https://www.oilcapital.com/companies/news/207414/data-mining-company-palantir-considering-2019-ipo-valued-at-41-billion-says-wsj-207414.html Data mining company Palantir considering 2019 IPO valued at $41 billion, says WSJ https://www.oilcapital.com/companies/news/207414/data-mining-company-palantir-considering-2019-ipo-valued-at-41-billion-says-wsj-207414.html Thu, 18 Oct 2018 18:47:00 +0100 https://www.oilcapital.com/companies/news/207417/tag-oil-responds-to-market-rumours-207417.html TAG Oil responds to market rumours https://www.oilcapital.com/companies/news/207417/tag-oil-responds-to-market-rumours-207417.html Thu, 18 Oct 2018 17:13:00 +0100 https://www.oilcapital.com/columns/the-pay-zone/30161/sdx-energy-far-ltd-30161.html SDX Energy, Far Ltd https://www.oilcapital.com/columns/the-pay-zone/30161/sdx-energy-far-ltd-30161.html Thu, 18 Oct 2018 14:08:00 +0100 SDX Energy

SDX has announced that the discussions with BP re a significant package of assets have been terminated by ‘mutual agreement’ and the suspension of the shares has been lifted.

Paul Welch, CEO said he was ‘clearly disappointed that the transaction had not materialised’ and that ‘we are screening potential deals all the time’. He added that, ‘we know that there will be others to fast track our stated goal to be a North African focused E&P of scale and that we will continue to build value from our existing business ‘.

Whilst disappointed, I’m sure that the SDX team will not only continue to build the business in Egypt notably with South Disouq coming on stream by the end of the year but also to find other add-on opportunities. In Morocco the outlook for next year is equally bright and highly profitable with high margin production building and an exciting exploration programme in prospect. Accordingly SDX remains an outstandingly cheap stock and a worthy member of the bucket list.

Far Ltd

Very good news to report from down under this morning from Far who have announced that the Stena Drillmax drillship has begun its journey to the Samo prospect in Block A2, The Gambia to drill the Samo-1 exploration well.

The well is aiming for two key reservoir intervals assessed to contain a combined natural resource of 825m bbls of oil. Good quality reserves have been interpreted at both levels at the Samo-1 well location and the well is to be drilled near the crest of the structure.

The well is expected to commence ‘within a couple of weeks’ and will take approximately 40 days to complete followed by wireline logging. Far, following the farm-out to Petronas has a 40% interest and is carried for the cost of drilling up to a cap of $45m.

Being so close to the world class discovery in Senegal Far has, unsurprisingly, seen ‘world-wide interest’ in this well as The Gambia is one of the hottest postcodes in West Africa at the moment. Any discovery here would dwarf the current market cap of A$628m and at a price of A11c at the moment the upside would undoubtedly breach my target of A35c. No wonder the mood in the Far office is of intense excitement as the denouement of the programme approaches.

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https://www.oilcapital.com/companies/news/207363/mosman-eyes-stanley-well-optimisation-for-oil-texas-operations-suffer-heavy-weather-207363.html Mosman eyes Stanley well optimisation for oil, Texas operations suffer heavy weather https://www.oilcapital.com/companies/news/207363/mosman-eyes-stanley-well-optimisation-for-oil-texas-operations-suffer-heavy-weather-207363.html Thu, 18 Oct 2018 12:32:00 +0100 https://www.oilcapital.com/companies/news/207342/uk-oil-gas-declares-horse-hills-portland-reservoir-commercially-viable-207342.html UK Oil & Gas declares Horse Hill’s Portland reservoir “commercially viable” https://www.oilcapital.com/companies/news/207342/uk-oil-gas-declares-horse-hills-portland-reservoir-commercially-viable-207342.html Thu, 18 Oct 2018 12:31:00 +0100 https://www.oilcapital.com/companies/news/207350/sdx-energy-resumes-trading-on-aim-as-bp-egypt-deal-is-off-207350.html SDX Energy resumes trading on AIM as BP Egypt deal is off https://www.oilcapital.com/companies/news/207350/sdx-energy-resumes-trading-on-aim-as-bp-egypt-deal-is-off-207350.html Thu, 18 Oct 2018 12:23:00 +0100 https://www.oilcapital.com/companies/news/207383/cui-globals-energy-subsidiary-wins-third-purchase-order-for-biomethane-to-grid-terminals-207383.html CUI Global’s energy subsidiary wins third purchase order for biomethane-to-grid terminals https://www.oilcapital.com/companies/news/207383/cui-globals-energy-subsidiary-wins-third-purchase-order-for-biomethane-to-grid-terminals-207383.html Thu, 18 Oct 2018 11:38:00 +0100 https://www.oilcapital.com/companies/news/207371/powerhouse-energy-in-talks-with-waste-collectors-over-hydrogen-technology-installation-207371.html Powerhouse Energy in talks with waste collectors over hydrogen technology installation https://www.oilcapital.com/companies/news/207371/powerhouse-energy-in-talks-with-waste-collectors-over-hydrogen-technology-installation-207371.html Thu, 18 Oct 2018 09:13:00 +0100 https://www.oilcapital.com/columns/vsa-capital-market-movers/30156/vsa-capital-market-movers-m2-cobalt-30156.html VSA CAPITAL MARKET MOVERS - M2 Cobalt https://www.oilcapital.com/columns/vsa-capital-market-movers/30156/vsa-capital-market-movers-m2-cobalt-30156.html Thu, 18 Oct 2018 08:18:00 +0100

VSA Morning Miner, 18/10/18

Click here for PDF version

Keep reading VSA research for free – Click here for our position on MIFID2


M2 Cobalt (CVE:MC)

M2 Cobalt (MC CN) has announced that drilling is underway having secured a contract for up to 3km of diamond core drilling with an East African drilling company. Having identified multiple large scale targets and three distinct styles of mineralisation the drilling will assess key targets across the license areas to assess the potential and identify future targets for follow up drilling.

We anticipate that drilling will focus on the VMS style mineralisation identified at Kilembe which represent lower risk targets, in our view, given the proximity to the prior producing Kilembe mine. VTEM surveys identified at least two strongly conductive zones which we expect will be a high initial priority. Drilling will also be targeted at the Bujagali licenses where, M2 yesterday announced it had significantly enhanced its exploration area into a continuous land package. At Bujagali the Phase 1 work yielded multiple large-scale targets indicating a regional scale play of primarily Katanga style copper cobalt mineralisation. In addition, M2 also identified ultramafic nickel, copper and cobalt at the Bombo target.

With the announcement of the start of drilling this is a key period for M2. Initial assay results are expected in the coming weeks which represent key potential catalysts for the stock.

We reiterate our Speculative Buy recommendation.


 

 

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https://www.oilcapital.com/companies/news/207359/hnr-to-file-for-colorado-well-permits-ahead-of-proposition-112-vote-207359.html HNR to file for Colorado well permits ahead of ‘Proposition 112’ vote https://www.oilcapital.com/companies/news/207359/hnr-to-file-for-colorado-well-permits-ahead-of-proposition-112-vote-207359.html Thu, 18 Oct 2018 07:36:00 +0100 https://www.oilcapital.com/companies/stocktube/10903/arafura-resources-leveraged-to-increasing-market-with-a-very-limited-supply-base--10903.html Arafura Resources leveraged to 'increasing market with a very limited supply base' https://www.oilcapital.com/companies/stocktube/10903/arafura-resources-leveraged-to-increasing-market-with-a-very-limited-supply-base--10903.html Thu, 18 Oct 2018 03:43:00 +0100 Arafura Resources Ltd (ASX:ARU) CEO Gavin Lockyer speaks to Proactive Investors about the memorandum of understanding signed with JingCi Material Science Co Ltd for the supply of neodymium-praseodymium (NdPr) oxide from the rare earths-focused company's Nolans Project in Australia's Northern Territory.

Lockyer says, "this offtake really plays in nicely with our development program at the moment. We're almost [completed with] our definitive feasibility study, the results of which are due to be released by the end of this year. Together with these offtake agreements that we're working hard to formalise, that will accumulate in project finance and project execution, and in investment decision by our board in the new year - which is extremely exciting for us."

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https://www.oilcapital.com/columns/the-pay-zone/30154/sound-trinity-amerisur--30154.html Sound, Trinity, Amerisur ............... https://www.oilcapital.com/columns/the-pay-zone/30154/sound-trinity-amerisur--30154.html Wed, 17 Oct 2018 15:41:00 +0100 Sound Energy (LON:SOU)

Sound has announced that its TE-9 well at Tendrara in Eastern Morocco will spud today. The first of a three well campaign it will test the A1 prospect and it is intended to drill both the TAGI as a primary target and also the underlying Paleozoic as a secondary and the well is expected to take between 35-45 days.

Trinity

A Q3 update from Trinity this morning with production at 2,734 b/d, this is up 9% y/y but down 3% q/q due to a well being offline for two months.

There is much going on with 6 rcp’s, 38 workovers and 2 infill development spudded in the quarter which will be completed with first production in early Q4. Since the quarter end 2 new infill wells have been spudded with 2 more due in the latter part of the quarter. At the Trintes field the intensive workover and reactivation work done in the quarter has increased the number of wells on production from 17 to 31.

The outlook for Trinity is exceptional, by Q1 2019 all 6 wells are expected to be on production boosting production and profitability from what is very high quality organic growth. With the balance sheet decks cleared and moving forward debt free Trinity is in a very powerful position indeed.

Amerisur Resources (LON:AMER)

An update from AMER this morning as they first report that at CPO-5 the Indico-1 well is on track to spud in 2H of October and followed by Aguila-1 and Sol-1 after that.

September production was 4,974 b/d with a peak of 5,025 b/d in line with expectations. The company also say that the testing of the T sands continues and with the discovery being so low in the prospect will mean more appraisal drilling. The PUT 12 and PUT 9 seismic has been processed and is being interpreted prior to the finalisation of the Coendu drilling location.

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https://www.oilcapital.com/companies/news/207252/powerhouse-energy-s-technology-receives-the-thumbs-up-from-technical-assurance-consultant-207252.html PowerHouse Energy's technology receives the thumbs-up from technical assurance consultant https://www.oilcapital.com/companies/news/207252/powerhouse-energy-s-technology-receives-the-thumbs-up-from-technical-assurance-consultant-207252.html Wed, 17 Oct 2018 14:10:00 +0100 https://www.oilcapital.com/companies/news/207250/sound-energy-kicks-off-new-exploration-drilling-in-morocco-207250.html Sound Energy kicks off new exploration drilling in Morocco https://www.oilcapital.com/companies/news/207250/sound-energy-kicks-off-new-exploration-drilling-in-morocco-207250.html Wed, 17 Oct 2018 14:10:00 +0100 https://www.oilcapital.com/companies/stocktube/10884/powerhouse-energy-hails-seal-of-approval-for-its-waste-to-energy-technology-10884.html PowerHouse Energy hails 'seal of approval' for its waste-to-energy technology https://www.oilcapital.com/companies/stocktube/10884/powerhouse-energy-hails-seal-of-approval-for-its-waste-to-energy-technology-10884.html Wed, 17 Oct 2018 14:05:00 +0100 Keith Allaun, chairman of PowerHouse Energy Group PLC (LON:PHE), caught up with Proactive London's Andrew Scott as the firm received an independent endorsement of its technology. 

DNV GL, a global leader in technical assurance certification, conducted a review of PowerHouse’s proprietary full-scale commercial engineering design for the waste to power and waste to hydrogen technology processes known as DMG.

The end result was the issue of a “Statement of Feasibility” by DNV, which signifies that the consultant found no prohibitive obstacles under its technology qualification process.

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https://www.oilcapital.com/companies/stocktube/10883/caution-over-berkeley-energia-report-casting-doubt-over-spanish-government-approval-10883.html Caution over Berkeley Energia report casting doubt over Spanish government approval https://www.oilcapital.com/companies/stocktube/10883/caution-over-berkeley-energia-report-casting-doubt-over-spanish-government-approval-10883.html Wed, 17 Oct 2018 12:24:00 +0100 Numis Securities analyst Justin Chan chats to Proactive London's Andrew Scott following a Reuters report suggesting Spain’s government will not issue the required permits for construction of Berkeley Energia Ltd 's (LON:BKY) Salamanca mine to go-ahead, even though the project was granted preliminary approval.

In a statement, Berkeley said that it had received no official notice from the Nuclear Council nor any other government department to that effect.

BKY added it had contacted both the Council and Energy and Environment Ministry to clarify the position.

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https://www.oilcapital.com/companies/news/207279/angus-energy-rises-on-bergen-share-disposals-207279.html Angus Energy rises on Bergen share disposals https://www.oilcapital.com/companies/news/207279/angus-energy-rises-on-bergen-share-disposals-207279.html Wed, 17 Oct 2018 09:37:00 +0100 https://www.oilcapital.com/companies/news/207278/berkeley-energia-seeks-to-clarify-permit-situation-at-salamanca-207278.html Berkeley Energia seeks to clarify permit situation at Salamanca https://www.oilcapital.com/companies/news/207278/berkeley-energia-seeks-to-clarify-permit-situation-at-salamanca-207278.html Wed, 17 Oct 2018 09:13:00 +0100 https://www.oilcapital.com/companies/news/207276/protean-energy-secures-controlling-stake-in-korean-vanadium-focused-subsidiary-207276.html Protean Energy secures controlling stake in Korean vanadium-focused subsidiary https://www.oilcapital.com/companies/news/207276/protean-energy-secures-controlling-stake-in-korean-vanadium-focused-subsidiary-207276.html Wed, 17 Oct 2018 09:11:00 +0100 https://www.oilcapital.com/columns/vsa-capital-market-movers/30148/vsa-capital-market-movers-m2-cobalt-30148.html VSA CAPITAL MARKET MOVERS - M2 Cobalt https://www.oilcapital.com/columns/vsa-capital-market-movers/30148/vsa-capital-market-movers-m2-cobalt-30148.html Wed, 17 Oct 2018 08:24:00 +0100 M2 Cobalt (CVE:MC)

M2 Cobalt (MC CN) has announced that it has acquired an additional four exploration licenses covering 850km2. Three licenses (515kmm2) are located in the area surrounding the Kilembe licenses while the fourth (335km2) is contiguous with one of the licenses in the Bujagali area.  The decision to include these additional license areas is based on a combination of historic findings and the recent successful Phase 1 work and M2 now has a very significant footprint of 1,564km2 across seven licenses. 

The consideration for the acquisition paid to Olympic, a private Ugandan company, consists of an upfront payment of US$150k and 350k shares in M2 on approval by the TSX-V. Latterly M2 will pay US$400k and 450k shares on the earlier of May 31 2019 or when the company raises a minimum of US$3m in new equity. All issued shares are subject to a four-month hold. Based on the last close the total value of the acquisition was US$810k which represents a highly attractive price, in our view, given the initial license areas were acquired for around US$2m.

The acquisition allows M2 to take full advantage of the developing regional play at the Bujagali licenses where the company recently announced that it has now discovered five large scale cobalt anomalies. The acquisition of the additional license area means a significantly increased and continuous land package which follows a major thrust and fold belt on which the anomalies have been identified. The work to date has demonstrated the potential for Katanga style sedimentary copper cobalt mineralisation and this is a key additional license which enables the company to fully exploit the area’s potential and we anticipate that M2 will carry out similar methodical geochemical and geophysical sampling across the new license.

At Kilembe two of the three new licenses are contiguous with the company’s existing licenses on the Western extent of the Eastern branch of the Great Rift Valley in close proximity to the past producing Kilembe mine. These additional licenses therefore strengthen the company’s presence in the region. The third license presents a new opportunity and is located on the Eastern escarpment of the Great Rift Valley on the opposite side to Kilembe. With examples of historic base metal workings there are known occurrences of mineralisation within this new license. The Great Rift Valley formed as the two plates drifted apart and the geology and mineralisation is therefore anticipated to be mirrored on opposite sides of the valley indicating significant potential akin to Kilembe.

We reiterate our Speculative Buy recommendation.

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https://www.oilcapital.com/companies/news/207266/tlou-energy-excited-by-botswanas-emerging-coal-bed-methane-industry-207266.html Tlou Energy excited by Botswana’s emerging coal bed methane industry https://www.oilcapital.com/companies/news/207266/tlou-energy-excited-by-botswanas-emerging-coal-bed-methane-industry-207266.html Wed, 17 Oct 2018 07:56:00 +0100 https://www.oilcapital.com/companies/news/207262/i3-energy-to-step-up-partnering-process-for-liberator-field-207262.html i3 Energy to step up partnering process for Liberator field https://www.oilcapital.com/companies/news/207262/i3-energy-to-step-up-partnering-process-for-liberator-field-207262.html Wed, 17 Oct 2018 07:30:00 +0100 https://www.oilcapital.com/companies/news/207257/europa-oil-gas-looks-forward-to-irish-well-programme-as-soon-as-next-year-207257.html Europa Oil & Gas looks forward to Irish well programme as soon as next year https://www.oilcapital.com/companies/news/207257/europa-oil-gas-looks-forward-to-irish-well-programme-as-soon-as-next-year-207257.html Wed, 17 Oct 2018 06:56:00 +0100 https://www.oilcapital.com/companies/news/207235/buru-energy-spuds-ungani-west-1-exploration-well-207235.html Buru Energy spuds Ungani West 1 exploration well https://www.oilcapital.com/companies/news/207235/buru-energy-spuds-ungani-west-1-exploration-well-207235.html Wed, 17 Oct 2018 00:11:00 +0100 https://www.oilcapital.com/companies/news/207234/high-peak-royalties-raises-125-million-to-pay-down-acquisition-debt-207234.html High Peak Royalties raises $1.25 million to pay down acquisition debt https://www.oilcapital.com/companies/news/207234/high-peak-royalties-raises-125-million-to-pay-down-acquisition-debt-207234.html Tue, 16 Oct 2018 23:53:00 +0100 https://www.oilcapital.com/companies/stocktube/10873/high-peak-royalties-chairman-discusses-acquisition-debt-facility-and-share-placement-10873.html High Peak Royalties chairman discusses acquisition, debt facility, and share placement https://www.oilcapital.com/companies/stocktube/10873/high-peak-royalties-chairman-discusses-acquisition-debt-facility-and-share-placement-10873.html Tue, 16 Oct 2018 23:17:00 +0100 High Peak Royalties Ltd (ASX:HPR) chairman Andrew Carroll speaks to Proactive Investors about recent news of a royalty acquisition, US$15 million debt facility with Macquarie Bank, and A$1.25 million share placement.

The oil & gas-focused company came out of a trading halt this morning.

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https://www.oilcapital.com/companies/news/207221/cui-globals-partnership-with-germanys-samson-driving-adoption-of-gaspti-and-ve-technology-207221.html CUI Global’s partnership with Germany’s Samson driving adoption of GasPTi and VE technology https://www.oilcapital.com/companies/news/207221/cui-globals-partnership-with-germanys-samson-driving-adoption-of-gaspti-and-ve-technology-207221.html Tue, 16 Oct 2018 18:25:00 +0100 https://www.oilcapital.com/companies/news/207207/permex-petroleum-secures-5m-loan-to-advance-business-in-permian-basin-207207.html Permex Petroleum secures $5M loan to advance business in Permian basin https://www.oilcapital.com/companies/news/207207/permex-petroleum-secures-5m-loan-to-advance-business-in-permian-basin-207207.html Tue, 16 Oct 2018 14:38:00 +0100 https://www.oilcapital.com/columns/the-pay-zone/30144/oil-price-sound-energy-podcasts-and-finally-30144.html Oil price, Sound Energy, Podcasts And finally... https://www.oilcapital.com/columns/the-pay-zone/30144/oil-price-sound-energy-podcasts-and-finally-30144.html Tue, 16 Oct 2018 10:56:00 +0100 WTI $71.78 +44c, Brent $80.78 +35c, Diff -$9.00 -9c, NG $3.24 +8c

Oil price

The oil price did end up on the day yesterday but at one stage looked like it was going to be nearer two bucks rather than the change that it turned out to be. With ‘KhashoggiGate’ in full swing the worries about a full scale diplomatic feud between Washington and Riyadh heightened but towards the end of the day some pragmatism came into being as if the two big dogs realised that a fight was unwise.

What it does do is to serve to remind us, if any were ever needed in this game that geopolitical uncertainties persist and can come from left field very quickly. This market will normally behave sensibly when we talk about fundamentals but as I said yesterday it’s the unknown unknowns that are sent to try us.

Sound Energy

Sound has announced that it has received Moroccan Ministerial approval of the new 8 year Greater Tendrara Petroleum Agreement. CEO James Parsons commented ‘ this secures energy rights to potentially transformational acreage up to 2026’. As a result of this deal Sound holds an operated 47.5% position in the GTPA with partners Schlumberger (27.5%) and ONHYM (25%) holding the rest.

Sound is entering a busy time after a long period of behind the scenes activity from the exploration department. News from the company has exploded in recent months as they gear up to the autumn drilling programme in Eastern Morocco. I am expecting the well TE-9 to spud imminently and with a large group of investors visiting Tendrara this week for the spotlight to return on the company. #drillinginthedesertagain

Links

Two links today, my Voxmarkets Podcast from yesterday…

VOX Markets podcast: Malcy on Columbus Energy Resources, Zenith Energy, Echo Energy, Hurricane Energy, Chariot Oil & Gas, Genel Energy, Sound Energy

And an interview I gave to Doc Holiday of Total Market Solutions on Friday…

Total Market Solutions interview: Malcy Talks Oil & Gas Part V

LSE Investor evening.

