.20p, representing a discount of 12% to the previous day of trading closing price.

This fundraise comprises an institutional placing of £2.2m in conjunction with a fully underwritten retail offer of £0.3m that was announced as fully subscribed this morning.

 

This fundraise will strengthen LGO’s balance sheet and allow it grow production from its Goudron Field in Trinidad as well as carry out further operations on other licences, as outlined below.

• Continue the drilling of Mayaro Sandstone infill wells in the Goudron Field of Eastern Trinidad

• Close the existing arrangements with Beach Oilfield Limited to acquire a 100% controlling interest and access to their petroleum leases in the SW Peninsula of Trinidad

• Continue the preparations for a waterflood pilot project in the C-sands at Goudron

• Commence an independent resource audit of the SW Peninsula assets leading to the issue of a Competent Persons Report

• Provide corporate overhead and general working capital

We view this as a positive step made by LGO which, not least, is vital for the ramp-up of the infill drilling programme at the Goudron Field.

As a result of this fundraise we reiterate our BUY recommendation but place our target price under review whilst we determine how this raise will influence LGO’s work programme going forward.

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http://www.oilcapital.com/columns/the-pay-zone/27447/oil-price-amerisur-far-limited-pantheon-resources-and-finally-27447.html Oil price, Amerisur, FAR Limited, Pantheon Resources, And finally... http://www.oilcapital.com/columns/the-pay-zone/27447/oil-price-amerisur-far-limited-pantheon-resources-and-finally-27447.html Fri, 31 Mar 2017 12:49:00 +0100 Oil price

Another good day yesterday and mainly down to Kuwait who’s Minister said that discussions were already going on about rolling over the November agreement. Combine that with comments from Russia and Iran and shortages especially from Libya and the market looks much better. Let’s see what the money managers have been up to in this afternoon’s CFTC figures…

Amerisur Resources

AMER announced the preliminary data on the Platanillo-22 well and it looks very encouraging. 50ft of pay over three zones was better than expected and from the N and upper and lower U sands good and made better by the N sands discovery to the north where they had only calculated limited development. This endorses the strategy in the Putumayo Basin and oil from here will be trucked to the OBA pipeline which is currently carrying 4,610 of AMER’s barrels which is good news. This stock is still way too cheap and I expect more discoveries to stamp a much higher valuation in due course.

FAR Limited

Wow, what a week in West Africa where deals are being announced on an almost daily basis. Last night FAR announced that it had entered into an AMI agreement with CNOOC which covers selective blocks offshore Senegal and The Gambia. To quote FAR ‘this dramatically advances FAR’s ability to acquire new assets in our core strategic geographic area of expertise’. FAR has already announced this week a farm-in to The Gambia for very modest expenditure.

CNOOC have already announced a farm-in with Impact, mentioned here on Wednesday and this shows that they are most serious about this increasingly popular post code. It does pose a number of questions not least how pleased WPL will be that FAR is now in bed with a very smart, very rich operator who may have a little more sway with the Oil Ministry. In addition, as per my comments of a few days ago about FAR’s options, this not only strengthens FAR in its negotiations but just might provide CNOOC as the super-major who could cut a deal with Cairn if they were ever to become a seller.  Also, if partnered by CNOOC in any upcoming licence awards, the future just got significantly better for FAR in the region.

This action may well smoke out all sorts of other players in this highly exciting acreage offshore West Africa as there are a number of majors who have yet to show their hands. There is much to play for here and FAR just got a strategic partner with’ the deep technical, operational and financial calibre of CNOOC’, the only way is up…

Pantheon Resources

Results from Pantheon this morning are totally irrelevant but give slightly better visibility around the two keys wells being waited for. Both wells have suffered delays at the hands of service companies but I am assure that there has been no negative indications from the appropriate reservoirs. There appears to have been a decision made about gas treatment or at least ‘big progress’ as they call it, and a final decision will be made after VOBM#2H is completed.

And finally…

As mentioned yesterday Arsene’s new contract at the Gooners may rest on what happens on Sunday when they host the Noisy Neighbours, a seeing to may lead to withdrawal of the offer. Elsewhere its derby day on Merseyside at the Toffees head over the Park to meet the HubCap Stealers, another derby the south coast riviera meeting between the Saints and the Cherries.

And Johanna Konta beat Venus and now meets Caroline Wozniacki in the Miami final.

The bog might be a touch erratic next week as I am travelling in Africa, will write when I can…

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27441/vsa-capital-market-movers-goldplat-plc-millennial-lithium-27441.html VSA Capital Market Movers - Goldplat plc, Millennial Lithium http://www.oilcapital.com/columns/vsa-capital-market-movers/27441/vsa-capital-market-movers-goldplat-plc-millennial-lithium-27441.html Fri, 31 Mar 2017 07:48:00 +0100 Goldplat (LON:GDP)

GDP has announced that Ashanti Gold (CVE:AGZ) has exercised its option to earn into the Anumso project in Ghana. In the first 18 months AGZ must spend US$1.5m on the project to earn 51% which included a six month review period. Once this has been spent AGZ must spend a further US$1.5m to earn a further 24% which would result in an effective interest of 67.5%.

Whilst we expected AGZ to exercise the option and begin to advance the Anumso project it is nonetheless a positive outcome and enables GDP to realise value for one of its non-core assets.

We reiterate our Buy recommendation and 12.2p/sh. target price.

Millennial Lithium (CVE:ML)

ML has made its initial option payments to gain 100% control of the Pocitos West Project of 15,857 hectares as first announced 2 February, 2017. The property can be purchased in full for payments totalling US$4.5m over the coming three years in staged payments.

The Pocitos basin is a known lithium bearing basin where ML already has a land position. The basin of 60km length lies west of ML’s flag ship project Pastos Grandes but is orders of magnitude larger in total area than Pastos Grandes. Geophysical evidence suggests the basin is at least 500m deep and tips toward the west and ML’s ground.

This acquisition further cements a growing land position of scope and scale for ML in highly prospective lithium brine basins within the Lithium Triangle.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27440/vsa-capital-market-movers-redt-energy-27440.html VSA Capital Market Movers - REDT Energy http://www.oilcapital.com/columns/vsa-capital-market-movers/27440/vsa-capital-market-movers-redt-energy-27440.html Fri, 31 Mar 2017 07:34:00 +0100 redT energy# Manufacturing Update

LON:RED | MC: £56.6m | Vanadium Redox Flow Machine Developer

redT energy (RED LN)#, a developer of vanadium redox flow machines for large-scale energy storage applications, has announced that it is delivering a 5kW-20kWh flow battery to its customer, University of Strathclyde.

The machine will be used alongside the grid and connected renewables as part of a joint project between the University and Gaia Wind at a site in Glasgow, Scotland. RED has confirmed that its production schedule remains on track and it is due to ship additional Gen2 machines to Africa shortly.

RED has also noted the announcement last week by its manufacturing partner Jabil (JBL US) that it will be closing its Livingston manufacturing plant. This closure does not impact the RED business model, with mass production always due to take place at other JBL plants around the world under its global manufacturing service agreement, in order to minimise its unit production cost.

We recently initiated research coverage on RED with a BUY recommendation and a target price of 22p.

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http://www.oilcapital.com/companies/stocktube/7192/jersey-oil-and-gas-plc-s-lansdell-believes-verbier-is-a-material-project--7192.html Jersey Oil and Gas PLC's Lansdell believes Verbier is a 'material project' http://www.oilcapital.com/companies/stocktube/7192/jersey-oil-and-gas-plc-s-lansdell-believes-verbier-is-a-material-project--7192.html Thu, 30 Mar 2017 12:35:00 +0100 Ron Lansdell, Jersey Oil and Gas PLC’s chief operating officer, explains to Proactive just why the market is so excited about its forthcoming Verbier well.
Jersey has just upgraded its resource estimate for the North Sea project following additional work by its competent person, consultant ERC.
Statoil will drill the well in the summer and Lansdown says having such a world class operator as a partner underlines how material the project may become.
"We are confident about the North Sea and hopefully will find an excellent sized resource that can be developed a standalone project."

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http://www.oilcapital.com/columns/the-pay-zone/27433/oil-price-plexus-bowleven-genel-and-finally-27433.html Oil price, Plexus, Bowleven, Genel, And finally... http://www.oilcapital.com/columns/the-pay-zone/27433/oil-price-plexus-bowleven-genel-and-finally-27433.html Thu, 30 Mar 2017 12:03:00 +0100 WTI $49.51 ++$1.14, Brent $52.42 +$1.09, Diff -$2.91 -5c, NG $3.17 +8c


Oil price


The Russian Energy Minister has this morning in an interview on CNBC said that they are fully behind the Opec initiative to cut production. He said that Russia ‘is reducing production in stages’ and that by the end of April would have reached their target of 300/- b/d and that the cut is up to 200/- b/d at the moment. Overall the picture looks good too, Reuters claim that Opec production is down to 32.01m b/d which shows a 93% degree of ‘adhesion’ and getting better. If these are your yardsticks for the oil price then, at least in the short term it is time to close off those bearish bets, they are exposed.

Yesterday’s inventory stats were a mixed bag but for choice better than market expectations. Crude stocks built but not by as much as expected, 867/- vs f/c of 1m barrels was certainly tolerable for the market. Products drew big time again, gasoline was down 3.7m barrels against expectations of 1.9m and distillates fell 2.48m b’s, twice the guess. With April on the doorstep and time for refiners to step up to the plate it would be a reasonable guess that throughput will rise and increased runs will draw more crude.


Plexus Holdings


A not unsurprising loss from POS after such a hard time in its core markets but after all the cost cutting and industry turmoil it might have been worse. Revenue was almost halved and led to a pre-tax loss of £2.5m but cash flow, as you would expect, is strong. The company strengthened its already debt free balance sheet with a raise and now has £10m of cash to be able to use as the market turns round. This may not happen immediately, in his usual extremely long but, worth reading statement, Ben van Bilderbeek says he is ‘looking forward to an upturn in conditions in the next financial year’, which I am taking to mean 2H of this year at the earliest.

Unlike other oilfield service companies the POS share price has behaved badly in recent months, having peaked at 125p in January it is now 72.5p which I suggest doesnt take into account adequately its prospects. With a state of the art product range and blue chip client list, recently added to by yet more new wins I predict better times ahead for POS.


Bowleven


It’s game over at Bowleven as Chairman Billy Allan leaves the building, swiftly followed by Kevin Hart and Kerry Crawford as COC wield the axe. One assumes that now the asset sale will move ahead speedily with calls into messrs Foo and Lowden and then the return of cash to shareholders.


Genel


The loss of $1.3bn was down to the telegraphed Taq Taq impairment charge and the production fell sharply with no longer any forward guidance offered. 2P reserves are 161 mmbbls  from 242m following the Taq Taq annihilation. Going forward the outlook is on Tawke and the gas developments at Miran and Bina Bawi but that’s quite a long wait….


And finally…


Arsene Wenger has told his morning news conference that no final decision has yet been made about his future but those in the know suggest that he is about to sign a new, two year contract with the club. That may change of course if they get stuffed by City on Sunday… It may not please a large contingent of fans who are getting more and more restless as the likelihood of their normal run to the last 16 of the Champions League stops altogether next year…

And it’s Konta v Venus in the semi-final in Miami…

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27429/vsa-capital-market-movers-metal-tiger-and-sula-iron-gold-27429.html VSA Capital Market Movers - Metal Tiger and Sula Iron & Gold http://www.oilcapital.com/columns/vsa-capital-market-movers/27429/vsa-capital-market-movers-metal-tiger-and-sula-iron-gold-27429.html Thu, 30 Mar 2017 07:59:00 +0100 Metal Tiger (LON:MTR)#
MTR has announced that following further drilling at the T3 copper project in Botswana MTR and its JV partner MOD Resources (MOD AU) intend to include the additional recently discovered mineralisation into the broader resource. The initial results included an assay of 72.6m at 1.5% copper and 27g/t Ag from 250m depth as well as 13m at 1% cu and 16g/t at 271m depth.

The extent of the zone has now been delineated over a 700m strike length and sufficient drilling has now been completed to expand the existing resource and therefore the scope of the pre-feasibility study. 16 holes have been completed in six weeks and assays are currently underway. This zone of mineralisation is directly below the existing resource and has significant positive implications for the project economics.

We reiterate our Buy recommendation and 4.8p/sh. target price.
Sula Iron & Gold (LON:SULA)#
Sula has announced that it intends to change its name to Sula Gold.

We reiterate our Speculative Buy recommendation and 1.6p/sh. target price.
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http://www.oilcapital.com/columns/the-pay-zone/27424/oil-price-president-energy-gulf-keystone-impact-oil-gas-far-and-finally-27424.html Oil price, President Energy, Gulf Keystone, Impact Oil & Gas (FAR), And finally... http://www.oilcapital.com/columns/the-pay-zone/27424/oil-price-president-energy-gulf-keystone-impact-oil-gas-far-and-finally-27424.html Wed, 29 Mar 2017 10:39:00 +0100 Oil price

A welcome bounce for oil producers yesterday and carried on this morning in early trading. The usual irony of Libyan production and exports was to be seen, as within 24 hours they had shipped a full tanker of crude and then, after terrorist activity, shut-in 252/- b/d of crude oil.

Adding to the news was the Iranian minister who said that he was in favour of extending the initiative, but then he would, wouldn’t he? Even Azerbaijan has suggested deeper cuts as Ministers look carefully at their balance sheets. The API inventory stats were a bit mixed, the build was bigger than expected at only 1.9m barrels but yet again products drew, gasoline by 1.1m and distillates by 2m barrels. Let’s see what the EIA number looks like tonight.

President Energy

An operational update from PPC this morning from Puesto Guardian where the company announce the successful working over of the 2nd previous producing well the DP1001. The Puerto Guardian concession is already producing 750 b/d which will drop a little to 600-650 b/d after initial flush production but is already very encouraging. The programme continues next week, delayed slightly by heavy rains in the area and the three well frac programme is next, I am confident that yet more barrels will be added to production.

It is worth taking a further look into the value of PPC as a recent upgrade in its reserve position in Argentina appears to have had little impact on the share price. With 1P oil reserves up 9% to 12 mmboe and 2P reserves up 10% to 19.9 mmboe (and mostly oil) the group when you add in Louisiana exceeds 20m barrels of 2P oil equivalent and is valued at a fraction of that. As Peter Levine points out, this reserve position ‘is comparable to companies whose market cap is a multiple of President’s’ and also in my view, the market has yet to catch up with this value inconsistency. The 2017 workover programme that is delivering success after success is indeed a key factor to increasing the important production to reserves ratio, when that is understood by the market the shares will surely rebase in an upwards direction.

Gulf Keystone Petroleum

I met with Jón Ferrier and Sami Zouari round at GKP the other day, my first invitation for some time and certainly since the refinancing…The winds they are a changin around at New Fetter Lane but the main asset, Shaikan is certainly not, it is still a high quality asset with significant growth potential. The reserves which are 622 mmbbl of 2P give current stable production of 40/- b/d  and with investment that figure could and should grow to a much higher number. At present Shaikan crude is back to being trucked to Turkey on a temporary basis’ at the behest of the MNR who are paying for all transport costs.

Effectively under new management and after last year’s refinancing with a balance sheet that actually has net cash GKP is in a stronger position, albeit having wiped out most of the equity holders which they would be minded to remember. KRG payments for their oil have been regular and adequate and means that in due course they will be able to contemplate further investment to increase production, but this time they will do things in the right order one hopes. As they build up cash resources and continue to work closely with the MNR the next stage of 55/- b/d is achievable if not imminent, in the meantime focus is the watchword across the board, JF’s office is not only small (four was a crowd) but now away from the finance function and next to the production and operations team. I have a poor record on GKP in recent years as I am regularly reminded, and know that this is a new base and new shareholders but apart from that there are grounds for guarded optimism if you hung on in there.

Impact Oil and Gas

I don’t often write about private companies but Impact is a rare beast, privately owned and run by the exemplary Mike Doherty it is getting a reputation for doing good deals and building a cracking portfolio. I mention this because today’s deal does both those things, it has farmed-out to CNOOC part of their holding in the PSC on the AGC Profond block which is in the Joint Offshore Development Zone between Senegal and Guinea Bissau and added another major to its list of partners.

Those who read my last week’s and yesterdays piece on FAR Limited will know that I believe that this area is slowly getting very warm and scheduled to be hot before long. With BP farming-in with Kosmos in Mauritania/Senegal and Far in The Gambia this latest deal starts to link up the deals, I can guarantee that this is only the beginning and there is much more to come. The good news is that investors can play this a number of ways but our old friend FAR Limited is the obvious route, yesterdays deal in the Gambia was not the last I suspect and other majors are all over the area like a cheap suit, opportunities will keep on coming.

And finally…

International break time so journos turn to transfer gossip, likely ones at the moment are for Hazard to quit Chelski and Eric Dier to move to the Theatre of Dreams which at least will rile one Rob Davies, Guardian scribbler and huge Spurs fan…

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http://www.oilcapital.com/companies/stocktube/7183/-we-re-sitting-on-something-pretty-special-says-caspian-sunrise-chairman-clive-carver-7183.html 'We're sitting on something pretty special', says Caspian Sunrise chairman Clive Carver http://www.oilcapital.com/companies/stocktube/7183/-we-re-sitting-on-something-pretty-special-says-caspian-sunrise-chairman-clive-carver-7183.html Wed, 29 Mar 2017 10:01:00 +0100 Clive Carver, chairman at Caspian Sunrise (LON:CASP) introduces the company to Proactive Investors.

The company was established in 2006 and admitted to trading on the AIM market when it was known as Roxi Petroleum plc.

Carver says the merger with Baverstock is a major milestone in the Group’s development as they're now free to develop their main asset - the BNG contract area - at a pace that suits Caspian Sunrise shareholders.

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http://www.oilcapital.com/companies/stocktube/7182/obtala-chairman-delighted-with-hong-kong-investment-7182.html Obtala chairman 'delighted' with Hong Kong investment http://www.oilcapital.com/companies/stocktube/7182/obtala-chairman-delighted-with-hong-kong-investment-7182.html Wed, 29 Mar 2017 09:53:00 +0100 Miles Pelham, chairman at Obtala Ltd (LON:OBT) tells Proactive the African forestry and agriculture group has raised £4mln through a share issue to a Hong Kong-based high net worth investor.

Obtala owns ten forestry concessions in Northern Mozambique, while its agriculture business is planting melon primarily but also butternut, onion and feed maize.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27422/vsa-capital-market-movers-metal-tiger-27422.html VSA Capital Market Movers - Metal Tiger http://www.oilcapital.com/columns/vsa-capital-market-movers/27422/vsa-capital-market-movers-metal-tiger-27422.html Wed, 29 Mar 2017 08:56:00 +0100 Metal Tiger (LON:MTR)

MTR has announced a placing of £4.29m led by Sprott Private Wealth and other Canadian investors at a price of 3p/sh with the issue of 143m shares. The price represents a premium of 6% to the close prior to the deal’s announcement, subsequently the stock has risen 16% to 3.275p/sh. The placing is still subject to due diligence by Sprott and will close on April 17th.

The funding will primarily be used as part of MTR’s commitment to the T3 Project in Botswana for which it has a 30/70 JV with MOD Resources (MOD AU).

We have adjusted our target price to 4.8p/sh. to reflect the dilution of 15.5% although reiterate our Buy recommendation.

 

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http://www.oilcapital.com/columns/the-pay-zone/27412/oil-price-sound-energy-far-limited-sundry-bowleven-genel-petrofac-and-finally-27412.html Oil price, Sound Energy, FAR Limited, Sundry-Bowleven-Genel-Petrofac- And finally... http://www.oilcapital.com/columns/the-pay-zone/27412/oil-price-sound-energy-far-limited-sundry-bowleven-genel-petrofac-and-finally-27412.html Tue, 28 Mar 2017 12:26:00 +0100 Oil price

More drift yesterday as oil markets found the assorted communiques from the Kuwait meeting confusing which was probably the idea from the start. Russia is talking the talk but is yet to fully deliver and as we approach monthly confession time oil may have a bumpy ride. If all is well then as we approach month four and compliance stays in the 90’s you never know things may pick up, also in April my readers allow me to talk about the D season and its implications. Inventory stats will also show this week how much effect the 300/- b/d from Saudi is being missed…

Sound Energy

Sound has announced the results from the TE-8 well, a 12km NE step out from the last discovery which establishes the westward extension from Algeria into Morocco. The presence of the TAGI sands in this well, albeit of a lower quality, will ‘materially uplift’ discovered volumes. The well identified and penetrated a full sequence of Westphalian sands in the Palaeozoic which had gas shows and although a test was not possible it is believed that they are permeable and should produce with stimulation. This Westphalian discovery is able to materially de-risk the original 3-10 TCF case announced in February and the success of the Paleozoic success here cannot be underestimated. Although things never go quite as planned, Morocco is still very much a key and the size of the prize is still very substantial with a number of opportunities presenting themselves.

FAR Limited

FAR has announced that it has secured an 80% WI with operatorship in blocks A2 and A5 offshore The Gambia, these blocks, which are on trend and adjacent to their Senegal blocks have above average potential. Bought from Erin Energy Corp for an upfront payment of $5.18m, the farm-in requires FAR to pay up to $8m of Erin’s costs for an exploration well due to be drilled by late 2018. Prior to that FAR expect to complete seismic reprocessing and interpretation work some of which has already given up valuable potential.

There are several large prospects and the company has already mapped three potentially drillable prospects and leads and the two blocks between them contain prospective resources of in excess of  1bn barrels of oil on an unrisked, best estimate 100% basis. It is no surprise to see FAR going back to their roots of West African exploration and this looks most exciting to me, maybe they have got in on the ground floor again….

Sundry

Bowleven interims today and worth even less of a glance than usual as events have rather overtaken results. The COC reign of terror continues, having COC’d up the number of directors they need for a majority another vote is required so peace is at a premium. What COC has done is alert every buyer in the market that Etinde is in play again, word on the street is that they have a sweetheart deal with Steve Lowden at NewAge in the pipeline…

Not a good day for Genel where a huge write down of Taq Taq reserves is announced, from 171.8 to 59.1 mmbbls which is bad enough but then there’s the impairment cost of $181m…

And Petrofac has announced the win of a $1.3bn contract for the KOC’s gathering project in the Burgan field in the South East of the country.

 

And finally…

Not much doing i’m afraid, the ECB has announced that there will be a big Twenty20 tournament starting in 2020 would you believe hoping to rival other international events.

Muzza is out of the Davis Cup so kiss goodbye to that this year….

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27402/vsa-capital-market-movers-millennial-lithium-27402.html VSA Capital Market Movers - Millennial Lithium http://www.oilcapital.com/columns/vsa-capital-market-movers/27402/vsa-capital-market-movers-millennial-lithium-27402.html Tue, 28 Mar 2017 07:07:00 +0100 Millennial Lithium (CVE:ML)

Millennial Lithium (ML CN) has announced the closure of its placement which raised gross proceeds of C$5.98m at C$1.25/sh via the issuance of 4.75mn shares with a half warrant issued with each share. The price which had been previously announced represents a 5% discount to the previous close and indicates 12% dilution for existing shareholders. Each whole warrant is exercisable for two years with a price of C$1.50/sh.

The fund raise means that ML will now resume drilling at Pastos Grandes where it is targeting a NI 43-101 compliant resource. ML has identified 11 additional drill sites. Additionally ML will carry out 72 hour pumping tests at the sites measuring draw down and brine parameters to determine suitable pumping rates and conditions.

We reiterate our Speculative Buy recommendation.

 

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http://www.oilcapital.com/columns/the-pay-zone/27399/oil-price-hurricane-amerisur-jersey-oil-gas-primeline-energy-holdings-sundry-wood-gp-bowleven-sirius-iog-and-finally-27399.html Oil price, Hurricane, Amerisur, Jersey Oil & Gas, Primeline Energy Holdings, Sundry-Wood Gp-Bowleven-Sirius-IOG-And finally... http://www.oilcapital.com/columns/the-pay-zone/27399/oil-price-hurricane-amerisur-jersey-oil-gas-primeline-energy-holdings-sundry-wood-gp-bowleven-sirius-iog-and-finally-27399.html Mon, 27 Mar 2017 13:15:00 +0100 WTI $47.97 +27c, Brent $50.80 +24c, Diff -$2.83 -3c, NG $3.08 +2c


Oil price


Last week saw a modest but continued fall in oil prices, WTI was down $1.34 and Brent 96 cents. Downward forces just exceeded upward ones and on Friday the rig count showed a rise of 20 overall to 809 and in oil of 21 to 652. The meeting of the Opec/Non-Opec monitoring committee took place at the weekend in Kuwait and they reported a high level of ‘conformity’ up from 87% to 94% and that the pact should be extended. After some behind the scenes activity it turned out that the committee didnt have the power to make such a recommendation and watered down the final wording to be subject to a risk assessment nearer the time.


Hurricane Energy


Further justification, if any were needed this morning that HUR have a monster find on their hands in the West of Shetlands. The Halifax well has been completed and has concluded that Lancaster and Halifax are a single, very substantial hydrocarbon accumulation. Speaking to CEO Dr Robert Trice he said that he was ‘chuffed’ that the well had come in better than, although on the same lines as, the original licence application in the 23rd round where the company had expected a ‘basement prospect with a 700m oil column’. Several years later this has been totally justified, indeed the only difference is that the column, including the gas cap, exceeds 1km which is huge.

Reports that the DST failed due to technical factors should be treated with scepticism, likewise the  chatter about overrunning on costs, true it was an expensive well as exploration wells are but here it was primarily down to a deeper than expected ODT to number which was even deeper than Lancaster. No oil/water contact was found and with no barrier or fault it was established that it was a tilted contact which simply put means more oil.

Life is very busy at HUR, they have already appointed subsea specialists and hired the FPSO that will be needed for the EPS, this result will mean more work again. The CPR, which will be the base for the FID will see an initial report within the next fortnight and a final one to include that data from this well and the Lincoln discovery should be out in the second half of the year. With the FID imminent-ish and  so much progress on the FID the market has turned to questions of funding which are understandable but in no way bearish. Having made the, in hindsight, correct call to delay the farm-out process, the company has restarted the negotiations and I understand that the data room is brimming with high class oil companies most of whom mistakenly didnt believe that the good Doctor was going to be proved so right. Also it is inevitable that the company  will be discussing financing needs as they move towards the development stage, this will likely be a combination of debt, consisting of regulation instruments as well as more contemporary ones and inevitably some equity portion, investors should consider this to be an opportunity rather than a threat and ensure that they are on the placing list for when it happens.

My target  price ever since the first discovery on Lancaster has been 100p, in the early stages that was something that made me a laughing stock, to paraphrase the old gag , they are not laughing now. With such huge amounts of hydrocarbons discovered, now well in excess of my much scorned 1bn barrels, I think that a working number would be a conservative 150p but adding in bid premium could easily be well in excess of 200p. HUR has been a big favourite and is a bucket list stalwart, the drilling campaign hasn’t put a foot wrong and accordingly will remain at the top of my list of cheap stocks in the sector, the shares are up only 5% this morning which only proves the stupidity of some of those who should know better, still a massive long term buy.


Amerisur Resources


One of the mysteries of the market at the moment is why AMER has had such a dramatic fall, dealers report a large seller but the news flow only gets better. Today that is confirmed as the company spud another well, this time on the CPO-5 block and away from the OBA region. A multi well programme later in the year should spice up AMER’s life and the shares are way too cheap.


Jersey Oil & Gas


A new CPR by ERCE on the Verbier and Cortina prospects has upped the gross mean prospective resources. For the former it goes from 118 to 162 and the latter 91 to 124m whilst the COS rates for Verbier rise from 26 to 29% and for Cortina to 19%. With a Capital Markets Day on wednesday I remain of the view that this is the most geared up play in the sector  ahead of Statoil drilling in the summer. As close to a no-brainer as one can get, providing one is agile ahead of the drill bit spinning, JOG has a lot further to go.


Primeline Energy Holdings


In dispute for sometime, PEH has received full payment for the gas sales contract for LS36-1 from Zhejiang Gas. This represents RMB 256m or C$49m and it is in full and final settlement of the dispute with Zhejiang Gas . PEH are on the TSX Ventures exchange and this should be highly beneficial to them.


Sundry


Wood Group announce the winning of a contract worth $50m with Premier Oil which extends and reviews their North Sea agreement..

Bowleven has announced that it strategically reviewing all its options including the COC poison pill one but that refuses to bite the bullet on a fire sale transaction…

Sirius Petroleum has signed a contract for a seabed survey that is needed as a  preparation for rig positioning. This should enable the market to relax in the hope of a spud dare in the not too distant future…

And IOG has seen its Harvey licence extended by a year but an appraisal well is needed for any further extension. At the Elgood discovery where it has up to 22 BCF of gas it is preparing a submission for a tie-back to the Blythe hub.


And finally…


In the football at the weekend there was a bad tempered match between the ROI and Wales which ended goalless whilst Northern Ireland beat Norway and Scotland just nosed past Slovenia. England made a bit of a meal getting past Lithuania 2-0 but they did park the bus making it difficult to break down the defence.

The F1 circus got under way and the Mercedes might have been the faster car but they were undone by a craftier Ferrari team who pitted more cannily thus keeping Lewis second, this may be a fun season….

In the Qatar MotoGP our British hope Cal Crutchlow unfortunately crashed out (twice!) but the improving Scott Redding finished an excellent 7th. The race was won by Yamaha newcomer Maverick Vinales from Andrea Dovizioso and ‘Old Man’ Valentino Rossi in 3rd. In the

Moto3 race the British rider John McPhee just missed out on the top step with a superb 2nd place. The circus moves on to Argentina in a fortnight…

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http://www.oilcapital.com/companies/stocktube/7173/jersey-oil-gas-verbier-exploration-project-a-no-brainer-says-malcolm-graham-wood-7173.html Jersey Oil & Gas' Verbier exploration project 'a no-brainer', says Malcolm Graham-Wood http://www.oilcapital.com/companies/stocktube/7173/jersey-oil-gas-verbier-exploration-project-a-no-brainer-says-malcolm-graham-wood-7173.html Mon, 27 Mar 2017 11:00:00 +0100 Oil & Gas Commentator Malcolm Graham-Wood runs Proactive through the latest developments at Jersey Oil & Gas Plc's (LON:JOG) Verbier exploration project in the North Sea.

Verbier, to be drilled by Statoil in the coming months, is now estimated to host some 162mln barrels of oil equivalent resources, up from a prior estimate of 118mln barrels.

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http://www.oilcapital.com/companies/stocktube/7169/hurricane-s-halifax-well-as-good-as-it-gets-says-malcolm-graham-wood-7169.html Hurricane's Halifax well 'as good as it gets' says Malcolm Graham-Wood http://www.oilcapital.com/companies/stocktube/7169/hurricane-s-halifax-well-as-good-as-it-gets-says-malcolm-graham-wood-7169.html Mon, 27 Mar 2017 09:38:00 +0100 Oil and gas commentator Malcolm Graham-Wood talks through initial well results from Hurricane Energy Plc's (LON:HUR) Halifax Well.

Hurricane's told investors that the exploration well encountered a very significant oil column, meaning the confirmation of a multi-billion barrel oil discovery is now likely.

Graham-Wood also discussed news out from Jersey Oil & Gas Plc (LON:JOG) in which they've highlighted an upgrade of the potential prize at the Verbier exploration project in the North Sea.

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http://www.oilcapital.com/companies/stocktube/7168/hurricane-energy-can-hit-80p-if-this-one-thing-happens-7168.html Hurricane Energy can hit 80p if this one thing happens http://www.oilcapital.com/companies/stocktube/7168/hurricane-energy-can-hit-80p-if-this-one-thing-happens-7168.html Mon, 27 Mar 2017 08:20:00 +0100 Technical analyst Zak Mir is tipping the Hurricane Energy PLC (LON:HUR) share price to hit 80p if it can break above the current trend channel at 62p.

“There’s been a rising pattern here since May last year, gapped through the 50-day moving average in September and we’ve been in this channel from last summer, bounded by 52p and 62p ever since,” explains Mir in the latest Proactive Investors Bulletin Board.

“The good news if you’re a fan of the shares is if we can break 62p on a weekly close basis the next target will be the May resistance line projection as high as 80p.

“The stop-loss on the whole buy argument at the moment just below the 50p level.”

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27386/vsa-capital-market-movers-independent-oil-gas-27386.html VSA Capital Market Movers - Independent Oil & Gas http://www.oilcapital.com/columns/vsa-capital-market-movers/27386/vsa-capital-market-movers-independent-oil-gas-27386.html Mon, 27 Mar 2017 07:28:00 +0100 Independent Oil & Gas (LON:IOG)
Independent Oil & Gas  has updated the market on the Harvey and Elgood licences.

Firstly, the Oil and Gas Authority (OGA) has continued licence P2085, which contains the Harvey discovery until 20 December 2017. If successfully appraised, this licence has the potential to be the largest gas discovery in IOG’s portfolio, with an internal P50 estimate of 113BCF. In order to extend the licence further IOG must commit to drill an appraisal well, which it expects to do later in 2017. If this licence can be successfully appraised IOG expects to tie it back to the same pipeline which it has signed an MoU to acquire. This pipeline will also be used to export gas from the Blythe and Vulcan Satellite hubs.

Secondly, technical work submitted by IOG in relation to the Elgood discovery has been accepted by the OGA and will be added to the Blythe Field Development Plan (FDP). This has an internal P50 estimate of 22BCF of recoverable gas.

Benchmark Prices
- Brent:   US$50.80/bbl +US$0.24/bbl
- WTI:   US$47.97/bbl +US$0.27/bbl
- Henry Hub:   US$3.08/MMBtu +US$0.02/MMBtu

Risers and Fallers (Last Close)
Risers Price Movement % Chg
Sirius Petroleum +0.09p +12.1%
Empyrean Energy +0.37p +11.5%
Serica Energy +1.50p +7.1%
 
Fallers Price Movement % Chg
Premier Oil -2.50p -3.8%
Urals Energy -0.38p -6.3%
Gulfsands Petroleum -0.75p -9.7%

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http://www.oilcapital.com/companies/stocktube/7163/sdx-energy-chief-highlights-very-strong-performance-in-2016-7163.html SDX Energy chief highlights 'very strong performance' in 2016 http://www.oilcapital.com/companies/stocktube/7163/sdx-energy-chief-highlights-very-strong-performance-in-2016-7163.html Fri, 24 Mar 2017 14:38:00 +0000 Paul Welch, chief executive at SDX Energy (CVE:SDX; LON:SDX) discusses the group's 2016 financial results with Proactive Investors.

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http://www.oilcapital.com/companies/stocktube/7161/sdx-energy-tipped-to-add-20-over-next-two-months-7161.html SDX Energy tipped to add 20% over next two months http://www.oilcapital.com/companies/stocktube/7161/sdx-energy-tipped-to-add-20-over-next-two-months-7161.html Fri, 24 Mar 2017 11:05:00 +0000 Leading technical analyst Zak Mir reckons the SDX Energy Inc (LON:SDX) share price is on track to add another 20% before the end of May.

“There’s been a rising trend channel since the end of last year, with the floor of the channel currently around the 50-day moving average at 43p,” explains Mir in the latest Proactive Investors Bulletin Board.

“While we hold above that, we’re heading towards the top of the channel as high as 60p over the next one to two months.”

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http://www.oilcapital.com/columns/the-pay-zone/27381/oil-price-sdx-energy-lamprell-and-finally-27381.html Oil price, SDX Energy, Lamprell, And finally... http://www.oilcapital.com/columns/the-pay-zone/27381/oil-price-sdx-energy-lamprell-and-finally-27381.html Fri, 24 Mar 2017 10:57:00 +0000 Oil price

Both crudes are likely to be down slightly on the week as the bears think they are winning the battle but the bulls still have more fire power. High inventories have spooked a touch but as warned before, it is often like that at this time of the year when it is sometimes better to look at product stocks which are drawing.

The key event is the meeting this weekend in Kuwait where all will be present from the Opec/Non-Opec team including the Saudi Minister and all the members of the monitoring group which is Kuwait, Algeria, Venezuela, Russia and Oman. They should, if all goes well, say that compliance is high and improving and that whilst they won’t make a decision about rollover until May, point out that it would all have otherwise been a waste of everybody’s time. Indeed, whilst nothing can be taken for granted, the sight of the downside should strike terror into their collective balance sheets.

SDX Energy

Results today from SDX are, given that they are pre-Circle and pre-raise, pretty meaningless but do make a good point as to how fast the company is moving and there is much exciting progress being made. As pointed out earlier in the week the South Disouq well is under way and looks for gas as well as oil and is virtually free for shareholders. Work continues on NW Gemsa as well as upgrades at Meseda, all part of the existing SDX story and of course there is a good deal of work to be done in Morocco as another part of the Circle deal. Today the shares are over 50p, a new high but deservedly so, they went into the bucket list for a good reason and have the scope to climb higher.

Lamprell

Results today from LAM were as expected awful, after a huge impairment figure of $180m hit an already weak number. Admittedly cost have been cut big time and there is $275m of cash in the balance sheet, in addition the yards are still busy, but take a look at the order book and bid pipeline and things still look fairly grim. The order book is $393m (740m) and the bid pipeline is $2.5bn ($5.4bn) and the jack up market is still worryingly quiet. Margins have suffered and the unadjusted number is 4.3% down from 10.3% although similar after adjustment.

Guidance for 2017 revenue, which is all we get, is down to the lower end of the $400-500m mark after $705m last year so unless business walks into the yard pdq then this year will not break any records. Readers know that I have been, and remain a big fan of LAM but with the current state of work and the Saudi project being only a pipe dream at the moment its quite a leap of faith to be too optimistic at this time. With the shares having doubled since the last results in September optimism, like elsewhere in the sector, has prevailed but at the moment I would want to see some pretty good additions to the order book for that price strength to continue.

And finally…

Football is World Cup qualifying this weekend and the best match maybe the ROI v Wales but Northern Ireland host Norway, Lithuania come to Wembley and Scotland welcome Slovenia.

F1 is back and with i’m told faster, noisier cars which will make it more fun and with new owners and team changes at least there will be some changes. No change so far in practice where Lewis is streets ahead may take some catching even by his new teammate.

I am drawn to MotoGP which also restarts this weekend in Qatar giving the ‘2 wheel nutters’ a chance to see their heroes. At the top of the list last year for us was Cal Crutchlow who I am told is the new Barry Sheene and on the LCR Honda whilst Bradley Smith on the KTM and Sam Lowes who steps up from Moto2 is on the Aprilia. Favourite may be Jorge Lorenzo having switched to Ducati, but Valentino Rossi, older but not out of it, may fight with new team mate Maverick Vinales but in the end Marc Marquez, last year’s winner will start favourite…

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http://www.oilcapital.com/companies/stocktube/7160/sound-energy-pushing-on-with-two-exciting-drill-programmes-says-proactive-s-jamie-ashcroft-7160.html Sound Energy 'pushing on with two exciting drill programmes' says Proactive's Jamie Ashcroft http://www.oilcapital.com/companies/stocktube/7160/sound-energy-pushing-on-with-two-exciting-drill-programmes-says-proactive-s-jamie-ashcroft-7160.html Thu, 23 Mar 2017 14:57:00 +0000 Jamie Ashcroft, Proactive Investors oil and gas correspondent, takes a look at some of the week's main industry headlines.

Ashcroft talks Sound Energy PLC (LON:SOU) and their two drill programmes in Morocco and Italy, Solo Oil PLC's (LON:SOLO) new venture in Helium with their 10% interest in Helium One,  88 Energy Ltd (LON:88E, ASX:88E) kicking off their new drilling programme in Alaska and rounds off by discussing the excitement around Falcon Oil & Gas Ltd (LON:FOG, CVE:FO) and their potentially huge shale project in Australia's Northern Territory.

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http://www.oilcapital.com/columns/the-pay-zone/27365/oil-price-rockhopper-sound-energy-and-finally-27365.html Oil price, Rockhopper, Sound Energy, And finally... http://www.oilcapital.com/columns/the-pay-zone/27365/oil-price-rockhopper-sound-energy-and-finally-27365.html Thu, 23 Mar 2017 08:38:00 +0000 Oil price

A mixed day yesterday, it might have been worse as the EIA inventory stats were worse than forecast at a build of 4.95m barrels against expectations of +1.77m. Crude did stage a late comeback which saved the day to a certain extent. More on the OGA licences later when I have looked at them all.

Rockhopper Exploration

Rockhopper has announced that it has commenced international arbitration proceedings against the Republic of Italy in relation to the Ombrina Mare project. This follows the decision by the Ministry of Economic Development not to award the company a production concession covering the Ombrina Mare field which has clearly resulted in very significant lost profits. It seems that the Energy Charter Treaty (ECT) that was set up in 1998 and had Italy as a founding signatory has been breached and damages and compensation are distinctly possible.

Given the wording of the statement from Rockhopper I would be incredibly surprised if they were taking this lightly and of course have said that they have taken ‘legal and expert opinions’ which must have helped make this decision. In addition to this the company say that they have secured non-recourse funding for the arbitration from a specialist in this form of claim. To you and me this means no win no fee and seems very wise, above a certain level RKH still get a ‘very material proportion’ of any award.

The company has said that whilst it had hoped to avoid this process it has become pretty much the only option and protects its shareholders interests ‘at no extra cost to the company’. At this stage it is impossible to try to guess quite how much RKH might be awarded should they win, and of course this case is likely to take a couple of years but a spreadsheet of the Ombrina Mare project would likely suggest a very substantial number, indeed what says the settlement may well exceed what RKH paid for MOG in the first place…..

Sound Energy

Sound has announced that the Badile well has reached its second casing point so a long time to go yet, while over at TE- in Tendrara things are getting interesting as drilling has completed. At this stage, although further gas has been encountered nothing can be read into the situation until further wireline logging and testing has taken place.

And finally…

The honeymoon is over for England’s new manager, his first outing as a permanent fixture led to a 1-0 defeat by Germany, something he may have to get used to. As i said yesterday it was a B vs B team and little can be got from it.

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http://www.oilcapital.com/columns/the-pay-zone/27362/oil-price-far-limited-rockrose-energy-igas-energy-solo-oil-plus-links-on-savp-sdx-igas-and-finally-27362.html Oil price, Far Limited, RockRose Energy, IGas Energy, Solo Oil, plus links on SAVP-SDX-IGas- And finally... http://www.oilcapital.com/columns/the-pay-zone/27362/oil-price-far-limited-rockrose-energy-igas-energy-solo-oil-plus-links-on-savp-sdx-igas-and-finally-27362.html Wed, 22 Mar 2017 11:55:00 +0000 Oil price

Yesterday was a bad day for oil, not because it fell but more as it started brightly moving up on general news from Russia and sundry participants that a roll over was increasingly likely at the May meeting. During the day announcements from Libya that it was increasing production (something to be taken with a large pinch of salt as a rule at the moment) and the the inventory figures rained on oil’s parade.

April WTI expired yesterday and May (above price) was already a bit weak, this morning Brent is down 72 cents so flirting with the key $50 level which the chartists hate. So, those API stats showed a build of 4.5m barrels, more than the expected 2.8, and although gasoline stocks drew by a bigger than expected 4.9m barrels the market was disappointed. Stand by for EIA tonight…

FAR Limited

Readers will know that I have been planning a piece about FAR that addresses some of the points I am regularly being asked about regarding where FAR goes from here, how the ConocoPhillips ‘exit’ has affected them and what options they have from here. It looks to me that COP has effectively driven a coach and horses through the letter of the law and certainly the well accepted behaviour of partners in a joint venture  as it exits Senegal. The deal with Woodside appears to have been done almost as a ‘fait accompli’ and whilst FAR has tried to understand the terms of their pre-empt rights (after all, they were offered these rights from COP), they have been frustrated at every turn. Attempts through the usual official routes have appeared to have so far failed despite the fact they have signalled that they have the necessary funding (with a partner) to exercise their pre-empt option should they wish to do so. I understand that the Senegal Oil Minister fully appreciates the situation and understands that FAR are going by the book but share in their frustration. They also must understand that FAR could if they wanted make life a lot more difficult, for example by enacting international arbitration and thereby bringing the issue under the spotlight of the international community, which the Government of Senegal certainly does not want for their first, large oil development offshore. With the Government also wanting the project on-stream as soon as possible (at present by 2021/22), and elections looming before that, FAR are in a strong moral and legal position.

In my view FAR might be better served, and keep its excellent relationship with the Minister, by stepping back and accepting Woodside as their new partner thus ensuring a more stable future. Senegal, as indeed is a good deal of the West African coastline, is fast becoming one of the most highly prospective and desirable areas in world oil, something that has been recently proved by BP farming in with Kosmos to the North and this special relationship with the country is to be valued. Indeed, if by maintaining such a favourable relationship with the Ministry led to a possible, nay favourable chance in upcoming offshore licence awards, then it would all have been worth the while. With Cairn holding 40%, and I am not at all convinced that they are keepers of this stake, and of course at some stage may have to pass on the operatorship of the licence to Woodside, then all is up for grabs, at which point FAR’s 15% comes into play. Who is to say that these two stakes might suddenly become a much more tempting stake, valuable to the marauding major to whom 50% or more is needed, less is not….

By accepting that, with the passing of time, the pre-empt is lost and Woodside may be a healthy bed partner, I take it that FAR will not lose their right to take COP into arbitration and go for damages. Reading the Chairman’s comments in the annual report today, it certainly seems as though all options are in front of the board.

Did anyone notice by the way that COP indemnified Woodside against any losses incurred as a result of this deal going pear-shaped? Woodside have a money back guarantee – did COP have to offer this to get the deal across the line? One ponders whether this constitutes one of the terms of the deal that COP were not sharing with FAR.

As I see it FAR’s options are as follows:

They could keep fighting for the COP stake as is their partner pre-emptive right but this would ultimately lose the goodwill that has been built up with the oil Minister and of course ahead of the Presidential elections.

They could accept Woodside as a partner, things could be worse and I understand that relationships between the two companies are good which would be a bonus as development gets under way. With the blessing of the Ministry, which would be likely under this scenario, I can see FAR getting a decent shout in bidding for upcoming blocks, not to be sneezed at.

The final option, the ‘Kingmaker’ option so to speak, as indicated above would be to offer the 50+% stake held by Far and Cairn to a major if such a substantial offer was potentially on the cards. If such a deal was available, and it would have to be significantly above what is reflected in FAR’s current share price, this end may justify the means. With a new Senegal exploration process to look forward to, with fresh acreage and new, more trustworthy partners and a healthy bank balance to boot maybe this is the best way out for FAR.

The operatorship card is also interesting, as I understand it Woodside are expecting, as per the original –rather ill defined  agreement between Cairn and COP, to take over after the exploration phase and before FID. However, if Cairn is planning to sell to a major and maybe with FAR to offer a bigger stake then it would be well advised not to hand over the operatorship lightly…Woodside could hardly complain about this given the way they got into the licence to begin with.

My valuation of FAR is still 25c, I strongly believe that one way or another the current share price has not taken into account the appropriate value of what the company has in Senegal and will do so before long.

RockRose Energy

We now have the next stage of the RRE journey as they announce details of various deals done in recent months. They are continuing to progress on the acquisition of Scott (5.16%) and Telford (2.36%) although the Wytch farm part of the deal was pre-empted by existing partners.They have signed an SPA with Egerton Energy Ventures to acquire the non-operated interests in the Galahad (27.8%) and Mordred (8.33%) gas fields. In addition they have signed up with ‘a major trading company’ to acquire a number of small, non-operated interests in the SNS. In total the production is about 1,400 boepd to RRE.

This will all result in a net cash inflow to RRE from Maersk which although not announced is, as I understand it, extremely positive even after decommissioning is taken into account. It’s a bit early to say that this is transformational but it maybe just that, as I understand it they are considering a raise at a substantial premium to the suspended price as existing shareholders and some of the vendors above are keen to get this show on the road. No idea when they shares will come back but probably before Easter so watch this space…

IGas Energy

Things are starting to look up for IGas as following the completion of their refinancing they announce today that their planning application at Tinker Lane in Nottinghamshire has been approved. Very good news for the company as they can now test the gas shales but also for the industry and the country as the potential of finding our own gas for power moves closer to reality.

Solo Oil

Solo has bought a 10% stake in Helium 1 which sounds a bit funny to me (ok it’s a poor joke I know) for £2.55m of which £1.2m comes by raising money at 0.54p and the rest in shares. With an option to buy another 10% at £4m half and half in shares and cash the company has the put and the call but whether it’s a good deal or not better men than I can judge, never valued helium!

Follow up from yesterday…

I was out and about yesterday but spotted the following…

Faroe had a very good set of figures even though we knew how they would be good, the presentation later was very confident and there will much to see from the company this year and next. Faroe will likely take over as best in class after the Judas’ that is Ithaca leaves the scene after capitulating to Delek….

EnQuest released a surprisingly good set of figures pleasingly in the black. Improvement is coming quicker than most, including me, where expecting and I salute them.

And Bahamas Petroleum announced that the Government has extended their requirement to drill a well from April 2017 (clearly a non-starter) for another year. Patient shareholders are told that a farm-out or similar,  ‘remains in advanced discussions’ for funding or operational partners. This sounds a tad more optimistic but as usual one shouldn’t stand on one leg waiting for it to happen…

 

And finally…

As it is International week it is incredibly short of news anywhere, England are in Germany playing their B team, as are we and I for one wont be viewing it.

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http://www.oilcapital.com/companies/stocktube/7148/-there-s-so-many-potential-applications-says-tms-boss-of-their-industrial-drying-technology-7148.html 'There's so many potential applications' says TMS boss of their industrial drying technology http://www.oilcapital.com/companies/stocktube/7148/-there-s-so-many-potential-applications-says-tms-boss-of-their-industrial-drying-technology-7148.html Wed, 22 Mar 2017 11:34:00 +0000 Dr Jim Young, CEO of Targeted Microwave Solutions Inc (CSE:TMS) speaks to Proactive's Andrew Scott about their Wavedry microwave reactors.

''We've developed what we think is a very disruptive technology that replaces the old technology of using rotary kilns to dry materials ... with new modern clean technology using microwaves'', Dr Young says.

''We can remove water four times more efficiently than using rotary kilns in an environmentally-friendly way''.

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http://www.oilcapital.com/companies/stocktube/7146/its-on-a-tear-today-but-more-to-come-from-frontera-resources-7146.html It’s on a tear today, but more to come from Frontera Resources http://www.oilcapital.com/companies/stocktube/7146/its-on-a-tear-today-but-more-to-come-from-frontera-resources-7146.html Wed, 22 Mar 2017 09:40:00 +0000 Frontera Resources Corporation (LON:FRR) is on a run this morning, but technical analyst reckons there is still a long way to go for the oil and gas explorer’s share price.

“It looks as though we’re now ready to retest the best levels of the year within a rising trend channel from the beginning of February,” explains Mir in the latest Proactive Investors Bulletin Board segment.

“While we’re above the 0.2p level the stock could head as high as the top of last month’s trend channel at 0.5p on a two to three month timeframe.”

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http://www.oilcapital.com/companies/stocktube/7143/solo-oil-makes-attractive-strategic-investment-with-helium-acquisition-7143.html Solo Oil makes 'attractive strategic investment' with Helium acquisition http://www.oilcapital.com/companies/stocktube/7143/solo-oil-makes-attractive-strategic-investment-with-helium-acquisition-7143.html Wed, 22 Mar 2017 08:52:00 +0000 Tanzania-focused gas investment firm Solo Oil PLC (LON:SOLO) has announced its move into helium with a deal worth up to £6.55mln.

Solo's chairman Neil Ritson tells Proactive they're spending £2.55mln for a 10% stake in Helium One in a cash and shares transaction and has the option to double its holding for an extra £4mln.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27356/vsa-capital-market-movers-ferrexpo-27356.html VSA Capital Market Movers - Ferrexpo http://www.oilcapital.com/columns/vsa-capital-market-movers/27356/vsa-capital-market-movers-ferrexpo-27356.html Wed, 22 Mar 2017 08:41:00 +0000 Ferrexpo (LON:FXPO)

FXPO has delivered strong results in a turnaround year recovering from its local banks issues which resulted in the loss of a significant amount of cash of around US$592m. FXPO’s robust operational performance was, however, unaffected. Production of 11.2mnt was down 4% YoY, however, sales volumes were up 3% YoY to 11.7mnt and prices averaged 5% higher YoY at US$58.3/t. Revenue was therefore up 3% YoY to US$986m.

Cash costs were down 13% YoY to US$28/t and EBITDA increased 20% YoY to US$375m as a result of the improved cost base. Net profit of US$189m was up close to fivefold YoY while with minimal capital investment owing to the completion of ramp up activities net cash flow was also up strongly. Consequently net debt was reduced from US$868m to US$589m YoY and FXPO opted to pay a final dividend of US$0.066/sh., double last years.

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http://www.oilcapital.com/companies/stocktube/7136/another-50-upside-in-falcon-oil-gas-says-zak-mir-7136.html Another 50% upside in Falcon Oil & Gas, says Zak Mir http://www.oilcapital.com/companies/stocktube/7136/another-50-upside-in-falcon-oil-gas-says-zak-mir-7136.html Tue, 21 Mar 2017 09:55:00 +0000 Technical analyst Zak Mir reckons the Falcon Oil & Gas Ltd (LON:FOG) share price has room to add another 50% over the coming weeks.

“The shares now are very overbought with the RSI [Relative Strength Index] at 89 out of 100 so a cooling off would be expected back towards the low 20s,” explains Mir in the latest segment of the Proactive Investors Bulletin Board.

“At least while we hold above the 20p zone, the best case scenario target here over the next three to six months is as high as 45p.”

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27346/vsa-capital-market-movers-independent-oil-gas-plc-27346.html VSA Capital Market Movers - Independent Oil & Gas PLC http://www.oilcapital.com/columns/vsa-capital-market-movers/27346/vsa-capital-market-movers-independent-oil-gas-plc-27346.html Tue, 21 Mar 2017 08:49:00 +0000 Independent Oil & Gas (LON:IOG)

Independent Oil & Gas (IOG) have made the following board changes.

• Andrew Hockey joins the board as Deputy Chief Executive. He has 35 years’ experience in the oil and gas industry most recently with Fairfield Energy and Sound Energy. He also led the early development of Clipper South, a successful SNS producing gas field which is analogous to IOG’s Vulcan satellites development.

• Hywel John joins the board as Chief Financial Officer. He was previously CEO of Bayfield Energy, CFO of Candax Energy and senior executive at Burren Energy.

• The Right Honourable Charles Hendry appointed Non-Executive Director as a nominee of the Company’s major stakeholder, London Oil & Gas Limited, a major investor in IOG. Minister of State for Energy between May 2010 and September 2012.

• David Peattie resigns from the Board, with immediate effect, as a consequence of his appointment as Chief Executive of the Nuclear Decommissioning Authority.

• Mark Routh, IOG’s Chief Executive Officer, is appointed Chairman on an interim basis.

• Peter Young leaves the board and takes up a new role as Head of Business Origination. He has a strong track record in business origination, M&A and Finance.

• Graham Cox joins as SNS Project Manager. Previously he was project manager on the Clipper South Development.

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http://www.oilcapital.com/companies/stocktube/7142/buru-energy-lays-down-foundations-for-long-term-success-7142.html Buru Energy lays down foundations for long-term success http://www.oilcapital.com/companies/stocktube/7142/buru-energy-lays-down-foundations-for-long-term-success-7142.html Tue, 21 Mar 2017 04:00:00 +0000 Eric Streitberg, executive chairman for Buru Energy, speaks with Proactive Investors.

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http://www.oilcapital.com/columns/the-pay-zone/27340/oil-price-sdx-energy-bowleven-and-finally-27340.html Oil price, SDX Energy, Bowleven, And finally... http://www.oilcapital.com/columns/the-pay-zone/27340/oil-price-sdx-energy-bowleven-and-finally-27340.html Mon, 20 Mar 2017 12:28:00 +0000 Oil price

Last week oil prices started off in the weak manner of previous form but ended rallying a little and both WTI and Brent were marginally up by the close on Friday. It’s not an easy call at the moment, the dollar is under a bit of pressure, inventory numbers look a little more helpful, except at Cushing, and overall the Opec quotas are being adhered to.  On the other hand the rig count rises inexorably and US production follows, money managers are closing down their long positions and the chart still looks dodgy. you pays your money…

SDX Energy

SDX has announced this morning that the SD-1X well at South Disouq in the Nile Delta has spudded looking for gas in the Upper Abu Madi section and oil in the Lower AEB and Abu Roash sections. The well will take 30-45 days depending on what they find, expectations are high and if either gas or oil, or both, are discovered then it will be transformational to the company. It looks pretty optimistic on both fronts, the 3D seismic showed an AVO response which significantly de-risks the gas play and the oil play is ‘pervasive’ in the block, indeed the company already have another oil target drill ready. SD Deep-1X has significantly higher potential in the oil bearing sections and I imagine that they will drill that next.

The numbers are also appealing to SDX, the well cost is $3.7m of which $3m is carried, following the recent raise they have $18.3m of cash and no debt and of course expect $30m of free cash flow this year and $42m next. Infrastructure nearby means that any discovery at South Disouq would be extremely convenient, three major trunk lines run through the concession giving transport options for gas, oil or condensate only 5km from SD Deep-1X or 11km from SD-1X.

Even if the South Disouq well doesnt come in there is plenty to like about SDX at the moment, the Circle deal is bedding in well, the company has a break even price of $21 Brent and a strong balance sheet in preparation for maybe more accretive acquisitions which the management are confident about. I think that the shares are extraordinarily cheap at the moment, I know that they carry the risk of an exploration well drilling at the moment but there is a good deal more upside than down, compare the £85m market cap with those cash flow numbers and you can see why.

Bowleven

Much has happened in the last week for BLVN, COC won all their votes with the exception of removing Chairman Billy Allan which has put a spanner in the works, now they need another meeting and another vote as he has the casting vote on the new, smaller board. Weekend press reports suggest that the Chairman has ‘put up the for sale sign’ over BLVN and is keeping on Kevin Hart and Kerry Crawford despite them no longer being directors of the company which wasnt in COC’s plans I imagine. My spies tell me that COC have a buyer lined up for Etinde and of course the Bomono deal with VOG is still on the table doing both of those deals would effectively finish the sad tale.

And finally…

It was fairly inevitable that England would find the banana skin in Dublin but a shame that it was a catalogue of mistakes and schoolboy errors that handed the game to the deserving Irish. It was more fun watching the antics of France and Wales in 20 minutes of overtime, admirably refereed by Wayne Barnes, waiting for something to blow. Add the comedic attempts at franglais when checking the subs, ‘numero trois, rouge’ louder and louder and then asking ‘are you injured?’ to a frenchman who didnt understand the question was hilarious. Quite how a penalty try was awarded during the process was probably as tactical as it was good for the entente cordiale.

It ended 1-1 at the Etihad between the Noisy Neighbours and the HubCap Stealers whilst Spurs had won against the Saints and the Red Devils had beaten Boro, the Gooners slipped over at the Baggies pushing them down to 6th. Word is that Arsene has signed a year’s extension to his contract which will irritate the fans who have just started to get restless, it will be worse if there is no Champions League next year, next weekend they host the Noisy Neighbours which might just be tough.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27333/vsa-capital-market-movers-goldplat-plc-27333.html VSA Capital Market Movers - Goldplat plc http://www.oilcapital.com/columns/vsa-capital-market-movers/27333/vsa-capital-market-movers-goldplat-plc-27333.html Mon, 20 Mar 2017 08:09:00 +0000 Goldplat (LON:GDP)

GDP announced on Friday that it has secured a US$2m loan facility from Scipion Capital. The facility is available for 360 days from first draw down and is repayable monthly while annual interest is set at LIBOR plus 9.5%. We expect the expansion at Kilimapesa and consequent profits to be the primary source of loan repayments.

Since GDP funded the expansion at Kilimapesa through internally generated cash the loan will improve the working capital position of the operating subsidiaries in Ghana and South Africa strengthening the company’s negotiating position as it procures new by product material. This will also be beneficial for GDP’s push into South America since upfront cash typically improves the contracts’ terms. Secondly, we believe that the addition of a modest level of debt positively enhances GDP’s capital structure and have reduced our WACC from 8% to 7.6%.

To read our flashnote on the announcement please click here.

We reiterate our Buy recommendation and increased our target price by 9% to 12.2p/sh.

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http://www.oilcapital.com/columns/the-pay-zone/27329/oil-price-tullow-igas-range-resources-sundry-bpineos-and-finally-27329.html Oil price, Tullow, IGas, Range Resources, Sundry-BP/Ineos- And finally... http://www.oilcapital.com/columns/the-pay-zone/27329/oil-price-tullow-igas-range-resources-sundry-bpineos-and-finally-27329.html Fri, 17 Mar 2017 11:19:00 +0000 Oil price

All quiet on the oil price front although the IEA report was marginally positive suggesting that Opec were at 98% 0f quotas and although they cut their world oil demand growth for this year a touch. The main supporter of the Opec output fall is the KSA who are leading by example having reduced way more than their quota and the Russians are taking their time to adhere fully.

Tullow Oil

Tullow has come to the well again, this time the equity market, where it has announced a 25 for 49 rights issue at 130p to raise £607m. At a 45% discount the shares were fully underwritten which is no great surprise, a good deal of hands being rubbed together at the long list of associated investment banks. The money will shore up the finances which are now looking a lot better than they were and with the debt restructuring and asset sales the balance sheet is almost unrecognisable, it even has cash coming inwards… On the subject of asset sales the company announce that CNOOC has exercised its pre-emption rights in the farm-down to Total in Uganda and will take 50% of the deal which of course doesnt affect Tullow.

Tullow came out of the bucket list in January at 315p having been one of last years best performers, up 203% on the year. I didnt see this coming but did feel that such a performance in a £3bn market cap stock would be difficult to repeat. It won’t go back in yet but shareholders who sold at that price would find it easy to buy back at this mornings 202p, those who didnt sell can take solace by being offered fully underwritten stock at 130p, knowing that part of their money is going to underwriters, what a scam…

IGas

After all the traumas of the past year or two there will be a modest celebration at IGas today and it will be fully deserved, it could have gone the other way. The company has completed its refinancing with the final terms being a raise of $55m at 4.5p of which Kerogen accounted for $35m and to totally mix all the currencies there was another €5m raised from existing shareholders under an open offer. It is good to see that IGas has received support across the board although the equity holders have suffered incredible pain during the process. The UK onshore has taken a long time to deliver but with all participants still just about in the game drilling these prospects may actually start to pick up this year.

Range Resources

Nothing in the Range interim update that we didnt already know, revenue was in line and the loss after impairments as expected. Production remains at 495 b/d but is increasing fast particularly as the waterflood projects are moving ahead with one in production. The shares are suspended at present owing to the recent rig deal being a technical RTO but the management are still talking about making ‘value enhancing acquisitions’ which should they come off make Range a most interesting prospect for 2H 2017. With the balance sheet in much better shape after this deal which should increase efficiency and reduce costs the outlook looks increasingly optimistic.

Sundry

The FT reports this morning that Ineos is in discussions with BP to buy the Forties pipeline system, historically  an extremely important part of the North Sea infrastructure that carries 40% of all UK oil production. The deal makes sense all round as Ineos need certainty over supplies to Grangemouth and BP are looking to sell such assets.

And finally…

It’s a huge weekend of sport starting today with the Gold Cup at Cheltenham appropriately on St Patrick’s Day and very best of luck to you all down there, wish I was with you!

And of course it is the denouement of the Six Nations rugby Championship where England travel to Dublin already in possession of the title but as ever with much to prove. Before that Scotland host Italy which is the most improved side versus the worst and you couldnt really believe that the Jocks have sacked Vern Cotter after such a good run. Sandwiching those games Wales are in Paris and as the master used to say, I love Paris in the Springtime…

As for footy, the Red Devils went through in the Boropa Cup last night and along with the Foxes are the only representatives in todays draw for either cup, who would have believed it?

In the Prem this weekend the outstanding fixture is the Noisy Neighbours taking on the HubCap Stealers, god only knows what that will provide for the fans. Elsewhere Spurs host the Saints, the Gooners are at the Baggies which they love, Chelski are at the Potters and Boro host the Red Devils.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27327/vsa-morning-flow-test-range-resources-ltd-tullow-oil-plc-27327.html VSA Morning Flow Test - Range Resources Ltd, Tullow Oil plc http://www.oilcapital.com/columns/vsa-capital-market-movers/27327/vsa-morning-flow-test-range-resources-ltd-tullow-oil-plc-27327.html Fri, 17 Mar 2017 09:02:00 +0000 Tullow Oil (LON:TLW)

Tullow Oil (TLW) have announced this morning a fully underwritten rights issue to raise approximately £607m through a 25 for 49 rights issue of c467m new shares at a price of 130p per share.