And I am very much looking forward to seeing a few of you at the LSE Investor event tonight, its a sell-out and we have three great companies presenting.

And finally…

Form from the World Cup returned to England last night as they beat Spain in their own back yard and completed a memorable victory against a leading nation under Gareth Southgate. Unfortunately Northern Ireland lost 2-0 to Bosnia-Herzegovina.

Tonight its the ROI v Wales in the same cup which is designed to secure qualification for the European Championship.

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https://www.oilcapital.com/companies/news/207177/sound-energy-shares-in-demand-ahead-new-morocco-drill-programme-207177.html Sound Energy shares in demand ahead new Morocco drill programme https://www.oilcapital.com/companies/news/207177/sound-energy-shares-in-demand-ahead-new-morocco-drill-programme-207177.html Tue, 16 Oct 2018 10:53:00 +0100 https://www.oilcapital.com/companies/news/207187/pulse-oil-unveils-55mln-placing-to-advance-bigoray-assets-207187.html Pulse Oil unveils $5.5mln placing to advance Bigoray assets https://www.oilcapital.com/companies/news/207187/pulse-oil-unveils-55mln-placing-to-advance-bigoray-assets-207187.html Tue, 16 Oct 2018 10:45:00 +0100 https://www.oilcapital.com/companies/news/207157/drax-group-confirms-700mln-uk-power-acquisition-207157.html Drax Group confirms £700mln UK power acquisition https://www.oilcapital.com/companies/news/207157/drax-group-confirms-700mln-uk-power-acquisition-207157.html Tue, 16 Oct 2018 07:21:00 +0100 https://www.oilcapital.com/companies/news/207155/highlands-natural-to-target-fellow-frackers-with-water-recycling-services-207155.html Highlands Natural to target fellow frackers with water recycling services https://www.oilcapital.com/companies/news/207155/highlands-natural-to-target-fellow-frackers-with-water-recycling-services-207155.html Tue, 16 Oct 2018 07:13:00 +0100 https://www.oilcapital.com/companies/news/207148/copl-updates-on-nigeria-partner-disagreement-207148.html COPL updates on Nigeria partner disagreement https://www.oilcapital.com/companies/news/207148/copl-updates-on-nigeria-partner-disagreement-207148.html Tue, 16 Oct 2018 06:34:00 +0100 https://www.oilcapital.com/companies/news/207143/sound-energy-seals-new-eight-year-agreement-for-tendrara-exploration-acreage-207143.html Sound Energy seals new eight year agreement for Tendrara exploration acreage https://www.oilcapital.com/companies/news/207143/sound-energy-seals-new-eight-year-agreement-for-tendrara-exploration-acreage-207143.html Tue, 16 Oct 2018 06:19:00 +0100 https://www.oilcapital.com/columns/the-pay-zone/30139/oil-price-hurricane-echo-zenith-president-columbus-and-finally-30139.html Oil price, Hurricane, Echo, Zenith, President, Columbus And finally… https://www.oilcapital.com/columns/the-pay-zone/30139/oil-price-hurricane-echo-zenith-president-columbus-and-finally-30139.html Mon, 15 Oct 2018 13:39:00 +0100 WTI $71.34 +37c, Brent $80.43 +17c, Diff -$9.09 -20c, NG $3.16 -6c

Oil price

I’m not sure that I can add much to what I have already opined on the oil price. It went up preparing for US sanctions on Iran but that was pretty much in the price when it peaked at around $85, Opec+had met but had already decided to produce more, at least those that could do. So when the Saudis told Mr Trump, and anyone else who was listening, that there was crude for anyone who wanted cargoes they were probably right.

Combine that with seasonal stock-build and last week became a shake out, nothing more, nothing less. This quarter is going to be a bit tight but in the absence of an unknown unknown the market will cope, it’s next year you should be worrying about. If you, like me, believe that Opec+ will work in all market conditions then expect them to cut back when the 1Q starts to look oversupplied, which it will. If you don’t believe that their discipline will hold then you should be having a look at the shorts available in the market.

Hurricane Energy

News that the Aoka Mizu FPSO has sailed-away from Dubai and is headed to the Lancaster EPS via Rotterdam is almost the final piece in the jigsaw that Hurricane can announce before hook-up and then hopefully first oil in H1 2019. There is now no reason to believe that the hooking up of the wells and final commissioning will not be in place on time allowing several months for production to fully get under way.

Echo Energy

Two pieces of news from Echo this morning, from Argentina and from Bolivia. In Argentina the rig has been used to perforate the EMS well prior to the rigless mechanical stimulation and the results show no moveable formation water which is a very good sign. They will now proceed to frac both this well and the ELM gas well, which seems to be in good condition, consecutively.

In Bolivia the company has signed a TEA with YPFB on the Rio Salado Block which compliments their existing stake in the Huayco block which management consider  have a potential of 1.75 TCF mean for the whole structure over both blocks. There are two not insignificant fringe benefits to this deal, firstly for about $30/- they get access to the very expensive 2D seismic data shot by BG not long ago and rumoured to have cost a lot of dough and secondly that the acreage is between two wells being drilled by Shell and Repsol in the  region, if either of them came in…..

Zenith Energy

Zenith announces that operations are under way to prepare to drill the C-37 well in the Jafarli field in Azerbaijan where they are aiming for a highly prospective, unexploited structure of Upper Cretaceous carbonates formations. The well will initially test the Middle Eocene formation which also has the opportunity to hold significant oil reserves.

Following that the company are planning to drill the Z-21 well on the Zardab block which has become the second well in the programme as it will involve a certain amount of fishing out of tubing from the wellbore. This is an important time for Zenith as it returns to the drilling programme but as it brings on new kit, and another new drilling manager the opportunities are very much still there.

President Energy

President has added a 20% stake in a 693 acre block at Jefferson Island to its Louisiana acreage at a cost of $175/-. The area has ‘significant undrained low risk potential’ and a four well programme will commence towards the end of Q2 2019. The acquisition compliments the existing asset base in Louisiana and the wells cost around $2m completed or a net $400/- to PPC who will pay out of existing resources. Whilst there are no working wells there at present, the old ones had ‘compelling economics’ and with modern techniques being able to extract more efficiently and with good routes to market it looks like substantial upside could be proved.

Columbus Energy Resources

Columbus has raised £2.5m in a placing at 3.5p (a 6.8% discount) with new and existing shareholders. Half of the proceeds will be used to repay the North Energy Capital facility ($1.25m)  and the rest to establish a multi-well drilling campaign on the Steeldrum assets and in the south-west peninsular facilities. The raise has been brought on by existing shareholders who approached the company asking it to use the money for an ‘accelerated growth strategy’, rather than be paying back monthly debt repayments.

The raise is a good thing and with CERP’s problem being one of how to ‘bulk up’ the business is a reasonable start in that process. I have written many times about how ambitious Leo Koot is and clearly his shareholders want to participate in that which is admirable, maybe once this bulks up a bit more there might be an M&A opportunity available for the next stage…

Link

I wrote an article for Master Investor magazine last month, it is very broad brush on recent oil price history and some company stuff, here it is.

Master Investor magazine article: “Black Gold Shines Again”

And finally…

As international week continues with yet another Mickey Mouse Cup England B are in Spain with a somewhat less than slim chance. Northern Ireland travel to Bosnia-Herzegovina for their night out.

The racing was good at the weekend, might we have seen another wonder horse in Too Darn Hot?

In the baseball, the Red Sox won at Fenway last night but they lost the first game in Boston over the weekend. They now head to Houston having given up home-field advantage. The same is true of the Brewers who lost game 2 to the Dodgers on Saturday night. A repeat of last years World Series is now very possible…

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https://www.oilcapital.com/companies/news/207087/hurricane-energy-passes-another-key-milestone-ahead-of-lancaster-field-start-up-207087.html Hurricane Energy passes another key milestone ahead of Lancaster field start-up https://www.oilcapital.com/companies/news/207087/hurricane-energy-passes-another-key-milestone-ahead-of-lancaster-field-start-up-207087.html Mon, 15 Oct 2018 11:44:00 +0100 https://www.oilcapital.com/companies/stocktube/10849/columbus-energy-resources-to-raise-25mln-to-accelerate-growth-strategy--10849.html Columbus Energy Resources to raise £2.5mln to 'accelerate growth strategy' https://www.oilcapital.com/companies/stocktube/10849/columbus-energy-resources-to-raise-25mln-to-accelerate-growth-strategy--10849.html Mon, 15 Oct 2018 09:50:00 +0100 Leo Koot, chief executive of Columbus Energy Resources PLC (LON:CERP), discusses with Proactive London's Andrew Scott a decision to raise around £2.5mln to 'fund an accelerated growth strategy'

The raise has been backed by new and existing shareholders including Schroders, Michael Joseph and Burggraben.

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https://www.oilcapital.com/companies/stocktube/10848/block-energy-s-paul-haywood-chats-to-proactive-as-well-workover-program-begins-10848.html Block Energy's Paul Haywood chats to Proactive as well-workover program begins https://www.oilcapital.com/companies/stocktube/10848/block-energy-s-paul-haywood-chats-to-proactive-as-well-workover-program-begins-10848.html Mon, 15 Oct 2018 09:41:00 +0100 Paul Haywood, director at Block Energy Plc (LON:BLOE), skyped into the Proactive London studio as a programme of well work-overs at the Norio oil field, in the Republic of Georgia, got underway.

Block plans to carry out two work-over programmes, one through late 2018 and one in the first quarter of 2019.

The current programme begins with the preparation of four of eight existing wells, before new perforation technology will bypass any damage caused by historic heavy mud drilling.

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https://www.oilcapital.com/companies/news/207066/berkeley-energia-remains-firmly-committed-but-need-local-approvals-207066.html Berkeley Energia remains “firmly committed” but need local approvals https://www.oilcapital.com/companies/news/207066/berkeley-energia-remains-firmly-committed-but-need-local-approvals-207066.html Mon, 15 Oct 2018 07:54:00 +0100 https://www.oilcapital.com/companies/news/207064/active-energy-group-plc-inks-us-partnership-with-renewable-power-group-207064.html Active Energy Group Plc inks US partnership with renewable power group https://www.oilcapital.com/companies/news/207064/active-energy-group-plc-inks-us-partnership-with-renewable-power-group-207064.html Mon, 15 Oct 2018 07:33:00 +0100 https://www.oilcapital.com/companies/news/207058/providence-resources-growing-in-confidence-over-its-newgrange-prospect-207058.html Providence Resources growing in confidence over its Newgrange prospect https://www.oilcapital.com/companies/news/207058/providence-resources-growing-in-confidence-over-its-newgrange-prospect-207058.html Mon, 15 Oct 2018 07:23:00 +0100 https://www.oilcapital.com/companies/news/207056/block-energy-kicks-off-well-work-over-programme-at-norio-oil-field-207056.html Block Energy kicks off well work-over programme at Norio oil field https://www.oilcapital.com/companies/news/207056/block-energy-kicks-off-well-work-over-programme-at-norio-oil-field-207056.html Mon, 15 Oct 2018 07:12:00 +0100 https://www.oilcapital.com/companies/news/207047/hurricane-energy-says-aoka-mizu-fpso-has-now-left-dubai-207047.html Hurricane Energy says Aoka Mizu FPSO has now left Dubai https://www.oilcapital.com/companies/news/207047/hurricane-energy-says-aoka-mizu-fpso-has-now-left-dubai-207047.html Mon, 15 Oct 2018 06:49:00 +0100 https://www.oilcapital.com/companies/news/207051/columbus-energy-raises-funds-to-accelerate-growth-207051.html Columbus Energy raises funds to accelerate growth https://www.oilcapital.com/companies/news/207051/columbus-energy-raises-funds-to-accelerate-growth-207051.html Mon, 15 Oct 2018 06:40:00 +0100 https://www.oilcapital.com/companies/news/207042/echo-energy-continues-to-progress-argentina-wells-signs-new-deal-in-bolivia-207042.html Echo Energy continues to progress Argentina wells, signs new deal in Bolivia https://www.oilcapital.com/companies/news/207042/echo-energy-continues-to-progress-argentina-wells-signs-new-deal-in-bolivia-207042.html Mon, 15 Oct 2018 06:34:00 +0100 https://www.oilcapital.com/companies/news/207040/real-energy-corporation-agreements-provide-for-processing-and-sale-of-windorah-gas-207040.html Real Energy Corporation agreements provide for processing and sale of Windorah gas https://www.oilcapital.com/companies/news/207040/real-energy-corporation-agreements-provide-for-processing-and-sale-of-windorah-gas-207040.html Mon, 15 Oct 2018 05:13:00 +0100 https://www.oilcapital.com/companies/news/207036/high-peak-royalties-halts-after-announcing-snap-up-of-planet-gas-usa-and-macquarie-bank-funding-207036.html High Peak Royalties halts after announcing snap-up of Planet Gas USA and Macquarie Bank funding https://www.oilcapital.com/companies/news/207036/high-peak-royalties-halts-after-announcing-snap-up-of-planet-gas-usa-and-macquarie-bank-funding-207036.html Mon, 15 Oct 2018 03:48:00 +0100 https://www.oilcapital.com/companies/news/207029/carnarvon-petroleum-has-strong-potential-to-add-to-oil-bounty-of-dorado-1-207029.html Carnarvon Petroleum has strong potential to add to oil bounty of Dorado-1 https://www.oilcapital.com/companies/news/207029/carnarvon-petroleum-has-strong-potential-to-add-to-oil-bounty-of-dorado-1-207029.html Mon, 15 Oct 2018 01:37:00 +0100 https://www.oilcapital.com/companies/stocktube/10833/real-energy-corporation-very-well-placed-to-sell-gas-into-the-grid-potentially-next-year--10833.html Real Energy Corporation 'very well placed to sell gas into the grid, potentially next year' https://www.oilcapital.com/companies/stocktube/10833/real-energy-corporation-very-well-placed-to-sell-gas-into-the-grid-potentially-next-year--10833.html Sun, 14 Oct 2018 22:01:00 +0100 Real Energy Corporation Ltd (ASX:RLE) CEO and executive director Scott Brown speaks to Proactive Investors about the oil and gas explorer's large-scale asset in the Cooper Basin, located onshore in Queensland, Australia, where gas supply is short and prices are high.

"We're very familiar with the Cooper Basin, it's got great geology and it's got excellent proximity to both pipeline infrastructure and gas plants. We've got an agreement with both Santos [Limited (ASX:STO)] and Beach [Energy (ASX:BPT)] for our gas processing there," says Brown.

He continues, "we've drilled four wells in our Windorah Gas Project; all four wells have discovered gas... the independent geological assessment is 13.7 trillion cubic feet of gas in place, which is a very large number."

The company is anticipating results from well stimulation on Tamarama 2 and Tamarama 3 which were drilled this year.

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https://www.oilcapital.com/companies/news/206990/igas-energy-shares-boosts-as-cuadrilla-get-greenlight-to-start-fracking-in-lancashire-206990.html IGAS Energy shares boosts as Cuadrilla get greenlight to start fracking in Lancashire https://www.oilcapital.com/companies/news/206990/igas-energy-shares-boosts-as-cuadrilla-get-greenlight-to-start-fracking-in-lancashire-206990.html Fri, 12 Oct 2018 13:07:00 +0100 https://www.oilcapital.com/companies/news/206978/opg-power-shifts-focus-to-chennai-and-solar-206978.html OPG Power shifts focus to Chennai and solar https://www.oilcapital.com/companies/news/206978/opg-power-shifts-focus-to-chennai-and-solar-206978.html Fri, 12 Oct 2018 11:28:00 +0100 https://www.oilcapital.com/companies/news/206964/shell-is-working-on-a-venezuela-exit-report-206964.html Shell is working on a Venezuela exit - report https://www.oilcapital.com/companies/news/206964/shell-is-working-on-a-venezuela-exit-report-206964.html Fri, 12 Oct 2018 07:26:00 +0100 https://www.oilcapital.com/companies/news/206947/simble-solutions-gaining-momentum-after-1-million-sales-milestone-206947.html Simble Solutions gaining momentum after $1 million sales milestone https://www.oilcapital.com/companies/news/206947/simble-solutions-gaining-momentum-after-1-million-sales-milestone-206947.html Fri, 12 Oct 2018 02:38:00 +0100 https://www.oilcapital.com/companies/news/206945/buru-energy-oilfield-production-drill-campaign-underway-206945.html Buru Energy oilfield production drill campaign underway https://www.oilcapital.com/companies/news/206945/buru-energy-oilfield-production-drill-campaign-underway-206945.html Fri, 12 Oct 2018 02:10:00 +0100 https://www.oilcapital.com/companies/stocktube/10828/australian-mines-demonstration-plant-informs-future-sconi-development-10828.html Australian Mines’ demonstration plant informs future Sconi development https://www.oilcapital.com/companies/stocktube/10828/australian-mines-demonstration-plant-informs-future-sconi-development-10828.html Thu, 11 Oct 2018 23:02:00 +0100 Australian Mines Ltd (ASX:AUZ) chief operating officer Tim Maclean talks Proactive Investors through processing works at the company's demonstration plant, and provides updates on the Sconi Cobalt-Nickel-Scandium Project's bankable feasibility study (BFS).

The latest progress also bodes well for the Flemington Cobalt-Scandium-Nickel project, which has similar geology.

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https://www.oilcapital.com/companies/stocktube/10826/touchstone-exploration-hits-major-milestone-as-the-company-ramps-up-production-10826.html Touchstone Exploration hits major milestone as the company ramps up production https://www.oilcapital.com/companies/stocktube/10826/touchstone-exploration-hits-major-milestone-as-the-company-ramps-up-production-10826.html Thu, 11 Oct 2018 18:22:00 +0100 Touchstone Exploration (CVE:TXP) CEO Paul Baay checked in on Skype with Proactive Investor's Steve Darling on our London studio to provide an update on their oil production, which has hit a new milestone in Trinidad and Tobago.

Baay also provided details with on their drill program on the Ortoire project and what the company has planned for the rest of 2018 and in to 2019.

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https://www.oilcapital.com/companies/news/206932/prairie-provident-resources-closes-55m-in-financings-206932.html Prairie Provident Resources closes $5.5M in financings https://www.oilcapital.com/companies/news/206932/prairie-provident-resources-closes-55m-in-financings-206932.html Thu, 11 Oct 2018 17:20:00 +0100 https://www.oilcapital.com/companies/stocktube/10821/diversified-gas-oil-plc-s-latest-deal-fits-like-a-glove-with-appalachia-assets-10821.html Diversified Gas & Oil PLC's latest deal 'fits like a glove' with Appalachia assets https://www.oilcapital.com/companies/stocktube/10821/diversified-gas-oil-plc-s-latest-deal-fits-like-a-glove-with-appalachia-assets-10821.html Thu, 11 Oct 2018 14:46:00 +0100 Rusty Hutson, Diversified Gas's (LON:DGOC)  chief executive, tells Proactive that Core Appalachia fits perfectly with its recent purchases in the Appalachian Basin.

The deal also brings 4,100 miles of gas pipelines with associated transmission fees plus the opportunity to add revenue from non-gas liquids (NGLs).

DGOC is now a 70,000 boe per day producer, he says, which makes it among the top of those listed in London and the largest on AIM.

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https://www.oilcapital.com/companies/news/206854/chariot-oil-gas-reveals-disappointing-prospect-s-well-result-206854.html Chariot Oil & Gas reveals disappointing Prospect S well result https://www.oilcapital.com/companies/news/206854/chariot-oil-gas-reveals-disappointing-prospect-s-well-result-206854.html Thu, 11 Oct 2018 14:15:00 +0100 https://www.oilcapital.com/companies/news/206894/sound-energy-counts-down-to-tendrara-well-spud-next-week-206894.html Sound Energy counts down to Tendrara well spud next week https://www.oilcapital.com/companies/news/206894/sound-energy-counts-down-to-tendrara-well-spud-next-week-206894.html Thu, 11 Oct 2018 11:12:00 +0100 https://www.oilcapital.com/companies/news/206886/chagala-shareholders-back-takeover-offer-from-realty-invest-holding-206886.html Chagala shareholders back takeover offer from Realty Invest Holding https://www.oilcapital.com/companies/news/206886/chagala-shareholders-back-takeover-offer-from-realty-invest-holding-206886.html Thu, 11 Oct 2018 10:06:00 +0100 https://www.oilcapital.com/companies/news/206880/lenigas-praises-ukog-oil-dude-but-not-everyone-is-in-good-books-as-gatwick-well-gushes-again-206880.html Lenigas praises UKOG ‘oil dude’ but not everyone is in good books as Gatwick well gushes again https://www.oilcapital.com/companies/news/206880/lenigas-praises-ukog-oil-dude-but-not-everyone-is-in-good-books-as-gatwick-well-gushes-again-206880.html Thu, 11 Oct 2018 08:34:00 +0100 https://www.oilcapital.com/companies/news/206875/azalea-energy-eyes-aim-float-to-raise-up-to-38mln-206875.html Azalea Energy eyes AIM float to raise up to $38mln https://www.oilcapital.com/companies/news/206875/azalea-energy-eyes-aim-float-to-raise-up-to-38mln-206875.html Thu, 11 Oct 2018 07:46:00 +0100 https://www.oilcapital.com/companies/news/206868/touchstone-exploration-hits-production-target-rate-as-new-wells-boost-output-206868.html Touchstone Exploration hits production target rate as new wells boost output https://www.oilcapital.com/companies/news/206868/touchstone-exploration-hits-production-target-rate-as-new-wells-boost-output-206868.html Thu, 11 Oct 2018 07:14:00 +0100 https://www.oilcapital.com/companies/news/206858/dgoc-unveils-new-183mln-us-acquisition-to-grow-production-and-add-midstream-operations-206858.html DGOC unveils new $183mln US acquisition to grow production and add midstream operations https://www.oilcapital.com/companies/news/206858/dgoc-unveils-new-183mln-us-acquisition-to-grow-production-and-add-midstream-operations-206858.html Thu, 11 Oct 2018 06:31:00 +0100 https://www.oilcapital.com/companies/stocktube/10810/perseus-mining-can-now-very-confidently-move-forward-with-funding-yaour-gold-project-10810.html Perseus Mining 'can now very confidently move forward with funding' Yaouré Gold Project https://www.oilcapital.com/companies/stocktube/10810/perseus-mining-can-now-very-confidently-move-forward-with-funding-yaour-gold-project-10810.html Thu, 11 Oct 2018 04:46:00 +0100 Perseus Mining Limited (ASX:PRU) (TSX:PRU) chief executive Jeff Quartermaine speaks to Proactive Investors about the successful completion of a front-end engineering design (FEED) study for the Yaouré Gold Project, which is set to become the gold producer's third operating mine in West Africa.