This represents a discount of c45% and c35% to the current share price and TERP respectively. This will allow TLW to lower its gearing ratio to a level it is more comfortable at, its aim is for less than 2.5x net debt/EBITDAX, which had grown to 5.1x at 31 December 2016. Reducing its level of debt will allow TLW to improve both its operational and financial flexibility which will enable it to grow the company in the next 3 to 5 years.

One of the stated use of proceeds made by TLW this morning is to “drill high impact, potentially high return prospects across Tullow's African and South American portfolio”. Therefore, we view this to be particularly positive for TLW’s partners across its licences, in particular Eco (Atlantic) Oil & Gas (ECO)# which has a 40% working interest in the TLW operated Orinduik Block in Guyana, adjacent to the giant Liza and Payara discoveries made by ExxonMobil (XOM). TLW and ECO are about to conduct a 3D seismic survey over the Orinduik Block, which TLW estimates to contain prospective resources of 900mmboe, to refine the targets and scope out new leads. The fact that TLW have stated it plans to drill in the next 3-5 years across this portfolio is extremely positive and is ahead of our estimates.

ECO is also a partner with TLW in Namibia where TLW is contingently carrying ECO for the costs of one well on the Cooper Block. We, therefore, re-iterate our BUY recommendation and 25p TP on ECO.

Range Resources (LON:RRL)

We also note this morning Range Resources (RRL) positive set of interim results for the six months ended 31 December 2016. Operationally production was unchanged for the period at 495bopd compared to the six months prior. An independent reserves audit showed 2P reserves increased to 24.4mmboe and water injection has been ongoing on two waterflood projects, with production commencing on one of these as a result.

Financially, revenues had increased by 38% YoY to US$3.8m (H2 16: US$2.8m) largely due to higher oil prices. Whilst operating expenses improved 9% YoY to US$40/bbl. RRL also has a strong cash position of US$20.6m (H2 16: US$13m) with no debt repayments due in the next 15 months.

We view this as positive read across for LGO Energy (LGO)#  which following the restructuring of its balance sheet in December 2016 now appears to have turned the corner and preserved its reputation as an operator in Trinidad. It is now refocusing its efforts on the Goudron Field development plan, including its own water injection programme. We maintain our BUY recommendation and 22p TP on LGO.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27326/vsa-capital-market-movers-metal-tiger-mod-resources-27326.html VSA Capital Market Movers - Metal Tiger, MOD Resources http://www.oilcapital.com/columns/vsa-capital-market-movers/27326/vsa-capital-market-movers-metal-tiger-mod-resources-27326.html Fri, 17 Mar 2017 08:48:00 +0000 Metal Tiger (LON:MTR)

MTR’s JV partner MOD Resources (ASX:MOD) has announced that it has raised gross proceeds of A$14.6m in a share placement. The funds were raised at a price of A$0.062, a discount of 2.2% to the 15 day VWAP, with 235.42m new ordinary shares issued.

MTR holds a 30% interest at the project level, which is naturally unaffected by the placing. However, MTR additionally holds shares in MOD which at the last announcement were equal to 5.0% of the outstanding share capital. We now estimate that MTR’s holding in MOD shares is equivalent to 4.4%.

The T3 project in Botswana is one of the most attractive developing copper projects globally and we believe that MTR continues to offer investors attractive exposure to its development as well as the robust outlook for copper prices.

We reiterate our Buy recommendation and 5.68p/sh. target price.

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http://www.oilcapital.com/columns/the-pay-zone/27319/oil-price-amerisur-sundry-delayed-comment-sound-vog-premier-blvn-faroe-cape-savannah-pantheon-president-and-finally-27319.html Oil price, Amerisur, Sundry delayed comment-Sound-VOG-Premier-BLVN-Faroe-Cape-Savannah-Pantheon-President-And finally... http://www.oilcapital.com/columns/the-pay-zone/27319/oil-price-amerisur-sundry-delayed-comment-sound-vog-premier-blvn-faroe-cape-savannah-pantheon-president-and-finally-27319.html Thu, 16 Mar 2017 12:24:00 +0000 Oil price

Yesterday was the first up day for over a week as inventories came to the rescue and various reports were a tad more bullish about the market stocks position. The EIA reported a small draw of 237/- barrels in crude oil against market guesses of a build of 3.3m or more, and the position in gasoline, draw 3.05m and distillates draw of 4.23m barrels is more healthy at this time of the year. The distillate number was probably helped by the storm that has raged up the east coast in the last couple of days with buyers in advance of that but it is better underlying.

Amerisur Resources

An acquisition this morning for AMER who have paid Pacific E&P $4.85m plus modest royalties for what looks like another really value adding deal. The vendor appears to be to a certain extent at the whim of its banks and accordingly is taking what to me seems like a knock-down price for the exploration assets whilst keeping the production. This suits AMER as they get really large stakes in prime blocks, mainly adjacent to the OBA pipeline which they can farm-down in due course as they have done before. With a number of these blocks under force-majeure there is little or no capex requirement and they are ‘commitment light’ so AMER can pick the off at their leisure especially the 100% ones. The Put-12 and Platanillo look obvious targets as they are so close to the OBA and would be economically the best as well as the T and U sands in Put-9.

I see this as being analogous to previous deals where John Wardle has ended up with a host of leads and opportunities as well as selling of a small piece which pays for the whole deal. Amerisur has been weak of late as the market gets impatient about the lack of drilling short term but there is much to come including the current one. Even after today’s rally the shares are a compelling buy for significant long term value connoisseurs.

Sundry

There were a number of  announcements yesterday of varying degrees of import, here is a take on most of them.

Victoria Oil & Gas said that it plans to go ahead with the Bomono deal as only it has the option to terminate the agreement made with the previous Bowleven management, there is no reason to believe that this will not be the case and I remain very bullish on VOG.

Premier announced that the final loan holder has agreed to the terms and that means that all the private lenders are in. I expect a swift end to this process now as I guess does the market given how it marked up the shares.

Sound Energy also announced that at Tendrara the well is now in the reservoir and has established the presence of both the TAGI sands and gas which is kind of important. The shares didnt move upwards I suspect reflecting the fact that neither of the above prove anything until wireline logging and analysis is complete. The company also announced that the badile well had reached its first casing point but still a long way to go here.

Bowleven announced that COC had won the day, it was a mighty close run thing which involved a final dive into the market to purchase a key stake. Things are uncertain now but I understand that COC may have a buyer lined up for the Etinde stake and will go ahead with the Bomono deal to which the firm is committed.

Boné dry was the news from Faroe which was disappointing on a number of fronts but it was always a long shot and only takes away from the most extravagant of upside cases.

Cape produced an excellent set of figures marred only by the cut in the divvi, normally one would blame longer term concerns over cover or even cash flow but here neither can be blamed. It is surely one of the rare occasions when a board cuts from a position of strength, or as the Chairman put it to me, we think we can do better with the money than shareholders can…. Very happy with record order book, great performance in Asia Pacific and tidying up litigation, less happy with the UK, which should improve when BP sign up again and their comment that margins would likely have peaked last year. Still a huge fan of Joe Oatley and team who will look after your money better than most and indeed think somewhat better than you can.

Savannah announced that it had signed up for a rig to drill three wells in Niger with an option for another six, the market has been waiting for this for some time and likes to see delivery of promises. The shares moved up to the top of what has been a very narrow trading range but I would expect more as things start to happen here. With a potential couple of vacancies in the bucket list, SAVP makes an interesting candidate, I met with Andrew Knott very recently and would give him the benefit of the doubt here.

What can one say about Pantheon, a share that at the moment is leaving everybody guessing? Yesterday’s announcement appeared to read ‘no news’ although investors with enough fingers and toes had worked out that yet again PANR are way behind expected their due date for some news. I know enough about the operator, and of Jay Cheatham’s experience that I can totally trust them when they say that it’s plumbing not the reservoir and am happy to give them the benefit of the doubt.

President also gave a reserves upgrade from Argentina yesterday saying that 2P reserves were over 19.9 mmboe and over 20m if you include the US. Followers of PPC should think about increasing the bet as if my expectations were to come to fruition I can see shares revisiting the 2016 highs.

And finally…

Cheltenham is under way and no, that is not where I have been  so far this week… Up til now it has all been about Willie Mullins who has not fired as previously, so far it’s been Gordon Elliott and Nicky Henderson who have shared a lot of the prize money. JP McManus may have further success today ahead of tomorrow’s blue riband event.

Would you believe it, only the fabulous Foxes are left representing the Prem in the remaining stages of the Champions League after the Noisy Neighbours went out last night on the away goals rules after the match was 6-6 after two legs. Tonight in the Boropa Cup the Red Devils need to beat Rostov to get through whilst domestically Boro have sacked manager Aitor Karanka whom I bet you couldnt have named…

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http://www.oilcapital.com/companies/stocktube/7114/-it-s-a-very-exciting-time-for-savannah-says-ceo-andrew-knott-after-signing-up-drill-contractor-7114.html 'It's a very exciting time for Savannah', says CEO Andrew Knott after signing up drill contractor http://www.oilcapital.com/companies/stocktube/7114/-it-s-a-very-exciting-time-for-savannah-says-ceo-andrew-knott-after-signing-up-drill-contractor-7114.html Thu, 16 Mar 2017 11:18:00 +0000 Savannah Petroleum PLC (LON:SAVP) chief executive Andrew Knott speaks to Proactive following the announcement they've signed up a drill contractor and are expecting to start new wells in the first half of this year.

The ‘letter of award’, appointing contractor Great Wall Drilling Company Niger, sets out a programme of at least three new wells, with the option to expand drilling for a further six wells.

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http://www.oilcapital.com/companies/stocktube/7110/haydale-graphene-picks-up-significant-us-cutting-tool-contract-7110.html Haydale Graphene picks up 'significant' US cutting tool contract http://www.oilcapital.com/companies/stocktube/7110/haydale-graphene-picks-up-significant-us-cutting-tool-contract-7110.html Wed, 15 Mar 2017 16:06:00 +0000 Ray Gibbs, chief executive of Haydale Graphene Industries PLC (LON:HAYD) talks to Proactive about their US subsidiary Advanced Composite Materials (ACM) signing a four year deal to supply silicon carbide micro-fibre to a global industrial tool manufacturer.

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http://www.oilcapital.com/companies/stocktube/7107/active-energy-s-richard-spinks-pleased-with-investor-support-for-1157mln-raise-7107.html Active Energy's Richard Spinks 'pleased' with investor support for £11.57mln raise http://www.oilcapital.com/companies/stocktube/7107/active-energy-s-richard-spinks-pleased-with-investor-support-for-1157mln-raise-7107.html Wed, 15 Mar 2017 12:34:00 +0000 Active Energy Group PLC (LON:AEG) chief executive Richard Spinks speaks to Proactive after announcing they're to raise £11.57mln via the issue of five-year convertible loan notes to existing and new investors.

The cash is set to be used to accelerate the development of the company’s CoalSwitch technology.

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http://www.oilcapital.com/companies/stocktube/7104/bottom-fishing-opportunity-at-premier-oil-says-zak-mir-7104.html Bottom-fishing opportunity at Premier Oil, says Zak Mir http://www.oilcapital.com/companies/stocktube/7104/bottom-fishing-opportunity-at-premier-oil-says-zak-mir-7104.html Wed, 15 Mar 2017 09:20:00 +0000 Technical analyst Zak Mir reckons there could be a bottom-fishing opportunity for investors to pick up Premier Oil PLC (LON:PMO) shares, which he is tipping add another 20% in coming months.

“It looks as though there’s an uptrend line from February last year running through around the 55p area,” explains Mir in the latest Proactive Investors Bulletin Board segment.

“While we hold above that there could be a bottom-fishing opportunity at least to take the shares back towards the 200-day moving day average at 70p.

“Stop loss on the whole idea really back below the 50p level,” Mir adds.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27299/vsa-capital-market-movers-millennial-lithium-polymetal-international-27299.html VSA Capital Market Movers - Millennial Lithium, Polymetal International http://www.oilcapital.com/columns/vsa-capital-market-movers/27299/vsa-capital-market-movers-millennial-lithium-polymetal-international-27299.html Wed, 15 Mar 2017 08:35:00 +0000 Millennial Lithium (CVE:ML)

ML has announced key changes to its fundraising which is currently underway as well as an update on the Cauchari East project. Following the appointment of Montgomery and Associates, a hydrogeological consultancy, it has been determined that the cost of the next phase of development is likely to be lower due to be reduced drilling costs and necessary drilling frequency.

This will enable any funds raised in the current raise to be used more efficiently; however, ML has announced that at this time it will scale back the planned fundraising from C$8.7m to C$5.65m with a new subscription price of C$1.25 versus the previous C$1.35 which represents a 9% discount to the last close. ML will not be accepting further subscriptions in this raise.

At Cauchari East, ML has begun a ground geophysics programme consisting of a Vertical Electrical Soundings (VES) survey. This will comprise seven profiles of the two blocks and will detect soil layering, the top of the bedrock, groundwater table and salt water intrusions with the last two key for identifying subsurface brines.

We reiterate our Speculative Buy recommendation

Polymetal (LON:POLY)

POLY has announced robust results for 2016 with revenues up 10% YoY to US$1.6bn as gold prices were up 8% YoY. Gold equivalent production of 1.27mnoz was marginally ahead of guidance while gold production of 890koz was up 3% YoY offset by lower silver production which was down 9% YoY to 29.2mnoz.

EBITDA of US$759m was up 15% YoY primarily reflecting the stronger top line as cash costs on a gold equivalent basis were up 6% YoY to US$570/oz, at the upper end of the guidance range. AISC of US$776/oz were also up 6% YoY. The outlook for next year is for a modest increase in production to around 1.4-1.55mnoz gold equivalent although unit costs are expected to rise to US$600-650/oz and US$775-825/oz on an AISC basis.

POLY announced the dividend for 2016 of US$0.42/sh. for the full year which was down 18% YoY.

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http://www.oilcapital.com/companies/stocktube/7103/chariot-oil-gas-moving-quickly-on-its-prospects-on-both-sides-of-the-atlantic-7103.html Chariot Oil & Gas 'moving quickly' on its prospects on both sides of the Atlantic http://www.oilcapital.com/companies/stocktube/7103/chariot-oil-gas-moving-quickly-on-its-prospects-on-both-sides-of-the-atlantic-7103.html Wed, 15 Mar 2017 08:05:00 +0000 Larry Bottomley, CEO of Chariot Oil & Gas Limited (LON:CHAR) talks Proactive through the AIM-listed Atlantic margins explorer's assets in Morocco, Brazil and Namibia.

“The focus of the company is to get exposure to transformational reserves,” Bottomley says.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27288/vsa-capital-market-movers-antofagasta-plc-polymetal-international-sula-iron-and-gold-plc-27288.html VSA Capital Market Movers - Antofagasta Plc, Polymetal International, Sula Iron and Gold PLC http://www.oilcapital.com/columns/vsa-capital-market-movers/27288/vsa-capital-market-movers-antofagasta-plc-polymetal-international-sula-iron-and-gold-plc-27288.html Tue, 14 Mar 2017 08:41:00 +0000 Sula Iron and Gold (LON:SULA)

SULA has conditionally placed 128.6m shares priced at 0.4p and raised £0.5m for general working capital purposes and drilling expenses on the Ferensola project and other potential regional programs.

Shares were placed with a select list of targeted existing investors and a strategic long term Asian investor. Trading of the new shares will take place on 17 March. VSA Capital acted as broker on the fundraising. Total shares in issue will amount to 2,214m.

Antofagasta (LON:ANTO)

Year end results for ANTO showed an EBITDA rise of 78.7% to US$1,626m. Operating cashflow rose 70% to US$1,457m. CAPEX fell 24% to US$795m. Earnings per share after exceptional items and discontinued operations fell to just US$0.16/share. A final dividend of US$0.153/share was declared versus none last year.

Forward guidance is for a rise in capex to US$900m but copper output to stay as previously forecast at 685,000 – 720,000t copper metal.

Polymetal (LON:POLY)

POLY has updated JORC reserves and resources after a year of exploration and mine production. Reserves down 5% to 19.8mozs Au EQ. Resources up 29% to 16.5mozs Au Eq due to two project acquisitions and first resources calculated for Levoberzhny and Lichkvaz.

Total resources including reserves rose to 36.4mozs. These results are based on US$1200Au/oz and US$16Ag/oz. Drilling meters of 324km are represented from this past year. POLY is holding an Investor Day tomorrow.

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http://www.oilcapital.com/columns/the-pay-zone/27282/oil-price-wood-groupamec-cape-range-resources-catch-up-sundry-amerisur-president-igas-premier-and-finally-27282.html Oil price, Wood Group/Amec, Cape, Range Resources, Catch up sundry-Amerisur-President-IGas-Premier- And finally... http://www.oilcapital.com/columns/the-pay-zone/27282/oil-price-wood-groupamec-cape-range-resources-catch-up-sundry-amerisur-president-igas-premier-and-finally-27282.html Mon, 13 Mar 2017 15:08:00 +0000 Oil price

The CERA conference in Houston has a lot to answer for, as it managed to get enough people in the industry thinking that Opec couldn’t hold together and then wouldn’t rollover in June, cue the spivs head for the door panicking about their overweight positions. To be fair, the inventory stats had unsettled traders who needed little excuse to shake the tree and WTI ended up down $4.84 on the week and Brent -$4.53. The Opec speakers, particularly the Saudis  as one might expect, held their line and warned US shale players not to expect any ‘free rides’ although to be fair by then they had rather shot their bolt. I am still of the view that they have to stick to it and rollover as well, not least because of a certain rather large float on the way….

Wood Group/Amec- Even Dick Turpin wore a mask…

Wood Group has secured a recommended all share offer for Amec/FW whereby the latter receive 0.75 WG shares for one of their own, valuing them at 564p each still 10% below the recent high. This is certainly what might be described as being pillage and with Amec shareholders owning 44% of the combined entity you might expect something to show for it. But no, the Chairman, CEO and CFO from Wood fill all those jobs and the Amec board have turned turtle in a spectacular way.With what will be substantial cost cutting the deal will be earnings accretive in year one making it a bit of a steal and one couldnt help see the smile on the face of the WG personnel at the presentation.

I feel sorry for Ian McHoul mainly, after the total disaster of the FW takeover (discussed here often and a deal that could have been aborted) and the sacking of Samir Brikho he very capably took up the role of temporary CEO and made a significant success of the turnaround, so much so that even I turned around to be a buyer. Oh well, what will Wood Group do with all the Wimbledon debentures and the trips to Davos eh?

Cape

Cape has announced the settlement of the PL litigation for a down payment of £18m, including substantial legal costs, and deferred payments of up to £34.5m between 2018 and 2023. It seems as if the EL claims are not affected and are outstanding whilst the total liability number has increased to £172m. I’m sure that we will get chapter and verse on wednesday when the company host a results presentation.

Range Resources

Range has announced that it is to re-acquire the drilling business from LandOcean for $5.5m plus the $19.5m of debt.This deal sees RRL take back control of operations in Trinidad, dramatically reduce costs and be in a position to run everything more efficiently themselves. It is now likely that the drilling business will become a profit centre in itself, with an inventory of the best, newest rigs on the island it is perfectly possible to see them perform strongly as a third party operator.

As it is a RTO, Range shares will be suspended for some time, after which one can expect to see acquisitions and deals that should make to future very bright for the company.

Sundry/Catch Up

A number of companies have made announcements in the last couple of days whilst I was away, this is a synopsis of them.

Amerisur Resources made two announcements at the end of last week both of which should have pleased the market. February production was 4,262 b/d of which 3,554 went through the OBA and that number is now over 4,100 apparently. There is still substantial scope to increase that number and discussions about a pumping station are under way in case that becomes necessary. The second announcement was that the Platanillo-22 well is imminent after a number of social issues (involving ‘appropriate crop planting’) have been resolved. This is more good news as the extension would extend the Platanillo field and produce more high valued barrels of crude oil. At 20.5p AMER shares are ludicrously cheap although I understand from a market trader that there has been a persistent seller which might square a couple of circles, but this is an outstanding buy at these prices.

President Energy

The programme in Argentina continues with the DP 12 well completing on time and budget. The well is back onstream with production of 120 b/d and the company is already well on track to be producing the promised 1,200 b/d by September. After a bad year last year, PPC is fast making up for it and is most definitely making up for lost time, the shares deserve to be much higher…

Premier

Results last week and a catch up on the state of the debt refinancing package which is at the last knockings thank goodness. Guidance for 2017 production is 75/- b/d not including Catcher which I understand is still very much intact and in my view a number of medium to longer term projects are looking promising. These include Tolmount, Sea Lion and in Mexico to name but three and the stock should be looking to rally from these levels.

IGas

The company has said that all is going to plan with the bondholders and the equity injection and raise looks to be under way with few hitches.

Link

I did an interview with Proactive this morning following my visit with Sound Energy, please see below.

Proactive Investors interview: Malcolm Graham-Wood impressed with Sound Energy’s Badile well site in Milan

 

And finally…

The quarter finals of the FA Cup produced no great surprises and Spurs saw off Milwall 6-0 whilst the Gooners did Hereford 5-0. With the Noisy Neighbours easily beating Boro only one fixture remains and that is Chelski v the Red Devils tonight although united dont have any forwards left with the first call top 4 all injured or suspended.

In the Prem, The Hubcap Stealers came from a goal behind to beat Burnley 2-1 whilst the Hull City Tigers had a good win against the Swans.

And the rugby produced two cracking games with Wales beating Ireland and the expected black eyes rebellion from the Scots never materialised and England put 60 on them.

Finally I may have missed something in which case prod me and I will catch up, I’m afraid I can’t always reply in person to your emails.

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http://www.oilcapital.com/companies/stocktube/7089/-everything-seems-to-be-coming-back-together-says-lgo-energy-s-neil-ritson-7089.html 'Everything seems to be coming back together', says LGO Energy's Neil Ritson http://www.oilcapital.com/companies/stocktube/7089/-everything-seems-to-be-coming-back-together-says-lgo-energy-s-neil-ritson-7089.html Mon, 13 Mar 2017 12:10:00 +0000 Neil Ritson, chief executive of Trinidad-focused LGO Energy PLC (LON:LGO) tells Proactive they've intercepted a 408 feet thick net reservoir at the Goudron Field.

It follows the drilling of the GY-682, its first development in the new campaign, which went down to a measured depth of 1,145 feet into the Mayaro Sandstone.

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http://www.oilcapital.com/companies/stocktube/7087/malcolm-graham-wood-impressed-with-sound-energy-s-badile-well-site-in-milan-7087.html Malcolm Graham-Wood impressed with Sound Energy's Badile well site in Milan http://www.oilcapital.com/companies/stocktube/7087/malcolm-graham-wood-impressed-with-sound-energy-s-badile-well-site-in-milan-7087.html Mon, 13 Mar 2017 10:39:00 +0000 Fresh from a trip to the continent, commentator Malcolm Graham-Wood talks us through how impressed he was with Sound Energy's site in Milan where it has spudded its hotly anticipated Badile well last Wednesday (March 8).
"It's probably one of the best sites I've ever seen," he told Proactive's Andrew Scott.
"It's an absolutely crucial well this - a big gas and, hopefully, condensate discovery," he explained.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27277/vsa-capital-market-movers-lgo-energy-plc-27277.html VSA Capital Market Movers - LGO Energy PLC http://www.oilcapital.com/columns/vsa-capital-market-movers/27277/vsa-capital-market-movers-lgo-energy-plc-27277.html Mon, 13 Mar 2017 08:38:00 +0000 LGO Energy (LON:LGO)

LGO Energy (LON:LGO) have announced that its first well (GY-682) in its development programme over the Goudron Field has been completed, reaching a total depth of 1,145ft. Electric log interpretation of the Mayaro Sandstone interval confirmed the presence of oil over an estimated net reservoir thickness of 408ft. LGO have now decided to perforate and place on production the 273ft with the best net oil pay within the reservoir.

This is the first well of a planned 45 well programme targeting 2P reserves of 11.8mmbbls. The next well in the programme will be spud shortly with each well planned to cost cUS$500k and come on to production with initial rates of 45bopd.

We re-iterate our BUY recommendation and 22p TP

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27268/vsa-capital-market-movers-egdon-resources-plc-27268.html VSA Capital Market Movers - Egdon Resources Plc http://www.oilcapital.com/columns/vsa-capital-market-movers/27268/vsa-capital-market-movers-egdon-resources-plc-27268.html Fri, 10 Mar 2017 09:15:00 +0000 Ineos/UK Shale Gas

Ineos announced yesterday it has acquired the entirety of Engie’s (ENGI FP) British shale gas interests spanning over 15 licences, including seven of which Ineos had a previous position in, for an undisclosed sum. This reaffirms Ineos’ position as the largest UK shale gas company which now has access to an area of more than 1.2 million acres.

We view this as a positive deal for the UK shale gas industry as a whole as ENGI’s core focus moves towards power generation and consumer energy as opposed to oil and gas production, whereas Ineos is the key player in UK shale gas, with the deal coming at a time when UK shale is beginning to gather momentum.

We view Egdon Resources (LON:EDR) as an attractive way for investors to gain exposure to UK shale gas and have a BUY recommendation and 34p TP on the stock. EDR has an assessment of its undiscovered mean gas initially in place (GIIP) of 48TCF over 200,190 net acres.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27260/vsa-capital-market-movers-lgo-energy-plc-27260.html VSA Capital Market Movers - LGO Energy PLC http://www.oilcapital.com/columns/vsa-capital-market-movers/27260/vsa-capital-market-movers-lgo-energy-plc-27260.html Thu, 09 Mar 2017 10:15:00 +0000 LGO Energy - Turning the Corner

Following the restructuring of its balance sheet in December 2016 and the 20 for 1 share consolidation in early March, LGO Energy (LON:LGO) now appears to have turned the corner and preserved its reputation as an operator in Trinidad. It is now refocusing its efforts on the Goudron Field development plan and looking to capitalise on its acreage position in the South West Peninsula.

Goudron Field Development Underway                                      

Following the completion of its refinancing with Lind Partners in December 2016, LGO was able to repay its senior loan facility with BNP Paribas allowing it to access previously restricted funds in Trinidadian dollars and begin the drilling of infill production wells in the Mayaro Sandstone formation of the Goudron Field, which is estimated to contain 2P reserves of 11.8mmbbls. Despite the challenges it faced LGO maintained production from the Goudron field through 2016, averaging 425bbls/d.

LGO has now mobilised a rig to begin drilling the first two wells of a planned 10 well shallow programme as it begins to ramp up production, with the cash flow from each well contributing to the remainder of the programme.

LGO also plans a full field enhanced oil recovery waterflood development at Goudron targeting over 60mmbbls of independently verified 3C resources. A low cost waterflood pilot programme, using wells already drilled, should be underway later this year.

South West Peninsula Offers Additional Value

Further to its development programme at Goudron, LGO has significant potential to add material upside from exploration in its South West Peninsula leases. Given Trinidad’s history as a prolific petroleum province we view this as a particularly exciting area with reduced geological risk.

Recommendation and Target Price

We initiate coverage on LGO with a BUY recommendation and 22p target price, in line with our risked NAV using 12% WACC and a US$50/bbl flat long-term oil price.

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http://www.oilcapital.com/companies/stocktube/7068/tlou-energy-shares-tipped-to-double-by-zak-mir-7068.html Tlou Energy shares tipped to double by Zak Mir http://www.oilcapital.com/companies/stocktube/7068/tlou-energy-shares-tipped-to-double-by-zak-mir-7068.html Thu, 09 Mar 2017 09:17:00 +0000 Technical analyst Zak Mir tells the Proactive Investors Bulletin Board that the Tlou Energy Ltd (LON:TLOU) share price could almost double in the coming months.

“We’ve been in a positive flow, as far as the technical are concerned, since July,”  says Mir.

“Really while we hold above [the 200-day moving average] at 7.25p, we’re looking for a best case scenario over the next three to six months as high as 15p at the 2016 price channel top.”

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http://www.oilcapital.com/companies/stocktube/7066/europa-oil-gas-hails-farmout-deal-with-cairn-energy-where-size-of-prize-is-potential-1bn-barrels-7066.html Europa Oil & Gas hails farmout deal with Cairn Energy where size of prize is potential 1bn barrels http://www.oilcapital.com/companies/stocktube/7066/europa-oil-gas-hails-farmout-deal-with-cairn-energy-where-size-of-prize-is-potential-1bn-barrels-7066.html Wed, 08 Mar 2017 15:14:00 +0000 Hugh Mackay, of Europa Oil & Gas (Holdings), has hailed the firm's  farm-out agreement with Cairn Energy PLC (LON:CNE) on an early stage project (licensing option 16/19) off the coast of Ireland.
It means 3D seismic can start this summer, with potentially a prospect inventory mapped out by the end of 2018, he says.
"It's very positive that we are able to push ahead with that and get seismic done now and the size of the prize potentially in 16/19  is a billion barrels," he tells Proactive.

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http://www.oilcapital.com/companies/stocktube/7064/deal-brings-constant-cash-flow-northern-petroleum-ceo-bush-7064.html Deal brings constant cash flow - Northern Petroleum CEO Bush http://www.oilcapital.com/companies/stocktube/7064/deal-brings-constant-cash-flow-northern-petroleum-ceo-bush-7064.html Wed, 08 Mar 2017 13:50:00 +0000 Keith Bush, chief executive of Northern Petroleum Plc (LON:NOP) says  taking control of six shut-in production wells near its Rainbow assets will grow its production base in Canada which is the "core area of asset growth."

Bush says the deal is evidence of what the oil producer can do in the current environment and crucially brings "constant cash flow into the company."

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http://www.oilcapital.com/companies/stocktube/7056/aminex-s-jay-bhattacherjee-discusses-ntorya-2-well-test-results-7056.html Aminex's Jay Bhattacherjee discusses Ntorya-2 well test results http://www.oilcapital.com/companies/stocktube/7056/aminex-s-jay-bhattacherjee-discusses-ntorya-2-well-test-results-7056.html Wed, 08 Mar 2017 10:30:00 +0000 Audiovisual presentation with slides regarding Aminex's Ntorya-2 well test results.

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http://www.oilcapital.com/columns/the-pay-zone/27251/oil-price-cairn-sound-energy-providence-sundry-eog-aminex-northern-petroleum-and-finally-27251.html Oil price, Cairn, Sound Energy, Providence, Sundry-EOG-Aminex-Northern Petroleum- And finally... http://www.oilcapital.com/columns/the-pay-zone/27251/oil-price-cairn-sound-energy-providence-sundry-eog-aminex-northern-petroleum-and-finally-27251.html Wed, 08 Mar 2017 09:36:00 +0000 Oil price

Still not much going on, the Saudi Oil Minister said that he sees the oil market ‘improving’ but then he would, wouldn’t he? The market is waiting on more Chinese data today and on the subject of data the API inventory stats showed a substantial build of 11.6m barrels which should that be reflected in the EIA numbers would concern the market which is about 50 cents down on the news.

Cairn Energy

Not much of interest from the Cairn numbers this morning, it has been a good year for the company following up from the Senegal discovery and they are still carrying very low numbers for that find. They are in a strong position financially and have been seen in all the best data rooms around town and are definitely getting the cheque book out, see below. The interesting thought is whether they are also getting the paying in book out and might sell a bit of Senegal in the process…

Sound Energy

When I first took a serious interest in Sound, some years ago, the Badile prospect made up a large portion of the upside for the company, I seem to remember having 50p of upside in my numbers and the shares were only 15p or less at the time. Wind on this far and way later than planned, the company announce the spudding of the well, located outside Milan and which will take around 100 days to complete or more hopefully. The better news is that whilst keeping an eye on the Italian acreage, the company decided to go somewhere that would take three months for approvals not three years and found Tendrara. This makes the Badile well significantly less important overall but in the history of Sound is no less important. Post this rather hurried blog I am headed to Milan to catch up with the board and go back to Badile which was a field last time I saw it….

Providence Resources

I mentioned that Cairn had the cheque book out and today have farmed-in with Providence on FEL2/14 where the 53/6a well is due to be drilled this summer. Cairn have taken a 30% stake and will pay for 45% of the well with a $42m cap and also pay their share of the sunk costs of $2.82m. This is extremely good news for PVR as they will now drill Druid and Drombeg which was uncertain before and of course they get some cash in. It leaves them with 56% which will still make them heroes if it comes in, another huge well for investors to watch this summer.

Sundry

Cairn have been busy as they have also farmed into 70% of block 16/19 with EOG the seller. Again this is good for EOG as although behind PVR this will enable them to get all the seismic this year and interpretation next year and if successful will start delivering for them.