Quartermaine also teases on the timing and content of the company's upcoming quarterly report.

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https://www.oilcapital.com/companies/news/206841/greenland-minerals-welcomes-added-government-support-for-mining-206841.html Greenland Minerals welcomes added government support for mining https://www.oilcapital.com/companies/news/206841/greenland-minerals-welcomes-added-government-support-for-mining-206841.html Thu, 11 Oct 2018 01:55:00 +0100 https://www.oilcapital.com/companies/stocktube/10805/permex-petroleum-using-waterflood-program-to-increase-production-at-bullard-project-10805.html Permex Petroleum using waterflood program to increase production at Bullard Project https://www.oilcapital.com/companies/stocktube/10805/permex-petroleum-using-waterflood-program-to-increase-production-at-bullard-project-10805.html Wed, 10 Oct 2018 18:04:00 +0100 Permex Petroleum (CSE:OIL) CEO Mehran Ehsan dropped in to the Vancouver studio of Proactive Investors to talk about a change at the companies Bullard Property. Ehsan says they are going to use a waterflood program to dramatically  increase the amount of oil they are bring to the surface.

Ehsan also talk about how this small project will have a major impact on Permex's overall portfolio. 

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https://www.oilcapital.com/companies/news/206813/tlou-energy-confirms-tender-submission-for-coal-bed-methane-project-206813.html Tlou Energy confirms tender submission for coal bed methane project https://www.oilcapital.com/companies/news/206813/tlou-energy-confirms-tender-submission-for-coal-bed-methane-project-206813.html Wed, 10 Oct 2018 15:10:00 +0100 https://www.oilcapital.com/companies/news/206802/horse-hills-kimmeridge-test-rates-impress-ukog-shares-rise-206802.html Horse Hill’s Kimmeridge test rates impress, UKOG shares rise https://www.oilcapital.com/companies/news/206802/horse-hills-kimmeridge-test-rates-impress-ukog-shares-rise-206802.html Wed, 10 Oct 2018 13:53:00 +0100 https://www.oilcapital.com/companies/news/206774/soco-international-tipped-to-rise-thanks-to-recent-deal-making-206774.html SOCO International tipped to rise, thanks to recent deal making https://www.oilcapital.com/companies/news/206774/soco-international-tipped-to-rise-thanks-to-recent-deal-making-206774.html Wed, 10 Oct 2018 10:30:00 +0100 https://www.oilcapital.com/columns/vsa-capital-market-movers/30120/vsa-capital-market-movers-dekeloil-30120.html VSA CAPITAL MARKET MOVERS - DekelOil https://www.oilcapital.com/columns/vsa-capital-market-movers/30120/vsa-capital-market-movers-dekeloil-30120.html Wed, 10 Oct 2018 08:17:00 +0100 DekelOil Q3 Production and Sales Update

Côte d'Ivoire palm oil producer DekelOil Public Limited (LON:DKL)# has announced a production and sales update for Q3 2018.

  • FFB Collected: 24,938t, +15.3% YoY (Q3 2017: 21,626t)
  • CPO Production: 5,371t, +13.5% YoY (Q3 2017: 4,734t)
  • CPO Sales: 5,471t, -24.2% YoY (Q3 2017: 7,217t)
  • Average CPO Selling Price: €544/t, -16.9% YoY (€655/t)

VSA Comment

Having reported signs of stabilisation in regional fruit availability when it released its H1 2018 results last month, DKL has confirmed this morning that FFB crops have started to recover, recording an increase of more than 15% YoY in Q3. However, this was still below the levels recorded in Q3 2015 and Q3 2016, suggesting further recovery is likely.

DKL entered Q3 with little inventory on hand so was unable to smooth out its CPO sales for one of its quieter quarters (as it has done in previous years). We look forward to its Q4 production figures to confirm further evidence of a recovery in regional cropping levels, prior to its high season early next year.

In terms of palm oil pricing, we are hopeful that the current level of cUS$530/t in Rotterdam represents a bottom in the current cycle, due to an improved crude oil price making palm-based biodiesel more economic, more positive US soybean oil pricing over the last month and much stronger palm oil exports in South East Asia in recent weeks (Malaysian exports increased almost 50% MoM in September). However, we would also highlight that we have now entered the peak production season for South East Asian palm oil production, which may moderate some of these factors.   

DKL has now collected 121,133t of FFB and produced 27,613t of CPO YTD. Assuming the company manages to achieve at least the levels reached in Q4 2017, the company remains on track to reach our forecasts of 147,525t FFB and 33,341t CPO production for FY 2018.

We are currently assuming an average achieved CPO sales price for the year of €523/t. DKL has achieved €548/t YTD (due to achieving a premium over the European benchmark price), so this may provide slight upside to our FY forecasts (depending on Q4 pricing).

We are currently forecasting revenues of €20.2m and net loss of €2.8m for FY 2018. We maintain our BUY recommendation and target price of 12p.


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Eden Research

23.31

11.25

0.25

+2.3%

Zambeef Products

33.82

11.25

0.20

+1.8%

Devro

341.28

204.50

1.00

+0.5%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Anpario

103.02

445.00

(25.00)

-5.3%

Sirius Minerals

1,196.14

25.44

(1.00)

-3.8%

Produce Investments

48.40

178.50

(6.50)

-3.5%

 

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https://www.oilcapital.com/companies/news/206767/gran-tierra-energy-makes-london-debut-206767.html Gran Tierra Energy makes London debut https://www.oilcapital.com/companies/news/206767/gran-tierra-energy-makes-london-debut-206767.html Wed, 10 Oct 2018 08:14:00 +0100 https://www.oilcapital.com/companies/news/206760/international-public-partnerships-to-raise-75mln-to-fund-wind-farm-link-206760.html International Public Partnerships to raise £75mln to fund wind farm link https://www.oilcapital.com/companies/news/206760/international-public-partnerships-to-raise-75mln-to-fund-wind-farm-link-206760.html Wed, 10 Oct 2018 07:26:00 +0100 https://www.oilcapital.com/companies/news/206758/sse-plc-s-planned-merger-of-retail-unit-with-npower-cleared-by-uk-regulator-206758.html SSE PLC's planned merger of retail unit with Npower cleared by UK regulator https://www.oilcapital.com/companies/news/206758/sse-plc-s-planned-merger-of-retail-unit-with-npower-cleared-by-uk-regulator-206758.html Wed, 10 Oct 2018 07:08:00 +0100 https://www.oilcapital.com/companies/news/206757/lansdowne-oil-gas-updates-on-cash-position-as-investors-look-forward-to-drilling-206757.html Lansdowne Oil & Gas updates on cash position as investors look forward to drilling https://www.oilcapital.com/companies/news/206757/lansdowne-oil-gas-updates-on-cash-position-as-investors-look-forward-to-drilling-206757.html Wed, 10 Oct 2018 06:58:00 +0100 https://www.oilcapital.com/companies/news/206750/kosmos-energys-pontoenoe-exploration-well-fails-206750.html Kosmos Energy’s Pontoenoe exploration well fails https://www.oilcapital.com/companies/news/206750/kosmos-energys-pontoenoe-exploration-well-fails-206750.html Wed, 10 Oct 2018 06:52:00 +0100 https://www.oilcapital.com/companies/news/206744/iofina-enjoys-record-quarterly-production-as-it-reiterates-full-year-guidance-206744.html Iofina enjoys record quarterly production as it reiterates full-year guidance https://www.oilcapital.com/companies/news/206744/iofina-enjoys-record-quarterly-production-as-it-reiterates-full-year-guidance-206744.html Wed, 10 Oct 2018 06:35:00 +0100 https://www.oilcapital.com/companies/news/206743/columbus-energy-says-it-will-deliver-2018-production-target-206743.html Columbus Energy says it will deliver 2018 production target https://www.oilcapital.com/companies/news/206743/columbus-energy-says-it-will-deliver-2018-production-target-206743.html Wed, 10 Oct 2018 06:29:00 +0100 https://www.oilcapital.com/companies/news/206740/carnavale-resources-intersects-high-grade-nickel-and-cobalt-mineralisation-near-kalgoorlie-206740.html Carnavale Resources intersects high-grade nickel and cobalt mineralisation near Kalgoorlie https://www.oilcapital.com/companies/news/206740/carnavale-resources-intersects-high-grade-nickel-and-cobalt-mineralisation-near-kalgoorlie-206740.html Wed, 10 Oct 2018 06:15:00 +0100 https://www.oilcapital.com/companies/news/206726/high-peak-royalties-chairman-to-explain-benefits-of-royalties-to-investors-at-ceo-sessions-206726.html High Peak Royalties chairman to explain benefits of royalties to investors at CEO Sessions https://www.oilcapital.com/companies/news/206726/high-peak-royalties-chairman-to-explain-benefits-of-royalties-to-investors-at-ceo-sessions-206726.html Tue, 09 Oct 2018 21:13:00 +0100 https://www.oilcapital.com/companies/news/206707/ades-international-tipped-for-substantial-upside-as-canaccord-runs-its-rule-over-baker-hughes-deal-with-adnoc-206707.html ADES International tipped for substantial upside as Canaccord runs its rule over Baker Hughes deal with ADNOC https://www.oilcapital.com/companies/news/206707/ades-international-tipped-for-substantial-upside-as-canaccord-runs-its-rule-over-baker-hughes-deal-with-adnoc-206707.html Tue, 09 Oct 2018 14:46:00 +0100 https://www.oilcapital.com/companies/news/206711/pulse-oil-expects-to-grow-output-with-bigoray-well-reactivation-206711.html Pulse Oil expects to grow output with Bigoray well reactivation https://www.oilcapital.com/companies/news/206711/pulse-oil-expects-to-grow-output-with-bigoray-well-reactivation-206711.html Tue, 09 Oct 2018 13:31:00 +0100 https://www.oilcapital.com/companies/news/206694/balcombe-and-horse-hill-whats-next-for-the-uks-new-oil-play-206694.html Balcombe and Horse Hill: What’s next for the UK’s new oil play? https://www.oilcapital.com/companies/news/206694/balcombe-and-horse-hill-whats-next-for-the-uks-new-oil-play-206694.html Tue, 09 Oct 2018 13:26:00 +0100 https://www.oilcapital.com/companies/news/206689/permex-petroleum-eyeing-more-output-and-cashflow-with-bullard-waterflood-plan-206689.html Permex Petroleum eyeing more output and cashflow with Bullard waterflood plan https://www.oilcapital.com/companies/news/206689/permex-petroleum-eyeing-more-output-and-cashflow-with-bullard-waterflood-plan-206689.html Tue, 09 Oct 2018 13:03:00 +0100 https://www.oilcapital.com/companies/news/206663/mayan-energy-slumps-as-new-management-put-project-on-hold-206663.html Mayan Energy slumps as new management put project on hold https://www.oilcapital.com/companies/news/206663/mayan-energy-slumps-as-new-management-put-project-on-hold-206663.html Tue, 09 Oct 2018 08:38:00 +0100 https://www.oilcapital.com/companies/news/206653/serica-energy-shares-jump-as-north-sea-field-is-allowed-past-us-iran-sanctions-206653.html Serica Energy shares jump as North Sea field is allowed past US Iran sanctions https://www.oilcapital.com/companies/news/206653/serica-energy-shares-jump-as-north-sea-field-is-allowed-past-us-iran-sanctions-206653.html Tue, 09 Oct 2018 07:40:00 +0100 https://www.oilcapital.com/companies/news/206649/ceres-power-s-orders-soar-following-strategic-partnerships-206649.html Ceres Power's orders soar following strategic partnerships https://www.oilcapital.com/companies/news/206649/ceres-power-s-orders-soar-following-strategic-partnerships-206649.html Tue, 09 Oct 2018 06:55:00 +0100 https://www.oilcapital.com/companies/news/206643/wood-group-reveals-250mln-of-new-business-in-united-states-206643.html Wood Group reveals $250mln of new business in United States https://www.oilcapital.com/companies/news/206643/wood-group-reveals-250mln-of-new-business-in-united-states-206643.html Tue, 09 Oct 2018 06:43:00 +0100 https://www.oilcapital.com/companies/news/206638/anglo-african-oil-gas-spuds-new-tilapia-well-206638.html Anglo African Oil & Gas spuds new Tilapia well https://www.oilcapital.com/companies/news/206638/anglo-african-oil-gas-spuds-new-tilapia-well-206638.html Tue, 09 Oct 2018 06:28:00 +0100 https://www.oilcapital.com/companies/news/206635/winchester-energy-set-to-gain-from-oil-and-gas-production-testing-activities-in-texas-206635.html Winchester Energy set to gain from oil and gas production testing activities in Texas https://www.oilcapital.com/companies/news/206635/winchester-energy-set-to-gain-from-oil-and-gas-production-testing-activities-in-texas-206635.html Tue, 09 Oct 2018 05:52:00 +0100 https://www.oilcapital.com/companies/stocktube/10777/high-peak-royalties-unique-model-offers-low-risk-exposure-to-energy-sector-10777.html High Peak Royalties' unique model offers low-risk exposure to energy sector https://www.oilcapital.com/companies/stocktube/10777/high-peak-royalties-unique-model-offers-low-risk-exposure-to-energy-sector-10777.html Tue, 09 Oct 2018 03:20:00 +0100 High Peak Royalties Ltd (ASX:HPR) chairman Andrew Carroll introduces Proactive Investors to the oil & gas-focused company's business model and portfolio of royalties on producing properties around Australia and the US.
 
"One of the attractive aspects of royalties is they're very low risk, they're not exposed to the costs of the business, it simply generates revenue from production," explains Carroll.
 
High Peak's portfolio in Australia has a lot of exploration acreage but also includes income-producing royalties from operations in the USA.
 
The company has more than $1 million cash on hand and, having no employees, runs very low-cost overheads which are met by existing revenue. 
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https://www.oilcapital.com/companies/news/206623/carnarvon-petroleum-plans-to-drill-buffalo-oilfield-redevelopment-taking-shape-206623.html Carnarvon Petroleum plans to drill Buffalo oilfield redevelopment taking shape https://www.oilcapital.com/companies/news/206623/carnarvon-petroleum-plans-to-drill-buffalo-oilfield-redevelopment-taking-shape-206623.html Tue, 09 Oct 2018 01:28:00 +0100 https://www.oilcapital.com/companies/stocktube/10772/walkabout-resources-plans-capital-raising-to-expedite-development-of-lindi-jumbo-graphite-project-10772.html Walkabout Resources plans capital raising to expedite development of Lindi Jumbo Graphite Project https://www.oilcapital.com/companies/stocktube/10772/walkabout-resources-plans-capital-raising-to-expedite-development-of-lindi-jumbo-graphite-project-10772.html Mon, 08 Oct 2018 22:34:00 +0100 Walkabout Resources Ltd (ASX:WKT) chairman Trevor Benson updates Proactive Investors on the explorer’s underwritten $3-million share purchase plan (SPP) that will open next Friday, October 12.

Funds raised under the SPP will be used to progress development of the Lindi Jumbo Graphite Project in southeastern Tanzania where the company was recently granted a mining licence. With current cash reserves of circa $5 million, the company will have circa $8 million cash at bank upon completion of the SPP before costs.

“With our very strong cash position after this raising we’ll be able to look at alternatives in terms of quasi-debt, debt, soft loans … and we’re looking at a whole raft of different [funding] structures,” Benson says.

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https://www.oilcapital.com/companies/news/206602/ensco-and-rowan-to-merge-to-create-an-offshore-drilling-powerhouse-206602.html Ensco and Rowan to merge to create an offshore drilling powerhouse https://www.oilcapital.com/companies/news/206602/ensco-and-rowan-to-merge-to-create-an-offshore-drilling-powerhouse-206602.html Mon, 08 Oct 2018 13:43:00 +0100 https://www.oilcapital.com/companies/stocktube/10768/canada-forestry-opportunity-one-of-the-biggest-active-energys-spinks-has-ever-seen-10768.html Canada forestry opportunity ‘one of the biggest Active Energy’s Spinks has ever seen’ https://www.oilcapital.com/companies/stocktube/10768/canada-forestry-opportunity-one-of-the-biggest-active-energys-spinks-has-ever-seen-10768.html Mon, 08 Oct 2018 13:43:00 +0100 Active Energy Group PLC's (LON:AEG) executive director Richard Spinks updates Proactive Investors on its interests in Canada where it's now amending its application to the province of Newfoundland and Labrador, to focus exclusively on forestry opportunities and the development of one or more dedicated CoalSwitch plants.

Spinks says he's encouraged by the positive and supportive approach shown by government departments.

He adds that he's now decided to relinquish his board responsibilities and will, instead, focus solely on his role as managing director of the Timberlands subsidiary.

''It's one of the biggest opportunities I've seen in my career .. I'm getting to an age now where I've got to decide what's going to be my focus ... and this is certainly where it's going to be''.

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https://www.oilcapital.com/companies/news/206580/sirius-petroleum-shares-rise-as-it-inks-rig-deal-206580.html Sirius Petroleum shares rise as it inks rig deal https://www.oilcapital.com/companies/news/206580/sirius-petroleum-shares-rise-as-it-inks-rig-deal-206580.html Mon, 08 Oct 2018 08:49:00 +0100 https://www.oilcapital.com/companies/news/206578/hydrodec-share-price-slashed-on-placing-and-relaunch-news-206578.html Hydrodec share price slashed on placing and relaunch news https://www.oilcapital.com/companies/news/206578/hydrodec-share-price-slashed-on-placing-and-relaunch-news-206578.html Mon, 08 Oct 2018 08:41:00 +0100 https://www.oilcapital.com/companies/news/206572/mycelx-raises-2018-revenue-profit-view-after-new-project-win-in-saudi-arabia-206572.html MYCELX raises 2018 revenue, profit view after new project win in Saudi Arabia https://www.oilcapital.com/companies/news/206572/mycelx-raises-2018-revenue-profit-view-after-new-project-win-in-saudi-arabia-206572.html Mon, 08 Oct 2018 07:58:00 +0100 https://www.oilcapital.com/companies/news/206566/active-energy-encouraged-over-newfoundland-and-labrador-support-spinks-to-focus-on-timberlands-business-206566.html Active Energy encouraged over Newfoundland and Labrador support, Spinks to focus on Timberlands business https://www.oilcapital.com/companies/news/206566/active-energy-encouraged-over-newfoundland-and-labrador-support-spinks-to-focus-on-timberlands-business-206566.html Mon, 08 Oct 2018 07:18:00 +0100 https://www.oilcapital.com/companies/news/206560/ceres-power-to-launch-new-uk-fuel-cell-manufacturing-facility-206560.html Ceres Power to launch new UK fuel cell manufacturing facility https://www.oilcapital.com/companies/news/206560/ceres-power-to-launch-new-uk-fuel-cell-manufacturing-facility-206560.html Mon, 08 Oct 2018 06:56:00 +0100 https://www.oilcapital.com/companies/news/206554/columbus-energy-looks-to-production-growth-as-it-completes-steeldrum-acquisition-206554.html Columbus Energy looks to production growth as it completes Steeldrum acquisition https://www.oilcapital.com/companies/news/206554/columbus-energy-looks-to-production-growth-as-it-completes-steeldrum-acquisition-206554.html Mon, 08 Oct 2018 06:56:00 +0100 https://www.oilcapital.com/companies/news/206550/i3-energy-appoints-majid-shafiq-as-chief-executive-206550.html i3 Energy appoints Majid Shafiq as chief executive https://www.oilcapital.com/companies/news/206550/i3-energy-appoints-majid-shafiq-as-chief-executive-206550.html Mon, 08 Oct 2018 06:39:00 +0100 https://www.oilcapital.com/companies/news/206539/melbana-energy-signs-farmout-deal-with-chinese-firm-for-its-cuban-oil-asset-206539.html Melbana Energy signs farmout deal with Chinese firm for its Cuban oil asset https://www.oilcapital.com/companies/news/206539/melbana-energy-signs-farmout-deal-with-chinese-firm-for-its-cuban-oil-asset-206539.html Mon, 08 Oct 2018 03:49:00 +0100 https://www.oilcapital.com/companies/news/206512/solar-energy-provider-power-clouds-sees-double-digit-revenue-growth-in-2q-as-it-gains-grounds-in-europe-206512.html Solar energy provider Power Clouds sees double-digit revenue growth in 2Q as it gains grounds in Europe https://www.oilcapital.com/companies/news/206512/solar-energy-provider-power-clouds-sees-double-digit-revenue-growth-in-2q-as-it-gains-grounds-in-europe-206512.html Fri, 05 Oct 2018 20:30:00 +0100 https://www.oilcapital.com/companies/stocktube/10757/power-clouds-makes-headway-into-the-european-market-as-revenue-jumps-by-50-10757.html Power Clouds makes headway into the European market, as revenue jumps by 50% https://www.oilcapital.com/companies/stocktube/10757/power-clouds-makes-headway-into-the-european-market-as-revenue-jumps-by-50-10757.html Fri, 05 Oct 2018 17:55:00 +0100 Power Clouds Inc (OTCMKTS:PWCL) CEO Vincent Browne tells Proactive Investors that the renewable energy company is making headway into the European market with its solar parks expansion.

Browne says the company reported a 50% increase in year-over-year revenue, primarily due to the acquisition of two solar parks in Italy last year.

The company next plans to expand within Germany "significantly."

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https://www.oilcapital.com/companies/stocktube/10753/g3-exploration-receives-final-approval-to-develop-chengzhuang-block-gcz-10753.html G3 Exploration receives final approval to develop Chengzhuang Block (GCZ) https://www.oilcapital.com/companies/stocktube/10753/g3-exploration-receives-final-approval-to-develop-chengzhuang-block-gcz-10753.html Fri, 05 Oct 2018 13:17:00 +0100 Randeep Grewal, chief executive of G3 Exploration PLC (LON:G3E), spoke to Proactive's Andrew Scott after receiving final approval from China’s National Development and Reform Commission (NDRC) to develop the Chengzhuang Block (GCZ).

The overall development plan approval covers 33 sq km of the 67sq km licence, which is situated in Shanxi Jincheng Qinshui county.

G3 has a 47% participating interest alongside state-controlled China National Petroleum Corporation (CNPC), which holds the remaining 53%.

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https://www.oilcapital.com/companies/news/206457/gold-miner-centamin-slashes-full-year-production-target-as-quarterly-output-slumps-206457.html Gold miner Centamin slashes full-year production target as quarterly output slumps https://www.oilcapital.com/companies/news/206457/gold-miner-centamin-slashes-full-year-production-target-as-quarterly-output-slumps-206457.html Fri, 05 Oct 2018 13:10:00 +0100 https://www.oilcapital.com/companies/news/206492/maximum-cashback-the-aim-of-reabold-resources-clearly-defined-strategy-206492.html Maximum cashback the aim of Reabold Resources' clearly-defined strategy https://www.oilcapital.com/companies/news/206492/maximum-cashback-the-aim-of-reabold-resources-clearly-defined-strategy-206492.html Fri, 05 Oct 2018 12:06:00 +0100 https://www.oilcapital.com/companies/stocktube/10749/greencoat-uk-wind-to-acquire-tom-nan-clach-wind-farm-in-scotland-10749.html Greencoat UK Wind to acquire Tom nan Clach wind farm in Scotland https://www.oilcapital.com/companies/stocktube/10749/greencoat-uk-wind-to-acquire-tom-nan-clach-wind-farm-in-scotland-10749.html Fri, 05 Oct 2018 11:33:00 +0100 Greencoat UK Wind PLC's (LON:UKW) Stephen Lilley caught up with Proactive Investors to discuss their decision to spend £126mln on a 13-turbine wind farm in northern Scotland.

It is acquiring Belltown Power’s 75% stake in Tom nan Clach, in Nairnshire.

Currently under development, the operation will be formally handed over to Greencoat next July, a month after its completion.

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https://www.oilcapital.com/companies/news/206504/uk-oil-gass-horse-hill-sees-start-of-kimmeridge-testing-206504.html UK Oil & Gas’s Horse Hill sees start of Kimmeridge testing https://www.oilcapital.com/companies/news/206504/uk-oil-gass-horse-hill-sees-start-of-kimmeridge-testing-206504.html Fri, 05 Oct 2018 11:21:00 +0100 https://www.oilcapital.com/companies/stocktube/10745/block-energy-plc-signs-mou-for-gas-offtake-from-west-rustavi-licence-10745.html Block Energy Plc signs MoU for gas offtake from West Rustavi Licence https://www.oilcapital.com/companies/stocktube/10745/block-energy-plc-signs-mou-for-gas-offtake-from-west-rustavi-licence-10745.html Fri, 05 Oct 2018 08:57:00 +0100 Paul Haywood, director of Block Energy Plc (LON:BLOE), tells Proactive's Andrew Scott they've  inked a new agreement for gas sales at the West Rustavi project in Georgia.

A memorandum of understanding with Bago Ltd, one of the largest private gas firms in Georgia, sets out the proposed terms for the sale of at least 1,000 cubic metres of gas per day

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https://www.oilcapital.com/companies/news/206465/savannah-petroleum-confirms-fifth-discovery-in-niger-206465.html Savannah Petroleum confirms fifth discovery in Niger https://www.oilcapital.com/companies/news/206465/savannah-petroleum-confirms-fifth-discovery-in-niger-206465.html Fri, 05 Oct 2018 07:37:00 +0100 https://www.oilcapital.com/companies/news/206460/88-energy-continues-ongoing-rights-issue-process-offer-documents-published-206460.html 88 Energy continues ongoing rights issue process, offer documents published https://www.oilcapital.com/companies/news/206460/88-energy-continues-ongoing-rights-issue-process-offer-documents-published-206460.html Fri, 05 Oct 2018 06:56:00 +0100 https://www.oilcapital.com/companies/news/206455/weichai-power-invests-further-1mln-in-ceres-power-to-keep-stake-at-10-206455.html Weichai Power invests further £1mln in Ceres Power to keep stake at 10% https://www.oilcapital.com/companies/news/206455/weichai-power-invests-further-1mln-in-ceres-power-to-keep-stake-at-10-206455.html Fri, 05 Oct 2018 06:34:00 +0100 https://www.oilcapital.com/companies/news/206453/greencoat-uk-wind-plans-to-spend-126mln-on-wind-farm-in-northern-scotland-206453.html Greencoat UK Wind plans to spend £126mln on wind farm in northern Scotland https://www.oilcapital.com/companies/news/206453/greencoat-uk-wind-plans-to-spend-126mln-on-wind-farm-in-northern-scotland-206453.html Fri, 05 Oct 2018 06:29:00 +0100 https://www.oilcapital.com/companies/news/206454/block-energy-inks-gas-sales-deal-for-west-rustavi-project-206454.html Block Energy inks gas sales deal for West Rustavi project https://www.oilcapital.com/companies/news/206454/block-energy-inks-gas-sales-deal-for-west-rustavi-project-206454.html Fri, 05 Oct 2018 06:26:00 +0100 https://www.oilcapital.com/companies/news/206441/greenland-minerals-managing-director-exercises-options-206441.html Greenland Minerals managing director exercises options https://www.oilcapital.com/companies/news/206441/greenland-minerals-managing-director-exercises-options-206441.html Fri, 05 Oct 2018 02:55:00 +0100 https://www.oilcapital.com/companies/stocktube/10742/lake-wells-potash-project-sets-australian-potash-apart--10742.html Lake Wells Potash Project 'sets Australian Potash apart' https://www.oilcapital.com/companies/stocktube/10742/lake-wells-potash-project-sets-australian-potash-apart--10742.html Fri, 05 Oct 2018 02:10:00 +0100 Australian Potash Ltd (ASX:APC) executive chairman Matt Shackleton speaks to Proactive Investors about the company's formative and flagship Lake Wells Potash Project, located near Laverton in Western Australia, for which mining leases have recently been granted.

A Definitive Feasibility Study (DFS) on the project is well underway, with samples of Sulphate of Potash (SOP) due to be produced before the end of the year.

In addition to signing a Memorandum of Understanding (MOU) with neighbouring Salt Lake Potash Limited (ASX:SO4) (AIM:SO4) to study the benefits of cost sharing to develop the area, Australian Potash is set to benefit from A$35 million of Federal and State funding for the upgrade of a 100 kilometre section of the Great Central Road between Lake Wells and Laverton.

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https://www.oilcapital.com/companies/news/206351/aminex-and-solo-oil-to-increase-kiliwani-north-interests-as-partner-defaults-206351.html Aminex and Solo Oil to increase Kiliwani North interests as partner defaults https://www.oilcapital.com/companies/news/206351/aminex-and-solo-oil-to-increase-kiliwani-north-interests-as-partner-defaults-206351.html Thu, 04 Oct 2018 13:00:00 +0100 https://www.oilcapital.com/companies/news/206396/saexploration-shares-surge-on-contract-for-100-million-project-in-south-asia-206396.html SAExploration shares surge on contract for $100 million project in South Asia https://www.oilcapital.com/companies/news/206396/saexploration-shares-surge-on-contract-for-100-million-project-in-south-asia-206396.html Thu, 04 Oct 2018 12:38:00 +0100 https://www.oilcapital.com/columns/vsa-capital-market-movers/30106/vsa-capital-market-movers-central-asia-metals-30106.html VSA CAPITAL MARKET MOVERS - Central Asia Metals https://www.oilcapital.com/columns/vsa-capital-market-movers/30106/vsa-capital-market-movers-central-asia-metals-30106.html Thu, 04 Oct 2018 10:52:00 +0100 Strong Copper Production at Kounrad

Q3 2018 copper production was up 2% YoY and 7% QoQ to 3,938t with 9mo18 production of 10.7kt down 1.7% YoY. This YoY difference over 9mo18 of just 183t of copper was due to a particularly harsh winter which impacted production in Q1 2018. However, Central Asia Metals (LON:CAML)# remains well on track to meet company guidance of 13-14kt copper over the full year and to meet our estimates of 13.75kt.

Robust Output at Sasa

The update also demonstrates a robust quarter at the Sasa mine with zinc production up 4% YoY and QoQ to 5,742t while lead production was unchanged YoY although up 3% QoQ at 7,602t. Sasa was not yet operated by CAML in Q3 2017, however, the comparison to prior periods clearly demonstrates the successful transition of ownership. Production appears on track for our full year zinc forecast of 22.3kt although with 9mo18 lead production of 22kt the risk now appears to be to the upside given our full year forecast of 28.8kt.

Shares Rallying Post Interims

Since the interim results the shares are up 11% on the back of two factors, in our view; the recovery in commodity prices along with CAML’s first full period of results reflecting the successful integration of Sasa. This first full period has provided clarity over both operational performance and the significant positive earnings impact of the acquisition. We believe that the rerating in terms of EV/EBITDA multiple from 4.8x at our initiation in August 2018 to 5.1x currently reflects greater confidence from the market.

Recommendation and Target Price

 

The quarterly update demonstrates continued robust operational performance with the company well on track to meet full year operational guidance and our estimates. The shares continue to offer attractive value, in our view, particularly with further confirmation that consistent results can also be delivered at Sasa.

We reiterate our Buy recommendation and target price of 309p which implies 27% upside and 33% on a total return basis. 

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https://www.oilcapital.com/companies/stocktube/10730/mosman-oil-gas-reports-first-sales-from-stanley-1-well-10730.html Mosman Oil & Gas reports first sales from Stanley-1 well https://www.oilcapital.com/companies/stocktube/10730/mosman-oil-gas-reports-first-sales-from-stanley-1-well-10730.html Thu, 04 Oct 2018 10:31:00 +0100 John Barr, executive chairman of Mosman Oil And Gas Ltd (LON:MSMN), tells Proactive's Andrew Scott he's extremely pleased as first sales are confirmed from the Stanley-1 well.

The first tanker load amounted to 190 barrels and some 7mln cubic feet of gas was also sold.

Following on from this Barr says they're keen to move forward with the drilling of the Stanley-2 Well as quickly as possible.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30104/vsa-capital-market-movers-lake-resources-30104.html VSA CAPITAL MARKET MOVERS - Lake Resources https://www.oilcapital.com/columns/vsa-capital-market-movers/30104/vsa-capital-market-movers-lake-resources-30104.html Thu, 04 Oct 2018 08:07:00 +0100 Lake Resources (ASX:LKE)#

 

Lake Resources (ASX:LKE) has announced that it has mobilised a rig to drill its Cauchari lithium brine project in Argentina. Four holes over 1,500m are expected to be drilled over the next four months with first results due towards the end of October. Recent drill results from Advantage Lithium (CVE:AAL) on the north west of its license area adjacent to LKE yielded results of over 600mg/l Li while prior testwork indicated strong flow rates.

Given the strong drilling results from the adjacent properties, on which significant reserves and resources have been confirmed by AAL, Lithium Americas , Ganfeng Lithium and Orocobre (ASX:ORE), LKE carried out seismic lines to understand the extension of these high-grade lithium bearing brine aquifers. The results demonstrated extensions into the LKE license area with the brine bearing sediments estimated to extend to 300-400m depth within LKE’s license area and this testwork has helped to identify suitable drill targets.

In addition to positive newsflow from LKE we also note that the company’s partner Lilac Solutions has announced positive results and the successful production of lithium hydroxide from a 1,000 litre brine bulk sample at Anson Resources (ASN AU) brine project in Utah. Lilac uses an ion exchange extraction technique which dramatically reduces the time taken to produce lithium compared to traditional evaporation techniques. Lilac have agreed to partner with LKE and assess the potential for the process at Kachi.

With a resource announcement upcoming on the Kachi project, today’s announcement regarding drilling at Cauchari and the exercise of the pegmatite option in Ancasti where initial exploration work is due to begin LKE is entering a period of heavy newsflow with significant potential catalysts upcoming as results are announced.

We reiterate our Speculative Buy recommendation.

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https://www.oilcapital.com/companies/news/206370/mosman-oil-and-gas-extremely-pleased-as-stanley-sales-start-206370.html Mosman Oil and Gas “extremely pleased” as Stanley sales start https://www.oilcapital.com/companies/news/206370/mosman-oil-and-gas-extremely-pleased-as-stanley-sales-start-206370.html Thu, 04 Oct 2018 07:22:00 +0100 https://www.oilcapital.com/companies/news/206362/enquest-set-for-20mln-cash-boost-as-it-confirms-exercise-of-magnus-option-with-bp-206362.html EnQuest set for $20mln cash boost as it confirms exercise of Magnus option with BP https://www.oilcapital.com/companies/news/206362/enquest-set-for-20mln-cash-boost-as-it-confirms-exercise-of-magnus-option-with-bp-206362.html Thu, 04 Oct 2018 06:57:00 +0100 https://www.oilcapital.com/companies/news/206359/providence-resources-names-angus-mccoss-as-senior-independent-director-206359.html Providence Resources names Angus McCoss as senior independent director https://www.oilcapital.com/companies/news/206359/providence-resources-names-angus-mccoss-as-senior-independent-director-206359.html Thu, 04 Oct 2018 06:42:00 +0100 https://www.oilcapital.com/companies/news/206340/brookside-energys-oil-and-gas-production-results-confirm-productivity-in-the-scoop-play-206340.html Brookside Energy’s oil and gas production results confirm productivity in the SCOOP Play https://www.oilcapital.com/companies/news/206340/brookside-energys-oil-and-gas-production-results-confirm-productivity-in-the-scoop-play-206340.html Thu, 04 Oct 2018 01:35:00 +0100 https://www.oilcapital.com/companies/stocktube/10725/hillcrest-petroleum-prepares-to-restart-production-at-west-hazel-oilfield-in-saskatchewan-10725.html Hillcrest Petroleum prepares to restart production at West Hazel oilfield in Saskatchewan https://www.oilcapital.com/companies/stocktube/10725/hillcrest-petroleum-prepares-to-restart-production-at-west-hazel-oilfield-in-saskatchewan-10725.html Wed, 03 Oct 2018 18:59:00 +0100 Hillcrest Petroleum Inc (CVE:HRH) CEO Don Currie came in to the Vancouver office of Proactive Investors with news the company is getting ready to restart production at the West Hazel oil field in Saskatchewan. 

Currie also talked about how much that will cost and what type of drilling program will begin in 2019.

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https://www.oilcapital.com/companies/news/206323/eqtec-boosts-loan-facility-by-us10mln-206323.html EQTEC boosts loan facility by US$10mln https://www.oilcapital.com/companies/news/206323/eqtec-boosts-loan-facility-by-us10mln-206323.html Wed, 03 Oct 2018 15:12:00 +0100 https://www.oilcapital.com/companies/stocktube/10715/west-newton-acquisition-a-cracking-deal-for-union-jack-oil-plc-10715.html West Newton acquisition 'a cracking deal' for Union Jack Oil Plc https://www.oilcapital.com/companies/stocktube/10715/west-newton-acquisition-a-cracking-deal-for-union-jack-oil-plc-10715.html Wed, 03 Oct 2018 12:27:00 +0100 David Bramhill, executive chairman of Union Jack Oil PLC (LON:UJO) discusses with Proactive's Andrew Scott their decision to acquire a 16.667% stake in the West Newton gas discovery in Yorkshire.

To support the transaction UJO's raising £2.25mln of new capital.

The transaction's been agreed with Rathlin Energy, a subsidiary of Canadian firm Connaught Oil & Gas, via a farm-out that commits UJO to cover 25% of the cost of an appraisal well in the first quarter of 2019.

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https://www.oilcapital.com/companies/stocktube/10713/reabold-resources-busy-in-california-looking-ahead-to-uk-drilling-10713.html Reabold Resources busy in California & looking ahead to UK drilling https://www.oilcapital.com/companies/stocktube/10713/reabold-resources-busy-in-california-looking-ahead-to-uk-drilling-10713.html Wed, 03 Oct 2018 08:54:00 +0100 Sachin Oza and Stephen Williams, co-chief executives of Reabold Resources Plc (LON:RBD) stopped by the Proactive London studio to update on progress across the company's portfolio of projects.

In California they've recently had a successful workover programme as well as drilling their first well at West Brentwood.

This week Reabold's also signed a contract for a jack-up rig to drill the Wick and Colter wells which is expected to get underway before the end of the year.

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https://www.oilcapital.com/companies/stocktube/10708/invictus-energy-advances-zimbabwe-gas-condensate-asset-amid-regulatory-reforms-10708.html Invictus Energy advances Zimbabwe gas-condensate asset amid regulatory reforms https://www.oilcapital.com/companies/stocktube/10708/invictus-energy-advances-zimbabwe-gas-condensate-asset-amid-regulatory-reforms-10708.html Wed, 03 Oct 2018 04:06:00 +0100 Invictus Energy Ltd (ASX:IVZ) managing director Scott Macmillan speaks to Proactive Investors about the oil and gas exploration company’s Cabora Bassa Project in northern Zimbabwe.
 
“It’s a fantastic asset that we’ve picked up – it was previously explored by Mobil over 30 years ago and it’s been sitting dormant, locked up for the past 25 years.
 
He continues, “the basin is very exciting and the portion of acreage that we’ve picked up contains the Mzarabani prospect.
 
“It’s the largest undrilled seismically-defined structure in onshore Africa that’s got multi-trillion cubic feet potential.”
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https://www.oilcapital.com/companies/stocktube/10704/keith-schaefer-from-oil-and-gas-investment-bulletin-weighs-in-on-lng-in-bc-10704.html Keith Schaefer from Oil and Gas Investment Bulletin weighs in on LNG in BC https://www.oilcapital.com/companies/stocktube/10704/keith-schaefer-from-oil-and-gas-investment-bulletin-weighs-in-on-lng-in-bc-10704.html Tue, 02 Oct 2018 21:02:00 +0100 Energy Market Analyst Keith Schaefer from the Oil and Gas Investment Bulletin gives us his thoughts on the new LNG deal announced in British Columbia, Canada.  A 40 billion dollar mega project, the largest in Canadian history.

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https://www.oilcapital.com/companies/stocktube/10690/aly-energy-services-ceo-says-its-strong-earnings-will-bolster-growth-10690.html Aly Energy Services CEO says its strong earnings will bolster growth https://www.oilcapital.com/companies/stocktube/10690/aly-energy-services-ceo-says-its-strong-earnings-will-bolster-growth-10690.html Tue, 02 Oct 2018 12:03:00 +0100 Aly Energy Services Inc. (OTCQB:ALYE) Interim CEO Micki Hidayatallah updated Proactive Investors at the MicroCap Conference in New York.

Aly Energy Services, Inc., together with its subsidiaries, is a provider of oilfield services to leading oil and gas exploration and production companies.

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https://www.oilcapital.com/companies/stocktube/10668/eqtec-plc-in-a-strong-position-to-return-to-profitability-ceo-ian-price-10668.html EQTEC Plc in a strong position to return to profitability - CEO Ian Price https://www.oilcapital.com/companies/stocktube/10668/eqtec-plc-in-a-strong-position-to-return-to-profitability-ceo-ian-price-10668.html Mon, 01 Oct 2018 12:22:00 +0100 Ian Price, chief executive of EQTEC Plc (LON:EQT), caught up with Proactive London's Andrew Scott following the release of their 2018 interim results.

After carrying out a strategic review of the business since taking over as CEO, Price says the focus for them going forward is delivering on its strong pipeline of projects.

Following the agreement of an increased loan facility, he adds that they're well capitalised and he doesn't see a need for a placing in the near future.

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https://www.oilcapital.com/companies/stocktube/10669/petrel-resources-riding-a-new-oil-rd-boom-10669.html Petrel Resources riding a new oil R&D boom https://www.oilcapital.com/companies/stocktube/10669/petrel-resources-riding-a-new-oil-rd-boom-10669.html Mon, 01 Oct 2018 07:14:00 +0100 "Politics changes, geology doesn't".. the company motto is repeated here by Petrel Resources (LON:PET) CEO David Horgan.