Aminex has confirmed that Ntorya-2 has successfully tested and has a 51m gas reservoir interval with a stable flow rate of 17 mmcfd which is astonishingly good. A newcomer to the bucket list AEX should go better again and if Jay ever comes down from the ceiling I hope to get an interview with him…

I have been looking again at Northern Petroleum and met up with them last week, they appear very happy with their Canadian operations and today announce a modest addition to their Rainbow asset. With JV partners High Power Petroleum they have acquired six wells of which four have been shut in plus a bunch of facilities, worth watching…

And finally…

Gooners fans look away now………………………………….With a modest 5-1 thumping from the away leg the plan was to score first and score often in last nights return at the Emirates. They did score first but the plan went SNAFU and Bayern scored often, over the two legs they won 10-2…..

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27250/vsa-capital-market-movers-redt-energy-27250.html VSA Capital Market Movers - REDT Energy http://www.oilcapital.com/columns/vsa-capital-market-movers/27250/vsa-capital-market-movers-redt-energy-27250.html Wed, 08 Mar 2017 09:26:00 +0000 redT energy (LON:RED) has developed a machine based on vanadium redox flow battery technology for deployment in the commercial and industrial energy storage sector. Unlike the majority of its flow battery peers, RED’s machines have already been deployed in a number of field test environments with first commercial sales occurring at the end of 2016. 

Developing into a Forecasted Multi-Billion Market

Demand for stationary energy storage is set to rapidly increase. Although market estimates and definitions of the market itself vary wildly, most forecasters agree that the sector will be a multi-billion one by 2020. Given its highly reliable, low cost product and strategic cost reduction plan, RED appears well placed to gain significant market share in this sector.

Low Cost Product with Cost Reduction Schedule

We believe RED’s flow battery is currently the lowest cost commercially sold product in the sector. RED currently manufactures its cheapest second generation product at US$496/kWh and it has a specific technology development programme in place (no blue-sky R&D) to drive this below US$300/KWh by the end of 2018.

£14.9m Financing to Accelerate Roll-Out

In December 2016 RED closed a £12.0m placing and £2.9m open offer. The majority of new funds raised (c£8m) will be used to for sales, operations and working capital over the next two years to accelerate pipeline delivery (current pipeline c2,608 units, cUS$263m revenues).

Additional monies (£4m) will be deployed in the development of its third and fourth generation products, with the balance to be used for electrolyte working capital (£2.2m) and fees.

Recommendation and Target Price

We begin coverage on RED with a BUY rating and a target price of 22p.

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http://www.oilcapital.com/companies/stocktube/7054/europa-oil-gas-technicals-reveal-decent-buy-signal-says-zak-mir-7054.html Europa Oil & Gas technicals reveal ‘decent buy signal’, says Zak Mir http://www.oilcapital.com/companies/stocktube/7054/europa-oil-gas-technicals-reveal-decent-buy-signal-says-zak-mir-7054.html Wed, 08 Mar 2017 09:25:00 +0000 Leading technical analyst tells the Proactive Investors Bulletin Board that the Europa Oil & Gas (Holdings) PLC (LON:EOG) share price is on course to hit 8p over the coming months.

“There’s solid support towards the floor of the channel and 200-day moving average at 4.65p ahead of the latest gap to the upside through the 50-day line at 5.05p. That’s normally a decent buy signal,” Mir explains.

“The target at the moment while we’re above the 4.5p zone is as high as 8p – the top of last year’s trend channel.”

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http://www.oilcapital.com/companies/stocktube/7047/88-energy-s-latest-placing-is-to-prepare-for-the-unexpected-chief-says-7047.html 88 Energy's latest placing is to prepare for the unexpected, chief says http://www.oilcapital.com/companies/stocktube/7047/88-energy-s-latest-placing-is-to-prepare-for-the-unexpected-chief-says-7047.html Tue, 07 Mar 2017 11:09:00 +0000 Dave Wall, chief executive at 88 Energy (LON:88E), talks to Proactive Investors about the company's latest A$17mln share placing and explains it will be used to cover costs overruns and other unexpected items  ahead of the Icewine-2 drill programme.

"We just have to be in a position where we don't get caught out," he says.

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http://www.oilcapital.com/columns/the-pay-zone/27237/oil-price-amecfw-cairnfar-and-finally-27237.html Oil price, AMEC/FW, Cairn/Far, And finally... http://www.oilcapital.com/columns/the-pay-zone/27237/oil-price-amecfw-cairnfar-and-finally-27237.html Tue, 07 Mar 2017 09:52:00 +0000 Oil price

Markets are quieter than normal, not sure why, cant see that lot at CERA week can you? The Iraqi Oil Minister said yesterday that if there was a 2H rollover of the Opec agreement, and there probably would be, then his country would participate. Elsewhere the IEA suggested that US shale production might be up 1.4m b/d by 2022 and was relatively price inelastic, at least that’s how I read it…

AMEC/FW

News today of a five year Enterprise Framework Agreement (EFA) with Shell for EPCM work worldwide. This is good news from Amec after a long period of awfulness and  as you know I turned on this stock last autumn after praising CFO Ian McHoul for his hard work whilst stand-in CEO. Regrettably it didnt earn me an invite to the Capital Markets Day then, since postponed and it hasn’t earned me an invite this time so I remain PNG. Still positive on the company though….

Cairn/Far

Cairn has released the results of the SNE-5 well but owing to required disclosure rules most of the data has been public knowledge in Australia already. Nevertheless, the well came in under budget and ahead of schedule and tested two units in the upper reservoirs and did two DST’s that came in at least as well as they had expected. A selection of timings and choke sizes provided highly satisfactory results. The rig moves on now to drill VR-1, 5 km west of the SNE-1 discovery,  which will target the Aptian Carbonates which underly the SNE field and will also appraise the field for ‘further potential resources. As one would expect with CNE no new numbers yet but if you want to see what Far or Woodside are saying its in an earlier blog and can be found on WWW.malcysblog.com.

And finally…

A quiet report today, Chelski remain top of the Prem after beating the Hammers 2-1 last night, it wasnt as close as it looks though…

Tonight the Gooners welcome Bayern Munich and carry a 1-5 loss in from the first leg, if the row between Arsene and Sanchez is ongoing and he doesnt get a game then I fear the worst, actually I fear the worst either way….

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http://www.oilcapital.com/companies/stocktube/7046/-buy-on-dips-is-zak-mir-s-advice-for-would-be-independent-resources-investors-7046.html 'Buy on dips' is Zak Mir's advice for would-be Independent Resources investors http://www.oilcapital.com/companies/stocktube/7046/-buy-on-dips-is-zak-mir-s-advice-for-would-be-independent-resources-investors-7046.html Tue, 07 Mar 2017 09:15:00 +0000 After yesterday’s sharp rise, technical analyst Zak Mir is telling investors to keep an eye out for any dips in the Independent Resources plc (LON:IRG) share price over the coming weeks.

“[Shares] will likely drift back towards to 0.35p [from 0.6p] which was initial resistance back at the beginning of last year,” says Mir in the latest Proactive Investors Bulletin Board segment.

“While we’re above 0.33p we’re looking for dips to buy into and a retest of the main 0.6p to 0.8p area.”

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http://www.oilcapital.com/companies/stocktube/7044/upping-their-stake-in-wressle-underpins-the-company-says-union-jack-oil-s-david-bramhill-7044.html Upping their stake in Wressle 'underpins the company' says Union Jack Oil's David Bramhill http://www.oilcapital.com/companies/stocktube/7044/upping-their-stake-in-wressle-underpins-the-company-says-union-jack-oil-s-david-bramhill-7044.html Mon, 06 Mar 2017 13:18:00 +0000 David Bramhill, executive chairman of Union Jack Oil PLC (LON:UJO) speaks to Proactive about their deal to increase its interests in the Wressle oil project and the Broughton North exploration prospect.

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http://www.oilcapital.com/columns/the-pay-zone/27228/oil-price-victoria-oil-gasbowleven-independent-resources-union-jack-and-finally-27228.html Oil price, Victoria Oil & Gas/Bowleven, Independent Resources, Union Jack, And finally... http://www.oilcapital.com/columns/the-pay-zone/27228/oil-price-victoria-oil-gasbowleven-independent-resources-union-jack-and-finally-27228.html Mon, 06 Mar 2017 12:54:00 +0000 Oil price

The oil price remains range bound, last week both WTI and Brent were down by less than a dollar after Opec adhesion, Russia nonconforming,  money managers topping up and poor inventory stats took their turn to influence the market. There is no reason why much will change for a while,if anything it may be product stocks and prices that react as we come into Spring and refinery maintenance ends.

Victoria Oil & Gas/Bowleven

Bowleven has farmed-out most of its stake in the Bomono PSC to VOG, where its gas is currently shut-in, but under the agreement will go into the VOG pipeline with some modest expenditure to connect it to the existing infrastructure. For Bowleven it solves a number of problems, primarily monetising an asset previously holding back growth but by retaining 20% and a modest royalty will keep some of the upside and simplifies the structure. The deal is dependent on a number of criteria not least the failing of the COC resolutions at the meeting next week, shareholders who were thinking of giving the board a bloody nose may now reconsider such actions. Apart from that it is good, approvals should be a formality and production in the last quarter of this year is a realistic thought.

For VOG though I feel that this a much better deal, obviously the fact that it diversifies supply for its pipeline and sales business is good but the way that it does it makes even more sense. Once the Bomono gas is treated it will go via pipeline to the Bonaberi side of the river and serve customers there, whilst the other Douala customers will receive gas from the Logbaba field as they do at present. With significant gas demand in country and at extremely rewarding prices VOG is set to move to another period of growth. It gets better, BLVN has spent a good deal of time and money creating a huge data pack in the area and there are prospect inventories in both the Tertiary and deeper Cretaceous reservoir intervals. With 2,327 km² there is massive exploration upside and that is just assuming that the shallow wells are drilled to start with, there are many more leads to be looked into after the low hanging fruit has been taken. In conclusion, this deal is better news for VOG shareholders than has so far been given credit for, it gives almost immediate monetisation, whilst securing a long term value for shareholders at a stroke and for a modest outlay, there is a lot of upside in the share from here.

Independent Resources

All change at IRG today as there is a reshaping of the board, a new cornerstone investor and a change of name, Echo Energy will be the new monika. It feels very much like Sound two, as James Parsons comes in as Non-Exec Chairman and Stephen White and Marco Fumagalli are also proposed non-execs. Greg Coleman stays as CEO but Owain Franks will be leaving the company. The new cornerstone investor is Greenberry, an associate of Continental and they will end up with 29.9% at a price of 0.065p a share and existing shareholders will be able to participate in the Open Offer at the same price.

The plan is that IRG is an initial platform from which the company will grow ‘very significantly’ indeed’,coming soon is a new strategy and with that ‘our first growth transaction’. With James Parsons suggesting that this strategy will ‘quickly establish the company as a successful mid cap player’ I dont think that the sights have been set low, the 6th of March may well turn out to be fireworks day for IRG…..

Union Jack

A man of his word Mr Bramhill so no surprise to see that with part of the money from last week’s raise he has bought a little more of Wressle. He has bought another 3.33% of PEDL 180 and 182 from Celtique for £600,000 which takes the company to 15%. Worth keeping an eye on if you believe that the Wressle problems will be short-lived.

And finally…

Tony Bellew managed to do the impossible and beat David Haye at the weekend in what was a most exciting fight.

In the Prem there were wins for Spurs, the Noisy Neighbours and the HubCap Stealers who beat the Gooners who seem to be in some disarray. At the bottom things are equally as exciting, with wins for the Foxes, the Swans and the Eagles so good for animals unless you area  black cat. The Hammers host Chelski tonight which might be hard going…

And in the West Indies, England won the second one-dayer thus taking the series 2-0.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27227/vsa-capital-market-movers-metal-tiger-27227.html VSA Capital Market Movers - Metal Tiger http://www.oilcapital.com/columns/vsa-capital-market-movers/27227/vsa-capital-market-movers-metal-tiger-27227.html Mon, 06 Mar 2017 12:30:00 +0000 Metal Tiger (LON:MTR)

Metal tiger (LON:MTR)# has announced positive assay results, following the discovery of significant mineralisation at greater depth than the T3 resource in Botswana. MTR holds an effective 30% stake in the JV with MOD Resources (ASX:MOD) on this copper project in Botswana.

The hole highlighted in the previous announcement MO 65D which had intercepted 72.6m of mineralisation was determined to have a grade of 1.5% copper and 27g/t silver including 18m at 2.7% copper and 52g/t silver. This mineralisation is therefore of significance and confirms the project potential to 100m below the current T3 resource sequence. Furthermore, infill drilling confirmed T3 resource continuity with 22.2m at 1.6% copper and 26g/t from 163m depth.

We previously indicated that we believed that the initial resource and our analysis of the PEA, which resulted in a mine life of nine years and an NPV of US$170m on a 100% basis, was very much a starting point. With four drill rigs currently on site conducting further infill drilling, the confirmation of strong continuity of mineralisation could enhance the existing resource and the potential mine economics.

We reiterate our buy and 5.68p target price.

 

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http://www.oilcapital.com/companies/stocktube/7043/-mill-disposal-will-help-create-value-at-our-us-oil-and-gas-acreage-says-rose-petroleum-s-idiens-7043.html 'Mill disposal will help create value at our US oil and gas acreage' says Rose Petroleum's Idiens http://www.oilcapital.com/companies/stocktube/7043/-mill-disposal-will-help-create-value-at-our-us-oil-and-gas-acreage-says-rose-petroleum-s-idiens-7043.html Mon, 06 Mar 2017 11:24:00 +0000 Rose Petroleum PLC (LON:ROSE) chief executive Matthew Idiens tells Proactive they've signed an outline deal with Magellan Gold Corporation (OTCQB:MAGE), which wants to acquire Rose’s  Mexican processing mill for US$1.5mln.

 

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http://www.oilcapital.com/companies/stocktube/7041/farm-out-deal-a-really-good-strategic-move-for-victoria-oil-gas-says-chairman-kevin-foo-7041.html Farm-out deal 'a really good strategic move' for Victoria Oil & Gas, says chairman Kevin Foo http://www.oilcapital.com/companies/stocktube/7041/farm-out-deal-a-really-good-strategic-move-for-victoria-oil-gas-says-chairman-kevin-foo-7041.html Mon, 06 Mar 2017 11:05:00 +0000 Kevin Foo, executive chairman at Victoria Oil & Gas plc (LON:VOG) speaks to Proactive about the farm-out deal they've struck with Bowleven PLC (LON:BLVN).

A complex tie-up will see a VOG subsidiary take an 80% stake in the Bomono production sharing contract (PSC), with Bowleven keeping the remainder and continuing as operator.

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http://www.oilcapital.com/companies/stocktube/7039/anglo-african-oil-gas-plc-extremely-pleased-with-investor-interest-as-it-starts-life-on-aim-7039.html Anglo-African Oil & Gas PLC "extremely pleased" with investor interest as it starts life on AIM http://www.oilcapital.com/companies/stocktube/7039/anglo-african-oil-gas-plc-extremely-pleased-with-investor-interest-as-it-starts-life-on-aim-7039.html Mon, 06 Mar 2017 10:41:00 +0000 David Sefton, executive chairman of Anglo-African Oil & Gas PLC (LON:AAOG) and Alex MacDonald, chief executive, talk Proactive thorugh the firm's first day on AIM having raised over £10mln.
The cash is all going into the drillbit, or the majority of cash is, said MacDonald, adding the firm had a drill programme  starting in the next couple of weeks going through to August, September.
"We've got two wells that we are going to workover very quickly to increase production from the current level of about 38 barrels a day to about 250 barrels a day," he said.

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http://www.oilcapital.com/companies/stocktube/7037/sound-energy-can-add-another-50p-before-end-of-summer-says-zak-mir-7037.html Sound Energy can add another 50p before end of summer, says Zak Mir http://www.oilcapital.com/companies/stocktube/7037/sound-energy-can-add-another-50p-before-end-of-summer-says-zak-mir-7037.html Mon, 06 Mar 2017 09:10:00 +0000 Technical analyst Zak Mir reckons the recent “positive” share price action at Sound Energy PLC (LON:SOU) will continue, and expects shares to add another 50p or so over the coming months.

“Recent share price action has been quite positive with the stock breaking above the 50 and 20-day moving averages, just nestling below a resistance line from September in the low 90s,” says Mir in the latest Proactive Investors Bulletin Board segment.

“At least while above the 50-day moving average at 79p, we’re looking for a three to six month target at the top of a rising trend channel as high as £1.35.”

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http://www.oilcapital.com/companies/stocktube/7035/-things-are-coming-along-very-nicely-at-sound-energy-s-te-8-well-says-analyst-sam-wahab-7035.html 'Things are coming along very nicely' at Sound Energy's TE-8 well, says analyst Sam Wahab http://www.oilcapital.com/companies/stocktube/7035/-things-are-coming-along-very-nicely-at-sound-energy-s-te-8-well-says-analyst-sam-wahab-7035.html Fri, 03 Mar 2017 15:48:00 +0000 Sam Wahab, oil and gas analyst at Cantor Fitzgerald talks to Proactive about the progress Sound Energy PLC (LON:SOU) is making with its third well on the Tendrara licence in Morocco.

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http://www.oilcapital.com/companies/stocktube/7034/brockham-drill-results-outstanding-and-extraordinary-says-david-lenigas-7034.html Brockham drill results 'outstanding and extraordinary' says David Lenigas http://www.oilcapital.com/companies/stocktube/7034/brockham-drill-results-outstanding-and-extraordinary-says-david-lenigas-7034.html Fri, 03 Mar 2017 15:32:00 +0000 David Lenigas, oil and gas commentator and executive chairman of Doriemus Energy plc (LON:DOR) talks over the positive update from Angus today on its Brockham re-entry oil well in Surrey.
The former chairman of UKOG said: "When the Horse Hill flowed at a record flow rate for an onshore well in the UK, it shut quite a few people up," he said, adding it wasn't perhaps the 'Dorking Dribler' but in fact the 'Gatwick gusher'.

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http://www.oilcapital.com/companies/stocktube/7033/angus-energy-s-brockham-well-could-change-the-face-of-the-onshore-industry--7033.html Angus Energy's Brockham well could 'change the face of the onshore industry' http://www.oilcapital.com/companies/stocktube/7033/angus-energy-s-brockham-well-could-change-the-face-of-the-onshore-industry--7033.html Fri, 03 Mar 2017 13:03:00 +0000 Optiva Securities analyst Barney Gray gives his take on the significance of latest drill results at Brockham.

In a statement, Angus said they're very similar and in some respects superior to those of the so-called Gatwick Gusher.

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http://www.oilcapital.com/columns/the-pay-zone/27216/oil-price-trinity-ep-sundry-kuwait-energy-velocys-bowleven-hunting-plexus-and-finally-27216.html Oil price, Trinity E&P, Sundry- Kuwait Energy-Velocys-Bowleven-Hunting-Plexus-And finally... http://www.oilcapital.com/columns/the-pay-zone/27216/oil-price-trinity-ep-sundry-kuwait-energy-velocys-bowleven-hunting-plexus-and-finally-27216.html Fri, 03 Mar 2017 11:56:00 +0000 Oil price

Not a good day for the oil price as the bears took command although probably temporarily. A strong dollar didnt help as thoughts of a rate rise swirled around the market but the real culprit was Russia. The news that their production in February was 11.11m b/d in February, unchanged on January and only a third of the way to the promised quota reduction was seen as bad news, lets see what the CFTC numbers look like later. News had been better about Opec adherence so it’s only a matter of time before happier days are here again.

Trinity Exploration & Production

It has been a long hard journey for Trinity recently and as a long term fan of the company, its current management and of Trinidad as a prolific oil and gas province I was very pleased to see its Lazarus like recovery. I was even more pleased to be asked in for a run through of the company early in their process of getting back on the road.

Trinity itself has been around for a long time and indeed was able to start up as an operator of assets both onshore and offshore and from East to West coasts of the island. It is not wrong to suggest that as an early mover it managed to secure some of the best acreage in the province and that it was this that meant that when things went so wrong it was able to rely on its production to keep it going. The problems arose in February 2013 when it acquired Bayfield Energy with its main asset the Galeota block which contained the Trintes field that was to cause so much grief. Trinity faced a perfect storm of problems at that time, operational problems at Trintes, cost overruns on the well offshore, difficult to manage debt and of course the oil price plunging around them and it did indeed look like the end was nigh. There was little choice but to enter the Strategic Review and Formal Sales Process in April 2015. The good news is that Trinidad has its own type of Chapter 11 and in August TRIN entered into a proposal scheme under that umbrella. Without this it would have been impossible to fend off Citi and other creditors and gave the company some six months of breathing space, indeed it appears that the court system and the Ministry of Finance were of significant help.

The good news was that as mentioned above TRIN has a formidable bunch of assets that are described as ‘nothing but robust’ and were able to be kept running with virtually no spending but with the help of what seems like a fantastic team of dedicated field workers. Indeed it was the fact that the assets remained the same but the balance sheet that was dreadful that meant that the dream lived on. Senior management was pared brutally although to some not before time, and costs were cut across the board although operational staff tended to be kept.

With six months clear space the management was able to put together proposals to creditors, senior lenders and trade creditors and of course a way of paying back the Government was also found. Once all this was sorted out with a two year convertible and a $15m fundraising the shares re-listed in January and have already started to perform well. It is also worth noting that as a result of this process the management now have a holding of 26.2%, a genuinely large amount of skin in the game and with serious participation in the most recent round.

Trinity looks to be set very soundly indeed, with the existing cash balances, proceeds from the placing and internal cash generation enabling a return to drilling I can see considerable upside. Production should increase both onshore and offshore and with costs a fraction of what they were these will be very profitable barrels. The 2P reserves plus 2C contingent resources are of the order of 41 mmboe (21 mmboe and 20 mmboe) and there is considerable potential upside in the Galeota anticline where there is a  STOIIP of 700 mmstbbls to be further appraised and developed. As I have mentioned above, the company will start a modest drilling programme, firstly onshore, which should add at least 400 b/d and also offshore which is expected to add another 400 b/d. I could write more but not now, Trinity looks like it has come through its troubles and with its high quality, high value barrels and plenty of scope to grow the company through efficiency gains and economies of scale, Bruce and his team have done a great job, I hope that they remain independent long enough for all shareholders to benefit. You never know, the bucket list may beckon…

Sundry

Kuwait Energy is scheduling an IPO in London and has apparently already appointed BAML and Numis to act for them…

Velocys has confirmed its agreement with Morimatsu to be supplier of modular design, engineering and fabrication services to the company.

Bowleven has said that Glass Lewis and Co, an independent corporate governance firm has also advised voting against the COC resolutions at the upcoming meeting.

Hunting results yesterday were in line with expectations, whilst I like the Exxon tie-up and the scope onshore I was quite surprised hoe bearish Dennis was about offshore which isnt profitable anywhere in the world at $50…

Plexus gained a new contract in the North Sea, a new customer this time in Nexen.

And finally…

The big game in the Prem this weekend is at Anfield where the HubCap Stealers take on the Gooners, elsewhere its Spurs v the Toffees and the Cherries go to the Theatre of Dreams. Chelski go to the London stadium to play the Hammers on Monday. With Mike Ashley having bought a stake in Agent Provocateur it brings a whole new meaning in the Newcastle dressing room when he says get all your kit on boys…

A huge night of boxing tomorrow as David Hay is 1-5 to beat Tony Bellew, too short even though he undoubtedly has the power.

And its the UFC 209 in Las Vegas, Nevada at the weekend as well…

Finally in one of the longest tie breaks in recent history Muzza managed to win his second set 20-18…

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http://www.oilcapital.com/companies/stocktube/7028/angus-energy-s-brockham-well-looks-like-carbon-copy-of-horse-hill-says-proactive-s-lyall-7028.html Angus Energy's Brockham well looks like "carbon copy" of Horse Hill, says Proactive's Lyall http://www.oilcapital.com/companies/stocktube/7028/angus-energy-s-brockham-well-looks-like-carbon-copy-of-horse-hill-says-proactive-s-lyall-7028.html Fri, 03 Mar 2017 09:24:00 +0000 Proactive Investors editor Ian Lyall talks us through the latest update from explorer Angus Energy Plc (LON:ANGS), which he said explained a lot more about its Brockham field in Surrey.
"It looks like a carbon copy of the Horse Hill well. You will remember Horse Hill came on at 1500 barrels a day which is unprecedented for a UK onshore well," he told Andrew Scott.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27209/vsa-capital-market-movers-sula-iron-and-gold-plc-27209.html VSA Capital Market Movers - Sula Iron and Gold PLC http://www.oilcapital.com/columns/vsa-capital-market-movers/27209/vsa-capital-market-movers-sula-iron-and-gold-plc-27209.html Fri, 03 Mar 2017 08:39:00 +0000 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (LON:SULA) has announced full year results for the year ended September 2016. The operating loss of £1.8m was in line with the prior year while cash at the end of the period was £100k. Since the period end there have, however, been significant changes to SULA with a new management team put in place along with an injection of a total of approximately £1.8m including the contribution by Madini, SULA’s new strategic partner. Since the period end, the shares have rallied 369%.

In 2016 SULA changed its focus towards the gold mineralisation within its tenements; initially at Sanama Hill. A successful drilling campaign which followed the reinterpretation of historical data confirmed the presence of significant gold mineralisation on which a JORC Exploration Target of 5-7mnt at 4-8g/t which implies 0.8-1.5mnoz had been defined. Subsequently SULA carried out IP surveys and with the receipt of funds, post period end, the data was released which demonstrated 8.5kms of targets with the same geophysical signature as the Sanama Hill deposit.

The drilling programme on which SULA announced that the two drill rigs had arrived on site this week is primarily focused on these geophysical anomalies known as the Eastern Target. SULA now intends to carry out over 2,400m of drilling.

We reiterate our Speculative Buy Recommendation and 1.7p/sh. target price.

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http://www.oilcapital.com/companies/stocktube/7019/potential-new-investment-recognises-the-underlying-value-in-igas-says-ceo-stephen-bowler-7019.html Potential new investment 'recognises the underlying value in IGas' says CEO Stephen Bowler http://www.oilcapital.com/companies/stocktube/7019/potential-new-investment-recognises-the-underlying-value-in-igas-says-ceo-stephen-bowler-7019.html Wed, 01 Mar 2017 13:21:00 +0000 Stephen Bowler, chief executive of IGas Energy Plc (LON:IGAS) talks to Proactive about the company's initiative that will reshape the UK shale gas group’s finances and capital structure.

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http://www.oilcapital.com/columns/the-pay-zone/27196/oil-price-igas-premier-sdx-energy-wentworth-sundry-bowleven-northern-iog-and-finally-27196.html Oil price, IGas, Premier, SDX Energy, Wentworth, Sundry-Bowleven-Northern-IOG-And finally... http://www.oilcapital.com/columns/the-pay-zone/27196/oil-price-igas-premier-sdx-energy-wentworth-sundry-bowleven-northern-iog-and-finally-27196.html Wed, 01 Mar 2017 12:27:00 +0000 Oil price

The April Brent contract rolled over yesterday, in itself a quite exciting pattern of trading by recent standards. The independent surveyors I was talking about the other day started promptly with Reuters first out of the blocks to give a 94% adherence to quotas in February. The USA provides the counterbalance, production rates are rising but nowhere near enough to do anything more than marginally affect world supply and demand. Stocks are still building though and the API reported a rise of 2.5m in crude oil stocks with 500/- at Cushing and with gasoline stocks unexpectedly up and distillates sharply down traders were perplexed. Now March is a traditionally difficult time to call movements upstream or downstream, historically it is a peak month for refinery maintenance so crude stocks build but hopefully product stocks fall, we shall see.

IGas

IGas had notified the market that they hoped to find a strategic investor and this morning have revealed that Kerogen Capital is the benefactor to the tune of $35m. This looks like a true and total capital reorganisation and needs the support of all stakeholders for want of a horrible word. Existing bonds will be restructured and the company owned ones will be cancelled while the unsecured bonds exercised and covenant breaches got rid of. We are warned that there will be an accompanying equity raise by June and will include an offer to the retail holders probably via the 5m Euro cap issuance. With a big carry and some interesting prospects to drill, some this year but a bigger programme for next year, on a D&M valuation down but still substantial and with 2,500 b/d a day of production to leverage off things could be worse. IGas had an unsustainable financial structure and was borderline terminal, this restructuring, backing from Kerogen and with an equity raise, at least gives the company another chance. The huge fall today on dilution of existing holders is understandable, but longer term the stock should rally with the finances sorted, the carry still in place and signs of a drilling programme through next year giving room for optimism.

Premier

Drip, drip, drip as the debt restructuring comes out piecemeal, today we hear that the  amended convertible terms have been agreed by the Ad Hoc committee that speaks for 47% of holders and should do the trick. With the monthly deferral of the financial covenant test as expected we now wait for next piece of the jigsaw, after that just the huge equity raise, only joking, or was I?

SDX Energy

A South Disouq update from SDX today, the Sino-Tharwa 6 drilling rig is currently being moved to location with the expected commencement of drilling ‘within the next fortnight’. Exciting times for SDX who have a number of high margin plays with serious upside that should justify the ever rising share price.

Wentworth Resources

Yesterday WRL had figures that seemed to answer quite a few of the questions that I have had since starting coverage recently. Production for the period was 44 mcf/d pretty much in the middle of the guidance and rising strongly at the year end. With demand expected to rise and substantial capacity with very low capex the future seems to be of significant interest. My worry about funding was generally eased during the conference call and I am more satisfied than before as to the need for short term funding after seeing smaller L/T receivables, better timing on payments and amended payments from the bank. I look forward to another meeting with the company to settle down my numbers, overall still very happy with this company.

As usual I did my Voxmarkets Podcast on Monday morning, if you didnt catch it the link is below, I talk about Sirius Petroleum, President Energy and Far, the link is below.

 

Sundry

Bowleven has announced that both the ISS and PIRC have come out in their favour after assessing the COC resolutions with one exception, where PIRC feel that Philip Tracy is not a fully independent director.

I met with Northern Petroleum yesterday and will write up that meeting in due course, suffice it to say that they are feeling much more confident than for some time. Today they announce that Shell have started the local engagement programme in Italy which at least shows that things are, albeit slowly, beginning to happen.

I mentioned a little while ago that a newspaper had tipped David Peattie to be the next CEO of the Nuclear Decommissioning Authority and that his days as Chairman of Independent Oil & Gas were likely to be numbered,  the company felt that he would stay on which I couldnt understand and today he has announced both his new job and his resignation from IOG. I wait with interest to see who his replacement is…

And finally…

It’s all happening down at the Foxes, after Monday night’s spirited defeat of the HubCap Stealers they are now talking to Woy H, after all the success he’s had lately….

Tonight the Noisy Neighbours have their FA Cup replay against Huddersfield which is just what they didnt need.

And with the new F1 season looming, yesterday saw the Ferraris leading the way and McLaren  having some troubles, not for long I suspect….

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http://www.oilcapital.com/companies/stocktube/7018/northern-petroleum-plc-boss-expects-italian-eia-to-be-submitted-at-end-of-april-7018.html Northern Petroleum plc boss expects Italian EIA to be submitted at end of April http://www.oilcapital.com/companies/stocktube/7018/northern-petroleum-plc-boss-expects-italian-eia-to-be-submitted-at-end-of-april-7018.html Wed, 01 Mar 2017 12:10:00 +0000 Keith Bush, chief executive of Northern Petroleum Plc, has hailed news that partner and oil giant Shell is launching a local engagement programme ahead of submitting an environmental impact assessment (EIA) at the Cascina Alberto project in northern Italy.
"We are very pleased that Shell is taking this forward because there are a number of competing exploration opportunities out there."
Bush is eyeing the end of April for the EIA to be submitted.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27189/vsa-capital-market-movers-sula-iron-and-gold-plc-27189.html VSA Capital Market Movers - Sula Iron and Gold PLC http://www.oilcapital.com/columns/vsa-capital-market-movers/27189/vsa-capital-market-movers-sula-iron-and-gold-plc-27189.html Wed, 01 Mar 2017 08:52:00 +0000 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (LON:SULA) has announced that the two diamond drill rigs required for the upcoming programme have now arrived on site at Dalakuru exploration camp. The original target was to drill 2,400m, however, since the contractor Equity Drilling has agreed to take a portion of payment in equity, this has freed up cash to pay for additional drilling beyond the original target. We expect the drilling programme to result in the announcement of a JORC Exploration Target.

We reiterate our Speculative Buy recommendation and target price of 1.7p/sh.

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http://www.oilcapital.com/companies/stocktube/7003/completion-of-50-wells-a-momentous-occasion-says-greka-drilling-s-ceo-randeep-grewal-7003.html Completion of 50 wells a 'momentous occasion' says Greka Drilling's CEO Randeep Grewal http://www.oilcapital.com/companies/stocktube/7003/completion-of-50-wells-a-momentous-occasion-says-greka-drilling-s-ceo-randeep-grewal-7003.html Tue, 28 Feb 2017 16:05:00 +0000 Greka Drilling Limited (LON:GDL) chief executive Randeep Grewal talks to Proactive following the announcement they've completed their  fiftieth well in a coal bed methane (CBM) gas campaign for Essar Oil in India.

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http://www.oilcapital.com/columns/the-pay-zone/27172/oil-price-premier-roxi-union-jack-and-finally-27172.html Oil price, Premier, Roxi, Union Jack, And finally... http://www.oilcapital.com/columns/the-pay-zone/27172/oil-price-premier-roxi-union-jack-and-finally-27172.html Mon, 27 Feb 2017 12:22:00 +0000 Oil price

Still stuck in a narrow trading range, both WTI and Brent rose by 21 cents last week. Friday might have been a lot better if London traders hadnt been suffering from the after effects of the IP dinner, but the boys in long trousers go and and do the Scottish Oil Clubs event on Friday as well. There were bullish remarks by the Opec Secretary General indicating that compliance is good and he included Russia in that which some observers doubt.

As we enter March on Wednesday we will start getting all the reports from the data collecting agencies who will have varying news on February output, if what we are hearing anecdotally it should be ok at the moment but I am sure that there will be the odd ‘rogue poll’. The rig count on Friday showed an increase of 3 overall and 5 in oil which is hardly going to clear the backlog, elsewhere on friday the stats showed that money managers were still very long crude oil.

Premier Oil

A slight whiff of panic from the market on Friday meant that Prems had to knock out a press release saying that all was going fine with the finalising of the refinancing of the debt process. With formal credit committee approvals needed and of course the amendment of terms for the convertible, many suits are needed to sign off the process. We are told to expect an update ‘in the next few days’ which can’t come too soon for everyone involved one way or another.

Roxi Petroleum

Roxi has announced that it intends to merge its and Baverstock’s interests in Eragon which itself holds a 99% interest in the BNG asset. I met with Clive Carver recently and it has been a long planned event in order to ‘bring our principal asset under direct control’ whilst at the same time capitalising the debt by converting the Vertom loan. As a result of this deal and the issue of shares to Baverstock and Kuat Oraziman these two will own 43.86% of the stock and the company will be effectively debt free and ‘without the funding restraints of the current structure’.

Union Jack Oil

Union Jack has announced that it has raised £1.4m through an oversubscribed placing at 0.135p. The company is fully funded at present for its commitments, this raise is to increase interests in its existing licences and by the sounds of it we should expect something pretty soon. Although the discount is high I have to say that the company appear to be doing the right things at present.

And finally…Poopers in LaLaLand…

Quite difficult to know where to start but with Scotland beating Wales and Ireland beating France both Celtic nations were looking to Twickenham yesterday to see how they rated their chances against England in upcoming matches. The tactical surprise that Italy came up with in order to avoid a proper walloping was in some eyes very smart and others against the spirit of the game. Either way when the dunderheads eventually worked out how to combat it, they filled their boots as it were, against a rubbish Italian team, bring on Georgia who are above Italy in the world rankings and probably wouldnt try to pull a cheap stunt like this.

The first piece of silverware this football season is now in the trophy cabinet at the Theatre of Dreams after the Red Devils saw off the Saints in a remarkably good game at Wembley yesterday. In the Prem there were wins for Chelski and Spurs as the Gooners, the Noisy Neighbours as well as the aforementioned Red Devils didnt have a game. Tonight it will be interesting to see if the spineless Foxes owners are at the King Power  Stadium to see their team take on the HubCap Stealers…

A shame to see that Barry Geraghty is out of Cheltenham after a fall at the weekend, watching which of the JP horses he chose and in what races, was going to be an interesting pointer to the Festival which is only a fortnight away.

There will be a very special Razzie for PriceWaterhouseCooper or Pooperscoopers as they are affectionately known next year after their incompetence led to ugly scenes at the Oscars when they gave the best movie award to the wrong film. One must conclude that if they can’t fulfill such a straightforward auditing task then maybe big companies may be a step too far after all…Ryan Gosling wasnt too pleased either I couldnt help noticing….

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http://www.oilcapital.com/companies/stocktube/6986/nostra-terra-oil-and-gas-ceo-talks-of-exciting-times-following-latest-acquisition-6986.html Nostra Terra Oil and Gas CEO talks of 'exciting times' following latest acquisition http://www.oilcapital.com/companies/stocktube/6986/nostra-terra-oil-and-gas-ceo-talks-of-exciting-times-following-latest-acquisition-6986.html Mon, 27 Feb 2017 08:21:00 +0000 Nostra Terra Oil and Gas Company plc (LON:NTOG) chief executive Matt Lofgran talks to Proactive about the company's acquisition of additional production assets, located in the Permian basin, United States.

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http://www.oilcapital.com/companies/stocktube/6984/-we-ve-got-a-huge-investment-base-to-drive-this-company-forward-says-saffron-energy-ceo-6984.html 'We've got a huge investment base to drive this company forward', says Saffron Energy CEO http://www.oilcapital.com/companies/stocktube/6984/-we-ve-got-a-huge-investment-base-to-drive-this-company-forward-says-saffron-energy-ceo-6984.html Fri, 24 Feb 2017 15:56:00 +0000 Michael Masterman, chief executive of Saffron Energy plc  (LON:SRON) spoke to Proactive's Stocktube on the day the Italian oil producer began trading on London's AIM market.

Saffron Energy's a producer and explorer of natural gas based in Northern Italy and owns three fields - Sillaro, Bezzecca and Sant'Alberto.

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http://www.oilcapital.com/companies/stocktube/6979/powerhouse-energy-tipped-to-reach-2p-per-share-in-coming-months-6979.html Powerhouse Energy tipped to reach 2p per share in coming months http://www.oilcapital.com/companies/stocktube/6979/powerhouse-energy-tipped-to-reach-2p-per-share-in-coming-months-6979.html Fri, 24 Feb 2017 10:32:00 +0000 Powerhouse Energy Group Plc (LON:PHE) has plenty going on in terms of fundamentals, according to chartist Zak Mir, who says the chart is ‘equally golden’.

The technical analyst, highlighting a ‘golden cross’ formation in the chart, sees support for the share at the 1p level and reckons the price could rise as high as 2p over the next three to four months.  

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http://www.oilcapital.com/companies/stocktube/6978/drax-shares-look-set-to-bounce-but-not-yet-zak-mir-6978.html Drax shares look set to bounce, but not yet - Zak Mir http://www.oilcapital.com/companies/stocktube/6978/drax-shares-look-set-to-bounce-but-not-yet-zak-mir-6978.html Fri, 24 Feb 2017 10:28:00 +0000 The Drax Plc (LON:DRX) chart has come off the boil, according to technical analyst Zak Mir, but, he reckons the share price may bounce off the 325p level.

Mir says the best case scenario would see the price rise to around 400p (current price: 341p).

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27153/vsa-capital-market-movers-millennial-lithium-glencore-and-kaz-minerals-27153.html VSA Capital Market Movers - Millennial Lithium, Glencore and KAZ Minerals http://www.oilcapital.com/columns/vsa-capital-market-movers/27153/vsa-capital-market-movers-millennial-lithium-glencore-and-kaz-minerals-27153.html Thu, 23 Feb 2017 08:29:00 +0000 Millennial Lithium (CVE:ML)
Millennial Lithium has announced that it intends to complete an equity placing of C$8.7m at a price of C$1.45 per share (6m shares), a discount of 4% to the last close. For each share purchased investors will receive one half common share purchase warrant. This will entitle the holder to purchase one common share a t a price of C$1.9 for a period of 24 months from the closing date.

Proceeds will be used to advance the Pastos Grandes project, in Argentina, particularly drilling and process and evaporation trials engineering as well as working capital. ML indicates that the full placement would enable a PEA to be completed.

Please click here for our recent initiation.

We reiterate our Speculative Buy recommendation.

Glencore (LON:GLEN)
Glencore has announced modestly improved results for 2016. Revenues of US$153bn were up 4% YoY while adjusted EBITDA of US$10.3bn was up 18% YoY. EBITDA for energy products and agricultural products were down 20% and 19% YoY to US$1.5bn and US$138m respectively. This was despite the recovery in oil prices. However, the recovery in metals prices meant that the improvement in EBITDA in the metals division of 43% YoY to US$6bn more than offset weakness in other divisions. Net income of US$1.9bn was up 48% YoY. GLEN reduced net debt by 40% YoY to US$15.5bn, below the published target, while capex was down 41% YoY to US$3.5bn. GLEN announced a dividend of US$0.07/sh.


KAZ Minerals (LON:KAZ)
KAZ Minerals  has announced strong results driven by a combination of rising copper and gold prices as well as a strong operational performance. Revenue of US$969m was up 43% YoY as copper production of 140kt was up 73% YoY and gold production of 120koz was up 245% YoY, ahead of guidance. Group net cash costs of US$0.59/lb were down 46% YoY, driven by the significant by product credit contribution. Consequently EBITDA of US$492m was up 136% YoY. Net income of US$180m reversed a loss of US$10m in the prior year. KAZ has opted to not pay a dividend given the ramp up of Aktogay and Bozshakol, which drove the increase in production, is ongoing. We note that net debt increased 18% YoY to US$2.7bn owing to continued pressures from expansionary capex. However, with the ramp ups progressing well, KAZ appears to be on track to reducing its operating leverage.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27146/vsa-capital-market-movers-millennial-lithium-27146.html VSA Capital Market Movers - Millennial Lithium http://www.oilcapital.com/columns/vsa-capital-market-movers/27146/vsa-capital-market-movers-millennial-lithium-27146.html Wed, 22 Feb 2017 08:40:00 +0000 Millennial Lithium (CVE:ML)
Millennial Lithium  has announced the results from the completion of a ground geophysics programme at its Cruz Property in the Salta Province, Argentina. Southern Lithium (SNL CN) has an option to acquire up to 80% of the project through the completion of certain payments, exploration funding and completion of a feasibility study.

A Transient Electromagnetic Survey (TEM) covering 20.25km2 demonstrated a continuous north-south trending conductive unit over a distance greater than 6km, the full distance of the Cruz property. In the central core of the property indications of brine are apparent from 30m and up to 250m beyond which point data becomes limited due to the highly conductive nature of the anomaly. High conductivity is often an indication of high lithium brine contents.

 

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http://www.oilcapital.com/columns/the-pay-zone/27144/rested-us-bulls-crank-up-the-volume-27144.html Rested US bulls crank up the volume http://www.oilcapital.com/columns/the-pay-zone/27144/rested-us-bulls-crank-up-the-volume-27144.html Wed, 22 Feb 2017 08:21:00 +0000 FTSE 100 Index called to open +10pts at 7285, having traded sideways 7275-7290 overnight into the apex of a narrowing pattern. Bulls need a break above 7290 to overcome 2-day falling highs resistance and revive hopes of a rally back to 7365. Bears require a breach of overnight rising lows at 7280 to open the door for a drop to support at 7250. Watch levels: Bullish 7295, Bearish 7275.

Calls for a firm open come after US bourses posted a solid return from a long weekend. Helped by corporate results, fresh record highs come via continued investor optimism about Trump policies that has now kept the S&P 500 Index from anything worse than a 1% fall for more than 90 days. A stronger USD suggests expectations of hawkish Fed minutes banking up this view this evening. DAX called to open +0.3% thanks to a weaker EUR.

Bullishness has been echoed in Asia overnight with only Japan’s Nikkei spoiling the party, flirting with breakeven on account of a slightly stronger Yen. Hong Kong is outperforming despite a continued drag from HSBC’s disappointing results yesterday. Australia’s ASX is higher thanks to a buoyant oil prices offsetting weakness among metals while retail sector results buoy and China property price growth maintains confidence.

FTSE sentiment may be impacted by Lloyds Banking Group results which appear to have beaten at the underlining profits before tax level (highest in 10 years; lower PPI) and the dividend being increased. Housebuilder Barratt Developments says it is confident with its FY outlook thanks to forward sales +17% and has announced special dividends of £175M for both Nov 2017 and Nov 2018.

Having enjoyed a long weekend, US equity markets continued where they left off, with the four major bourses of Wall Street all notching fresh record closing highs as corporate earnings once again impressed. The Dow Jones rallied 0.6% as Retail names Home Depot and Wal-Mart reported positive FY earnings, while the S&P also closed 0.6% stronger as all 11 sectors represented on the index finished firmer. The Nasdaq finished 0.5% higher and the small-cap Russell outperformed, up 0.65%.

Crude Oil prices broke out from 2017 falling highs resistance yesterday morning, as optimism that OPEC’s production cut is effectively rebalancing the supply glut saw fresh bullish sentiment in the marketplace. However, US dollar strength in the face of the Euro at 6-week lows could see potential investors deterred as the relative value of both Brent and US crude decrease.

Gold, having recovered from a one week low of $1226 yesterday, was unable to overcome weekly highs of $1238, further hampered by a trend of falling highs resistance that began on Friday. While political tensions in the US and Europe - most notably France - may harbour fresh demand for the safe haven asset, emergent US dollar strength today (Fed minutes this evening could be a key influencer) may see the precious metal test support at $1233.

In focus today will be UK Q4 GDP (9.30am) for which the second estimate is seen unchanged at 0.6% QoQ for a third straight quarter and 2.2% YoY for the second quarter in a row as the Index of Services and Business Investment both cooled into the end of last year.

Fed Minutes may also garner a smidgen of attention this evening given the hawkish rhetoric from the central bank of late (“unwise to wait to long”) and decent US data, although political uncertainty could yet play a part in delaying, even scuppering, plans for multiple hike stateside interest rate hikes this year.

Elsewhere this morning German IFO surveys (9am) may show all three components edging back again in February. The final reading for January Eurozone Consumer Price Inflation (CPI) is forecast to show a monthly figure plunging following last month’s jump while an annual jump is confirmed and the core print holds firm, albeit still well below the ECB’s 2.0% target.

This afternoon the China Leading Economic Index may add to this morning's solid property prices data to give us an update on the state of play in the world’s #2 economy, before US Existing Home Sales are expected to show an increase in January after December’s fall to add to the message of solid US consumer confidence.

Speakers today include the Bank of England’s (BOE) Cunliffe (11am) followed by his colleague Shafik (11.30am) before this evening sees the Fed’s Powell (6pm, voter, neutral) tee us up for the Fed Minutes (7pm)

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http://www.oilcapital.com/companies/stocktube/6959/-there-s-an-awful-lot-to-play-for-cenkos-analyst-on-88-energy-s-icewine-potential-6959.html 'There's an awful lot to play for' - Cenkos analyst on 88 Energy's Icewine potential http://www.oilcapital.com/companies/stocktube/6959/-there-s-an-awful-lot-to-play-for-cenkos-analyst-on-88-energy-s-icewine-potential-6959.html Tue, 21 Feb 2017 15:04:00 +0000 Cenkos Securities analyst Jack Allardyce talks to Proactive about 88 Energy's upcoming well - Icewine 2.

The company's first Icewine well, drilled in late 2015, confirmed a potentially significant new shale play up in Alaska’s North Slope region and the next well, slated for Q2 2017, is designed to test the discovery’s commercial viability.

Click here for Cenkos important information and disclaimer

Cenkos Recommendation History                            
Date                       Company        Share price Recommendation
15.03.16               88 Energy Plc      3.8p       BUY
07.09.16               88 Energy Plc      2.5p       BUY
04.11.16               88 Energy Plc      2.3p       BUY
16.01.17               88 Energy Plc      2.5p       BUY

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27140/vsa-capital-market-movers-sula-iron-gold-anglo-american-and-bhp-billiton-27140.html VSA Capital Market Movers - Sula Iron & Gold, Anglo American and BHP Billiton http://www.oilcapital.com/columns/vsa-capital-market-movers/27140/vsa-capital-market-movers-sula-iron-gold-anglo-american-and-bhp-billiton-27140.html Tue, 21 Feb 2017 14:50:00 +0000 Sula Iron & Gold (LON:SULA)
Sula Iron & Gold has announced the issue of 9.375mn ordinary shares at an exercise price of 0.16p following the exercise of warrants. The gross proceeds raised amounted to £15k. Share capital is now 2,086mn ordinary shares.

We reiterate our Buy Recommendation and target price of 1.7p/sh.

Anglo American (LON:AAL)
Following strong production results Anglo American  has announced strong full year results. Group revenue of US$23.1bn was marginally higher at 1%. However, margins were significantly stronger owing to cost cutting and currency depreciation and EBITDA of US$6.1bn was up 25% YoY. The key segments which drove the improvement were De Beers, iron ore and coal although this was offset by modest declines in platinum and copper. Net income of US$1.6bn reversed a loss of US$5.6bn in the prior year.

AAL opted not to pay a dividend in 2016. The net debt target of US$10bn was well beaten, however, as the strong earnings combined with asset sales (US$1.8bn) and capex reduction (-37% YoY to US$2.5bn) resulted in a 34% YoY decline in net debt to US$8.5bn. AAL is targeting a further US$1bn in cost savings and is aiming to resume dividend payments by the end of 2017.

BHP Billiton (LON:BLT)
BHP Billiton  has released robust interim results as the strong recovery in bulk and base metal commodity prices offset production weakness in petroleum, copper and thermal coal. Group revenues for H1 FY 2017 were up 20% YoY to US$15.7bn driven primarily by the recovery in prices in iron ore, copper and coal. Underlying EBITDA of US$9.9bn was up 65% primarily as a result of the strong top line. EBITDA in the iron ore division was up from US$2.8bn to US$4.2bn while in copper EBITDA was up from US$0.8bn to US$1.7bn and US$0.2m to US$2bn in coal.

Net debt decreased from US$25.9bn to US$20bn owing to a 38% reduction in capex to US$2.7bn combined with the significant recovery in earnings. The final dividend of US$0.3/sh. meant that the full year dividend of US$0.4/sh. was up 150% YoY.

BLT has announced an increase in exploration spending for FY 2017 and 2018 by around US$400m.

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http://www.oilcapital.com/companies/stocktube/6953/petsec-boss-terry-fern-talks-of-the-incredible-upside-to-the-company-s-yemen-assets-6953.html Petsec boss Terry Fern talks of the 'incredible upside' to the company's Yemen assets http://www.oilcapital.com/companies/stocktube/6953/petsec-boss-terry-fern-talks-of-the-incredible-upside-to-the-company-s-yemen-assets-6953.html Tue, 21 Feb 2017 08:36:00 +0000 Terry Fern, chairman and managing director of Petsec Energy (ASX:PSA) runs Proactive through the company's producing assets in the U.S - as well as their development opportunities in the Republic of Yemen.

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http://www.oilcapital.com/companies/stocktube/6950/-it-s-crunch-time-says-88-energy-s-dave-wall-as-they-gear-up-to-spud-icewine-2-6950.html 'It's crunch time' says 88 Energy's Dave Wall as they gear up to spud Icewine 2 http://www.oilcapital.com/companies/stocktube/6950/-it-s-crunch-time-says-88-energy-s-dave-wall-as-they-gear-up-to-spud-icewine-2-6950.html Mon, 20 Feb 2017 14:52:00 +0000 88 Energy Ltd’s (LON:88E)  managing director Dave Wall joined us in the Proactive Investors studio to talk about the upcoming drilling programme at the Icewine shale discovery, on Alaska’s North Slope.

Wall discusses the potential of the new Icewine well, the anticipated timeline for the programme, and what investors can expect for what promises to be a very exciting 2017 for 88 Energy.

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http://www.oilcapital.com/columns/the-pay-zone/27136/oil-price-sound-energy-lekoil-president-velocys-and-finally-27136.html Oil price, Sound Energy, Lekoil, President, Velocys, And finally... http://www.oilcapital.com/columns/the-pay-zone/27136/oil-price-sound-energy-lekoil-president-velocys-and-finally-27136.html Mon, 20 Feb 2017 13:31:00 +0000 WTI $53.40 +4c, Brent $55.81 +16c, Diff -$2.41 +12c, NG $2.83 -2c


Oil price


The oil price was effectively flat last week, a few cents off between friends. The same influences are exerting and unless something changes dramatically we will remain range bound. All the reports are in and show around 90% adhesion to the Opec and Non-Opec agreement which is better than the doom mongers predicted and talk is already about not just extending the agreement come June but tightening it as well. By then it should be showing signs of working and even a rollover should create a modest shortage, a further cut would see prices rising again. The rig count only rose by 6 in oil last week, less than the overall number of 10 which is hardly blowing the doors off. The US is closed today for Presidents Day.


Sound Energy


News from Sound that TE-8 spudded yesterday which is highly encouraging as this 12 km step out appraisal well is drilling further into the TAGI reservoir and on deeper into the Paleozoic formation. The initial well should take 40-50 days plus 30 days for the sidetrack. In addition, the company has signed binding contracts for the OGIF deal which is very good news for shareholders as it opens up more of the company to them. With only weeks before the spud of the Badile well in Italy everything appears to be firing on all cylinders for Sound.


President Energy


I remain confident that President will deliver and today it announces a Puesto Guardian operations update. The rig is mobilised and operations have commenced, the programme is first to sort out the 2 producing wells that are in maintenance followed by the workovers of shut-in wells. To ensure value for money they are doing the multi-well frac programme in batches of three and also creating a water injector. All being well the target of 1,200 b/d in Argentina by the ‘end of summer 2017’ should be achieved.I have a call with Peter Levine coming up so may be able to add more later but this is broadly positive. at long last….


Lekoil


I met up with Lekoil recently after a number of followers suggested that it would be a good idea, it certainly was and particularly well timed. Today they have announced that they have started continuous production at Otakikpo, 5/- b/d now and up to 10/- b/d by the end of Q2 2017. The well is in a relatively safe part of town in the eastern Delta, away from the violence and the Shell/Chevron pipelines, I am told….It is also highly efficient with a cash breakeven of around $24. With some exciting projects on the case, highly supportive shareholders and now signs of activity Lekoil looks quite interesting, even to someone who normally avoids Nigeria for choice.


Velocys


I recently met with David Pummell, CEO of Velocys, a company I have always found most interesting, if not usually rather too far away from visible progress. On meeting David again he greeted me with a glass jar and significant smile, a jar of wax made by VLS only 15 years after conception. With a plant now capable of making the product the key is how to leverage it and bring it to the market. The ENVIA plant in Oklahoma is the first smaller scale commercial GTL plant in the world and the opportunities are plenty, most important, these things are done in partnership which VLS have been building lately.

The company has a number of avenues to follow which shows important diversity and risk aversity, industries, technologies and geographies help to give balance and avoid any single market. These include focusing on the renewable jet fuel market in the US, stranded gas onshore in Canada and a number of ‘significant’ opportunities in Asia. The former has a substantial addressable market in the US for jet and diesel, up to 30 plants where VLS could put in kit and of course without doing the heavy lifting, design, build and hand over the keys is the mantra. Partnerships have been and will continue to be important, indeed take the potential with fuel traders with their need for credits, VLS have made a significant hire in this area already. Refiners and feedstock owners also come into this category as do airlines who will see increasing regulation on fuel blendings.

With regard to Asia much progress has been made in the last year and in the longer term I expect this area to be extremely valuable to the company. The size of the plants in China, made in partnership will be the most cost effective in the market and of course here, as in  the USA, bank financing and loan guarantees are available at the right times. I am reliably informed that much progress is being made in some key areas in China particularly where stranded gas is also a problem.

As time moves on there is little doubt that VLS is growing up, last years raise and a much lower cash burn helps and the balance sheet actually looks moderately healthy, by its standards. Shareholders appear to be highly supportive, the next year is looking increasingly exciting and  progress is looking as good as it has for a long time.


And finally…


It was mainly about the FA Cup at the weekend and the giant killing by Lincoln City who beat Burnley and to a lesser extent Milwall who beat the Foxes. Chelski, the Red Devils, Spurs and Boro go through as well although the Noisy Neighbours were held to a draw at Huddersfield…The Gooners are at Sutton tonight and will play Lincoln in the next round, apart from that the stand out tie is at the Bridge where Chelski host the Red Devils.

Cue card was majestic on Saturday and the Tizzard yard will be busy on Gold Cup day with four already in the picture.

Ben Stokes went for £1.7m in the IPL to play for the Rising Pune Supergiants, as one does, Tymal Mills went for £1.4m (?) with Woakes fetching £500/-, Morgan £245/- and Roy £120,-.

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http://www.oilcapital.com/companies/stocktube/6946/shares-in-victoria-oil-gas-could-now-move-significantly-higher-says-zak-mir-6946.html Shares in Victoria Oil & Gas could now move “significantly higher” says Zak Mir http://www.oilcapital.com/companies/stocktube/6946/shares-in-victoria-oil-gas-could-now-move-significantly-higher-says-zak-mir-6946.html Mon, 20 Feb 2017 12:22:00 +0000 Victoria Oil & Gas plc (LON:VOG) is on the front foot, in terms of its fundamentals, according to Tip TV’s Zak Mir and on a technical basis the share has hit the chartist’s prior target (between 50p and 60p).

Looking again at VOG, Mir now describes the chart as being in a ‘mid-move consolidation’ pattern and he says the price may go significantly higher – his new target is now “towards the 90p area” over the next three months.

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http://www.oilcapital.com/companies/stocktube/6945/royal-dutch-shells-share-price-chart-is-turning-negative-zak-mir-6945.html Royal Dutch Shell’s share price chart is turning negative - Zak Mir http://www.oilcapital.com/companies/stocktube/6945/royal-dutch-shells-share-price-chart-is-turning-negative-zak-mir-6945.html Mon, 20 Feb 2017 12:09:00 +0000 Traders could start thinking about going short of shares in Royal Dutch Shell Plc (LON:RDSB), according to Zak Mir, who highlights a bias that’s ‘slightly downward’.

He points out that the top of the share’s currently positive trend channel is around £24 (would be 10% upside to current price of £21.80) but the support is pitched at £20.61 and momentum is negative.

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http://www.oilcapital.com/companies/stocktube/6943/everybody-is-on-the-falcon-oil-gas-plc-bandwagon-zak-mir-6943.html Everybody is on the Falcon Oil & Gas Plc bandwagon - Zak Mir http://www.oilcapital.com/companies/stocktube/6943/everybody-is-on-the-falcon-oil-gas-plc-bandwagon-zak-mir-6943.html Mon, 20 Feb 2017 11:33:00 +0000 Chartist Zak Mir takes a closer look at Falcon Oil & Gas Ltd (LON:FOG) after its shares doubled last week.

The Tip TV technical analyst says Falcon is on the front foot, as far as fundamentals are concerned, while the chart points to the share price potentially going higher still.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27129/vsa-capital-market-movers-petra-diamonds-27129.html VSA Capital Market Movers - Petra Diamonds http://www.oilcapital.com/columns/vsa-capital-market-movers/27129/vsa-capital-market-movers-petra-diamonds-27129.html Mon, 20 Feb 2017 08:16:00 +0000 Petra Diamonds (LON:PDL)


Petra Diamonds (PDL) interim results were in line with expectations following a soft trading update. The significant increase in revenues, up 48% YoY, was largely due to the timing of sales with production in the period up 24% YoY to 2mncts. PDL is on track for full year production of 4.4-4.6mncts.  Realised price performance was mixed with changes in product mix the key driver. As expected the benefits of processing undiluted ore impacted earnings positively and along with the stronger top line this meant that EBITDA of US$87m was up, 80% YoY. This meant that net income of US$35.2m reversed a loss of US$2.2m in the prior period.

PDL has not yet opted to resume dividend payments. Capex of US$135m represents the majority of spending for FY 2017 which is expected to be lower YoY overall. Net debt, however, increased in the period from US$385m to US$464m.

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http://www.oilcapital.com/columns/the-pay-zone/27128/oil-price-jersey-oil-gas-enquest-ithaca-sundry-bowleven-solo-gulfsands-chariot-and-finally-27128.html Oil price, Jersey Oil & Gas, EnQuest, Ithaca, Sundry-Bowleven-Solo-Gulfsands-Chariot- And finally... http://www.oilcapital.com/columns/the-pay-zone/27128/oil-price-jersey-oil-gas-enquest-ithaca-sundry-bowleven-solo-gulfsands-chariot-and-finally-27128.html Fri, 17 Feb 2017 10:41:00 +0000 Oil price

The oil price is almost the same as it was last friday, nothing is moving it at the moment almost as if it was the subject of price fixing, à la gold and silver of yore, not any tomfoolery I assure you… This week saw another set of whopping inventory increases which only seem to steady the price, indeed that is a subject worth looking at on its own. Money managers are still incredibly long and yesterday, chat out of Opec was that they are considering extending their pact with non-Opec countries and indeed possibly increasing it. They will need to do just this and then, maybe next year they might be able to make out like bandits. On that subject the only bearish stuff comes from those who worry about US production to whom I would say, dont worry your pretty little heads about it, whatever they can produce isnt enough to move a determined market…

Jersey Oil & Gas

A corporate and operational update today from one of the new members of the bucket list and all appears to be going pretty well. Statoil are close to signing a rig and services contract for the Verbier well expected to be drilled in the North Sea in the summer, JOG are carried up to $25m worth of costs here. Azinor has announced that it intends to drill the newly named ‘Partridge’ (Homer) prospect on farmed-out JOG acreage later this year, success here would trigger payments of $2m for a discovery and another $2m at the time of a successful FDP. Finally JOG are committed to acquiring some producing acreage to balance their portfolio and say that the number of opportunities remains good as a number of sellers have come to the market  recently. JOG is an interesting play and still remains cheap if you bear in mind what might be when the drill bit turns at Verbier. Significant skill will be needed in trading the shares but with the underlying upside so substantial, the risk at JOG is not being involved.

EnQuest

Good news from EnQuest this morning as news from Kraken is that the FPSO has arrived and has been hooked up successfully. With delivery of first oil ontrack for Q2 this year things are beginning to look up for ENQ and it probably deserves a better reception than that given by the market this morning.

Ithaca- Alert, being sold out on the cheap…

Along the same sort of lines, Ithaca has announced that the Stella Field has started up production  albeit some time after the market had expected. Having said that, the news will be exceptionally good for the company as revenues will start to flow and debt can be paid down.

I’m sure that this is what Delek thought when it bid for the company at a modest, nay measly, 11% premium last month. Despite it being the star performer in the 2016 bucket list, as soon as the good times are in sight and meaningful rewards are offered, management and shareholders jump ship at the first sign of men from the east bearing gifts. I would like to think that those in decision making positions whether they be institutional or retail would think twice before selling out like the management have done, after all Ithaca is the original wallet warmer…

Sundry

Bowleven has issued a long list of counter points following COC’s recent letter to shareholders. Having said my piece earlier I do not intend to do so again, shareholders can make their decisions between now and March 14th.

Solo raised £2m by issuing 400/- shares at 50p, a raise that had been telegraphed for some time but given that the shares have roughly doubled recently one can understand management’s desire to wait!

Gulfsands also appeared with a begging bowl, theirs was to lenders who popped up with £4m. 37.3% came from Waterford, 31.4% from Blake Holdings (Richard Griffiths) and 31% from ME Investments which I think we can have an inspired guess at. I am slowly, very slowly, thinking of taking another look at GPX and am looking forward to a meeting with new MD, John Bell.

And Chariot announced a re-jig of their licences in Morocco ensuring that they retained exposure to the Kenitra permit and its possible upside. With no other commitments, CHAR will run 1,000 square kilometres of seismic which will cost about a third of what it would have been a couple of years ago. With nothing to drill at all this year CHAR has been off the radar screen but the management, who describe themselves as being ‘cautious but not conservative’ deserve credit for staying in the game. With Rabat Deep to drill next year, it may be the time to revisit the watch list.

Finally, following on from the Facon announcement I did a short interview with Proactive, the link is below.

Proactive Investors Stocktube interview: Falcon Oil & Gas has “colossal” potential gas discovery

And finally…

No international rugby this weekend although the IRB are suggesting that the 6 Nations  tournament is played over 5, not 7 weeks.