''Petrel's best known for its activities in Iraq ... we've been very active there since 1999 but we found from about the year 2010 it became too corrupt and too chaotic especially in the areas we were working in so we've kept a close eye on developments .... and now with the recent elections things are looking much better''.

''We're now quietly mobilising our teams and we're very optimistic we'll be back working in Iraq in the near future''.

Horgan spoke to Proactive shortly after the release of the firm's interim results - a period in which the focus of the company was mainly on the Irish Atlantic Porcupine Basin.

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https://www.oilcapital.com/companies/stocktube/10634/it-s-a-transformative-time-for-lithium-producing-tawana-resources-10634.html It's a transformative time for lithium-producing Tawana Resources https://www.oilcapital.com/companies/stocktube/10634/it-s-a-transformative-time-for-lithium-producing-tawana-resources-10634.html Thu, 27 Sep 2018 03:30:00 +0100 Tawana Resources NL (ASX:TAW) managing director Mark Calderwood speaks to Proactive Investors in detail about the ongoing merger process with Bald Hill Mine co-owner Alliance Mineral Assets (SGX:AMAL).

"The two companies are going to merge to make a larger, more streamlined company going forward... we fully intend to stay on the ASX... we will also be Singapore listed... it's a merger of equals," explains Calderwood.

He also provides updates on the development of and production from the Bald Hill Mine in Western Australia.

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https://www.oilcapital.com/companies/stocktube/10631/tinka-resources-to-update-resource-and-explore-new-discoveries-after-drilling-20000m-10631.html Tinka Resources to update resource and explore new discoveries after drilling 20,000m https://www.oilcapital.com/companies/stocktube/10631/tinka-resources-to-update-resource-and-explore-new-discoveries-after-drilling-20000m-10631.html Thu, 27 Sep 2018 03:00:00 +0100 Tinka Resources Ltd (CVE:TK) chief executive Dr Graham Carman updates Proactive Investors on drilling results flowing from the company's flagship Ayawilca zinc and tin project in Peru. This year alone Tinka has drilled around 20,000 metres across the project area, adding to 46,000 metres drilled since the initial discovery. As a result, new discoveries have been made.

"It's one of the largest zinc resources in the world, in a junior company, and we think it's going to be a mine," says Carman.

A resource update is slated to be announced in a matter of weeks, with a PEA planned for the start of next year.

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https://www.oilcapital.com/companies/stocktube/10630/melbana-energy-developing-a-game-changer-prospect-in-addition-to-other-assets-10630.html Melbana Energy developing a 'game changer' prospect, in addition to other assets https://www.oilcapital.com/companies/stocktube/10630/melbana-energy-developing-a-game-changer-prospect-in-addition-to-other-assets-10630.html Thu, 27 Sep 2018 02:20:00 +0100 Melbana Energy Ltd (ASX:MAY) CEO Robert Zammit speaks to Proactive Investors about the oil & gas exploration company's interesting and diverse portfolio of assets, spanning two projects in Cuba as well as the large-scale Beehive prospect, and methanol & LNG operations in Australia.

Zammit identifies seven key catalysts for the company moving into 2019, including some significant news that is expected to be announced imminently.

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https://www.oilcapital.com/companies/stocktube/10611/sacgascos-california-focus-holds-both-gas-potential-and-ready-made-markets-10611.html Sacgasco’s California focus holds both gas potential and ready-made markets https://www.oilcapital.com/companies/stocktube/10611/sacgascos-california-focus-holds-both-gas-potential-and-ready-made-markets-10611.html Wed, 26 Sep 2018 03:18:00 +0100 Sacgasco Ltd (ASX:SGC) managing director Gary Jeffery speaks to Proactive Investors about the Perth-based gas company’s Sacramento Basin operations in California. 
 
“We see lots of opportunity in that basin. The shallow part of the basin has produced close to 13 trillion cubic feet of gas and in excess of 11 trillion cubic feet,” Jeffery says.
 
He continues, “there are thousands of wells in the shallow part of the basin, yet the deeper part of the basin is very underexplored – and that’s our opportunity.
 
“Initially we’re focused on a million acres in the northern part of the basin which we think can be very prolific and hold a lot of world-class gas potential.”
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https://www.oilcapital.com/companies/stocktube/10604/alectra-utilities-running-pilot-project-with-mcloud-corporation-10604.html Alectra Utilities running pilot project with mCloud corporation. https://www.oilcapital.com/companies/stocktube/10604/alectra-utilities-running-pilot-project-with-mcloud-corporation-10604.html Tue, 25 Sep 2018 22:04:00 +0100 Alectra Utilities's Manager of Station Sustainment Vince Polsoni joined Steve Darling from Proactive Investors in Lav Vegas at the mCloud Connect 2018 conference to discuss the pilot project Alectra and mCloud are doing. 

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https://www.oilcapital.com/companies/stocktube/10589/arcimoto-is-catalyzing-the-shift-towards-a-sustainable-transportation-system--10589.html Arcimoto is 'catalyzing the shift towards a sustainable transportation system' https://www.oilcapital.com/companies/stocktube/10589/arcimoto-is-catalyzing-the-shift-towards-a-sustainable-transportation-system--10589.html Tue, 25 Sep 2018 16:33:00 +0100 Mark D. Frohnmayer, chief executive of Arcimoto Inc (NASDAQ:FUV), spoke to Proactive Investors at the LD Micro Conference in New York.

After 11 years in the computer games industry and a successful exit from his first start-up, GarageGames, Frohnmayer turned his entrepreneurial energy towards sustainable business development in Oregon. His new company Arcimoto brings affordable, sustainable vehicles to the masses and aims to be a major player in the new green transportation space. The company sells three-wheeled electric vehicles and was formerly known as WTP Inc and changed its name to Arcimoto in December 2011. The firm is based in Eugene, Oregon.

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https://www.oilcapital.com/companies/stocktube/10585/providence-resources-eyes-up-multi-billion-barrel-exploration-targets-10585.html Providence Resources eyes up multi-billion barrel exploration targets https://www.oilcapital.com/companies/stocktube/10585/providence-resources-eyes-up-multi-billion-barrel-exploration-targets-10585.html Tue, 25 Sep 2018 13:10:00 +0100 Providence Resources PLC's (LON:PVR) Tony O'Reilly tells Proactive that the company is eyeing up drilling targets that have multi-billion barrel potential.    

He adds that Providence is in a "great" cash position with over €12mln in cash and no debt as well as no working capital requirements for the next few years.

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https://www.oilcapital.com/companies/stocktube/10582/tekmar-already-attracting-big-investors-since-june-ipo-10582.html Tekmar already attracting big investors since June IPO https://www.oilcapital.com/companies/stocktube/10582/tekmar-already-attracting-big-investors-since-june-ipo-10582.html Tue, 25 Sep 2018 12:41:00 +0100 Tekmar Group PLC's (LON:TGP) James Ritchie tells Proactive that the company has seen a strong rise over 30 years, going from a family business all the way to its IPO in June this year.

Ritchie adds that the firm has a 70% global market share for its subsea cable protection product that is used to connect offshore wind farms around the world.

Tekmar has already attracted some big names, with Ritchie saying 70% of its shares are held by top 10 institutional investors.

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https://www.oilcapital.com/companies/stocktube/10581/rose-petroleum-on-track-to-spud-first-well-at-paradox-basin-in-utah-by-year-end-10581.html Rose Petroleum on track to spud first well at Paradox Basin in Utah by year-end https://www.oilcapital.com/companies/stocktube/10581/rose-petroleum-on-track-to-spud-first-well-at-paradox-basin-in-utah-by-year-end-10581.html Tue, 25 Sep 2018 10:03:00 +0100 Matthew Idiens, Rose Petroleum PLC's (LON:ROSE) chief executive, tells Proactive it has applied for three permits at Paradox, one of which will be the first well drilled on the property by the company.

Spudding is expected in the fourth quarter with the permitting process going well, he adds.

Paradox was given a value of US$86mln in a recent independent report and once drilling starts Idiens hopes this will start to be reflected in Rose's market value.

"Rose is in a really good place and I am really pleased about how the future looks," he told Proactive.

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https://www.oilcapital.com/companies/stocktube/10579/mosman-oil-and-gas-leveraging-strategic-alliance-for-project-development-10579.html Mosman Oil and Gas leveraging strategic alliance for project development https://www.oilcapital.com/companies/stocktube/10579/mosman-oil-and-gas-leveraging-strategic-alliance-for-project-development-10579.html Tue, 25 Sep 2018 07:29:00 +0100 Mosman Oil And Gas (LON:MNMN) technical director Andy Carroll updates Proactive Investors on the energy company’s strategic alliance with Baja Oil and Gas LLC and developments across the two projects that comprise the partnership, Champion and Challenger.

“One of the big positives on Champion is that Baja had 100% of this project so Mosman was able to increase the percentage we’ve acquired from Baja, so we’ve taken 60% on that project,” Carroll says.

He continues, “we really like it … there is existing infrastructure in the area, we can drill those wells in the near future and existing infrastructure means they can come on production very quickly.

“With Challenger, it’s the redevelopment of an existing oil field … there’s enough information to get a reserve estimate on that area and 3D seismic will show the sweet spots where we think development wells best be located.”

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https://www.oilcapital.com/companies/stocktube/10578/key-petroleum-addresses-downturn-with-contract-operations-while-developing-its-projects-10578.html Key Petroleum addresses downturn with contract operations while developing its projects https://www.oilcapital.com/companies/stocktube/10578/key-petroleum-addresses-downturn-with-contract-operations-while-developing-its-projects-10578.html Tue, 25 Sep 2018 06:58:00 +0100 Key Petroleum Ltd (ASX:KEY) managing director Kane Marshall speaks to Proactive Investors about the Perth-based oil and gas company’s projects across the Perth and Cooper Basins as well as its additional contract operator business.
 
“We’ve actually adapted to the downturn and identified that not only do you need a means to survive, we actually needed to address costs, not only for our own exploration and operation assets but also other operators’”, Marshall says.
 
He continues, “we have now got about 3 or 4 clients that we have provided services in terms of rehabilitation, remediation, civil earthworks, compliance, and that will fold into our own E&P business as a contract operator.
 
“We are sort of a vertically-integrated company … but that sets us aside from a lot of our other peers.”
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https://www.oilcapital.com/companies/stocktube/10571/block-energy-the-investment-case-10571.html Block Energy - The investment case https://www.oilcapital.com/companies/stocktube/10571/block-energy-the-investment-case-10571.html Mon, 24 Sep 2018 13:16:00 +0100 Chief executive Paul Haywood pitches the Block Energy investment case to investors at the Oil Capital Conference, which took place on 4 September in London.

See Paul's full presentation here

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https://www.oilcapital.com/companies/stocktube/10570/block-energy-three-value-creating-steps-to-oil-and-gas-success-in-georgia-10570.html Block Energy - Three value creating steps to oil and gas success in Georgia https://www.oilcapital.com/companies/stocktube/10570/block-energy-three-value-creating-steps-to-oil-and-gas-success-in-georgia-10570.html Mon, 24 Sep 2018 11:40:00 +0100 Block Energy chief executive Paul Hayward talks investors through the company’s opportunity to take ‘early mover advantage’ in Georgia, before giving a detailing insight into the timelines and catalysts that investors can look forward over the next years and beyond.

Oil Capital Conference, took place on 4 September in London

See Paul's full presentation here

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https://www.oilcapital.com/companies/stocktube/10569/block-energy-west-rustavi-is-the-jewel-in-the-crown-10569.html Block Energy - West Rustavi is the ‘jewel in the crown’ https://www.oilcapital.com/companies/stocktube/10569/block-energy-west-rustavi-is-the-jewel-in-the-crown-10569.html Mon, 24 Sep 2018 11:30:00 +0100 Block Energy chief executive Paul Haywood tells investors about the proven oil discovery, which is contiguous to Georgia’s largest field to date. Here the company intends to use horizontal drilling methods to unlock a low-risk, high production operation.

“We are taking a proven concept and applying it to a proven play in West Rustavi”

Oil Capital Conference, took place on 4 September in London

See Paul's full presentation here

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https://www.oilcapital.com/companies/stocktube/10567/block-energy-turning-unloved-norio-and-satskenisi-fields-into-high-impact-projects-10567.html Block Energy - Turning ‘unloved’ Norio and Satskenisi fields into high impact projects https://www.oilcapital.com/companies/stocktube/10567/block-energy-turning-unloved-norio-and-satskenisi-fields-into-high-impact-projects-10567.html Mon, 24 Sep 2018 10:56:00 +0100 Block Energy chief executive Paul Haywood tells investors about the Norio and Satskenisi fields which break even with low volumes and present 'high impact' potential.

Oil Capital Conference, on September 4 in London

See Paul's full presentation

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30082/vsa-capital-market-movers-central-asia-metals-30082.html VSA CAPITAL MARKET MOVERS - Central Asia Metals https://www.oilcapital.com/columns/vsa-capital-market-movers/30082/vsa-capital-market-movers-central-asia-metals-30082.html Mon, 24 Sep 2018 08:51:00 +0100 Higher Commodity Prices and Robust Cost Control

Central Asia Metals (LON:CAML) announced strong H1 2018 results in the first full period reflecting the contribution from Sasa. Revenue was up 160% YoY to US$96.6m primarily driven by the acquisition as well as an 18% YoY increase in realised copper prices. EBITDA of US$64.6m was up 166% YoY as costs at Kounrad were in line with expectations and Sasa unit costs were held flat. With no significant non-cash charges net income of US$28.5m reflected the benefit of the acquisition also, up 88% YoY. 

Sasa Integration Driving Strong Returns

Although the results demonstrate strong performance in H1 2018, in our view, the impact of the acquisition makes comparability difficult. However, the 19% 27% and 68% increase in EPS, FCF/sh and EBITDA/sh. to US$0.16/sh., US$0.19/sh and US$0.37/sh. respectively highlight the accretive nature of the transaction. Furthermore, despite the transaction the interim dividend of 6.5p/sh. has been maintained which is impressive and marks CAML out against its peers. 

Low Cost Base Protects Against Metals Volatility

The shares have sold off sharply from March highs, down 31%, on the back of metals market volatility which is excessive, in our view, given CAML’s relatively low operational leverage. The share are, however, up 13% from recent lows. The low-cost nature of the operations provides significant protection to the earnings outlook, in our view, and we have made only modest adjustments to our forecasts in 2018F. We now expect a dividend of around 14.5p/sh. implying a yield of 6% which remains amongst the highest in the peer group.

Recommendation and Target Price

 

Although we have made only modest adjustments amidst the recent commodity price sell-off the peer group has corrected and we have reduced our target EV/EBITDA multiple from 5.0x to 4.9x. However, we remain persuaded that commodity markets and equities are oversold and that there is currently a significant value opportunity.

We reiterate our Buy recommendation although adjust our target price down by 4% to 309p which implies 33% upside and 39% on a total return basis. 

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https://www.oilcapital.com/companies/stocktube/10558/iofina-reports-20-increase-in-revenue-as-iosorb-plant-io7-comes-online-10558.html Iofina reports 20% increase in revenue as IOsorb plant IO#7 comes online https://www.oilcapital.com/companies/stocktube/10558/iofina-reports-20-increase-in-revenue-as-iosorb-plant-io7-comes-online-10558.html Fri, 21 Sep 2018 10:42:00 +0100 Iofina plc (LON:IOF) chief executive Tom Becker caught up with Proactive's Andrew Scott to discuss its first half results revealed an increase in revenue and underlying earnings.

The period saw 264.1 tonnes of crystalline iodine produced, which was up 12% from 235.5 tonnes in the previous year while the top-line also benefited from improving iodine prices increased sales of crystallised iodine via the Group's chemicals business.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30075/vsa-capital-market-movers-nulegacy-gold-30075.html VSA CAPITAL MARKET MOVERS - NuLegacy Gold https://www.oilcapital.com/columns/vsa-capital-market-movers/30075/vsa-capital-market-movers-nulegacy-gold-30075.html Thu, 20 Sep 2018 08:05:00 +0100 NuLegacy Gold (CVE:NUG)

NuLegacy Gold (CVE:NUG) has announced that Ed Cope who has been on the BoD since 2017 has now joined the management team to oversee exploration efforts and take responsibility for property evaluation and acquisition. Mr Cope has already contributed significantly to NUG, playing a key role in the discovery of Iceberg and Avocado as well as in the appointment of key personnel including Charles Weakly who has led the recent reinterpretation work.

As VP Exploration for Barrick (ABX US), Mr. Cope was instrumental in recognizing and attracting the exploration team that was responsible for the significant growth in Barrick’s Nevada reserves and resources.  In 2014, Mr. Cope was, along with his team members, co-recipient of the Prospectors & Developers Association of Canada’s “Thaver Lindsley International Mineral Discovery of the Year” award for the discovery of the 10+ million ounce Goldrush deposit, located adjacent to NUG's Red Hill Property. He is therefore one of the foremost experts in the regions geology and exploration.

Following the geological reinterpretation work NUG delivered its best drilling results to date which included 22.1m at 6.59g/t Au and 8.7m at 16.92g/t Au. With follow up drilling planned to further validate the reinterpretation we believe that the increased focus from Mr Cope will be a valuable addition.

We reiterate our Speculative Buy recommendation.

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https://www.oilcapital.com/companies/stocktube/10536/po-valley-energy-streamlines-italian-exploration-assets-posts-strong-half-year-profits-10536.html Po Valley Energy streamlines Italian exploration assets, posts strong half-year profits https://www.oilcapital.com/companies/stocktube/10536/po-valley-energy-streamlines-italian-exploration-assets-posts-strong-half-year-profits-10536.html Thu, 20 Sep 2018 01:39:00 +0100 Po Valley Energy Ltd (ASX:PVE) chairman Michael Masterman updates Proactive Investors on developments at the energy exploration company’s three hydrocarbon assets in northern Italy.
 
“Key news flow from Selva is the preliminary award of the production concession that we’re expecting in the next couple of months and we’re going to run a 3D seismic program which would very substantially increase the size of the resource,” Masterman says.
 
In its recently announced half-yearly results Po Valley reported a profit of more than $3 million euros while it advances its Selva, Torre del Moro and Teodorico projects.
 
Masterman added, “the results highlight that we’re streamlined. We’re focused on three assets of substantial scale, there is substantial news flow on Selva, Torre del Moro and Teodorico and we’re going to deliver against a very substantial oil and gas portfolio.”
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https://www.oilcapital.com/companies/stocktube/10526/tlou-energy-to-spud-first-production-well-at-lesedi-next-month-10526.html Tlou Energy to spud first production well at Lesedi next month https://www.oilcapital.com/companies/stocktube/10526/tlou-energy-to-spud-first-production-well-at-lesedi-next-month-10526.html Wed, 19 Sep 2018 11:21:00 +0100 Tlou Energy Ltd (LON:TLOU) managing director Tony Gilby and general manager Solomon Rowland chat to Proactive's Andrew Scott following an update on  operations at the Lesedi coalbed methane project.

Gilby says the well locations have been agreed, scouted and inspected with site preparation now underway for what will be the first pilot production well.

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https://www.oilcapital.com/companies/stocktube/10509/anglo-african-oil-gas-close-to-re-spudding-tlp-103-from-new-location-10509.html Anglo African Oil & Gas close to re-spudding TLP 103 from new location https://www.oilcapital.com/companies/stocktube/10509/anglo-african-oil-gas-close-to-re-spudding-tlp-103-from-new-location-10509.html Tue, 18 Sep 2018 11:40:00 +0100 David Sefton, executive chairman of Anglo African Oil & Gas plc (LON:AAOG), updates on plans to re-spud the TLP 103 well on the Tilapia field after encountering a number of drilling challenges which meant the drill location had to be abandoned.

Sefton says following the re-spud it is expected that drilling will take around 64 days to complete.

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https://www.oilcapital.com/companies/stocktube/10507/eqtec-plc-s-new-ceo-says-improved-project-delivery-can-transform-gas-from-waste-specialist-10507.html EQTEC PLC's new CEO says improved project delivery can transform gas from waste specialist https://www.oilcapital.com/companies/stocktube/10507/eqtec-plc-s-new-ceo-says-improved-project-delivery-can-transform-gas-from-waste-specialist-10507.html Tue, 18 Sep 2018 08:59:00 +0100 Ian Price, EQTEC Plc’s (LON:EQT) new chief executive, explains the great thing about the business is that its technology combines waste destruction with energy generation.

A strategic review highlighted the need to move from having a great a pipeline to delivering on projects.

That has led to a consultant being appointed in Spain to provide the engineering design capability to move things forward.

EQTEC’s waste to gas projects can range up to €100mln in value and once these start to be delivered Price is convinced the business can produce real shareholder value.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30071/vsa-capital-market-movers-m2-cobalt-30071.html VSA CAPITAL MARKET MOVERS - M2 Cobalt https://www.oilcapital.com/columns/vsa-capital-market-movers/30071/vsa-capital-market-movers-m2-cobalt-30071.html Tue, 18 Sep 2018 08:27:00 +0100 M2 Cobalt (MC CN)#

 

M2 Cobalt (MC CN) has announced that it has appointed Mahendra Naik to the BoD with immediate effect. Mr Naik was previously a consultant to M2 and will now act as audit chair. He has experience of developing projects in Africa as well as in cobalt and related markets and we view his decision to join M2 as a positive endorsement of the assets and strategy.