Last night in the Boropa Cup St Etienne went to the Theatre of Dreams and despite playing some exciting football and sometimes the ref, came away losing 3-0. Spurs went to Gent and lost 1-0 which they shouldn’t have really…

This weekend it is back to the FA Cup where a few of the minnows get their chances. The biggest could be Lincoln City at Burnley or possibly Oxford at ‘Boro but Sutton might fancy their chances against the Gooners on Monday night… Elsewhere the Noisy Neighbours are at Huddersfield, Wolves host Chelski, the Red Devils go to Blackburn, the Foxes go to the Den and there will be a tasty derby as Fulham host Spurs.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27126/vsa-capital-market-movers-metal-tiger-27126.html VSA Capital Market Movers - Metal Tiger http://www.oilcapital.com/columns/vsa-capital-market-movers/27126/vsa-capital-market-movers-metal-tiger-27126.html Fri, 17 Feb 2017 09:06:00 +0000 Metal Tiger (LON:MTR)

MOD Resources (MOD AU), which holds a 70/30 JV with Metal Tiger (MTR LN) has announced drill results which indicate further mineralisation at greater depth than the current T3 resource. The additional drilling has been carried out as part of the PFS work. This result confirms our view that there is potential for resource expansion at the T3 project.

Hole 64D indicated new mineralisation at depth below the current zone, this may be the source of a geophysical anomaly known to lie beneath the current resource. The core showed a 75m wide zone at a depth of around 247m. The drill core also shows that the mineralised interval sediments are folded upon themselves, suggesting that the mineralised horizon repeats, at least in some places. As the potential scope of total copper in resource is expanding MOD has mobilised another drill rig to speed up the effort to assess this new discovery. A new deep drill hole, to a depth of 600m, is intended to tes geophysical anomalies south and below the T3 resource. There are, however, no assays reported as yet and it is not yet possible to determine the grade.

We reiterate our Buy recommendation and 5.68p/sh.
 

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http://www.oilcapital.com/companies/stocktube/6929/ascent-resources-moving-ahead-without-delay-towards-first-gas-in-slovenia-6929.html Ascent Resources 'moving ahead without delay' towards first gas in Slovenia http://www.oilcapital.com/companies/stocktube/6929/ascent-resources-moving-ahead-without-delay-towards-first-gas-in-slovenia-6929.html Thu, 16 Feb 2017 12:46:00 +0000 Colin Hutchinson, chief executive of Ascent Resources Plc (LON:AST) brings Proactive up to speed on the company's push towards first gas in Slovenia - expected around the end of March.

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http://www.oilcapital.com/companies/stocktube/6920/-fundraise-is-a-major-turning-point-in-the-history-of-powerhouse-energy-says-executive-chairman-6920.html 'Fundraise is a major turning point in the history of Powerhouse Energy', says Executive Chairman http://www.oilcapital.com/companies/stocktube/6920/-fundraise-is-a-major-turning-point-in-the-history-of-powerhouse-energy-says-executive-chairman-6920.html Wed, 15 Feb 2017 14:52:00 +0000 Keith Allaun, executive chairman of Powerhouse Energy Group PLC (LON:PHE) talks to Proactive about the company's £2.5mln raise.

The funds will largely be used to repay the convertible loan note facility with Hillgrove, with the finance house accepting a £2mln offer to buy back the unconverted loan notes.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27111/vsa-capital-market-movers-eco-atlantic-oil-gas-ltd-27111.html VSA Capital Market Movers - Eco (Atlantic) Oil & Gas Ltd http://www.oilcapital.com/columns/vsa-capital-market-movers/27111/vsa-capital-market-movers-eco-atlantic-oil-gas-ltd-27111.html Wed, 15 Feb 2017 13:57:00 +0000 Eco (Atlantic) Oil & Gas (CVE:EOG) is a junior E&P with licences in highly prospective offshore acreage in Guyana and Namibia. The prize catch on offer lies in the potential of ECO’s 40% working interest in the 1,800km Orinduik Block in Guyana, which is firmed up by ExxonMobil’s (XOM US) world class Liza and Payara discoveries on the adjacent block where recoverable resources are estimated to be up to 1.4Bboe.

In light of these significant discoveries being just a few kilometres updip of Liza, ECO and its partner Tullow Oil (TLW LN) have agreed to enhance the work programme in Guyana with TLW carrying ECO for US$1.25m on the 3D seismic survey. This will refine the targets already identified from the existing 2D seismic, which TLW estimates contain prospective resources of 900mmboe, as well as scoping out new leads. ECO is also unique in that it is currently the only AIM listed oil and gas company with exposure to Guyana.

AIM Listing Raises £5m

As part of its AIM listing ECO has raised £5.09m which will be used to advance ECO’s current work programmes including enhancing the 3D seismic data programme on the Orinduik Block, funding the acquisition of new licences as well as providing general working capital.

Carried For One Well in Namibia

In Namibia ECO has working interests across four blocks with multiple leads and is again partnered by TLW and AziNam amongst others. Whilst in Namibia, ECO is contingently carried by TLW for the full costs of one exploration well on its Cooper Block. TLW and its partners are also due to be drilling on the adjacent PEL 37, once a drillable prospect is identified, which will provide read across for ECO as well as providing a catalyst for exploration in the region.

Recommendation and Target Price

We initiate coverage on ECO with a BUY recommendation and 25p 12 month target price, representing a 41% upside on the current share price. This is in line with our risked NAV using 12% WACC and a US$60/bbl flat long-term oil price.
 

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http://www.oilcapital.com/columns/the-pay-zone/27110/oil-price-bowleven-falcon-oil-gas-and-finally-27110.html Oil price, Bowleven, Falcon Oil & Gas, And finally... http://www.oilcapital.com/columns/the-pay-zone/27110/oil-price-bowleven-falcon-oil-gas-and-finally-27110.html Wed, 15 Feb 2017 13:24:00 +0000 Oil price

Same old, same old, as the oil price reacts to various stories all well known to market participants. Yesterday was an up day as it seems to be confirmed by almost all sources that cohesion was over 90% in January led by the Saudis. The various reporting bodies are showing that the oversupply will run out around halfway through the year pretty much whatever the US shale does and so providing that 1) Opec and its partners hold tight and 2) roll over the agreement in June all should be ticketty boo.

Money managers took a little moolah off the table last week but their positions are still incredibly long by historic standards. Finally the API stats which came out after the close showed a bigger than expected crude build at 9.9m barrels and disappointingly also saw a build, although very small in gasoline and slightly bigger in distillates. Tonight’s EIA numbers will show more clearly quite how big the inventory situation is.

Bowleven

The company has announced that the circular containing the notice of the General Meeting has been posted along with the resolutions proposed by the activist shareholder Crown Ocean Capital. Their proposals include sacking most of the board and returning ‘excess’ capital to the shareholders, at least Dick Turpin had the decency to wear a mask…

Unsurprisingly the board have urged shareholders to reject these proposals, in my view for the waste of the company’s time and money that they are. I have never seen this lot around the oil and gas sector before and it looks pretty much like a bunch of ne’er-do-well’s on the make but they have bought a substantial stake and are entitled to try and shake things up. Having said that the 16% holding that they have must be pretty close to any cash gains they must hope to make, bringing a touch more beta to the process than they are probably comfortable with.

I have commented a number of times in the last year or two about the fact that the situation in Cameroon has been far from perfect, but in most cases it hasn’t been BLVN’s fault and that shareholders have been well served by the farm-out that they negotiated. I would also suggest that a combination of unexplained delay by the operator, NewAge, and long and drawn out discussions about the offtake have delayed the Etinde project unnecessarily. It is quite ironic therefore that just when it seems that a solution, or solutions are much closer to being ironed out that an enemy appears at the gate. Another suggestion as I understand it, is to concentrate totally on Etinde at the expense of Bomono, (which I understand is close to farm-out anyway) although that is pretty much what the board are doing anyway, equally,  the company has made it clear that they continue to screen projects and opportunities on a daily basis. Having got this far I do not believe that it is in the interests of anyone but the marauding shareholders, who have already made a few quid as a result of this, but to support the management, as another author once said ‘nothing good can come of this’.

Falcon Oil & Gas

Origin has pretty much confirmed that the results of the extended production test on the Amungee NW-1 indicate the discovery of a ‘material gas resource’ in the area. This significant discovery is from the Middle Velkerri B shale formation and amounts to at least  2C resources of 6.6 TCF not including other shale formations. The OGIP number of 496 TCF of gas over the 16,000 km² seems huge even using the company’s 16% recovery rate and would not only be as material as but analogous to the Marcellus and Barnett shales in the USA.

The bad news of course remains that the Northern Territories Government have a moratorium on fraccing in the area and so nothing can happen for a while. Initially the worry was that this might take the whole duration of the term of the Chief Minister but now it seems that we might get an interim report by ‘mid summer’. If this gave shareholders any sort of indication that the moratorium might be lifted then the game changes completely. My own feeling is that if work was carried out away from the few densely populated parts of the area and that it would be carried out in a safe and highly regulated manner then it would likely be more than a 50:50 chance of success, after all this is so big that it makes a difference to the whole country, and of course their taxes…Those who are prepared to play the long game will, I suspect, be amply rewarded.

And my Vox Markets podcast from Monday is below…

 

And finally…

Last night saw PSG demolish Barca 4-0 in the Champions League, the second leg may or may not be fun to watch… The Gooners are at Bayern Munich tonight…

And Outlander was given top weight by the handicapper yesterday and was promptly withdrawn from the race by trainer Gordon Elliott…

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http://www.oilcapital.com/companies/stocktube/6919/davy-analyst-on-falcon-oil-gas-s-beetaloo-basin-report-6919.html Davy analyst on Falcon Oil & Gas's Beetaloo Basin report http://www.oilcapital.com/companies/stocktube/6919/davy-analyst-on-falcon-oil-gas-s-beetaloo-basin-report-6919.html Wed, 15 Feb 2017 12:45:00 +0000 Davy analyst Job Langbroek talks us through news today from  Toronto and London listed oiler Falcon Oil & Gas (LON:FOG, CVE:FO) and its Beetaloo Basin acreage.
Running through the detail of what is a technically recoverable resource statement from the firm's partner Origin Energy, Langbroek also considers the perceived shortage coming to Australia's domestic gas market.

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http://www.oilcapital.com/companies/stocktube/6918/falcon-oil-gas-has-colossal-potential-gas-discovery-says-wood-6918.html Falcon Oil & Gas has "colossal" potential gas discovery, says Wood http://www.oilcapital.com/companies/stocktube/6918/falcon-oil-gas-has-colossal-potential-gas-discovery-says-wood-6918.html Wed, 15 Feb 2017 12:40:00 +0000 "This is a colossal, monumental even, potential discovery," says oil analyst Malcolm Graham Wood, referring to the Falcon Oil & Gas (LON:FOG, CVE:FO) Northern Territory news today.
In a report, Origin Energy, its partner and operator of 16,000-square kilometres of licences, put the gross best estimate of gas in place at a world-class 496 trillion cubic feet (TCF).
Converting that to oil equivalent, it stacks up to 82bn barrels.
"Whichever number you look at, it's very substantial indeed," said Graham Wood.

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http://www.oilcapital.com/companies/stocktube/6917/falcon-oil-gas-boss-more-than-pleased-with-beetaloo-basin-gas-in-place-report-6917.html Falcon Oil & Gas boss 'more than pleased' with Beetaloo Basin gas in place report http://www.oilcapital.com/companies/stocktube/6917/falcon-oil-gas-boss-more-than-pleased-with-beetaloo-basin-gas-in-place-report-6917.html Wed, 15 Feb 2017 10:45:00 +0000 Philip O'Quigley, the chief executive of Falcon Oil & Gas (LON:FOG, CVE:FO), described himself as "more than pleased" with the report submitted by partner Origin Energy on its shale acreage in the Beetaloo Basin in the Northern Territory, Australia.
It put a gross best estimate of gas in place at a world-class 496 trillion cubic feet - or up to 82bn barrels of oil equivalent - for the Velkerri B shale horizon.
But as O'Quigley points out that's just one horizon at Beetaloo. There are also the A and C horizons.
"So there's a lot more to go after but at a starting point of 496 trillion cubic feet  (TCF) just for the middle  Velkerri  it's a pretty good place to start."

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27096/vsa-capital-market-movers-millennial-lithium-acacia-mining-27096.html VSA Capital Market Movers - Millennial Lithium, Acacia Mining http://www.oilcapital.com/columns/vsa-capital-market-movers/27096/vsa-capital-market-movers-millennial-lithium-acacia-mining-27096.html Tue, 14 Feb 2017 08:44:00 +0000 Millennial Lithium (TSX:ML)

Iain Scarr has been promoted from VP of Development and Exploration to Chief Operating Officer of Millennial Lithium.

We reiterate our Speculative Buy recommendation.

Acacia Mining (LON:ACA)

Acacia Mining (LON:ACA) has announced strong results for the full year 2016. Gold production of 830koz was up 13% YoY while gold prices averaged 7% higher YoY meaning revenues of US$1.05bn were up 21% YoY. The stronger top line alongside significant cash cost reduction resulted in EBITDA of US$415m, up 137% YoY. Operating cash costs of US$640/oz were down 17% YoY whilst on an AISC basis at US$958/oz they were 14% lower. This was despite a modest increase in capex of 7% YoY to US$196mn.

ACA significantly increased its dividend up from 4.2 cents per share in 2015 to 10.4 cents per share in 2016 after a final dividend of 8.4 cents per share. Net cash of US$218mn was up more than double from US$105m as a result of the strong performance.

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http://www.oilcapital.com/columns/the-pay-zone/27087/oil-price-genel-ophir-sundry-sound-energy-ascent-and-finally-27087.html Oil price, Genel, Ophir, Sundry-Sound Energy-Ascent- And finally... http://www.oilcapital.com/columns/the-pay-zone/27087/oil-price-genel-ophir-sundry-sound-energy-ascent-and-finally-27087.html Mon, 13 Feb 2017 13:01:00 +0000 Oil price

As if proof were ever needed that crude is trading in a narrow range last week WTI was up 3 cents on the week while Brent was down a whopping 11 cents. The end of the week was best for the bulls as the IEA added to other reporters in assessing the adherence to the quotas as being over 90%. Later today we will see the Opec numbers which might just bear those numbers out. Not much else is around, the rig count was up 12 to 741 overall and the oil number was up 8 to 591, nothing special but it will keep rising and there is little to worry about but I am looking forward to the 2nd March when Hunting comment on the market place.

Genel

The company has announced that the PSC’s and the GLA’s for the Miran and Bina Bawi gas fields that were announced in 2015 have been completed. The company say that now ‘progress on the large scale, low cost onshore gas fields’ can begin  which will need midstream gas processing facilities and a pipeline to be installed under the KRG/Turkey agreement made some time ago. It seems like a very long time ago that I first saw the slides at a Genel presentation but have to assume that it is still good news…

Ophir

I dropped by to see Ophir recently, Bill Higgs had sent me a note following the Schlumberger deal at Fortuna and it was clear that I  hadnt processed it very well in the blog and I needed a bit of education. It turns out that we werent actually very far apart, I hadnt quite got to grips with the integrated value chain or the floor and ceiling protection but was right in thinking that OPHR could draw down on the 33.8% of Fortuna if they needed to. Whether this will be necessary or not is at present unclear, ultimately the project should be the ‘substantial’ provider of free cash flow for the business but first get through to 2020. Capex is capped at $150m and there is $350m of cash, (net $165m) in the balance sheet but there are also commitment wells and other prospects in the portfolio which will need to be looked at. Current commitments are around $90m of which the Cote D’Ivoire well takes $30m and interesting prospects in Gabon, Mexico and in Indonesia with  Statoil in the longer term.

There is a clear ethos at Ophir to play ‘within our means’ and keep a clear line of sight through to 2020 which is admirable given my earlier skepticism about raiding the Fortuna pot but will be interesting to see if it can be done. Having said that, in order to maintain a balanced portfolio and take advantage of upgrading extending existing assets efficiently nothing can or should be ruled out. The asset base is strong with 2P assets of 54.4m boe and powerful 2C resources behind it and unless one of the big oil prospects comes in Ophir will remain a gas play for the longer term. Flexibility is a touch tight at the moment but the Fortuna pot could help, although best not used as a regular ‘well’ to tap whenever the exploration department comes up with a particularly good wheeze. Definitely one for the watch list even after the bounce in the last quarter.

Sundry

Sound Energy has announced the early redemption of a loan of £1m which carries a 10% coupon and matures in July 2017. This will involve the exercise of 9.6m warrants  and obviously some minor dilution.

Ascent Resources has confirmed that the raise announce last week has completed, just under £3m has been raised through PrimaryBid at 1.85p per share.

 

And finally…

In the shock of the decade Joe Root has been named England cricket captain with Ben Stokes as his vice captain.

In the Premiership at the weekend the HubCap Stealers beat lacklustre Spurs whilst Chelski could only draw against Burnley. With the Gooners beating Hull City Tigers and the Red Devils seeing off the Hornets the Noisy Neighbours need a win at the Cherries tonight.

And what a Six Nations weekend, after Ireland put 60 on Italy in Rome the Principality Stadium saw a great display of rugby which saw England come from behind to beat Wales. Yesterday afternoon another good match saw France slip by Scotland who might have thought they had enough for Les Blues, on this occasion in white and orange…

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27080/vsa-capital-market-movers-sula-iron-and-gold-plc-27080.html VSA Capital Market Movers - Sula Iron and Gold PLC http://www.oilcapital.com/columns/vsa-capital-market-movers/27080/vsa-capital-market-movers-sula-iron-and-gold-plc-27080.html Mon, 13 Feb 2017 08:23:00 +0000 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (LON:SULA) has announced that two diamond drill rigs for its upcoming drill programme on the Ferensola gold project in Sierra Leone were unloaded at the port in Freetown on 10th February. The original programme had envisaged a single drill covering 2,400m, however, the second drill has been provided at no additional cost to SULA meaning that the results of the programme should be received faster than planned. Furthermore, since Equity Drilling are taking a portion of payment in SULA common shares the cash freed up can be used to fund the programme beyond the original 2,400m plan.

Drilling will be carried out on the Sanama Hill target, where drilling previously backed up historical data, as well as on the significantly larger Eastern Target which was highlighted by the recent IP survey.

We reiterate our 1.7p/sh. target price and Speculative Buy recommendation.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27079/vsa-morning-agri-comment-27079.html VSA Morning Agri Comment http://www.oilcapital.com/columns/vsa-capital-market-movers/27079/vsa-morning-agri-comment-27079.html Mon, 13 Feb 2017 08:21:00 +0000 AAAP#Secures New Supply Contract

Anglo African Agriculture plc (LON:AAAP), the London-listed food manufacturing and processing company with operations in Cape Town, South Africa, has announced a significant contract win.

AAAP will supply up to 300t of speciality spices to an unnamed South African food manufacturer through CY 2017

Order subject to supply chain volumes from the purchaser

VSA Comment

In FY 2017 AAAP sold c1,100t of product through its wholly owned spice manufacturing business Dynamic Intertrade. This latest contract provides a significant proportion of the volumes needed for AAAP to exceed this figure in FY 2017.

As previously announced, AAAP is currently undergoing a number of expansion initiatives to expand its production capacity to 250t per month, which should be complete by the end of February.

The contract win highlights the continued progress at AAAP, following the installation of new senior management at the end of last year.

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http://www.oilcapital.com/columns/the-pay-zone/27074/oil-price-faroe-and-finally-27074.html Oil price, Faroe, And finally... http://www.oilcapital.com/columns/the-pay-zone/27074/oil-price-faroe-and-finally-27074.html Fri, 10 Feb 2017 09:31:00 +0000 Oil price

The oil price is marginally down on the week but little has happened, the inventory figures may have signalled panic but were rescued by the gasoline draw helped by lower refinery runs but better signs of growth in the economy. A very slight thaw in the Donald’s attitude towards China is detected but dont bet the house on it.

Company news has been very thin this week which is good as I have had a load of company meetings which you will see being written up during next week.

Faroe Petroleum

An operations update from Faroe today and as expected all is going well. Production is down but as expected due to Njord and Hyme outage and a small time at Trym where Harald takes priority on lifts. Opex is $24 which is good but will rise this year due to the lower production, reserves are up, 2P is now 81.3 mboe. At ODA all kit is ordered, taking advantage of current low costs and at Tambar we can expect up to 5 wells on site by 2018. The new APA licence awards give a pleasing mixture of near and longer term as well as higher and lower risk and reward.

Financially, they have £97m of cash and with the new RBL and EFF arrangements with ten banks new and old, undrawn and leaving them with all options covered. Being in such a strong position means that the company can look for further acquisition opportunities and the company point out that they are full of ambition and keen to accelerate the pace of growth. So, everything in the garden is rosy and management and shareholders can sleep easily at night, or can they? Delek Group holds 20% of the shares and having just got a recommended offer through on the cheap from Ithaca I hope that should the same thing happen here management wouldnt surrender with as little determination as did the Ithaca board. FPM remains right up there as one of the best in the sector, with exceptional management, a strong balance sheet with scope, and a cracking portfolio at all stages of the cycle, lets hope it can remain independent and of course, go Dazzler!

And finally…

Back to the 6 Nations where it’s Italy v Ireland and Wales v England tomorrow and France v Scotland on Sunday. Wales will want to reproduce their best form and hope that England play like last week, the other matches should speak for themselves.

In the Prem there is only one standout fixture, the HubCap Stealers host Spurs and must win I assume. Elsewhere the Gooners host the Hull City Tigers and the Red Devils entertain the Hornets whilst Chelski go to Burnley and the Noisy Neighbours go to the Cherries.

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http://www.oilcapital.com/companies/stocktube/6897/eco-atlantic-oil-gas-offers-investors-a-unique-proposition-says-ceo-gil-holzman-6897.html Eco (Atlantic) Oil & Gas offers investors a unique proposition, says CEO Gil Holzman http://www.oilcapital.com/companies/stocktube/6897/eco-atlantic-oil-gas-offers-investors-a-unique-proposition-says-ceo-gil-holzman-6897.html Thu, 09 Feb 2017 12:28:00 +0000 Eco (Atlantic) Oil & Gas, chief executive Gil Holzman spoke to Proactive on the day the Canadian oil explorer, listed on London's AIM market.

Raising £4.8mln, the cash will be used to help finance a drilling campaign offshore Guyana with partner Tullow Oil.

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http://www.oilcapital.com/companies/stocktube/6894/lgo-energy-s-neil-ritson-hoping-to-move-quickly-to-re-establish-spanish-production-6894.html LGO Energy's Neil Ritson 'hoping to move quickly' to re-establish Spanish production http://www.oilcapital.com/companies/stocktube/6894/lgo-energy-s-neil-ritson-hoping-to-move-quickly-to-re-establish-spanish-production-6894.html Thu, 09 Feb 2017 11:52:00 +0000 LGO Energy PLC (LON:LGO) executive chairman Neil Ritson talks to Proactive about the company's intention to re-apply for the production licence at the Ayoluengo Field in northern Spain.

The field was operated by its subsidiary Compañía Petrolífera de Sedano (CPS) until the termination of La Lora Concession on 31 January.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27061/vsa-capital-market-movers-metal-tiger-27061.html VSA Capital Market Movers - Metal Tiger http://www.oilcapital.com/columns/vsa-capital-market-movers/27061/vsa-capital-market-movers-metal-tiger-27061.html Thu, 09 Feb 2017 08:16:00 +0000 Metal Tiger (LON:MTR)

Metal Tiger (MTR LN) announced yesterday that it has exercised 29.2mn warrants at AUD0.01/sh. for 29.2mn shares in MOD Resources (MOD AU) at a cost of AUD292k (£179k). MOD and MTR hold a 70/30 JV on the T3 copper project in Botswana. The funds arising from the exercise will be used in the development of this project where the focus is on completing a PFS. We note that the exercise of the warrants increases MTR’s holding in MOD’s issued shares to 5.01% which is notifiable on the ASX. 

We reiterate our Buy recommendation and target price of 5.68p/sh.

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http://www.oilcapital.com/companies/stocktube/6888/success-at-te-8-will-really-prove-up-a-significant-size-at-tendrara-for-sound-energy-says-analyst-6888.html Success at TE-8 'will really prove up a significant size' at Tendrara for Sound Energy, says analyst http://www.oilcapital.com/companies/stocktube/6888/success-at-te-8-will-really-prove-up-a-significant-size-at-tendrara-for-sound-energy-says-analyst-6888.html Wed, 08 Feb 2017 15:58:00 +0000 Cantor Fitzgerald's Oil & Gas analyst Sam Wahab talks to Proactive about Sound Energy PLC's (LON:SOU) impending drill programme on the TE-8 gas project.

The company has confirmed the mobilisation of the Saipem rig that will be used for the programme.

Ground works at the TE-8 location are now complete, the rig is moving from the TE-7 site, and it is expected to ‘rig up’ by mid-February.

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http://www.oilcapital.com/companies/stocktube/6882/bp-in-a-buy-trend-but-beware-if-it-does-this-6882.html BP in a ‘buy trend’, but beware if it does this http://www.oilcapital.com/companies/stocktube/6882/bp-in-a-buy-trend-but-beware-if-it-does-this-6882.html Wed, 08 Feb 2017 10:00:00 +0000 Technical analyst Zak Mir tips the BP PLC (LON:BP.) share price to bounce back again after a recent slide, although there are a couple of potential warning signs for the stock which he highlights.

“We’ve been in a rising channel since the beginning of last year and currently teetering on the brink of support at around 455p,” Mir tells the Proactive Investors Bulletin Board.

“While we’re above the 200-day moving average at 440p one would regard the stock as being in a buy trend and capable of retesting the best levels of the year around 520p

“Otherwise, a break of 440p and the 200-day line could be bearish.”

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http://www.oilcapital.com/companies/stocktube/6881/nu-oil-and-gas-a-volatile-play-but-you-could-double-your-money-6881.html Nu-Oil and Gas a volatile play, but you could double your money http://www.oilcapital.com/companies/stocktube/6881/nu-oil-and-gas-a-volatile-play-but-you-could-double-your-money-6881.html Wed, 08 Feb 2017 09:45:00 +0000 Nu-Oil and Gas PLC (LON:NUOG) is a “very volatile play” according to Zak Mir, but if you’re brave enough to take the plunge you could almost double your money over the next few months.

In the latest segment of the Proactive Investors Bulletin Board, the analyst explains: “It’s a very volatile play and the chart reflects that.

“We had the move in October last year and since then we’ve seen consolidation at and just below the 50-day moving average at 0.45p.

“Really, while we’re above the 0.4p zone the chances are of a retest of the best levels of October towards 1p over the next few months.”

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27053/vsa-capital-market-movers-rio-tinto-tullow-oil-plc-eco-atlantic-oil-gas-ltd-27053.html VSA Capital Market Movers - Rio Tinto, Tullow Oil plc, Eco (Atlantic) Oil & Gas Ltd http://www.oilcapital.com/columns/vsa-capital-market-movers/27053/vsa-capital-market-movers-rio-tinto-tullow-oil-plc-eco-atlantic-oil-gas-ltd-27053.html Wed, 08 Feb 2017 08:38:00 +0000 Rio Tinto (LON:RIO)

Rio Tinto (LON:RIO) has announced robust full year results for 2016. Revenues were down 3% YoY to US$33.8bn, however, EBITDA was up 7% YoY to US$13.5bn and net income of US$4.6bn reversed a loss of US$0.9bn in 2016. Segment performance was mixed with iron ore and energy and minerals performing strongly offset by weakness in aluminium, copper and diamonds. Annual production for iron ore was up 4% YoY and with the benefit of stronger prices EBITDA was up 11% to US$8.5bn. Although oil production was weaker YoY the rebound in prices drove a significant recovery in segment earnings and EBITDA was up 46% YoY to US$1.8bn. Copper and diamonds segment earnings were, however, weaker with EBITDA down 24% to US$1.4bn owing largely to weakness in commodity prices. The aluminium division also suffered due to weaker aluminium premia, offsetting strong production increases and EBITDA was down 10% YoY to US$2.5bn.

RIO have also declared a final dividend of US$1.25/sh. meaning a full year dividend of US$1.70/sh or US$3.1bn, down 21% YoY. This is alongside a share buyback programme of US$0.5bn to be carried out during 2017.

Tullow Oil (LON:TLW)

Tullow Oil (TLW) announced its results for the year ended 31 December 2016 this morning. FY working interest production was 67.1kboepd (-9% YoY), in-line with recent guidance. However, including the impact of insured barrels from the Jubilee field this increases to 71.7kboepd. With the TEN development coming on-line in August 2016 TLW’s production is now expected to increase to 78-85kboepd in 2017. Revenue was US$1.3bn (-21% YoY) and net debt at a significant US$4.8bn (+19%).

TLW’s balance sheet remains under pressure with gearing standing at 5.1x. 2016 capex was US$0.9bn (-47% YoY) and TLW plans to reduce this further in 2017 to US$0.5bn. Which includes US$125m to be offset by the completion of the farm out for 21.57% of the Lake Alberta project to Total (FP FP) for US$900m. However, only US$100m of this deal will be received upfront so it will not provide significant deleveraging of its balance sheet in the short term.

Whilst TLW was free cash flow positive in Q4 2016 after TEN first oil, we anticipate that it may farm-out more of its assets to allow it to deleverage quicker. We are cautious over the stock whilst the net debt remains at such levels.

Eco Atlantic (LON:ECO)

Eco (Atlantic) Oil & Gas (ECO)# an oil and gas company with highly prospective exploration licences offshore Guyana and Namibia was admitted to trading on AIM today. As part of the listing it raised £5.09 million before expenses by placing 31,781,250 new Common Shares.
 

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http://www.oilcapital.com/columns/the-pay-zone/27046/oil-price-hurricane-rockhopper-and-finally-27046.html Oil price, Hurricane Rockhopper, And finally... http://www.oilcapital.com/columns/the-pay-zone/27046/oil-price-hurricane-rockhopper-and-finally-27046.html Tue, 07 Feb 2017 09:44:00 +0000 Oil price

Very little to report, traders citing a quiet day at the bourse. The usual anti-Iran rhetoric from the USA and reports of building production domestically so no change there. Money managers continue to increase their skin in the oil price game.

Hurricane Energy

Further good new from HUR this morning which primarily validates mine and others view that the oil in place number previously reported by the company will be significantly enhanced by the upcoming CPR. The company report that further evaluation of wells 7 and 7z reinforce the view that the field is ‘substantial’ and that previous estimates are ‘conservative’ and the CPR will deliver a ‘material uplift’. Further good news is provided by the fact that the Brynhild fault separates the Lincoln/Warwick single accumulation from Lancaster and Halifax where of course there is a well drilling at present. I remain extremely confident that the CPR ahead of the FID will deliver excellent results and that the company has north of a billion barrels across its acreage, more after I have spoken to Dr Trice…

Rockhopper Exploration

The company has issued an operational and corporate update this morning with progress being made across the board. At Sea Lion the FEED process continues to make good progress with the technical phase being concluded. There will now be a shift to commercial, fiscal and financing elements. The Premier announcement recently has ‘significantly enhanced’ the discussions around the Sea Lion financing. At Abu Sennan there is imminent drilling of and exploration and a development well with the intention of adding additional reserves. The company has waived the right to pre-emption and is worth noting that the recent Kuwait Energy deal was done at highly attractive terms to those on which RKH entered on. The year end cash was $80m and with post year end costs will be around $60-65m adjusted, in line with guidance. 2017 development, exploration and abandonment costs are expected to be in the order of $13m some of which they may get back after arbitration. I am waiting to speak to the company so may add more in next day or two as appropriate.

And finally…

Very little on the sporting front today but I am always impressed by the wit of followers of the blog on Twitter. Yesterday after the unnecessary  intervention of the Speaker of the House of Commons into the Trump debate I received a Tweet saying, all is not lost regarding the Donald in the Chamber, imagine his surprise when he Googles ‘Burcow wife’….

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27045/vsa-capital-market-movers-egdon-resources-plc-27045.html VSA Capital Market Movers - Egdon Resources Plc http://www.oilcapital.com/columns/vsa-capital-market-movers/27045/vsa-capital-market-movers-egdon-resources-plc-27045.html Tue, 07 Feb 2017 08:31:00 +0000 Egdon Resources (LON:EDR)

Egdon Resources (EDR)# has provided an update on its plans at the Wressle oil field having had planning permission refused for production at the site by North Lincolnshire Council’s Planning Committee on 11 January, going against previous planning guidance. As anticipated EDR will now submit a formal appeal against the ruling at the earliest possible opportunity.

Also as expected, EDR has lowered its average production guidance for the year ending 31 July 2017 from 165boepd to 100-110boepd, reflecting the initial refusal. EDR will now take the opportunity to submit a new planning application along with the appeal for the development to address specific concerns outlined by the council.

In our model we assume EDR’s appeal will be successful but the delay has pushed out our expected cash flows for the well by one year, with the Wressle income and associated capex now occurring in FY 2018. However, this does not impact on our NAV and we maintain our BUY recommendation and 34p TP.
 

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http://www.oilcapital.com/companies/stocktube/6861/victoria-oil-gas-chairman-runs-through-the-good-start-to-2017-6861.html Victoria Oil & Gas chairman runs through the 'good start' to 2017 http://www.oilcapital.com/companies/stocktube/6861/victoria-oil-gas-chairman-runs-through-the-good-start-to-2017-6861.html Mon, 06 Feb 2017 14:58:00 +0000 Kevin Foo, the chairman of Cameroon focused Victoria Oil & Gas plc (LON:VOG), said he was very "happy" with the way 2017 has started.
In January the firm averaged around 14.5 mmscfd (million standard cubic feet per day) of sales peaking at 17 mmscfd in the month.
"It was a good start," he told Proactive's Andrew Scott.
It comes as the new extension to the Bonaberi pipeline came on-stream and three new customers began taking gas in December, adding around 500,000 scf/d in production.

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http://www.oilcapital.com/columns/the-pay-zone/27039/oil-price-ithaca-energy-aminexsolo-europaangus-velocys-and-finally-27039.html Oil price, Ithaca Energy, Aminex/Solo, Europa/Angus, Velocys, And finally... http://www.oilcapital.com/columns/the-pay-zone/27039/oil-price-ithaca-energy-aminexsolo-europaangus-velocys-and-finally-27039.html Mon, 06 Feb 2017 12:57:00 +0000 Oil price

Marginally up last week but creeping in the right direction aided by the Iranians doing a missile test that was probably ill advised for such a peace loving nation…The Donald responded as you might expect but he cannot do much about the international sanctions, yet. The EIA said that US production might be up 110/- b/d this year, hardly the terror scenario that the oil bears are preaching. Having said that, the Baker Hughes rig count showed an increase of 17 units overall to 729, oil was up 17 to 583 units and the jobs data showed a growing if not booming economy.

Ithaca Energy- Giving it all away…..

Ithaca has announced an agreed cash offer worth 120p from Delek Group which is a 19.7% shareholder and which puts an enterprise value on IAE of $1.24bn. This bid which is only an 11% premium to the Friday share price, is highly opportunistic, coming as it does only days before the FPF-1 comes on stream at Stella and which will transform the economics of the company. There is no doubt that looking at current analysts’ values of the company the bid might be considered full, but I would contend that those values would have changed significantly in this landmark year and looking forward the bid will look parsimonious in the extreme.

Ithaca has a fine portfolio of assets and a number of these will be proved to be especially valuable to Delek if the deal goes through. Whilst not certain of course, the economics of the sector are beginning to look as bright as they have done for a long time and with industry costs still falling and the oil price creeping up valuations are more subject than ever. Shareholders who are probably delighted with this bid, dont get me wrong, may be about to miss out on the ride of their lives as IAE start up at Stella, raise revenue, pay down debt, all bringing the rating down, and miss taking advantage of what is one of the best managements in the sector.

Having spoken to the management I fully understand that they have the best insight into the risk profile and the potential value of the company going forward and could not in all honestly not put this offer to shareholders with their recommendation. I am also assured that no discussions have taken place about job security and that includes whether the IAE executives are to be kept on should the rumours be true about Delek listing an oil vehicle in London. It should be noted that they also own 20% of Faroe Petroleum another premium North Sea player, maybe following this and the recent Chrysaor deal means that the consolidation of the sector is finally under way. That will be fine as long as long as opportunistic bids are not accepted just as the promised land is under foot and patient shareholders rewards are within tantalising reach. It would certainly not do if an uber cautious board delivered one the sectors finest companies into hostile hands on the cheap and without appropriate vision.

Aminex

The company has announced that the Ntorya-2 well has successfully found a gross gas bearing reservoir unit of approximately 51m and net pay of 25-30m, well ahead of pre-drill expectations. The company is doing flow tests now which should be complete by the end of the month. Given that the first well flowed at 20 million cubic feet a day with some condensate, there must be a reasonable chance that this is bigger than that. If this turns into a proper gas field as one can almost say it is, it is only 40km to the Madimba gas processing plant and the natural gas pipeline system. Aminex and Solo shareholders can look forward to the Ntorya field after a long and very patient wait…

Europa/Angus

EOG has farmed-out 12.5% of PEDL 143 which includes the Holmwood prospect to Angus Energy, who will pay for 25% of exploration costs with a cap of £3.2m plus other costs. Following various transactions EOG will keep 20% and Angus gets an entry into an area it is very familiar with.

Velocys

Velocys has announced that the first Fischer-Tropsch product has been successfully produced at Envia Energy’s plant in Oklahoma City. I will write further on Velocys later as I have a meeting with the CEO tomorrow.

Sound Energy

A link below to a Proactive interview I did last week following the announcement of the independent basin model.

Proactiveinvestors Stocktube interview: Sound Energy PLC’s “mind blowing” upside in Morocco

And finally…

Where does one start? I suppose with a new name to conjure with, Denis Shapolov the 17 year old Canadian tennis player who has earned new shame by being disqualified from the Davis Cup after hitting the umpire in the eye with a ball designated as for row z. It was the deciding rubber so team GB go through to play France.

In the Super Bowl it was the best ever fight back and first into extra time as the Patriots came back from 28-3 to win with you-know-who being MVP…

The 6 Nations rugby was first rate, Scotland started with a much deserved win over Ireland although Murrayfield held its collective breath as the tide of green looked like clawing back the deficit. England were not on song but crept over the line and in Rome, as ever, Italy started well but were rolled by Wales  in the end.

In the Prem Chelski were just too good for the Gooners, winning 3-1 whilst the HubCap Stealers lost 2-0 at Hull City Tigers. Jesus saved City with a winner in overtime and the Foxes are looking extremely vulnerable going down 0-3 to the Red Devils, without a fight.

Finally Alastair Cook has resigned as England cricket Captain which is a terrible shame but I suppose gives Rooooooooooooooot a run through a busy year which ends with the Ashes. I wish him well and hope he stays on at No1.

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http://www.oilcapital.com/companies/stocktube/6858/aminex-s-ntorya-2-appraisal-well-result-is-major-step-forward-says-graham-wood-6858.html Aminex's Ntorya-2 appraisal well result is "major step forward", says Graham Wood http://www.oilcapital.com/companies/stocktube/6858/aminex-s-ntorya-2-appraisal-well-result-is-major-step-forward-says-graham-wood-6858.html Mon, 06 Feb 2017 12:44:00 +0000 Malcolm Graham Wood, oil and gas expert, mulls over the news from Aminex plc (LON:AEX) and Solo Oil PLC (LON:SOLO) on the Ntorya-2 appraisal well in Tanzania, which he says is a "major step forward".
Ntorya-2 was sunk to 2,750 metres and hit 51 metres of gross gas bearing reservoir, with net pay interpreted to be between 25 and 30 metres.
"I think this is a major step forward to a decent gas field being discovered ," said Wood, who added that the result looked "quite a bit better than the first well".
"I think this is  a fair bit better than they were expecting," he added.

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http://www.oilcapital.com/companies/stocktube/6857/ithaca-energy-inc-bid-way-too-cheap-reckons-oil-analyst-6857.html Ithaca Energy Inc bid "way too cheap", reckons oil analyst http://www.oilcapital.com/companies/stocktube/6857/ithaca-energy-inc-bid-way-too-cheap-reckons-oil-analyst-6857.html Mon, 06 Feb 2017 12:37:00 +0000 Ithaca Energy Inc's (LON:IAE, TSE:IAE) agreed takeover offer by 19% shareholder and Israeli group Delek Group looks "way to cheap", reckons oil analyst Malcolm Graham Wood, speaking to Proactive.
Delek proposes to buy Ithaca for 120p per share, Friday’s closing price was 107.75p.
Wood says the offer is an 11% premium to the close last week.
He says Ithaca has worked hard over the last two to three years to build a strong position in the North Sea and its Stella field, where it's operator, is about to come on stream, which will produce decent revenue, reduce debt, leaving it in a strong position.
"I think the North Sea is becoming a very exciting place," he added

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http://www.oilcapital.com/companies/stocktube/6855/europa-s-latest-farm-out-deal-the-gold-standard-says-ceo-hugh-mackay-6855.html Europa's latest farm out deal 'the gold standard' says CEO Hugh Mackay http://www.oilcapital.com/companies/stocktube/6855/europa-s-latest-farm-out-deal-the-gold-standard-says-ceo-hugh-mackay-6855.html Mon, 06 Feb 2017 09:07:00 +0000 Europa OiI and Gas PLC (LON:EOG) chief executive Hugh Mackay speaks to Proactive about the company's wholly owned subsidiary signing a Farm Out Agreement in relation to a 12.5% interest in the PEDL143 license in the Weald Basin with a subsidiary of Angus Energy.

''We're very excited about the Holmwood Prospect - we've now got UKOG [UK Oil & Gas Investments Plc] as a partner and they're a part of the Horse Hill / Gatwick Gusher discovery which is a very exciting onshore discovery, that's 12 kms to the east - and 5 kms to the north of Holmwood is Brockham Oil Field. Angus operate that''.

Mackay adds: ''For investors they should be encouraged that two companies with detailed technical insight and commercial insight in that Weald basin … have chosen to farm in with PEDL143 and to fund drilling the Holmwood prospect''.

''Personally, I'm very confident we're going to find oil'', Mackay tells Andrew Scott.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27031/vsa-capital-market-movers-goldplat-and-rangold-resources-27031.html VSA Capital Market Movers - Goldplat and Rangold Resources http://www.oilcapital.com/columns/vsa-capital-market-movers/27031/vsa-capital-market-movers-goldplat-and-rangold-resources-27031.html Mon, 06 Feb 2017 08:29:00 +0000 Goldplat (LON:GDP)


Goldplat has announced the successful commissioning of its Stage One processing facility at its Kilimapesa mine in Kenya. Although in line with our expectations this news confirms that the turnaround at the mine, which has resulted in significant losses in recent period is well underway. The plant has a design capacity of 200tpd and stage one represents the commissioning of the plant whilst stage two includes the installation of the crusher circuit and three leach tanks and stage three is the installation of a second mill and three further leach tanks.

A stockpile of 6kt of crushed ore was created to enable the plant to operate whilst stage two is completed. At the current rate, GDP has guided to gold production of 4,600oz in FY 2017 which is marginally above our estimate of 4,500oz and up from 2,005oz in FY 2016. In line with GDP’s guidance we anticipate that Kilimapesa is likely to reverse operating losses in FY 2017 which would strongly benefit the results of the wider group.

We reiterate our Buy recommendation and 11.2p/sh. target price.


Randgold Resources (LON:RRS)
Randgold Resources has delivered robust operational results for 2016 although the significant announcement is the dividend increase to US$1/sh., up 52% YoY. Group production of 1.25mnoz up 3% YoY was in line with guidance while total cash costs were down 6% YoY to US$639/oz.

As a result of stronger production and a recovery in the gold price revenue of US$1.55bn was up 11% YoY. Given stronger revenues and a reduction in cash costs, profit from mining activity was also up strongly by 31% YoY to US$752mn. RRS long term plan indicates that production is due to rise further in 2018 alongside declining unit costs.

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http://www.oilcapital.com/companies/stocktube/6853/solo-oil-s-ntorya-has-the-potential-to-change-tanzania-says-lenigas-6853.html Solo Oil's Ntorya has the potential to 'change Tanzania' says Lenigas http://www.oilcapital.com/companies/stocktube/6853/solo-oil-s-ntorya-has-the-potential-to-change-tanzania-says-lenigas-6853.html Mon, 06 Feb 2017 08:05:00 +0000 Entrepreneur David Lenigas tells Proactive: ''The really big impact one is this thing they're [Solo Oil PLC (LON:SOLO)] doing at the moment down at Ntorya''.

''They're talking 4-5 trillion cubic feet of gas in place - that changes a country''.

Lenigas also discusses LGO Energy [LGO Energy PLC (LON:LGO)] telling Andrew Scott: ''Trinidad - 80% of its economy relies on the hydrocarbon business, so Trinidad needs companies like LGO Energy to get in there and get producing''.

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http://www.oilcapital.com/columns/the-pay-zone/27027/oil-price-victoria-oil-gas-premier-oil-sound-energy-diversified-gas-oil-and-finally-27027.html Oil price, Victoria Oil & Gas, Premier Oil, Sound Energy, Diversified Gas & Oil, And finally... http://www.oilcapital.com/columns/the-pay-zone/27027/oil-price-victoria-oil-gas-premier-oil-sound-energy-diversified-gas-oil-and-finally-27027.html Fri, 03 Feb 2017 11:56:00 +0000 Oil price

Yesterday was another up and down day, Brent traded above $57 for some of the time helped by comments from the Russian Oil Minister saying that they were cutting over and above their pact number whilst the Donald poked Iran. On the negative side, Buzzard returned after its unscheduled downtime and Brazil noted higher than expected production.

Victoria Oil & Gas

VOG was one of the first stocks that went into this year’s bucket list and today’s 4Q operational update shows just why. The company note increasing gas production, the 4th quarter was 7.64 mmscf/d against 7.14 for the comparable quarter whilst gas sales were up 4.5%. For the year, Logbaba gas sales were up 24% to 3,566 mmscf (2.868) and both Logbaba wells are progressing well albeit with some challenges. To combat the high pressure/high temperature wells, the company is using state of the art kit including Managed Pressure Drilling and Downhole Deployment Valves, the latter for the first time in sub-Saharan Africa. These additions to the well should ensure that they are of higher quality and reduce failure risk although they will add modestly to the cost of the wells.

We knew that 15km of pipe had been laid in the Bonaberi extension and this now gets to the key Western Extension hub and three new customers took gas in Q4 with more to come especially with the dry season upon us. The financials record Q4 revenue of$4.6m, $15.8m of cash, net $1.3m and undrawn credit lines of $16m. With the drilling programme going well and what seems like huge demand from customers old and new at the other end of the pipeline prospects for VOG and the shares are hugely undervalued.

Premier Oil

So, at last the deal is done and subject to any last minute problems Prems have a deal with their lenders. Total existing facilities of $3.9bn remain and undrawn capacity is preserved. Maturity dates are aligned to May 2021 with covenants amended, net debt to EBITDA will be 7.5x to end ’17, 5x to end ’18 and 3x in ’19.With interest cover ratio reducing to 1.85x before increasing to 3x in ’19, covenant net debt has to be less than $2.95bn by the end of ’18. Unsurprisingly there are ‘enhanced terms for lenders’ or they would have to return to the house of God although how they can sleep at night nobody knows…

The company appear to be free to ‘selectively seek to invest in unsanctioned projects’ such as Tolmount and Sea Lion but the lenders have annual approval of Prems capex and exploration budgets and ‘final sanction’ of ‘significant new projects’. Add to that ‘certain approval rights’ in terms of acquisitions and disposals and you are not entirely in possession of what is closest to you..However, when all is said and done it could have been so much worse and is a valuable lesson all round. With very strong operational performance at the moment, especially with Catcher on the horizon Premier should be able to cope at all levels. The two key assets are Tolmount and Sea Lion, both consumers of cash and both up for farm-out which should now be a key priority as the latter should be responsible for the company’s medium term growth and it should be remembered is a world class asset…

Sound Energy-Took us up the Gherkin

Sound Energy takes looking after its shareholders very seriously and last night the London Gherkin was the venue for the strategy presentation by the board, including a very welcome speech by Marco Fumagalli of cornerstone shareholders Continental. Over 260 people attended and many queued up outside on the wait list whilst 2,000 people dialed in on the live feed such is the retail interest in the company. CEO James Parsons and the other speakers didnt disappoint with descriptions of the ‘end game’ and ‘golden tickets’ explaining the corporate strategy and solid, detailed analyses of the current programme. Luca Madeddu gave an overview of Morocco and Brian Mitchenor talked of 260 TCF of gas of which much had sadly gone but plenty remained while Leonardo Spicci also talked about the forthcoming spud at Badile in Milan.

Sound has an interesting upcoming programme, including the TE-8 well to hopefully start to confirm the characteristics of Tendrara, the Sidi Moktar prospect also in Morocco and of course the Badile exploration well in Italy. By the end of the year there should be a full CPR to enable an FID and FDP on Tendrara, as well as undoubtedly many other plans, as for presentations wherever next, Wembley Stadium?

Diversified Gas & Oil

DGO has appeared on the bourse this morning having raised £39.7m at 65p through Mirabaud. I met with the CEO and other board members yesterday to get an idea of this what this company does. Confusingly they dont consider themselves to be a gas or oil company, more a buyer of long term assets in their core areas of Ohio, West Virginia and Pennsylvania and even more confusingly intend to pay a dividend with a yield of around 5%. At present pretty much all of the asset base is proven reserves although at some stage the temptation will be to have a go at what could be a treasure trove of probable and possible resources. Having said that there is a list of up to a ‘magnificent seven’ acquisitions on the cards so they will remain busy.

The company has raised $50m to pay down debt, repurchase bonds and for working capital as above. The raise which is highly credible, is made easier by this company being more of a low risk and solid value asset base play which happens to have a progressive dividend policy based on its reserve base. DGO is worth keeping on the radar screen as it may pleasantly surprise.

And finally…

Another big weekend in sport and this is a truly awesome display, for those of us who follow the oval ball the 6 Nations Championship is the holy grail and tomorrow sees Scotland v Ireland and England v France and on Sunday Wales go to Rome to play Italy.

Another oval ball will be on display in Houston Texas as the Super Bowl will be fought out between the Patriots and the Falcons in what might be a close fought match. My ticket definitely got lost in the post and to think all those visits to Houston!

In the Prem this week’s monster match is the visit of the Gooners to Stamford Bridge, a win for Chelski might just see off everyone else as well. The Noisy Neighbours have picked up form and host resurgent Swans, the HubCap Stealers go to Hull City Tigers and the Red Devils are at the Foxes.

Finally it’s Davis Cup time again and team GB travel to Ottawa without Muzza hoping that recent good single form will do the trick against Canada.

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http://www.oilcapital.com/companies/stocktube/6849/diversified-gas-oil-lists-on-aim-and-raises-us50mln-to-accelerate-growth-6849.html Diversified Gas & Oil lists on AIM and raises US$50mln to accelerate growth http://www.oilcapital.com/companies/stocktube/6849/diversified-gas-oil-lists-on-aim-and-raises-us50mln-to-accelerate-growth-6849.html Fri, 03 Feb 2017 09:24:00 +0000 US- focused Diversified Gas & Oil plc (LON: DGOC) listed on London's AIM market today and raised US$50mln to accelerate growth in the process.
A delighted chief executive Rusty Hutson walks Proactive's Andrew Scott through the fundraise, his profitable firm, plans ahead and the attractiveness of the Appalachian Basin.
"The opportunities that exists in the US, especially in the Appalachian basin... we are seeing a lot of acquisition opportunities at favourable multiples...we are buying these assets very reasonably priced," he said.
This allows the firm to increase cash flows, and progress the dividend policy, he said.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/27021/vsa-capital-market-movers-metal-tiger-millennial-lithium-27021.html VSA Capital Market Movers - Metal Tiger, Millennial Lithium http://www.oilcapital.com/columns/vsa-capital-market-movers/27021/vsa-capital-market-movers-metal-tiger-millennial-lithium-27021.html Fri, 03 Feb 2017 08:14:00 +0000 Millennial Lithium (TSX:ML)

Millennial Lithium (ML) has added to its existing prospective lithium acreage in the Pocitos basin of NW Argentina with the signing of an option to acquire 100% of an additional 15.9km2. This acreage is to be called the Pocitos West project. ML currently has a license at the north end of the basin optioned to Southern Lithium (SNL CN) and lies 40km west of ML’s primary project Pastos Grandes. ML will make initial payments of US$0.25m and a further set of staged payments over 36 months to total US$4.5m to acquire 100% of the license.

The Pocitos basin is 60km long and is a known host of lithium brines. Historical results from 12 shallow holes drilled in 1979 by an Argentine government agency yielded lithium in brine of up to 417ppm and potassium in brine up to 15,300ppm. Historical geophysical evidence suggests the basin is 500m deep under this license and has a floor which dips toward this ground.

ML continues to consolidate the ownership of prime lithium acreage in the Lithium Triangle of South America; the source of 80% of the world’s current lithium reserves.

We retain our SPEC BUY recommendation.

Metal Tiger (LON:MTR)

Metal Tiger (MTR LN)’s JV partner MOD Resources (MOD AU) announced this week a quarterly activities report. MTR holds a 30% interest in the T3 copper project in Botswana, for which MOD holds a 70% interest. Although the release does not contain additional new information MOD has confirmed that the PFS is now underway following the release of a PEA in Q4 2016.

The PEA demonstrated the potential for a low cost copper project producing c20ktpa Cu and 609kozpa Ag. Our analysis derived a post-tax NPV of US$170m on a 100% basis with initial capital of US$135m and cash costs of US$1.19/lb.

Currently MOD’s market capitalisation of A$48.8m (£29.7m) implies that MTR which currently has a market capitalisation of £9.8m does not even reflect the full value of its interest in the T3 project. We therefore believe that MTR continues to be heavily undervalued particularly given its broader portfolio of interests such as the brownfield zinc-lead-silver mine at Boh Yai and Song Toh in Thailand.

We reiterate our Buy recommendation and 5.68p/sh. target price.

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http://www.oilcapital.com/columns/the-pay-zone/27017/oil-price-sound-energy-sdx-energy-soco-plexus-and-finally-27017.html Oil price, Sound Energy, SDX Energy, SOCO, Plexus, And finally... http://www.oilcapital.com/columns/the-pay-zone/27017/oil-price-sound-energy-sdx-energy-soco-plexus-and-finally-27017.html Thu, 02 Feb 2017 13:24:00 +0000 WTI $53.88 +$1.07, Brent $56.80 +$1.22, Diff -$2.92 -46c, NG $3.17 +5c


Oil price
Sentiment over quota adhesion won over stock build and US production yesterday and crude had a reasonable rally helped by a weaker greenback. Stocks were higher than expected at 6.5m barrels and gasoline was also higher than forecast at 3.9m barrels, refineries still producing despite lower refining margins. Opec and non-Opec cuts appear to be working and the reports so far show that over 80% of the target is being hit, probably helped by Saudi cutting more to help things out. There are still many clowns out there who think that US production can rise by a meaningful amount from a standing start but pretty much anything they can do can be nullified by turning just one spigot in Saudi Arabia…
For those of you who looked at Cycles Analysis chart work from Andy Pancholi, the February package was out yesterday full of interesting facts and figures.


Sound Energy
Sound have released the independent basin model for Tendrara and Meridja which gives a mid-case number of Gas In Place as 17 TCF with a range of 9-31 TCF. The full CPR on the acreage should be commissioned after the results of the TE-8 well are known and before the FID which is scheduled to be taken at the end of this year. Existing wells prove up the 300-500 BCF already in the market and complement my current estimate of 3-5 TCF on the acreage. If however the numbers above were in any way accurate and their is no reason to believe not, there is a lot more to go for in the share price, time will tell.
Sound are not standing still, they never do and are already contemplating a drilling programme on Sidi Moktar wells for re-entry and taking a look at the lower Jurassic. We mustn’t forget that drilling on Badile is expected to start this quarter as well giving Sound and its shareholders a particularly busy few months. Talking of shareholders I am pleased to have my ticket for tonight where several hundred people are joining the company for an operational update. I’m told that many more couldnt get in with a wait list of another 100  and over 300 are dialing in to the presentation…


SDX Energy
Another company not letting the grass grow beneath their feet is SDX Energy who have produced a punchy update this morning. The South Disouq programme is well under way and with the well location decided, service company hired and the rig supplier and unit chosen a spud date of end February looks achievable. At Meseda the upgrade review has been completed and the project is moving to implementation phase. The work should double capacity and increase production by 100% from current production levels on the licence.


In the only recently acquired Moroccan acreage, the company are already talking about accelerating the drilling campaign and bringing forward 2018 plans into this year which might bring forward gas production too. CEO Paul Welch is upbeat in his statement and so he should be, he has a number of really interesting prospects with substantial upside, new and existing projects and the backing of his shareholders in the recent well oversubscribed raise, what’s not to like?


SOCO International
A rather uninspiring update from SOCO this morning as they miss their production guidance producing 9,883 b/d against a prediction of 10-11/- b/d although warning of slippage had been heeded. With over $100m of cash and a very strong model that delivers high prices and low opex giving a break even of the low $20’s one cant grumble but it is clear that they are gearing up for something hence the new ex-Cairn arrivals.


Plexus Holdings
It was disappointing to see the profit warning from Plexus but it is mitigated by the massive amount of cost cutting that has been going on and cash preservation. Also to a certain extent you know with Plexus that by the very nature of their offering repeat orders will be just around the corner from their blue chip client list. That is proven this morning by the announcement of an extension to a contract for Shell Brunei by two years. I would remain highly supportive of Plexus and its management and whilst this is a disappointment and shows that all is not yet rosy in oil service company land, POS will  undoubtedly be a survivor.


And finally…
The football this week has definitely been a bit weird as the top clubs put in highly differing performances. The Gooners were abject, the Red Devils could score against Hull City Tigers, Chelski missed a pen at Anfield that could almost have brought out the Trophy and only the Noisy Neighbours delivered in full.


The cricket tour is over thank goodness as yesterday England put in another great top, middle and lower order collapse losing 8 wickets for 8 runs. I was making the tea at the time and it lasted longer than that spell as our batsmen were bamboozled by a bit of spin, good thing it doesnt travel…

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http://www.oilcapital.com/companies/stocktube/6842/malcolm-graham-wood-talks-sound-energy-s-mind-blowing-upside-in-morocco-6842.html Malcolm Graham Wood talks Sound Energy's “mind blowing” upside in Morocco http://www.oilcapital.com/companies/stocktube/6842/malcolm-graham-wood-talks-sound-energy-s-mind-blowing-upside-in-morocco-6842.html Thu, 02 Feb 2017 12:18:00 +0000 We speak to oil and gas expert Malcom Graham Wood about Sound Energy PLC after the explorer estimated the potential for up to 31 trillion cubic feet of gas in Western Morocco.

The analyst discusses this week’s resource estimates, Sound Energy’s success to date in Morocco, and the exciting, upcoming TE-8 well.

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http://www.oilcapital.com/companies/stocktube/6836/the-ability-for-anglo-african-agriculture-to-grow-is-phenomenal-says-david-lenigas-6836.html The ability for Anglo African Agriculture to grow is 'phenomenal' says David Lenigas http://www.oilcapital.com/companies/stocktube/6836/the-ability-for-anglo-african-agriculture-to-grow-is-phenomenal-says-david-lenigas-6836.html Wed, 01 Feb 2017 16:25:00 +0000 Anglo African Agriculture plc (LON:AAAP) was set up to develop an agricultural trading group in Africa. Their wholly owned subsidiary Dynamic Intertrade is a food manufacturing company involved in the cultivation, manufacture, import and distribution of herbs, spices, seasonings and confectionary products.

Non-executive director David Lenigas tells Proactive: ''The ability of this business to grow 3,4,5, 10 times over the next few years is phenomenal''.

''When you look back at AAAP over the last year in particular we were doing about 80 tonnes a month of product. The demand for this product has picked up so dramatically from the new factory in Cape Town that critical mass for the business making profit is about 100-110 tonnes a month - we've blasted way through that in the last 3 months''.

Lenigas adds: ''We're updating the manufacturing facility to do three times the output. That work will be finished sometime this month - we certainly have the order book to fill that''.

''I see this as a great business - and we've now got to the point we're making money''.

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http://www.oilcapital.com/companies/stocktube/6828/northern-petroleum-ceo-really-looking-forward-to-getting-well-reactivation-programme-going-6828.html Northern Petroleum CEO 'really looking forward' to getting well reactivation programme going http://www.oilcapital.com/companies/stocktube/6828/northern-petroleum-ceo-really-looking-forward-to-getting-well-reactivation-programme-going-6828.html Wed, 01 Feb 2017 10:37:00 +0000 Northern Petroleum Plc (LON:NOP) has outlined an upcoming work programme for its Canadian assets that will see around 20 historic wells reopened and brought into production.

CEO Keith Bush tells Proactive: ''We looked at this as part of the opportunity when we did the asset acquisition over a year ago.''

''We always wanted to get some wells that had been shut-in for a long time started up and this is really the first opportunity since we've had the financial injection .... we can now really get after our work programme and the 20 wells are the first of it''.

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http://www.oilcapital.com/columns/the-pay-zone/27002/oil-price-chrysaor-wood-group-soco-and-finally-27002.html Oil price, Chrysaor, Wood Group, SOCO, And finally... http://www.oilcapital.com/columns/the-pay-zone/27002/oil-price-chrysaor-wood-group-soco-and-finally-27002.html Tue, 31 Jan 2017 10:39:00 +0000 Oil price

We might get a few down days albeit of a modest nature, the reason is that as the month ends scribblers galore will start guessing what January production was and how short of the 1.2m b/d target it is. First up today is Petro-Logistics who think that it was down by 900/- b/d which, should it be true would be pretty good from a standing start, I would have a small wager on it being a bit higher… The March Brent contract expires tonight and will probably actually remain fairly strong, the structure looks well set on fundamentals.

Chrysaor

It has been the talk of the oil market for ages and today Chrysaor have announced that they have bought a package of assets from Shell for $3bn. It comprises 350m boe of 2P reserves that produce 115/- boe/d at a unit opex of under $15 per barrel. Chrysaor is bankrolled by EIG Global Equity Partners through Harbour Energy to the tune of $1bn with an RBL of $1.5bn. Shell remain committed through a decommissioning liability of $1bn. Nice to see Andrew Osborne back in the manor after a long exile.

Wood Group

Wood has announced a contract with Hess in Malaysia over five years and one, one year extension option. No value attributed but should be reasonable as it provides for 130 full time staff on the project providing operations and maintenance in the North Malay Basin.

SOCO International

Board changes dont often figure that much unless there is a particular reason so today’s news that Dr Watts is leaving the board of SIA has some interest. This is because in a few weeks time he is reappearing at the company with Jann Brown, also formerly of Cairn to set up their new Business Development Group. The actual wording from the company goes like this ‘ This change signals a renewed emphasis on growth to complement our high quality producing assets’. So, Watts and Brown are to be tasked with finding the next growth area for SIA, any sign of Greenland in the betting?

And finally…

The FA Cup draw was kind to Sutton and Lincoln who had really wanted Premiership teams and got the Gooners and Burnley respectively. Other interesting fixtures are a London Derby at Craven Cottage where Fulham entertain Spurs and Millwall have the temptation of hosting the Champions if the Foxes can beat the Rams.

There is a full Prem fixture list this week and the standout fixture is the HubCap Stealers who welcome Chelsea to fortress Anfield. Having had a bad January Herr Klopp needs to pull something out here.

And full marks to Karen Brady and the board at the happy Hammers, after that ponce Payet snuck away with his tail between his weaselly little legs, the club are buying back any Poyet shirts for £25 each, good riddance….

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http://www.oilcapital.com/columns/vsa-capital-market-movers/26999/vsa-morning-agri-comment-26999.html VSA Morning Agri Comment http://www.oilcapital.com/columns/vsa-capital-market-movers/26999/vsa-morning-agri-comment-26999.html Tue, 31 Jan 2017 09:03:00 +0000 NWF Group: H1 2017 Results

UK-focused specialist agricultural and distribution business NWF Group (NWF LN) has announced six month results for the period ended 30 November 2016 (H1 2017).

Revenue: £255.9m, +13.9% YoY (H1 2016: £224.6m), FY 2017 consensus is currently £487.3m (+4.6% YoY)

Adjusted Operating Profit: £2.2m, -21.4% YoY (H1 2016: £2.8m), FY 2017 consensus is currently £9.0m (+3.4% YoY)

Adjusted PBT: £2.0m, -23.1% YoY (H1 2016: £2.6m), FY 2017 consensus is currently £8.3m (+22.1% YoY)

Interim Dividend: 1.0p, flat YoY (H1 2016: 1.0p)

Net Debt: £19.1m, +83.7% YoY (30 November 2015: £10.4m)

Feeds: Revenue was £65.1m, +4.8% YoY (H1 2016: £62.1m), operating loss was £0.3m (H1 2016: profit of £0.3m)

Food: Revenue was £20.1, +4.1% YoY (H1 2016: £19.3m), operating profit was £1.6m, +14.3% YoY (H1 2016: £1.4m)

Fuels: Revenue was £170.7m, +19.2% YoY (H1 2016: £143.2m), operating profit was £0.9m, -18.2% YoY (H1 2016: £1.1m)

VSA Comment

Following its trading update on 19 December, NWF has confirmed the extent to which it has been impacted by the poor underlying market conditions in H1, particularly through Q1.