Mr Naik is a Chartered Professional Accountant and is one of the founding directors and key executives who started IAMGOLD Corporation (“IAMGOLD”), a TSX and NYSE listed gold mining company. As Chief Financial Officer of IMAGOLD from 1990 to 1999, he was involved in the negotiation of a number of mine joint ventures with Anglo American and was instrumental in arranging over $550m in debt and equity financings for IAMGOLD including its IPO. Since 2000, Mahendra has been a Director and member of the Audit and Compensation committees for IAMGOLD. Today IAMGOLD has a market capitalization of approximately C$2.4bn.

Mr. Naik is also the Chairman of the Board, Audit and Compensation Committees of Fortune Minerals Limited, a TSX listed company focused on the NICO cobaltgoldbismuthcopper Project in the North West Territories. As Chairman of Fortune, Mr. Naik has been actively involved in helping to raise in excess of C$100 million for Fortune and in the negotiation of several joint ventures. Mr. Naik is also a Director of Goldmoney Inc, a TSX listed precious metals financial services company and is involved in number of non-profit organizations including the Indus Entrepreneurs and Trillium Hospital Foundation.

We reiterate our Speculative Buy recommendation.

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https://www.oilcapital.com/companies/stocktube/10502/w-resources-assay-results-point-to-a-very-substantial-extension-of-the-rgua-orebody--10502.html W Resources assay results 'point to a very substantial extension of the Régua orebody' https://www.oilcapital.com/companies/stocktube/10502/w-resources-assay-results-point-to-a-very-substantial-extension-of-the-rgua-orebody--10502.html Tue, 18 Sep 2018 07:00:00 +0100 W Resources PLC (LON:WRES) chairman Michael Masterman updates Proactive Investors on just-announced assay results from RC drilling at the Régua tungsten project in Portugal, and development at the flagship La Parrilla tungsten-tin project over the boarder in Spain, as well as key appointments to the management team and board.

"Our priority is very much La Parrilla, which is under full development at the moment. Régua in Northern Portugal is coming very closely behind. In terms of development, we're able to leverage a lot of the existing infrastructure... to allow us to move, at low cost, into tungsten production in Northern Portugal," Masterman says.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30069/vsa-capital-market-movers-novo-ltio-30069.html VSA CAPITAL MARKET MOVERS - Novo Lítio https://www.oilcapital.com/columns/vsa-capital-market-movers/30069/vsa-capital-market-movers-novo-ltio-30069.html Mon, 17 Sep 2018 10:38:00 +0100

Novo Lítio#: Gold Project Acquisition

 

Acquisition of Highly Prospective Gold Project

Novo Lítio (ASX:NLI) has agreed to acquire two granted licenses and one license application in northern Côte d’Ivoire, from Apollo Consolidated (AOP AU) who have decided to focus their efforts on their Australian gold and nickel sulphide assets. With a strong cash position of A$16m NLI is well placed to advance exploration and has committed to a A$5m initial exploration programme.

Within the 830km2 license areas, which have largely not been explored, three major gold-in-soil anomalies have been identified within the highly prospective Birimian greenstone trends which host the world class Tongon (Randgold Resources) and Syama (Resolute Mining) mines. Limited RC drilling has been carried out although notable results include 17m at 22.52g/t Au from 8m whilst aircore drilling at two of the three anomalies has yielded consistent grades of 2-5g/t Au at shallow depths.

NLI intend to issue 90m shares to complete the acquisition (this requires approval from shareholders at a meeting scheduled for September 28 2018) implying a valuation of A$4.6m (100%) using A$0.041/sh. at the time of announcement.

Sepeda Update

NLI continues to reserve its legal rights in relation to the Sepeda Lithium Project in Portugal. The company has engaged a new legal firm in Portugal; Coelho Ribeiro & Associados, to advise it on the dispute going forward. If NLI is unable to reach a commercial settlement it intends to pursue its rights in the Portuguese courts. No further exploration work has been carried out on the company’s lithium assets in Sweden.

Reccomendation

Although this marks a significant change of direction from the lithium strategy these assets are highly attractive, in our view, with significant exploration potential and located in a highly prospective region. We believe the terms of the acquisition are attractive offering NLI shareholders exposure to attractive gold assets while providing AOP shareholders with continued exposure to future upside potential.   

We reiterate our Speculative Buy recommendation although withdraw our target price based on the lithium assets given the planned acquisition.

 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30067/vsa-capital-market-movers-redt-energy-30067.html VSA CAPITAL MARKET MOVERS - redT Energy https://www.oilcapital.com/columns/vsa-capital-market-movers/30067/vsa-capital-market-movers-redt-energy-30067.html Mon, 17 Sep 2018 08:42:00 +0100 redT Energy (LON:RED)#

redT energy (LON:RED)#, an energy storage solutions company, has received a conditional commitment letter from an energy infrastructure fund to invest €37m, alongside partners, for full rights to the first phase deployment of a 700MWh portfolio of grid-scale energy storage projects in Germany, which was previously announced on 26 July 2018.

  • The first phase of the project will see the deployment of 800 tank unit modules for a total capacity of 60MWh to supply Secondary Control Reserve (SCR) and other grid services to the German and Austrian market.
  • Full financial close is targeted for 31 December 2018.
  • Financing will form part of an overall US$120m initial development portfolio across RED’s three target sectors - Commercial & Industrial, Grid-scale and Large-scale Solar – for which it remains in active discussions with a number of infrastructure investors.

VSA Comment

Following on from the announcement in July that it had signed an exclusive deal to develop energy storage projects to support the German electricity grid, RED is now well advanced in securing the financing for funding the initial stage of this project. With financing expected to be secured by year-end, this project should deliver significant revenues for RED over its FY 2019 and FY 2020.
With the potential securing of a number of large-scale projects, RED has identified a need for the provision of infrastructure finance, in a similar vein to what has been seen in the wider renewable energy sector. Although flow machines have yet to be financed in this way, we believe the technology is ideally suited to such financing, as the machines suffer from very little degradation and offer significant flexibility in an era of constantly changing energy regulation.

Recent regulatory changes in Germany, which have also been seen in the UK, are clearly favouring long-duration storage technology, as opposed to lithium-ion battery projects that are targeting short-term grid service revenue streams in what is an increasingly crowded and much smaller market. In comparison, this first German project is expected to make-up just 1% of the entire German SCR market, which clearly highlights the significant potential for expansion if this initial project proves successful.

We maintain our BUY recommendation and target price of 22p.


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Biome Technologies plc

15.1

640

+60

+10.3%

Powerhouse Energy Group PLC

5.5

0.3

+0.02

+6.3%

Plutus PowerGen plc

8.1

1.1

0.05

+4.7%

 

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

SSE plc

10,969

1,084

-36

-3.2%

redT Energy PLC

61.1

8.5

-0.15

-1.7%

Good Energy Group PLC

19.3

120

-1.5

-1.2%

 

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https://www.oilcapital.com/companies/stocktube/10484/why-portfolio-guru-jim-collins-is-bullish-on-these-four-china-related-small-cap-stocks-10484.html Why 'Portfolio Guru' Jim Collins is bullish on these four China-related small-cap stocks https://www.oilcapital.com/companies/stocktube/10484/why-portfolio-guru-jim-collins-is-bullish-on-these-four-china-related-small-cap-stocks-10484.html Fri, 14 Sep 2018 19:59:00 +0100 Jim Collins, micro-cap investment writer and founder of 'The Portfolio Guru,' tells Proactive Investors he's interested in four small-caps that all share a common denominator: China.

Collins talks about on Nio Ltd (NYSE:NIO), Sanchez Energy Corp (NYSE:SN), Applied Minerals Inc (OTCMKTS:AMNL), and Navios Maritime Acquisition (NYSE:NNA).

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30062/dekeloil-public-limited-h1-2018-results-30062.html DekelOil Public Limited#: H1 2018 Results https://www.oilcapital.com/columns/vsa-capital-market-movers/30062/dekeloil-public-limited-h1-2018-results-30062.html Fri, 14 Sep 2018 07:56:00 +0100 On 13 September Côte d'Ivoire palm oil producer DekelOil Public Limited (DKL LN)# announced interim results for the period ended 30 June, reporting revenue of €14.1m (H1 2017: €19.6m) and a net loss of €0.5m (H1 2017: profit of €2.4m).

Results As Expected After July Production Update

DKL’s interim results were disappointing given its record of improvement since the Ayenouan mill begun processing crude palm oil in 2014. However, operations during the period were impacted by regional-specific climatic issues and lower CPO prices, both factors which are outside of the control of management. The lower availability of fruit for processing also led to increased competition from mills, which impacted margins.

However, we were encouraged by management’s aggressive move to acquire additional palm kernels for processing into palm kernel oil (PKO production +9% YoY, compared with a 18% YoY drop in CPO production) as well as a YoY reduction in general and administrative costs of more than 7%, which helped partially offset some of the financial weakness arising from the factors that the group could not control.    

Early Positive Signs for Future Fruit Levels

With a difficult 2018 high season behind it (albeit FY 2018 results will of course be impacted) DKL can now look forward to 2019. In this regard, an elevated high season tends to follow a lower one, as last seen in Côte d'Ivoire in 2010/2011. Therefore, we are hopeful that this will indeed be the case in H1 2019, although it is by no means guaranteed. Early July production was previously reported ahead YoY and in its interim results DKL has stated fruit levels have “shown signs of stabilising” in Q3.

Recommendation and Target Price

We initiated on DKL with a BUY recommendation and a target price of 12p on 6 August 2018. Following these results, we maintain both our recommendation and target price. 

 

For full report click here

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https://www.oilcapital.com/companies/stocktube/10471/bulls-bears-brokers-alto-capital-s-tony-locantro-brings-an-oil-gas-sector-slant-10471.html Bulls, Bears & Brokers: Alto Capital's Tony Locantro brings an oil & gas sector slant https://www.oilcapital.com/companies/stocktube/10471/bulls-bears-brokers-alto-capital-s-tony-locantro-brings-an-oil-gas-sector-slant-10471.html Fri, 14 Sep 2018 04:00:00 +0100 Tony Locantro, stock market commentator and investment manager at Alto Capital, gives Proactive Investors a speculative market update, and speaks about his experience at the RIU Good Oil Conference 2018 held in Perth this week.

To hear Tony's Tips on what to buy and what to avoid, as well as how to tell the difference for yourself, watch our full video interview.

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https://www.oilcapital.com/companies/stocktube/10463/boost-for-eco-atlantic-oil-gas-as-total-moves-ahead-with-guyana-farm-out-10463.html Boost for Eco Atlantic Oil & Gas as Total moves ahead with Guyana farm-out https://www.oilcapital.com/companies/stocktube/10463/boost-for-eco-atlantic-oil-gas-as-total-moves-ahead-with-guyana-farm-out-10463.html Thu, 13 Sep 2018 10:54:00 +0100 Gil Holzman, chief executive of Eco Atlantic Oil & Gas Ltd (LON:ECO, CVE: EOG), tells Proactive's Andrew Scott Total has now exercised its option to acquire a 25% stake in the Orinduik Block, offshore Guyana.

Total joins the exploration venture alongside operator Tullow Oil plc (LON:TLW), owning 60%, and Eco which will retain a 15% interest.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30057/vsa-capital-market-movers-redt-energy-30057.html VSA CAPITAL MARKET MOVERS - redT energy https://www.oilcapital.com/columns/vsa-capital-market-movers/30057/vsa-capital-market-movers-redt-energy-30057.html Thu, 13 Sep 2018 08:24:00 +0100 redT energy: H1 2018 Results

redT energy (LON:RED), an energy storage solutions company, has announced its interim results for the six months ended 30 June 2018.

  • Revenue: £1.2m, +33.3% YoY (H1 2017: £0.9m), VSA FY estimate is £4.1m
  • EBIT: loss of £5.7m (H1 2017: loss of £3.1m), VSA FY estimate is a loss of £11.9m
  • Net Cash as of 30 June 2018: £3.9m (31 December 2017: £6.6m)

VSA Comment

RED has revealed results for H1 in-line with our expectations for the FY. More importantly, since the period end RED has made considerable in-roads into key markets, all of which have the potential to lead to significant orders for RED’s flow machines over the next few years.

In July, the company announced an exclusive deal to develop 690MWh of energy storage projects to support the German electricity grid (with finance to be secured – no update in these results, but we would expect progress by the end of the year).

This was followed in August by an order from Anglian Water for one of its 60kW-300kWh flow machines, alongside a collaborative partnership to optimise energy storage across all of its sites, and most recently by the announcement that it had been selected as a preferred supplier of energy storage solutions to the public sector under Essentia’s Battery Storage Framework.

These agreements suggest a growing acceptance of the suitability of deploying flow machines in large-scale energy storage infrastructure applications.

The company has also revealed that its overall pipeline has grown by more than three times since it last reported (to £1bn+ from €357m in December 2017) - see attached pdf for more detail.

The company has also provided a split of the total gross pipeline across its three key target sectors – Commercial & industrial (£115m), Grid-Scale (£702m) and Large Solar & Storage (£256m).

It is clear that RED now has enough orders in its pipeline to deliver on our forecasts for the next couple of years and as such the company will now be focused on scaling up production via its manufacturing partners in order to satisfy these.

We maintain our BUY recommendation and target price of 22p.


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Hydrodec

8.9

1.2

0.10

+9.1%

redT energy

66.2

9.2

0.35

+4.0%

Solid State

27.8

327.0

12.00

+3.8%

 

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

SSE

11,606.5

1,147.0

(103.50)

-8.3%

Centrica

8,145.3

144.4

(5.40)

-3.6%

AFC Energy

30.4

7.8

(0.260

-3.2%

 

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https://www.oilcapital.com/companies/stocktube/10460/brookside-energy-progressing-well-with-land-leasing-and-development-strategy-10460.html Brookside Energy progressing well with land leasing and development strategy https://www.oilcapital.com/companies/stocktube/10460/brookside-energy-progressing-well-with-land-leasing-and-development-strategy-10460.html Thu, 13 Sep 2018 03:30:00 +0100 Brookside Energy Ltd (ASX:BRK) managing director David Prentice speaks to Proactive Investors about achieving first payout in just 11 months from a well forming part of the company's STACK play in the Anadarko Basin area of Oklahoma, USA.

Prentice describes the milestone as, "a remarkable achievement in the current pricing environment... further endorsement of the quality of the oil and gas reservoirs in the Anadarko Basin."

He continues, "this is obviously going to lead to significantly more reserves per well, and then ultimately to higher valuations per acre, which is really what our business model is all about."

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https://www.oilcapital.com/companies/stocktube/10444/matador-mining-starts-maiden-drilling-at-flagship-cape-ray-gold-project-in-canada-10444.html Matador Mining starts maiden drilling at flagship Cape Ray Gold Project in Canada https://www.oilcapital.com/companies/stocktube/10444/matador-mining-starts-maiden-drilling-at-flagship-cape-ray-gold-project-in-canada-10444.html Wed, 12 Sep 2018 05:00:00 +0100 Matador Mining Ltd (ASX:MZZ) managing director Paul Criddle speaks to Proactive Investors about the gold exploration company’s flagship Cape Ray Gold Project in Newfoundland, Canada.

“When we acquired the Cape Ray project in July, we did that … at the same time as a capital raising here in Australia, where we raised $5 million. The proceeds of that were to complete the acquisition, and to also fund our current exploration activities,” Criddle says.

He continues, “our current work programs, one, focus on expansion of the existing resources, and two, delineating and enunciating the regional package. As of 2 weeks ago, we’ve commenced our maiden 8,000 metre drilling program and that’s principally designed to expand the existing resource base.”

The project holds 750,000 ounces of gold at 1.75 g/t within 6 deposits over roughly 10 kilometres of strike.

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https://www.oilcapital.com/companies/stocktube/10440/small-cap-snapshot-invuity-soars-after-agreeing-to-a-buyout-proposal-from-orthopedics-giant-stryker-10440.html Small-Cap Snapshot: Invuity soars after agreeing to a buyout proposal from orthopedics giant Stryker https://www.oilcapital.com/companies/stocktube/10440/small-cap-snapshot-invuity-soars-after-agreeing-to-a-buyout-proposal-from-orthopedics-giant-stryker-10440.html Tue, 11 Sep 2018 19:50:00 +0100 Small cap names on the move today are: Invuity (NASDAQ:IVTY), Sunrun (NASDAQ:RUN), USA Technologies Inc (NASDAQ:USAT), SandRidge Energy (NYSE:SD). 

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https://www.oilcapital.com/companies/stocktube/10437/dgoc-delivering-on-growth-strategy-as-production-exceeds-60000-barrels-10437.html DGOC delivering on growth strategy as production exceeds 60,000 barrels https://www.oilcapital.com/companies/stocktube/10437/dgoc-delivering-on-growth-strategy-as-production-exceeds-60000-barrels-10437.html Tue, 11 Sep 2018 11:58:00 +0100 Rusty Hutson, chief executive of Diversified Gas & Oil PLC (LON:DGOC), caught up with Proactive's Andrew Scott to discuss the first half of 2018 - what the group's described as “a period of transformative growth” following the Alliance and CNX acquisitions.

July’s deal to acquire US$575mln of assets from EQT Corporation came after the reporting period ended.

Daily production averaged 19,300 barrels of oil equivalent per day, and, the period’s ‘exit rate’ measured 27,000 boepd – whereas the EQT deal's expected to lift the daily rate above 60,000 boepd.

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https://www.oilcapital.com/companies/stocktube/10412/samo-1-well-offshore-the-gambia-gaining-attention-of-industry-experts-for-far-ltd-10412.html Samo-1 well offshore The Gambia gaining attention of industry experts for FAR Ltd https://www.oilcapital.com/companies/stocktube/10412/samo-1-well-offshore-the-gambia-gaining-attention-of-industry-experts-for-far-ltd-10412.html Tue, 11 Sep 2018 00:00:00 +0100 FAR Ltd (ASX:FAR) managing director Cath Norman speaks to Proactive Investors about the Samo-1 well offshore The Gambia, which is generating a lot of buzz amongst global oil & gas market experts. She also provides updates on the exploration company's Senegalese project.

Norman explains, "the Samo-1 well of course follows on from eleven successful wells that we've drilled in Senegal. The Samo-1 well is on the same geological trend as the big SNE field that we discovered to the north, and it's only 20 kilometres south of  the centre of the SNE fields. So that's part of the reason why it's creating a lot of buzz, but you've also got to put it into context... Samo being an 825 million barrel prospect must be one of the biggest prospects that's been drilled for some time. And of course FAR has 40% of it... we're the operator of the well."

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https://www.oilcapital.com/companies/stocktube/10423/farm-out-deal-with-spirit-puts-hurricane-energy-firmly-back-on-the-radar--10423.html Farm out deal with Spirit puts Hurricane Energy 'firmly back on the radar' https://www.oilcapital.com/companies/stocktube/10423/farm-out-deal-with-spirit-puts-hurricane-energy-firmly-back-on-the-radar--10423.html Mon, 10 Sep 2018 14:51:00 +0100 Proactive Investors oil & gas correspondent Jamie Ashcroft discusses Hurricane Energy Plc's (LON:HUR) recent partnership deal with Spirit Energy.

Funded by Spirit, Hurricane now expects to bring the Greater Warwick Area online in 2020 - a year after the early production system kicks in at the Lancaster field.

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https://www.oilcapital.com/companies/stocktube/10418/plexus-holdings-looking-at-ways-to-monetise-its-ip-as-oil-and-gas-sector-recovers-10418.html Plexus Holdings looking at ways to monetise its IP as oil and gas sector recovers https://www.oilcapital.com/companies/stocktube/10418/plexus-holdings-looking-at-ways-to-monetise-its-ip-as-oil-and-gas-sector-recovers-10418.html Mon, 10 Sep 2018 12:36:00 +0100 Ben van Bilderbeek, chief executive of Plexus Holdings PLC (LON:POS), spoke to Proactive's Andrew Scott after what's been a period of restructure for the group.

The wellhead valve specialist has had to be patient while the oil and gas sector recovers from the slump in crude prices.

Plexus has fundamentally restructured its business with the sale of its jack-up rig business to a subsidiary of TechnipFMC.

A collaboration deal for new and existing products based on the POS-GRIP technology was part of the agreement.

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https://www.oilcapital.com/companies/stocktube/10398/mosman-oil-gas-limited-oil-capital-conference-10398.html Mosman Oil & Gas Limited - Oil Capital Conference https://www.oilcapital.com/companies/stocktube/10398/mosman-oil-gas-limited-oil-capital-conference-10398.html Fri, 07 Sep 2018 09:46:00 +0100 Andy Carroll, technical director at Mosman Oil And Gas Limited (LON:MSMN), presents to investors at the Oil Capital Conference in London.

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https://www.oilcapital.com/companies/stocktube/10395/i3-energy-plc-oil-capital-conference-10395.html i3 Energy PLC - Oil Capital Conference https://www.oilcapital.com/companies/stocktube/10395/i3-energy-plc-oil-capital-conference-10395.html Fri, 07 Sep 2018 07:54:00 +0100 Neill Carson, chief executive of i3 Energy PLC (LON:I3E), presents at the Oil Capital Conference in London.

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https://www.oilcapital.com/companies/stocktube/10394/tag-oil-ltd-oil-capital-conference-10394.html TAG Oil Ltd - Oil Capital Conference https://www.oilcapital.com/companies/stocktube/10394/tag-oil-ltd-oil-capital-conference-10394.html Fri, 07 Sep 2018 07:48:00 +0100 TAG Oil Ltd's (TSE:TAO) Toby Pierce presents at the Oil Capital Conference in London.

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https://www.oilcapital.com/companies/stocktube/10393/tower-resources-plc-oil-capital-conference-10393.html Tower Resources Plc - Oil Capital Conference https://www.oilcapital.com/companies/stocktube/10393/tower-resources-plc-oil-capital-conference-10393.html Fri, 07 Sep 2018 07:43:00 +0100 Jeremy Asher, chief executive of Tower Resources PLC (LON:TRP), presents at the Oil Capital Conference in London.

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https://www.oilcapital.com/companies/stocktube/10392/coro-energy-plc-oil-capital-conference-10392.html Coro Energy Plc - Oil Capital Conference https://www.oilcapital.com/companies/stocktube/10392/coro-energy-plc-oil-capital-conference-10392.html Fri, 07 Sep 2018 07:22:00 +0100 James Menzies, Coro Energy Plc's (LON:CORO) CEO, presents at the Oil Capital Conference in London.

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https://www.oilcapital.com/companies/stocktube/10391/block-energy-plc-oil-capital-conference-full-presentation-10391.html Block Energy Plc @ Oil Capital Conference: Full Presentation https://www.oilcapital.com/companies/stocktube/10391/block-energy-plc-oil-capital-conference-full-presentation-10391.html Fri, 07 Sep 2018 07:13:00 +0100 Block Energy Plc's (LON:BLOE) Paul Haywood presents at the Oil Capital Conference in London.

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https://www.oilcapital.com/companies/stocktube/10379/permex-petroleum-ceo-explains-shut-in-wells-stabilization-talks-scaling-operations-10379.html Permex Petroleum CEO explains shut-in wells stabilization, talks scaling operations https://www.oilcapital.com/companies/stocktube/10379/permex-petroleum-ceo-explains-shut-in-wells-stabilization-talks-scaling-operations-10379.html Thu, 06 Sep 2018 12:37:00 +0100 Permex Petroleum Corp (CSE:OIL) CEO Mehran Ehsan updates Proactive's Christine Corrado on operations, saying the junior oiler successfully re-entered and completed two shut-in wells, which will add to production.

The Texas and New Mexico wells came on line at an initial rate of 10 barrels of oil per day, but have now have stabilized at 5 barrels per day. In this interview, Ehsan explains this decline.

Ehsan also noted the company is in a position to bring online horizontal wells much sooner than anticipated, scaling company's operations and productions.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30043/vsa-capital-market-movers-genus-30043.html VSA CAPITAL MARKET MOVERS - Genus https://www.oilcapital.com/columns/vsa-capital-market-movers/30043/vsa-capital-market-movers-genus-30043.html Thu, 06 Sep 2018 07:57:00 +0100 Genus: FY 2018 Results

Genus (LON:GNS), the developer and marketer of animal breeding and genetic products for the porcine and bovine industries, has announced its full year results for the period ended 30 June 2018 (FY 2018).

  • Revenue: £470.3m, +2.4% YoY, (FY 2017: £459.1m); FactSet FY 2018 consensus revenue was £476.0m, +3.7% YoY.
  • Adjusted PBT*: £58.5m, +3.7% YoY (FY 2017: £56.4m); FactSet FY 2018 consensus PBT was £58.3m, +3.4% YoY.
  • Net Debt: £108.5m, -2.8% YoY (30 June 2017: £111.6m); FactSet FY 2018 consensus net debt was £114.3m, +6.0% YoY.
  • Total Dividend: 26.0p, +10.2% YoY (FY 2017: 23.6p)
  • Genus PIC (Porcine Division) Adjusted PBT (inc. JV): £94.8m, flat YoY (FY 2017: £94.8m).
  • Genus ABS (Bovine Division) Adjusted PBT (exc. non-controlling interest): £26.1m, +22.5% YoY (FY 2017: £21.3m).
  • R&D Investment: £46.8m, +6.8% YoY (FY 2017: £43.8m)

* Excluding IAS 41 valuation movement on biological assets, amortisation of acquired intangible assets, share-based payment expense and exceptional items.

VSA Comment

In February, GNS revealed strong interims (revenues +7.4%; adjusted PBT +15.5%), despite a strengthening GBP during H1 (+4.6% against USD), with continued recovery in Genus ABS and a solid performance in Genus PIC reported. Although GNS failed to maintain this level of growth over the FY, these divisional trends continued and its FY results have been delivered in-line with consensus expectations. However, its outlook statement for FY 2019 was weak and we would expect share price weakness today as a result.

In terms of currency, the GBP reversed against the USD in H2 (-2.4%) but still strengthened 2.1% over FY 2018. This provided a modest operational headwind for the group over the year (although it was beneficial for its net debt position). Although early in FY 2019, GNS is currently operating with slight currency tailwind as the GBP has weakened c2.6% against the USD over July and August.

In terms of the GNS operations, we would highlight its bovine division in particular, which posted an almost 23% YoY increase in adjusted PBT over the period (+29% in constant currency) as well as the group’s strong cash conversion (101%). Overall volumes in the bovine division increased 5% YoY with sexed volumes increasing 25% supported by strong demand for its proprietary Sexcel product, which has traded ahead of expectations since its launch in September 2017.

In terms of underlying market conditions, global and UK milk prices (c28.5ppl) remain elevated and are likely to remain high with recent increases in input costs (UK feed wheat +20% YoY) due to excessive heat in key feed wheat regions and milk production flat or showing a slight YoY increase in key producing regions (NZ flat YoY, Europe +3% YoY, Australia +3% YoY, US +1% YoY, UK +0.5% YoY).

US live cattle prices have increased almost 10% in the last four months and although pork prices have been weaker than that, the recent outbreaks of African swine fever in China and Eastern Europe have started to influence pricing in the last few months. We believe there is significant potential for further price increases if the disease fails to be contained quickly in key markets, particularly in China (c50% of global pork production and consumption).

However, any wider outbreak of the disease would also impact the level of demand from its customers in the affected regions. Growing barriers to trade are also a concern in underlying agricultural markets, particularly around the international trade of pork products between China, Mexico and the US.

Tellingly, the Board made no direct comment on FY 2019 consensus expectations only saying that it expected “further financial and strategic progress” during FY 2019 and highlighting the more challenging external environment that its customers face in the short-term (Current FactSet FY 2019 consensus: revenues: £500.6m, +6.4% YoY; adjusted PBT: £63.9m, +9.2% YoY).


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Obtala Limited

22.25

6.75

0.35

+5.5%

Carr's Group

137.56

150.50

3.25

+2.2%

Plant Health Care

28.60

16.55

0.05

+0.3%

 

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Sirius Minerals

1,535.61

32.66

(1.92)

-5.6%

Genus

1,670.76

2,722.00

(110.00)

-3.9%

Anglo-Eastern Plantations

259.22

654.00

(18.00)

-2.7%

 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30042/vsa-capital-market-movers-lake-resources-30042.html VSA CAPITAL MARKET MOVERS - Lake Resources https://www.oilcapital.com/columns/vsa-capital-market-movers/30042/vsa-capital-market-movers-lake-resources-30042.html Thu, 06 Sep 2018 07:53:00 +0100 Lake Resources (ASX:LKE)#

 

Lake Resources (ASX:LKE) has provided an update on planned drilling at its Cauchari project now expected to commence in early October following positive discussions with local authorities. The programme is likely to consist of three holes, with a possible fourth, drilled to depths of 400m targeting extensions of the known high grade lithium bearing brines on adjacent leases.

These targets extend from the resources defined by Advantage Lithium (AAL CN) and Orocobre (ORE AU) as well as Lithium Americas (LAC CN) whose JV partner is soon to switch from SQM (SQM US) to Ganfeng Lithium) following the recently announced transaction.

We also highlight the recent concern over export taxes in Argentina following the decline of the Peso. This is primarily targeted at the agricultural sector and LKE have confirmed that they are not affected by these changes.

We reiterate our Speculative Buy recommendation. 

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https://www.oilcapital.com/companies/stocktube/10367/comet-ridge-has-the-australian-east-coast-gas-market-in-sight-10367.html Comet Ridge has the Australian east coast gas market in sight https://www.oilcapital.com/companies/stocktube/10367/comet-ridge-has-the-australian-east-coast-gas-market-in-sight-10367.html Thu, 06 Sep 2018 05:18:00 +0100 Tor McCaul, managing director of Comet Ridge Ltd (ASX:COI), spoke to Proactive Investors at the ASX Small and Mid-Cap Conference in Sydney.
 
The Brisbane-based energy company is focused on coal seam gas and sandstone gas exploration and appraisal, with a suite of tenements and prospective projects.  It has recently renegotiated a deal with Stanwell Corporation Limited, adding more time for a Mahalo block final investment decision (FID) and agreeing to negotiate a gas sales agreement for the Southern Bowen Basin project using market-based pricing.
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https://www.oilcapital.com/companies/stocktube/10347/clearvues-unique-solar-window-technology-applicable-across-sectors-applications-10347.html Clearvue’s unique solar window technology applicable across sectors, applications https://www.oilcapital.com/companies/stocktube/10347/clearvues-unique-solar-window-technology-applicable-across-sectors-applications-10347.html Wed, 05 Sep 2018 22:30:00 +0100 ClearVue Technologies Ltd (ASX:CPV) executive chairman Victor Rosenberg speaks to Proactive Investors about the renewable energy company’s innovative solar window products.

ClearVue’s smart building material patented technology comprises a glass lamination interlayer that converts rays into energy, while allowing up to 70% of visible light to pass through. Target customers will primarily be from the glass manufacturing, glass framing and building and construction industries.

The company also intends to promote and sell its products within the agriculture and horticulture, commercial and residential, public amenities and consumer electronics markets.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30039/vsa-capital-market-movers-lake-resources-30039.html VSA CAPITAL MARKET MOVERS - Lake Resources https://www.oilcapital.com/columns/vsa-capital-market-movers/30039/vsa-capital-market-movers-lake-resources-30039.html Wed, 05 Sep 2018 07:55:00 +0100 Lake Resources (CVE:LKE)#

 

Lake Resources (LKE AU) has announced that it has agreed a partnership with US based Lilac Solutions to utilise Lilac’s innovative ion exchange technology which could potentially significantly reduce extraction time for lithium brines, reduce costs and the environmental impact of lithium from conventional brine production. The partnership will focus on the development of LKE’s Kachi project although LKE will, out of prudence, continue to concurrently assess the potential for production via conventional methods.

Lilac have established a team of chemical experts and lithium industry professionals who will now work to establish a flowsheet for the Kachi brine, attractive to them due to its scale and 100% ownership by LKE. The technology Lilac has developed is a one step, ion-exchange, process which absorbs lithium from a brine and releases lithium at a high concentration. Whilst conventional evaporation processes take between 9-24 months to achieve around a 40% recovery Lilac’s approach achieves a 95% recovery in less than two hours. This could potentially significantly enhance the economics of lower grade projects and Lilac have indicated that their technology is suitable where high concentrations of other salts such as magnesium. Although we highlight that LKE’s results so far have demonstrated low magnesium ratios.

The other benefit is the potentially lower environmental impact from Lilac’s technology and the partnership represents a proactive step from LKE’s management team following the announcements in Chile that lithium brine production expansions using conventional evaporation processes may be constrained due to their impact on groundwater. Lilac’s approach would reduce the overall footprint of the operations and the methodology means that brine could be re-injected into the same aquifer it was extracted from without significantly impacting the water quality. Although Argentina has not proposed similar constraints this is a prudent step from LKE, in our view.

The announcement represents a promising step with other industry experts providing greater credibility to the Kachi project whilst also providing an opportunity which could significantly enhance the economics of its development. LKE has also indicated that it intends to announce the maiden resource for Kachi within the next eight weeks.

We reiterate our Speculative Buy recommendation.

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https://www.oilcapital.com/companies/stocktube/10329/small-cap-snapshot-travelcenters-of-america-shares-rise-on-sale-of-convenience-store-business-10329.html Small-Cap Snapshot: TravelCenters of America shares rise on sale of convenience store business https://www.oilcapital.com/companies/stocktube/10329/small-cap-snapshot-travelcenters-of-america-shares-rise-on-sale-of-convenience-store-business-10329.html Tue, 04 Sep 2018 18:40:00 +0100 Small cap names on the move today are: TravelCenters of America LLC (NASDAQ:TA), Ballard Power Systems Inc (NASDAQ:BLDP, TSX:BLD), MannKind Corporation (NASDAQ:MNKD), RecroPharma (NASDAQ:REPH), Tahoe Resources Inc (TSX:THO, NYSE: TAHO). 

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https://www.oilcapital.com/companies/stocktube/10320/europa-oil-gas-still-confident-holmwood-will-be-drilled-despite-planning-knock-back-10320.html Europa Oil & Gas still confident Holmwood will be drilled despite planning knock-back https://www.oilcapital.com/companies/stocktube/10320/europa-oil-gas-still-confident-holmwood-will-be-drilled-despite-planning-knock-back-10320.html Tue, 04 Sep 2018 09:35:00 +0100 Hugh Mackay, chief executive of Europa Oil & Gas Holdings Plc (LON:EOG), discusses with Proactive's Andrew Scott a decision by the authorities not to renew the lease for the proposed Holmwood drilling operations site at Bury Hill Wood, Coldharbour Lane.

Mackay says as a result they've now had to withdraw their planning application for the project.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30033/vsa-capital-market-movers-m2-cobalt-30033.html VSA Capital Market Movers - M2 Cobalt https://www.oilcapital.com/columns/vsa-capital-market-movers/30033/vsa-capital-market-movers-m2-cobalt-30033.html Tue, 04 Sep 2018 08:49:00 +0100 M2 Cobalt (CVE:MC)#

 

M2 Cobalt (MC CN) has announced the discovery of six additional major anomalies at its Bujagali licenses in central Uganda. The infill sampling programme and first phase of exploration has yielded significant large-scale results. We had previously indicated that the Waraji target, which has now been expanded from 750mx550m to 1,000mx900m, within the Bujagali licenses appeared to be host to Katanga style sediment hosted cobalt-copper mineralisation and with these additional anomalies identified this is now building towards what could be a much larger regional play. Given that this style of mineralisation is the most important geological source of cobalt globally, M2’s ability to demonstrate scale brings greater credibility to our view that Uganda offers an attractive route for investors to gain exposure to DRC style cobalt projects without the high associated political risk.

The overall results have so far demonstrated a significant number of high grade cobalt and copper samples with 51 rock grab samples of 0.1%-1.75% Co, 39 of between 0.1%-0.8% Cu, 141 samples of between 0.01%-0.13% Co and 236 samples of 0.01%-0.05% Cu. Although rock samples are not sufficient to be considered representative given the level of weathering at surface in tropical regions like Uganda these surface grades are encouraging, in our view.

These soil samples have confirmed the presence of mineralisation following anomalies shown by high resolution ground magnetics and VTEM surveys. The largest of the anomalies revealed by geophysics is the Club anomaly which is 2kmx1.7km.

In addition to the sediment hosted anomalies M2 has made further progress at Bombo with further ultramafic style mineralisation identified and an additional 2.1kmx1.0km anomaly containing up to 0.08% Ni, 0.03% Cu and 0.05% Co in soil. The original Bombo target has been expanded via the trenching programme from 1.2kmx0.9km to 2.2kmx1km.

M2 has made real progress in the last few months demonstrating extensive mineralisation of cobalt, copper and nickel and is now in a strong position to begin initial drilling of its more advanced targets.   

We reiterate our Speculative Buy recommendation.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30032/vsa-capital-market-movers-egdon-resources-30032.html VSA Capital Market Movers - Egdon Resources https://www.oilcapital.com/columns/vsa-capital-market-movers/30032/vsa-capital-market-movers-egdon-resources-30032.html Tue, 04 Sep 2018 08:47:00 +0100 Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) has provided an update following the announcement by Europa Oil & Gas (LON:EOG) that it intends to withdraw its planning application to drill the Holmwood prospect from the Bury Hill Wood Site. The lease is due to expire on the 18th September 2018 and the Minister for the Environment, Food and Rural Affairs has decided not to renew the lease. However, the PEDL 143 license has recently been extended to 30th September 2020 and EOG will now consider alternative sites from which to target the Holmwood prospect.

Whilst the site is being re-evaluated for testing we withdraw Holmwood from our valuation, which on a risked basis contributed just 0.4p/sh. indicating a lower target price of 51.6p with the valuation continuing to be dominated by EDR’s shale acreage.

We reiterate our Buy recommendation although reduce our target price by 1% to 51.6p/sh.

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https://www.oilcapital.com/companies/stocktube/10319/production-at-mosman-oil-gas-s-welch-project-continues-to-increase-10319.html Production at Mosman Oil & Gas's Welch project continues to increase https://www.oilcapital.com/companies/stocktube/10319/production-at-mosman-oil-gas-s-welch-project-continues-to-increase-10319.html Tue, 04 Sep 2018 08:26:00 +0100 Andy Carroll, technical director at Mosman Oil And Gas Limited (LON:MSMN), tells Proactive's Andrew Scott production rates at the Welch project, in the permian basin, continue to increase.

Carroll says following well workovers in June the average gross production before royalties is reported to have increased to around 44 barrels of oil per day.

Moreover, the restart of the Drennan-8 well in early August saw production average 50 bopd.

Elsewhere, the Stanley-1 well in Texas has been completed and is currently flowing oil into tanks

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30029/vsa-capital-market-movers-altyn-shefa-yamim-30029.html VSA Capital Market Movers - Altyn, Shefa Yamim.. https://www.oilcapital.com/columns/vsa-capital-market-movers/30029/vsa-capital-market-movers-altyn-shefa-yamim-30029.html Mon, 03 Sep 2018 07:59:00 +0100 Altyn (LON:ALTN)

Altyn (LON:ALTN) has announced robust results for H1 2018 with the company making the significant step of returning to net profitability driven by a recovery in gold prices and stronger production. Gold production of 8.4koz was up 15% YoY largely due to a higher run rate of ore processed which included low grade stockpiled ore. Consequently, ore milled was up 39% to 182kt although ore mined was largely flat YoY at 152kt. As a result of stronger production, revenue of US$10.9m was up 18% YoY, the received gold price in the period was up 7% YoY to US$1,323/oz.
Mined ore grades were marginally lower in H1 2018 at 1.96g/t and milled grades, which are diluted by the lower grade stockpiled ore were down 16.5% YoY which placed upward pressure on costs, despite a modest improvement in gold recoveries to 83.65%. Unit costs at ALTN of US$731/oz were up 11% YoY, however, on an all in basis and due to capital discipline total cash costs were slightly lower YoY at US$883/oz versus US$899/oz. Overall this resulted in gross profit of US$2.7m, up 69% YoY which along with the reduction in finance expenses, now that ALTN has significantly reduced its net debt, meant that the company generated a small net profit of US$0.6m.

ALTN currently has net debt of US$4.2m, down from US$14m in H1 2017 and although production remains constrained, ALTN have now demonstrated that they can operate profitably and effectively at this lower run rate. The financing for expansion remains the key catalyst for the shares and this has been further delayed, however, given that the operational performance has now been stabilised this provides a robust platform to build on, in our view.

We reiterate our Buy recommendation and target price of 3.54p

Shefa Yamim (LON:SEFA)

Shefa Yamim (SEFA LN) has announced the signing of an LoI with world renowned jewellery designer Yossi Harari to create jewellery using gemstones from the Kishon Mid Reach project in Northern Israel. Yossi Harari features in 40 high end jewellery stores globally although is perhaps best known for his bespoke pieces. A key attraction for Yossi Harari in choosing SEFA’s gemstones is the heritage and unique backstory behind their discovery.

We have indicated previously that we believe that SEFA’s location in Israel could result in premium pricing for its gemstones as has happened elsewhere in the gemstone market where regional significance has been attached to gemstones. As yet there has been little to give investors firm indication as to the gem quality nature of the stones found to date, however, we believe that today’s announcement should act as a significant endorsement of the quality of the wide range of stones that have been found by SEFA to date.

We reiterate our Speculative Buy recommendation. 

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https://www.oilcapital.com/companies/stocktube/10301/simec-atlantis-overwhelmed-by-interest-from-power-generators-in-uskmouth-conversion-plans-10301.html Simec Atlantis 'overwhelmed' by interest from power generators in Uskmouth conversion plans https://www.oilcapital.com/companies/stocktube/10301/simec-atlantis-overwhelmed-by-interest-from-power-generators-in-uskmouth-conversion-plans-10301.html Fri, 31 Aug 2018 13:37:00 +0100 Tim Cornelius, Simec Atlantis Energy Ltd's (LON:SAE) chief executive, says interest is coming from all over the world in its plans to convert Uskmouth in Wales from coal to waste pellets.

The pellets are a combination of paper and cardboard and non-recyclable plastic and solve three issues: plastic waste, clean emissions and providing power.

Cornelius expects it to be a blueprint for other power station conversions.

Engineering contracts for the conversion work are set to awarded imminently, he adds.

Meanwhile, the tidal power business is at a point where many commercial scale projects are being planned following the success of Simec Atlantis’s MeyGen development offshore Scotland.

Shares have been weak recently but there is absolutely no reason, says Cornelius.

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https://www.oilcapital.com/companies/stocktube/10296/block-energy-well-positioned-ahead-of-start-of-work-programme-in-georgia-10296.html Block Energy 'well positioned' ahead of start of work programme in Georgia https://www.oilcapital.com/companies/stocktube/10296/block-energy-well-positioned-ahead-of-start-of-work-programme-in-georgia-10296.html Fri, 31 Aug 2018 08:43:00 +0100 Paul Haywood, director of Block Energy Plc (LON:BLOE), tells Proactive Investors the production sharing contract (PSC) terms for the West Rustavi licence have been accepted by the government of the Republic of Georgia.