In feeds, following a very strong November for UK ruminant feed production (+8.0% YoY), DEFRA data shows overall ruminant compound feed production fell just 1.0% in NWF’s H1 with a QoQ turnaround clearly visible in the data (Q1: -4.7% YoY; Q2: +2.3% YoY), with sheep feed volumes being particularly strong.

This increase in demand has arrived alongside significant input commodity price increases as a result of the devaluation of the pound following the Brexit vote. This has caused margin pressure for NWF, leading to a loss for its feed division, despite two price increases being implemented during the period (in-line with peers). A third price increase has been made earlier this month as input commodity prices have continued to increase (UK feed wheat now +40% since 1 June 2016).

Although NWF gained market share in H1 (+1.5% YoY to 268,000t) it has clearly come at a cost with regards to margins. If commodity prices stabilise and NWF can maintain these customers, then it should receive a boost from these new customer additions in H2.

Net debt has increased in-line with expectations, with c£4m spent on automating the blending plant at Wardle and doubling capacity to more than 200,000t, and also doubling capacity at the compound feed plant at Longtown to 120,000t.  c£5m was also spent on the acquisition of Jim Peet Agriculture.

NWF’s food division continues its solid performance with its Wardle warehouse fully utilised and high service levels maintained. The division is benefiting from the gradual recovery in the ambient grocery market.

NWF’s fuel supply business was impacted by warm weather and lower demand for heating oil through summer (H1 volumes -20% YoY). FY performance will depend on temperatures in the remaining winter months, with a cold snap forecasted for February, which would be beneficial for volumes of higher margin heating oil.

NWF remains confident on meeting FY expectations, which would represent a significant turnaround from its performance in the quieter H1 period (adjusted PBT moving from -20% YoY for H1 to +20% YoY for FY). Due to higher commodity prices, consensus expectations for revenues are likely to be upgraded through £500m following these results. As we have been writing for some time, underlying market conditions have turned in the UK agricultural sector and NWF appears set to benefit from this improved sentiment in H2.

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http://www.oilcapital.com/columns/the-pay-zone/26993/oil-price-ascent-resources-igas-premier-oil-and-finally-26993.html Oil price, Ascent Resources, IGas, Premier Oil, And finally... http://www.oilcapital.com/columns/the-pay-zone/26993/oil-price-ascent-resources-igas-premier-oil-and-finally-26993.html Mon, 30 Jan 2017 13:23:00 +0000 Oil price

Still very quiet with no obvious signs of breaking out either way. Looking at the CFTC numbers on Friday the money managers have added to their long positions again, up by 24m barrels in WTI which is as high as they have been since 2014…The other positive is that reports are still coming through that the production cuts are being adhered to, as we hit the end of  the month reports will start coming in, corroboration would be good.

The bears are still working on a non-adhesion to the treaty and the continued rise in the rig count showing that the current rate, which is the highest since November 2015, will lead to a huge rise in US shale production thus wrecking the deal, I think US production will inevitably rise but won’t stymie the deal.

Ascent Resources 

News this morning from Ascent where we have been waiting for the result of the flow test at Pg-10 at the Petišovci project in Slovenia.  The result ‘exceeded management expectations’ which isnt always a good guide until you know whether you are dealing with an optimist or a pessimist but I have put a call into the company to find out, I think the person I spoke to thinks I am mad. Either way, until I have guidance I think that this is a good flow rate and would, I suspect be a decent step forward towards the ever present off-take agreement.

I have, since those words, spoken to Colin Hutchinson and feel that the 8.8m number is genuinely good, being higher than the 2011 number after which time anything might have happened. Indeed having to perforate the tubing meant that I suspect that anything much north of 5-6/- mmscf/d would have been acceptable. The company is eager to start selling gas and hopes to be under way by the end of this quarter all being well. Considering its past, this marks a most interesting situation for Ascent and with phase one looking good, the upside for phase two is also worth looking at.

IGas Energy

Looking at the statement from IGas this morning it looks as if the company has been forced to make a payment to bondholders as it  appears to have undershot its oil and gas investment last year by $2.3m. This offer is open until March 1st and will obviously reduce the cash in the company and have a modest restriction on activity.

Premier Oil 

I took the opportunity the other day to spend a bit of time with Tony Durrant as a catch up and also so he could correct any errors I might have made in my recent podcast. There is little doubt that whoever you talk to that Solan has been a huge disappointment and the company are lucky to have been able to carry the passenger as long as this. The company have spent ‘far too much money on it’ and whilst the P1 well is producing 10-11/- b/d the P2 well has significant water injection problems and is doing 1-3/- b/d and the company needs to find a solution. Unfortunately there isn’t an obvious one around the corner, a frac job might be possible when the weather improves and a sidetrack well is a possibility but unlikely before April 2018. Putting in a call to Dr Trice who is nearby is a possibility but a long shot in my view.

On a much more positive note it seems that Catcher is up with, if not ahead of events and is planned to leave Singapore in late June/early July and will take around 45 days to get to the North Sea  and first oil still expected in the 4th quarter. With work going better than expected the company are already talking about de-bottlenecking and the current plan for   50/- b/d could be nearer 65/- b/d if the FPSO can handle it. Also continuing to impress is Tolmount which was definitely sold too cheaply and will actually take much more investment than first envisaged, indeed one can expect a farm-down of around 20% at some stage. There is added value to Prems due to their tax losses and here one might find a potential buyer amongst the growing army of infrastructure funds who could make it work for them.

The market has taken the view that Sea Lion is on the back burner, especially with the bank debt being renegotiated at the moment. TD said that they were ‘digging their heels in’ with the banks to ensure that they had the flexibility to go ahead with both this and Tolmount but it too needs a funding package. They need to find a partner, same old, same old, but with the relationship with Argentina being re-kindled more doors should be opening all the time. Indeed it in this day of flexible financing it could be that a service company might find it interesting, after all there are 20 wells in phase one and 30 in phase two and over ten years of work for somebody. Given the falling industry costs and that at $55, margins are higher than with oil at $110 one might have expected some action here, after all developments of such size are creating vibes around the industry elsewhere. Elsewhere there are exciting possibilities in Mexico and with the Tuna project both of which are considered by the technical department to be most interesting.

Finally the renegotiation of the debt which has taken way longer than the market expected and I suspect longer that the company did too. TD says that a 50 page term sheet has become 110 pages but I think that the end may be near, despite wobbles in the process partly as stories of banks bailing out swept the marché. After the lawyers have finished it goes to the banks, private placees, convertible holders and private retail bondholders who must surely now p*** or get off the pot. This whole process has been a considerable frustration all round but should now be signed and sealed and banks should work out whether they want to be in energy financing or not.

It has been a long year for Premier and it’s not quite over yet, once the financing is sorted they only need to fix Solan, deliver Catcher and fund Tolmount and Sea Lion, after all if they dont where is the growth going to come from?

And finally…

The FA Cup always throws up surprises but nowadays minnows who win can have the gloss rubbed off as stronger teams field weakened sides. Dont tell that to Sutton who beat Leeds or Lincoln City who beat Brighton. Indeed the Hubcap Stealers lost to Wolves and both Watford and Hull City Tigers lost to Championship sides Millwall and Fulham respectively. Oxford will be happy to be in tonight’s draw  having seen off the Magpies who also dropped almost all the first team and Spurs managed to revive Fergie time as the fourth official held up the board that said ‘until Spurs score’ as they eventually beat Wycombe Wanderers 4-3. The Gooners, Red Devils and Noisy Neighbours went through to the draw with ease.

And although it is no excuse, competent umpiring would surely have made a difference in yesterday’s T20 but it makes Wednesday’s decider much more fun!

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http://www.oilcapital.com/columns/vsa-capital-market-movers/26988/vsa-capital-market-movers-egdon-resources-plc-26988.html VSA Capital Market Movers - Egdon Resources Plc http://www.oilcapital.com/columns/vsa-capital-market-movers/26988/vsa-capital-market-movers-egdon-resources-plc-26988.html Mon, 30 Jan 2017 09:01:00 +0000 Egdon Resources (LON:EDR)

Egdon Resources (EDR)# has acquired an additional 12.5% working interest in PEDL 201 in the Widmerpool Gulf from Corfe Energy for a consideration of 424,593 shares, equivalent to £50k based on the average closing mid-price for the five days prior to completion.

This increases EDR’s interest in the licence to 45% which lies in its core area of the East Midlands which is considered prospective for both conventional and unconventional resources. We value PEDL 201 as part of EDR’s shale portfolio, therefore, the value added by increasing its net acreage offsets the dilution by the issuance of these additional shares. Hence we maintain our BUY recommendation and 34p TP.

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http://www.oilcapital.com/companies/stocktube/6800/-2017-is-the-year-we-ve-been-waiting-for-says-powerhouse-energy-chairman-6800.html '2017 is the year we've been waiting for' says PowerHouse Energy chairman http://www.oilcapital.com/companies/stocktube/6800/-2017-is-the-year-we-ve-been-waiting-for-says-powerhouse-energy-chairman-6800.html Thu, 26 Jan 2017 12:18:00 +0000 PowerHouse Energy Group PLC (LON:PHE) chairman Keith Allaun brings Proactive up to speed on the latest with their G3-UHt Ultra-high temperature Demonstration gasification system.

It's now left the harbour in Brisbane, Australia and is bound for the UK. The transit time is estimated to be 50 days.

Allaun mentions that discussions are continuing with a number of interested commercial parties for the siting of the unit.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/26963/vsa-capital-market-movers-anglo-american-kaz-minerals-polymetal-international-26963.html VSA Capital Market Movers - Anglo American, Kaz Minerals, Polymetal International http://www.oilcapital.com/columns/vsa-capital-market-movers/26963/vsa-capital-market-movers-anglo-american-kaz-minerals-polymetal-international-26963.html Thu, 26 Jan 2017 08:23:00 +0000 Anglo American (LON:AAL)

Anglo American (LON:AAL) has released largely strong production results for Q4 2016 with production increases across all commodities bar copper and met coal. Diamond production of 7.8mnct was up 10% YoY reflecting curtailed production in 2015 and also the increased contribution from Gahcho Kue in Canada. Platinum production of 610koz was up 2% YoY in Q4 meaning full year production of 2.38mnoz was also up 2% YoY.

Copper production of 147kt was down 19% YoY in Q4 and 10% YoY to 577kt for the full year. This was due to unplanned disruptions as well as planned sequencing of lower grades at Los Bronces. Nickel production of 11kt was up 4% YoY in Q4 meaning full year production of 45kt was up 47% YoY driven by the ramp up of additional capacity.

Iron ore production at Kumba was strong, up 9% YoY to 12mnt in Q4, however, full year production was 8% lower YoY at 42mnt. The optimisation of the pit shell did not take effect until H2 2016 hence the weaker annual output. The ramp up at Minas Rio continued strongly, however, with production of 4.9mnt up 49% YoY with full year production of 16.1mnt up 76% YoY. Met coal production was 2% lower YoY in Q4 and the full year at 5.4mnt and 21mnt respectively following the sale of Foxleigh. Thermal coal production up 4% in Q4 to 8mnt was insufficient to offset the sale of Callide meaning full year production of 33mnt was down 4%.

Polymetal (LON:POLY)

Polymetal (POLY LN) has announced strong Q4 2016 production results with gold equivalent production of 375koz, up 21% YoY. This was primarily driven by stronger gold production, up 30% YoY to 285koz in Q4 while silver production was down 3% YoY to 3mnoz. Full year production of 1.27mnoz gold equivalent was marginally ahead of full year guidance of 1.26mnoz.

POLY expect gold equivalent production of 1.4-1.55mnoz, however, cash costs are expected to rise versus 2016 to between US$600-650/oz from US$525-575/oz and on an AISC basis to US$775-825/oz from US$700-750/oz.

 

KAZ Minerals (LON:KAZ)

KAZ Minerals (LON:KAZ) has announced strong Q4 production results with 140kt of copper produced in the full year, up 73% YoY and in line with guidance.  Gold production was strong and ahead of guidance with 40koz produced in Q4 meaning that full year production of 120koz was up 245% due to elevated grades at Bozshakol.
 

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http://www.oilcapital.com/columns/the-pay-zone/26960/oil-price-sdx-energy-enquest-bowleven-and-finally-26960.html Oil price, SDX Energy, EnQuest, Bowleven, And finally... http://www.oilcapital.com/columns/the-pay-zone/26960/oil-price-sdx-energy-enquest-bowleven-and-finally-26960.html Wed, 25 Jan 2017 14:18:00 +0000 Oil price

Boring is the correct word to be frank as crude lifts gently on the back of global supplies tightening and stocks slowly falling. After the close the API numbers were in line with forecasts at +2.93m barrels but Cushing was down which was ok but gasoline stocks were still very high.

SDX Energy

SDX has announced – finally- that it has acquired the Egyptian and Moroccan assets of Circle oil from a pre-packed bankruptcy and raised $40m at 30p to pay for it. When the company came to London last year it vowed to become a mid-tier E&P in North Africa and this takes the company some way down the track to doing just that. It has picked from the shelves the assets in Egypt and Morocco which fit with the current portfolio and the plans. The licences come debt free for $30m which SDX say is 39 cents in the dollar for the debt. With an average net back of $24.11 the deal seems to promise a swift return to shareholders.

The Egypt asset gets them 40% of the NW Gemsa concession in which they already have a 10% stake, this means that without any further cost, the extra income drops through to the bottom line with ease. 2P reserves here go up by 3.77 mmboe. In Morocco they get 75% of Sebou and  LM concessions  which adds 4.5 MMscf/d of production and 2P reserves of 1.45 mmboe, so in total SDX adds 5.22 mmboe to the book. Infrastructure in Morocco obviously includes 75% of the pipeline which takes gas to market and has significant spare capacity.

SDX also has an interesting existing portfolio and I am excited about prospects for South Disouq in particular which is due to spud shortly and following 3D seismic now has both oil and gas plays. Overall I feel that SDX has successfully transited during its time in London, it has built a solid base and now is becoming a bigger player with this acquisition and raise, in which existing and new shareholders made the issue very well oversubscribed, does the bucket list beckon?

I have done an interview with Paul Welch, CEO of SDX in which he discusses the deal, the link is here.

TipTV CEO interview: Paul Welch of SDX Energy

EnQuest

Time prevented me from writing about EnQuest yesterday but it looks like a pretty sensible deal to me, from both sides. For EnQuest, buying a 25% stake in Magnus is fairly cheap and in fact, through paid through cash generated by the field itself. No worries about decommissioning either as BP retain the liability subject to further deals on that front. We are going to see a bit more in respect of late life assets as the majors tidy their portfolios and their liabilities, they may well be attractive to smaller players if terms are like this.

Bowleven

The FT reports what has been significant gossip in the sector lately about a Monaco-based investor who is amassing a stake in the company in order, one presumes to snaffle the cash. Crown Ocean Capital is asking for virtually all the board’s heads on a platter and has two directors ready to take over. I am grappling with my recommendation on BLVN at present ahead of the bucket list changes but although I know there is discontent I am not quite so sure that it is well directed. The company took a huge cheque in farming-out in Cameroon in recent years and is set pretty well as a result. It is not their fault that the new owners havent spun the drill bit yet but $250m gets you over a lot of things. I have personally said that  I would have done some things but in general am not pointing my guns at the BLVN board even if I sometimes wish they might be a bit more proactive.

And finally…

Sad to see that Johanna Konta lost her game in Australia to Serena Williams but in the mens side both Federer and Nadal are holding up the standards for the old brigade.

And Cheltenham gets a bit more open as Annie Power withdraws from the festival…

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http://www.oilcapital.com/companies/stocktube/6792/sdx-energy-boss-hails-transformational-30mln-asset-acquisition SDX Energy boss hails 'transformational' $30mln asset acquisition http://www.oilcapital.com/companies/stocktube/6792/sdx-energy-boss-hails-transformational-30mln-asset-acquisition Wed, 25 Jan 2017 13:05:00 +0000 SDX Energy Inc (LON:SDX, CVE: SDX) has revealed it will pay US$30mln to acquire Circle Oil’s assets in Egypt and Morocco.

The deal will see SDX increase net production by almost 250% to 4,705 barrels oil equivalent per day.  Reserves, meanwhile, rise by 64% to 12.03mln barrels oil equivalent.

CEO Paul Welch tells Proactive: ''For us it's a transformational deal ... it takes us up to a significant amount of production and most importantly it increases our yearly cash flow by $21mln - and that's what's attractive to us''.

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http://www.oilcapital.com/columns/vsa-capital-market-movers/26954/vsa-capital-market-movers-antofagasta-plc-bhp-billiton-plc-fresnillo-26954.html VSA Capital Market Movers - Antofagasta Plc, BHP Billiton plc, Fresnillo http://www.oilcapital.com/columns/vsa-capital-market-movers/26954/vsa-capital-market-movers-antofagasta-plc-bhp-billiton-plc-fresnillo-26954.html Wed, 25 Jan 2017 08:34:00 +0000 Antofagasta (LON:ANTO)

Full year copper production at Antofagsta (LON:ANTO) narrowly missed full year guidance of 710-740kt at 709.4kt despite a 12.5% YoY increase. Q4 2016 copper production of 206kt was up 14% QoQ and 22% higher YoY. 2016 gold production of 271koz was up 27% YoY at the upper end of guidance of between 245-275koz.

Despite weaker than planned copper production, net cash costs were ahead of guidance of US$1.25/lb at US$1.20/lb, down 20% YoY. Q4 2016 net cash costs were down 4.2% QoQ to US$1.13/lb.

Guidance for 2017 suggest broadly flat copper production at 685-720kt. Gold production is expected to decline significantly to between 185-205koz while molybdenum production is expected to modestly increase from 7.1kt in 2016 to 8.5-9.5kt in 2017. Capex was previously guided to below US$900m in 2017 while group cash costs are forecast to rise modestly to US$1.30/lb, due to a weaker by-product credit contribution. Operationally the outlook appears weaker in 2017, in our view; however, this is likely to be offset somewhat by stronger copper prices.

BHP Billiton (LON:BLT)

BHP Billiton (LON:BLT) has released weak results, with production declines in petroleum, copper and thermal coal in H1 FY 2017. Petroleum production of 106mmboe was down 15% YoY in H1 due to a sharp decline in onshore US production. Conventional production was largely flat, meanwhile. Copper production of 712kt was down 7% YoY as although Escondida production was flat at 452kt this was offset by maintenance at Pampa Norte and grade weakness at Antamina.

Iron ore production of 118mnt in H1 FY 2017 was up 4% YoY as production continued to ramp up at Jimblebar. Met coal production of 21mnt was up 1% YoY while thermal coal production was down 4% YoY to 14mnt.

Fresnillo (LON:FRES)

Fresnillo (LON:FRES) has released strong results with silver production of 50.3mnoz, up 7% YoY and in line with guidance. Q4 2016 production of 13.3mnoz was up 10% YoY. FRES also benefitted from strong gold production of 934koz, up 23% YoY and ahead of guidance. This was enhanced by a one off inventory drawdown at Herradura. Guidance for 2017 is for continued strong silver production with a further annual increase to 58-61mnoz including 4mnoz from the silverstream. Gold production is again expected to be strong although without the inventory drawdown impact this will likely be lower at between 870-900koz.

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http://www.oilcapital.com/companies/stocktube/6784/must-watch-origin-energy-video-gives-insights-to-beetaloo-shale-6784.html MUST WATCH - Origin Energy video gives insights to Beetaloo shale http://www.oilcapital.com/companies/stocktube/6784/must-watch-origin-energy-video-gives-insights-to-beetaloo-shale-6784.html Tue, 24 Jan 2017 12:31:00 +0000 Falcon Oil & Gas (LON:FOG) has seen great success in Australia’s Beetaloo shale basin, with wells unearthing new discoveries. A new resource evaluation report is currently being worked on to further detail the size and scope of the discovery and the potential of its surrounding areas.

A video from Origin Energy, the project operator, adds valuable insight to the venture.

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http://www.oilcapital.com/columns/the-pay-zone/26946/oil-price-amerisur-rockhopper-and-finally-26946.html Oil price, Amerisur, Rockhopper, And finally... http://www.oilcapital.com/columns/the-pay-zone/26946/oil-price-amerisur-rockhopper-and-finally-26946.html Tue, 24 Jan 2017 08:51:00 +0000 Oil price

A very quiet day according to traders, oil was firmed by the continued weakness in the greenback and the comments from Iraq suggesting that all members of Opec were playing the game but some drift was provided by talk of US production increasing, but that’s a given surely?

Amerisur Resources

More good news from AMER this morning as they announce that Platanillo 24 has been tested and placed on commercial production of 420 b/d of natural flow. The interval of 7 feet was perforated in the lower U sand only and brings the OBA system up to 3,100 b/d which is another step in the right direction.

Rockhopper

I notice that Kuwait Energy has announced the signing of a farm-out agreement for a 25% participating interest in the Abu Sennan Concession in Egypt to Global Connect Limited. Global Connect is a ‘recently established E&P company with a focus on the MENA region’.

Readers will know that other participants in this concession are Dover Investment Ltd and Rockhopper who own 28% and 22% respectively and Kuwait Energy with its remaining 25%  and will continue as Operator. It will be interesting to see if anyone pre-empts this deal but I suspect not as it seems the implied valuation appears to be materially higher than Rockhopper paid.  Either way it looks like a win-win situation from RKH who have been quietly adding to their Greater Med portfolio.

And finally…

So, farewell Bernie Ecclestone who has been moved upstairs at the age of 86, its been a good knock, as they say and i’m sure he can still afford a paddock pass…..

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http://www.oilcapital.com/columns/the-pay-zone/26940/oil-price-lamprell-thalassa-holdings-sundry-genelgkp-providence-cairnfar-and-finally-26940.html Oil price, Lamprell, Thalassa Holdings, Sundry-Genel/GKP- Providence- Cairn/Far- And finally... http://www.oilcapital.com/columns/the-pay-zone/26940/oil-price-lamprell-thalassa-holdings-sundry-genelgkp-providence-cairnfar-and-finally-26940.html Mon, 23 Jan 2017 12:50:00 +0000 Oil price

Very little change last week, indeed this time last week you could have closed the book and taken the week off. The usual voices pushing either way had no ammunition although the bears had a go on Friday after the rig count numbers to no avail, with oil units up 29 to 551 one might have expected more. Indeed it was the mildly better economic news from China post their GDP and oil import numbers that got the bulls going ahead of the impending New Year celebrations. Finally the ‘Opec’ meeting at the weekend did a fair bit of monitoring and even set up a compliance committee to oversee the numbers, but news from the Saudis remained steadfastly solid.

Lamprell

The pre-close update from Lamprell was never going to blow any doors off, the recent modest orders could only keep the wolf from the door and in the absence of  anything else, this had the smell of a profit warning. Revenues for 16 look like around $700m but guidance for ’17 has not changed yet from the $400-500m level albeit a nudge to the lower end of that level. Costs are coming down sharply as you would expect, but with three deliveries in 2H 16 and three more in 1H 2017 the yard must seem quite empty sans Tourneau’s. As we thought when we visited just over a year ago there is little that can be done to smooth the cycle, but even having said that the Chairman’s statement was distinctly bearish on the order front. Long term this is still a good business but for the moment it is hard going with no sign of the upturn I would have started to see by now.

Thalassa Holdings

There is rarely a dull moment with Thalassa Chairman Duncan Soukup around and todays statement is an immaculate blend of confidence and despair with a lecture to world leaders in between. Firstly the update and outlook where 2016 ‘exceeded’ market expectations with revenue of $14m, clean PBT of $2.2m and cash of $7.7m, maybe more. As a result of this the buy out is back but with the ’17 outlook as ‘cautious but unpredictable optimism’ shareholders may take him up on that. He concludes the statement by worrying about international economic policies and how they will play out, mostly words to jump off cliffs to.

“Holding one‘s breath and jumping is not a prudent economic or business model which is why the THAL Board is reticent to present any long term forecasts in the current political and economic environment. In fact, given the upcoming elections in France and Germany and the inauguration of President Trump, we would go so far as to say that even short-term predictions are nothing more than speculative guesses.”

PS “We wish everyone a prosperous 2017.” He might have said, have a nice day……

Sundry

Genel and GKP have both announced some payment of October invoices, it seems that GENL has done better but it is probably swings and roundabouts. Either way there appears to be a slight warming from the KRG, probably associated with the recent rally in the oil price but the mountain pf receivables has not been dented yet.

News on wells to be spudded include from Providence Resources who say that the Druid well is in good time and they have a spud date of June of this year.

Far and Cairn have announced that the SNE-5 well spudded last Saturday with the intention of fine tuning the SNE concept, it will likely be back to back with the SNE-6 well and they should take 50-60 days each. It has to be noted that the situation regarding the ConocoPhillips farm-out to Woodside is yet to be completed, as Far believe that the pre-emptive rights notice has not been issued to the JOA. Whatever the outcome of the matter, I believe that the upside for Far has yet to be taken into account by the market, especially given what Woodside are preparing to pay for the stake and that was when oil prices were 10 bucks cheaper…

And finally

The Patriots booked their place in Super Bowl LI last night after they beat the Steelers. However, they will face tough competition from the Falcons after Matt Ryan demolished the Packers in Atlanta.

Patriots quarterback Tom Brady will be looking to collect his 5th Championship ring and his team will start as marginal favourites in Houston in a couple of weeks time.

Muzza and Danny boy blew out of Australia on Sunday morning with so much promise, Johanna Konta will be playing Serena Williams on Wednesday.

In the footy there was a bit of a shakeup which might have been more. Chelski beat Hull and the Gooners got a 98th minute penalty to beat Burnley. The HubCap Stealers lost to the Swans at mighty Anfield and some consider the Noisy Neighbours to have been a tad unlucky in only getting a 2-2 against Spurs. Wayne Rooney saved up the scoring of his record goal to secure a point against the Potters.

And Ronnie O’Sullevan won the Masters, never looked in doubt…

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http://www.oilcapital.com/companies/stocktube/6760/zak-mir-tips-xeros-technology-shares-to-re-test-2015s-highs-6760.html Zak Mir tips Xeros Technology shares to re-test 2015’s highs http://www.oilcapital.com/companies/stocktube/6760/zak-mir-tips-xeros-technology-shares-to-re-test-2015s-highs-6760.html Thu, 19 Jan 2017 11:30:00 +0000 The Xeros Technology Group PLC (LON:XSG) shares could be set to revisit its 2015 highs, so sys leading technical analyst Zak Mir.

“It looks as though a break through £2.50 and this 2015 resistance line could take the shares up for a re-test of 2015’s best levels of above £3.50 for later in 2017,” he explains in the latest segment of the Proactive Investors Bulletin Board.

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http://www.oilcapital.com/companies/stocktube/6757/sound-energy-deal-one-of-the-best-in-the-industry-for-a-while-says-malcolm-graham-wood-6757.html Sound Energy deal 'one of the best in the industry for a while' says Malcolm Graham-Wood http://www.oilcapital.com/companies/stocktube/6757/sound-energy-deal-one-of-the-best-in-the-industry-for-a-while-says-malcolm-graham-wood-6757.html Thu, 19 Jan 2017 10:31:00 +0000 Oil analyst Malcolm Graham-Wood outlines to Proactive the significance of Sound Energy PLC's (LON:SOU) deal to acquire an extra 20% of the Tendrara gas project.

''The fact that Sound have tied all this up means that if the plan in a year or two's time was to sell this asset in one go ... then you've just made it possible for that to happen''.

Graham-Wood adds: ''Sound shareholders should like this very much''.

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http://www.oilcapital.com/companies/stocktube/6752/cairn-energy-shares-set-to-advance-another-16-says-zak-mir-6752.html Cairn Energy shares set to advance another 16% says Zak Mir http://www.oilcapital.com/companies/stocktube/6752/cairn-energy-shares-set-to-advance-another-16-says-zak-mir-6752.html Wed, 18 Jan 2017 11:18:00 +0000 Cairn Energy PLC (LON:CNE) shares may be set to advance another 16%, according to technical analyst Zak Mir, who dissects the oiler’s share price chart.

Mir, in a Tip TV segment for Proactive Investors, highlighted that in early 2016 the share broke above the 200-day moving average and last March there was a ‘golden cross’ buy signal triggering an uptrend in the chart.

“That momentum has been maintained. In the current situation you’re probably looking for the share to just make a little bit more progress,” he said.

Mir says the top of the rising trend channel is as high as 280p.

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http://www.oilcapital.com/companies/stocktube/6739/point-loma-resources-ltd-looking-to-grow-value-in-alberta-6739.html Point Loma Resources Ltd looking to grow value in Alberta http://www.oilcapital.com/companies/stocktube/6739/point-loma-resources-ltd-looking-to-grow-value-in-alberta-6739.html Tue, 17 Jan 2017 08:44:00 +0000 Chief executive of Alberta-focused oil junior Point Loma Resources  Ltd (CVE:PLX) Terry Meek runs Proactive through the firm's activity and its ambitions.
"We operate in West Central Alberta in what have typically been conventionally producing horizons. We are applying unconventional techniques to those horizons."
Looking ahead, the strategy will be a combination of further drilling out opportunities and "selective acquisitions, explains Meek.
"We still feel there's very good value in certain acquisitions in the market today before prices run up too far ahead of us."

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http://www.oilcapital.com/companies/stocktube/6736/halifax-well-could-be-cherry-on-the-cake-for-hurricane-energy-6736.html Halifax well could be 'cherry on the cake' for Hurricane Energy http://www.oilcapital.com/companies/stocktube/6736/halifax-well-could-be-cherry-on-the-cake-for-hurricane-energy-6736.html Mon, 16 Jan 2017 13:45:00 +0000 Hurricane Energy Plc (LON:HUR) has now spudded the Halifax exploration well in the Rona Ridge Area in the West of Shetland region of the North Sea.

Proactive's Equity Reporter Jamie Ashcroft says: ''Hurricane's enjoyed a lot of success, shares are up around 400% this past year, mainly thanks to these positive well results and this is the fourth and final of this campaign so if it also comes off it'll be the cherry on the cake for Hurricane''.

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http://www.oilcapital.com/companies/stocktube/6734/zenith-energy-ltd-a-low-cost-operator-with-big-assets-says-ceo-6734.html Zenith Energy Ltd a 'low cost operator with big assets' says CEO http://www.oilcapital.com/companies/stocktube/6734/zenith-energy-ltd-a-low-cost-operator-with-big-assets-says-ceo-6734.html Mon, 16 Jan 2017 10:33:00 +0000 Zenith Energy Ltd is a Canadian based publicly traded international energy exploration company.

Their main focus is the acquisition of large acreages in oil producing countries that offer an adequate protection of the ownership of petroleum assets by foreign investors.

CEO Andrea Cattaneo tells Proactive they're the only independent, junior oil producer in Azerbaijan.

''It's been quite an achievement to convince the national oil company that we are as good as the big names they've been dealing with for years''.      

Zenith Energy's also begun trading on London's AIM market.

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http://www.oilcapital.com/companies/stocktube/6717/88-energy-shares-could-add-more-than-a-third-in-coming-months-6717.html 88 Energy shares could add more than a third in coming months http://www.oilcapital.com/companies/stocktube/6717/88-energy-shares-could-add-more-than-a-third-in-coming-months-6717.html Sat, 14 Jan 2017 09:00:00 +0000 The ‘King of Charts’ Zak Mir is tipping oil and gas explorer 88 Energy ltd (LON:88E, ASX:88E) to add more than a third to its share price over the coming weeks and months.

In the latest episode of the Proactive Investors Bulletin Board, Mir says: “The view at the moment is while we’re above the 50-day moving average of 2.3p we could at least retest the August resistance zone towards 3.5p.”

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http://www.oilcapital.com/companies/stocktube/6703/cantor-fitzgerald-still-concerned-about-tullow-s-debt-after-uganda-divestment-6703.html Cantor Fitzgerald still concerned about Tullow's debt after Uganda divestment http://www.oilcapital.com/companies/stocktube/6703/cantor-fitzgerald-still-concerned-about-tullow-s-debt-after-uganda-divestment-6703.html Tue, 10 Jan 2017 15:55:00 +0000 Sam Wahab, oil analyst at Cantor Fitzgerald, says that the cash Tullow Oil (LON:TLW) will raise after selling more than two thirds of its interest in the Lake Albert project in Uganda to Total for US$900mln, is a "drop in the ocean" considering the company's huge debt pile.

"We do harbour some significant doubts over their net debt position," he says.

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