Block owns a 25% stake in West Rustavi which hosts some 608bn cubic feet of gas and 37.9mln barrels of oil.

It becomes effective from September 1 and will allow planned works to be carried out.

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https://www.oilcapital.com/companies/stocktube/10294/funding-commitments-firm-up-aspire-minings-near-production-ovoot-project-10294.html Funding commitments firm up Aspire Mining’s near-production Ovoot project https://www.oilcapital.com/companies/stocktube/10294/funding-commitments-firm-up-aspire-minings-near-production-ovoot-project-10294.html Fri, 31 Aug 2018 07:17:00 +0100 Aspire Mining Ltd (ASX:AKM) managing director David Paull speaks to Proactive Investors about the development company’s recent work and financing arrangements at its Ovoot Coking Coal Project in Mongolia.

Aspire is targeting early production of washed coal from Ovoot within 12 to 15 months of approval, and has formulated the Ovoot Early Development Plan (OEDP) including related funding commitments.

In support of the OEDP, the company has executed definitive and binding documentation with substantial shareholder Tserenpuntsag Tserendamba to invest $10 million as part of a $15 million strategic financing package.

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https://www.oilcapital.com/companies/stocktube/10281/solo-oil-plc-rejigs-horse-hill-position-for-greater-exposure-across-weald-basin-10281.html Solo Oil Plc rejigs Horse Hill position for greater exposure across Weald Basin https://www.oilcapital.com/companies/stocktube/10281/solo-oil-plc-rejigs-horse-hill-position-for-greater-exposure-across-weald-basin-10281.html Thu, 30 Aug 2018 12:03:00 +0100 Dan Maling, managing director of Solo Oil PLC (LON:SOLO), discusses with Proactive's Andrew Scott the decision to swap their stake in the Horse Hill discovery for shares in UK Oil & Gas Investments PLC (LON:UKOG).

Maling says they've entered into a conditional sale and purchase agreement to dispose of their entire 15% interest in the project for £4.5 million which has been used to purchase a 4.2% stake in UKOG.

For UKOG, the transaction increases its stake in the Horse Hill discovery to 46.73% (as it will hold 71.9% of the HHDL vehicle which owns 65% of the underlying asset).

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30024/vsa-capital-market-movers-egdon-resources-30024.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.oilcapital.com/columns/vsa-capital-market-movers/30024/vsa-capital-market-movers-egdon-resources-30024.html Thu, 30 Aug 2018 08:33:00 +0100 Production Update

Egdon Resources (LON:EDR) has provided an operational update ahead of full year results which are due to be announced on 30 October 2018. Production in H2 FY 2018 was 70bopd, down 41% YoY, resulting in full year production of 84boepd, down 20% YoY and below our estimate of 100boepd. This was largely due to the summer maintenance shutdown at Ceres (operated by Spirit Energy) which was brought forward into FY 2018 and extended due to additional unforeseen maintenance requirements. Due to the lower than expected production in FY 2018 we have lowered our earnings estimates for FY 2018 although these are partially offset by higher oil and gas prices as we mark to market for H2.

The impact at Ceres was, however, on the backout gas that has been producing whilst primary production has been offline. Primary production is expected to resume in October 2018 providing EDR with an incremental net 125boepd in H1 FY 2019. With EDR’s other production performing in line with guidance we anticipate H1 FY 2019 production of 168boepd and FY 2019 production of 200boepd.

Developments for UK Shale

IGas has made significant progress at Springs Road, where EDR is fully carried on its 14.5% interest, and is close to completing wellsite preparations, ahead of drilling. Drilling is due to take place first at IGas’ Tinker Lane site, also on the Gainsborough Trough where EDR’s core shale acreage is located.  

Cuadrilla have made significant progress at Preston New Road with the completion of two horizontal wells and receipt of approval for hydraulic fracturing and testing. With results due later this year we highlight the important industry newsflow coming up and that EDR as one of two UK listed plays with exposure to UK shale is well placed to benefit.

Recommendation and Target Price

We reiterate our Buy recommendation and target price of 52p.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30022/vsa-capital-market-movers-colombus-energy-resources-30022.html VSA CAPITAL MARKET MOVERS - Colombus Energy Resources https://www.oilcapital.com/columns/vsa-capital-market-movers/30022/vsa-capital-market-movers-colombus-energy-resources-30022.html Thu, 30 Aug 2018 08:27:00 +0100 Columbus Energy Resources (LON:CERP)

 

Columbus Energy Resources (LON:CERP) has provided an update in relation to the decision made by the Trinidad government to restructure Petrotrin which will involve the closure of the Point-a-Pierre refinery. Transition to a new structure for Petrotrin will begin as early as October 2018 although CERP have indicated that they do not expect any adverse impacts from the decision. We also note that there were no negative impacts to CERP’s operations from the recent earthquake in Venezuela which impacted Trinidad.

The restructuring which includes the phasing out of oil refining and restructuring of the exploration and production operations is part of a major overhaul to return Petrotrin to profitability. Since 2006 production at the refinery has fallen from full capacity of 165kbbls/d by almost half with almost two thirds of output made up from importing crude oil from international markets. This has meant using valuable foreign currency reserves to support the refinery which has now been deemed as unsustainable and a negative long term drag on the wider economy.

CERP has highlighted that currently it receives a discount to WTI of between 4-6% in the current price environment under the production contract between CERP and Petrotrin for Goudron. This is despite the fact that Goudron produces a 38 API product which in the broader market would typically trade at a premium to other Trinidad crude oil. Given that Trinidad will now be selling crude directly into international markets, likely via global traders, this opens up the potential for a renegotiation of pricing. Given Leo Koot’s track record in this regard we believe that CERP would be well placed to benefit in this case.

Furthermore, we believe that the closure of the refinery is likely to be an initial step of a new more commercial strategy at Petrotrin potentially opening up Trinidad which has been underexplored to date.
 
We reiterate our Buy recommendation and 25p target price.

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https://www.oilcapital.com/companies/stocktube/10271/small-cap-snapshot-westport-fuel-systems-inc-soars-after-signing-deal-with-the-chinese-company-weichai-10271.html Small-Cap Snapshot: Westport Fuel Systems Inc soars after signing deal with the Chinese company Weichai https://www.oilcapital.com/companies/stocktube/10271/small-cap-snapshot-westport-fuel-systems-inc-soars-after-signing-deal-with-the-chinese-company-weichai-10271.html Wed, 29 Aug 2018 17:56:00 +0100 Small cap names on the move today are: Westport Fuel systems Inc (NASDAQ: WPRT), Arlo Technologies Inc (NYSE:ARLO), Glaukos Corporation (NYSE:GKOS), Unisys Corporation (NYSE:UIS). 

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https://www.oilcapital.com/companies/stocktube/10270/eco-atlantic-oil-gas-approaching-crunch-time-for-its-orinduik-block-farm-in-10270.html Eco (Atlantic) Oil & Gas approaching crunch time for its Orinduik block farm-in https://www.oilcapital.com/companies/stocktube/10270/eco-atlantic-oil-gas-approaching-crunch-time-for-its-orinduik-block-farm-in-10270.html Wed, 29 Aug 2018 15:23:00 +0100 Gil Holzman, chief executive of Eco Atlantic Oil & Gas Ltd (LON:ECO, CVE:EOG), tells Proactive's Andrew Scott he's looking forward to a number of potential catalysts across their exploration portfolio - particularly at the Orinduik Block offshore Guyana.

September promises to be an important month for Orinduik, which is in the neighbourhood of Exxon’s large Liza oil discovery and its series of follow-up finds.

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https://www.oilcapital.com/companies/stocktube/10269/aminex-plc-s-jay-bhattacherjee-updates-on-kiliwani-north-and-ruvuma-10269.html Aminex Plc's Jay Bhattacherjee updates on Kiliwani North and Ruvuma https://www.oilcapital.com/companies/stocktube/10269/aminex-plc-s-jay-bhattacherjee-updates-on-kiliwani-north-and-ruvuma-10269.html Wed, 29 Aug 2018 15:04:00 +0100 Jay Bhattacherjee, chief executive of Aminex plc (LON:AEX), tells Proactive's Andrew Scott they've kicked off remediation work for the Kiliwani North well.

He says the work, to tackle rising pressure in the well, will initially see them repair a faulty valve which will allow gas to flow, and will also enable the evaluation of operational parameters of both the reservoir and gas processing facility.

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https://www.oilcapital.com/companies/stocktube/10265/its-a-fantastic-feeling-to-be-drilling-a-well-anglo-african-s-david-sefton-10265.html ‘’It’s a fantastic feeling to be drilling a well’’ - Anglo African's David Sefton https://www.oilcapital.com/companies/stocktube/10265/its-a-fantastic-feeling-to-be-drilling-a-well-anglo-african-s-david-sefton-10265.html Wed, 29 Aug 2018 11:55:00 +0100 David Sefton, executive chairman of Anglo African Oil & Gas Plc (LON:AAOG), discusses with Proactive's Andrew Scott the recent spud of their TLP-103 well on the Tilapia oil field.

Sefton says the well will be drilled to an intended depth of 2,700 metres which should take around 64 days.

''We're very excited, after a year and a half which has been way too long, we're drilling this potentially transformational well and it's just fantastic to see a really great operational team with a really good rig drilling and getting on with it''.

''It's a fantastic feeling to be drilling a well'', Sefton says.

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https://www.oilcapital.com/companies/stocktube/10261/new-chairman-alastair-ferguson-outlines-his-vision-for-solo-oil-plc-10261.html New chairman Alastair Ferguson outlines his vision for Solo Oil Plc https://www.oilcapital.com/companies/stocktube/10261/new-chairman-alastair-ferguson-outlines-his-vision-for-solo-oil-plc-10261.html Tue, 28 Aug 2018 15:25:00 +0100 Alastair ferguson spoke to Proactive's Andrew Scott after taking up the role of chairman at Solo Oil PLC (LON:SOLO) earlier this month on August 6.

''I think Solo is significantly undervalued given its portfolio of assets - by many standards the company has had a considerable amount of exploration success which we now need to build on by monetising the assets and thereby realising value for shareholders''.

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https://www.oilcapital.com/companies/stocktube/10258/sdx-energy-turning-exploration-success-into-revenue-generating-assets--10258.html SDX Energy 'turning exploration success into revenue generating assets' https://www.oilcapital.com/companies/stocktube/10258/sdx-energy-turning-exploration-success-into-revenue-generating-assets--10258.html Tue, 28 Aug 2018 15:17:00 +0100 Paul Welch, chief executive of SDX Energy Inc (LON:SDX, CVE:SDX), caught up with Proactive's Andrew Scott following their interim numbers and second quarter update.

SDX reported a 35% rise in net revenues and an 83% improvement in cash generation over the six months.

The Egypt and Morocco-focused oil and gas producer yielded some 3,234 barrels of oil equivalent output per day in the six months ended June 30, and, it continues to bring online successful wells drilled during 2018.

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https://www.oilcapital.com/companies/stocktube/10233/alt-resources-moving-bottle-creek-project-towards-development-10233.html Alt Resources moving Bottle Creek project towards development https://www.oilcapital.com/companies/stocktube/10233/alt-resources-moving-bottle-creek-project-towards-development-10233.html Sun, 26 Aug 2018 23:58:00 +0100 Alt Resources (ASX:ARS) CEO James Anderson introduces Proactive Investors to the Western Australia-focused gold exploration and emerging development company, and discusses in depth the flagship Mt Ida Gold Project and Bottle Creek gold mine.

Anderson says, "Now we're sitting on about 340 square kilometres of exploration ground, and contained within that we've got three of four ore bodies that we've been developing and drilling over the last six months. Mount Ida's got a nearly 100,000 ounce JORC resource, and we've just released a Maiden Resource for Bottle Creek which is about 110,000 ounces of gold and 650,000 ounces of silver."

He continues, "There's no gold plant in the area, so always our strategy's been to put a hub here with a processing plant so that we can bring these stranded assets [in this part of the Goldfields] into one play, and develop it as a processing hub for the whole area."

Alt will probably do a cash raise in the next six to eight weeks, in order to continue to grow resources around Bottle Creek. Assay results from a recent drilling program should flow in the meantime.

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https://www.oilcapital.com/companies/stocktube/10235/victoria-oil-gas-confident-of-resolving-eneo-contract-within-weeks--10235.html Victoria Oil & Gas confident of resolving ENEO contract 'within weeks' https://www.oilcapital.com/companies/stocktube/10235/victoria-oil-gas-confident-of-resolving-eneo-contract-within-weeks--10235.html Fri, 24 Aug 2018 07:52:00 +0100 Kevin Foo, chairman of Victoria Oil & Gas plc (LON:VOG), spoke to Proactive's Andrew Scott following the release of their Q2 operations update.

Foo says he's confident a solution can be found 'within weeks' to end the suspension of gas sales to their main customer ENEO Cameroon SA.

He also discusses their recent deal with Naturelgaz regarding compressed natural gas solutions, as potential alternative products to diesel and heavy fuel oils.

Foo says active discussions are underway with a number of potential customers.

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https://www.oilcapital.com/companies/stocktube/10231/pulse-oil-sets-themselves-up-to-be-a-big-player-with-projects-in-alberta-10231.html Pulse Oil sets themselves up to be a big player with projects in Alberta https://www.oilcapital.com/companies/stocktube/10231/pulse-oil-sets-themselves-up-to-be-a-big-player-with-projects-in-alberta-10231.html Thu, 23 Aug 2018 21:56:00 +0100 Pulse Oil Corp (CVE:PUL) President and COO Drew Cadenhead joined Proactive Investors Vancouver on Skype to update us on the exciting progress at their "Bigoray" and "Queenstown" projects in Alberta.

He also talked about how putting the right people in place has allowed Pulse Oil be well ahead with a low risk business plan.

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https://www.oilcapital.com/companies/stocktube/10230/permex-petroleum-expertly-navigates-through-the-ever-changing-oil-market-10230.html Permex Petroleum expertly navigates through the ever-changing oil market. https://www.oilcapital.com/companies/stocktube/10230/permex-petroleum-expertly-navigates-through-the-ever-changing-oil-market-10230.html Thu, 23 Aug 2018 21:33:00 +0100 Permex Petroleum Corp (CSE:OIL) CEO Mehran Ehsan joined us in the Vancouver Studios of Proactive Investors to discuss where the price of oil is and where it may be headed. He talked about how Permex has been able to weather the oil price storm.

Ehsan also talked about their projects in West Texas and New Mexico and what the company is planning for the next 6-12 months.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30010/vsa-capital-market-movers-shefa-yamim-30010.html VSA CAPITAL MARKET MOVERS - Shefa Yamim https://www.oilcapital.com/columns/vsa-capital-market-movers/30010/vsa-capital-market-movers-shefa-yamim-30010.html Thu, 23 Aug 2018 08:04:00 +0100 Shefa Yamim (LON:SEFA)

 

Shefa Yamim (LON:SEFA) has announced interim results for H1 2018 highlighting the progress that has been made since listing on the LSE in December 2017. The completion of the 6.4kt bulk sampling campaign which yielded 9,733ct of gemstones in the Zone 1 area of the Kishon Mid Reach was an important step towards trial mining in 2019. Shefa commenced the period with a cash position of NIS6.5m and ended the period with NIS 1.7m.  

Post period end the company received its first Prospecting License which enables the company to carry out its next steps. In H2 2018, SEFA appointed Paradigm Project Management to conduct a Technical Economic Evaluation to better understand the capital and operating costs associated with the alluvial mining project. SEFA will continue to advance the mine to market strategy that the company intends to follow to take gemstones through to jewellery. This is made possible by the management team’s experience in all aspects of the gemstone industry and the strong local infrastructure, in this regard. We also note that the company has expanded its Gem Box suite of precious stones with three further minerals including spinel.

Gem prices have continued to strengthen in 2018 according to the Gemval Index and SEFA remains one of the few companies to offer investors exposure to this growing market.

We reiterate our Speculative Buy recommendation.

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https://www.oilcapital.com/companies/stocktube/10213/castillo-copper-seeing-extraordinary-results-very-early-on-from-drilling-at-cangai-project-10213.html Castillo Copper seeing 'extraordinary results very early on' from drilling at Cangai Project https://www.oilcapital.com/companies/stocktube/10213/castillo-copper-seeing-extraordinary-results-very-early-on-from-drilling-at-cangai-project-10213.html Thu, 23 Aug 2018 00:15:00 +0100 Castillo Copper Ltd (ASX:CCZ) executive director Alan Armstrong speaks to Proactive Investors about progress on the ground at the NSW Jackaderry Project, which includes the historic Cangai Copper Mine.

Cangai boasts a high-grade JORC Inferred Resource of 3.2 million tonnes grading at 3.35% copper. Castillo is currently five holes into a 39-hole drill program that is already turning up semi-massive and massive sulphide mineralisation. Geophysics is further aiding the search for extensions to known lodes.

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https://www.oilcapital.com/companies/stocktube/10201/ceres-power-reveals-strategic-collaboration-with-leading-tech-firm-bosch-10201.html Ceres Power reveals strategic collaboration with leading tech firm Bosch https://www.oilcapital.com/companies/stocktube/10201/ceres-power-reveals-strategic-collaboration-with-leading-tech-firm-bosch-10201.html Wed, 22 Aug 2018 08:12:00 +0100 Phil Caldwell, chief executive of Ceres Power Holdings Plc (LON:CWR), discusses with Proactive's Andrew Scott their strategic partnership with leading technology and electricals firm Robert Bosch GmbH.

The deal also includes a £9mln investment from the German firm.

The companies have already been working together for several months through an initial agreement announced in January, however, Bosch was not named at the time for confidentiality reasons.

It adds to an impressive list of partnerships which includes tie-ups with firms such as Weichai Power, Nissan, Honda and Cummins.

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https://www.oilcapital.com/companies/stocktube/10199/large-investment-into-white-rock-minerals-a-great-endorsement-of-the-project-10199.html Large investment into White Rock Minerals a ‘great endorsement of the project’ https://www.oilcapital.com/companies/stocktube/10199/large-investment-into-white-rock-minerals-a-great-endorsement-of-the-project-10199.html Wed, 22 Aug 2018 06:58:00 +0100 White Rock Minerals (ASX:WRM) managing director & CEO Matthew Gill updates Proactive Investors on the base metals explorer’s Red Mountain Project in Alaska and Mt Carrington Project in NSW.

Drill testing of the massive sulphide horizon at Red Mountain confirmed the recent Hunter prospect discovery, intersecting zinc-rich mineralisation with assays grading up to 17.4% zinc.

“We’ve been there only three months, since mid-May, we’ve done over 3,000 metres of drilling since then, [and] some of our drill results are the best that have been achieved from that deposit,” Gill says.

White Rock recently saw a large investment into the Red Mountain project from gold developer Sandfire Resources NL (ASX:SFR), with Sandfire becoming White Rock’s largest shareholder by investing $2.5 million into the company.

Gill continues, “We’ve been telling the investment community about Red Mountain. It seems to have taken a while for that to get traction … but Sandfire certainly saw what we see, and that’s a great endorsement of the project.”

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https://www.oilcapital.com/companies/stocktube/10186/-huge-amount-of-activity-ahead-for-united-oil-gas-as-all-projects-advance-10186.html 'Huge amount of activity' ahead for United Oil & Gas as all projects advance https://www.oilcapital.com/companies/stocktube/10186/-huge-amount-of-activity-ahead-for-united-oil-gas-as-all-projects-advance-10186.html Tue, 21 Aug 2018 11:14:00 +0100 Brian Larkin, chief executive of United Oil & Gas Plc (LON:UOG) tells Proactive's Andrew Scott he's impressed with the first ‘fast-track’ data from the recently shot 3D seismic across the Walton-Morant licence, offshore Jamaica.

Specifically, the high-grade Colibri target, previously mapped in 2D seismic, has been clearly identified.

Larkin also updates on developments offshore UK and Italy as well as what to expect for the remainder of 2018.

''An equity placing is not on the cards at the moment, not at the current share price, unless we get a whopper of a deal that we feel will re-rate the share price immediately ... otherwise we're going to think differently and look to create value with what we've got ... to continue to grow and move the story along''.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30007/vsa-capital-market-movers-lithium-americas-lake-resources-sqm-30007.html VSA CAPITAL MARKET MOVERS - Lithium Americas, Lake Resources, SQM.. https://www.oilcapital.com/columns/vsa-capital-market-movers/30007/vsa-capital-market-movers-lithium-americas-lake-resources-sqm-30007.html Tue, 21 Aug 2018 07:57:00 +0100 Lake Resources (LKE AU)#

Lake Resources (ASX:LKE) has announced geophysical study results, from its Cauchari license area, which provide a strong indication that as expected, the known brine aquifers which form the 3mnt LCE resource of Advantage Lithium (CVE:AAL) and Orocobre (ASX:ORE) extend into LKE’s leases. Drilling by AAL/ORE has been carried out as close as 350m from LKE’s lease areas intercepting high grade lithium bearing brine aquifers.

The passive seismic techniques, which have proven successful at identifying distinctions between unconsolidated sediments and harder cemented sediments and basement rocks at other salt lakes, have indicated that coarse sediments and brines extend into LKE’s license. AAL/ORE intercepted sandy sediments in the West Fan Unit which directly extends into LKE’s license area and have demonstrated high pumping rates and permeabilities. These sandy sediments show distinct patterns within LKE’s license to a depth of 400m and since LKE carried out the survey along a provincial road which crosses both third party licenses and LKE’s own, the company has been able to directly compare the survey results between known resources and the expected extensions. The ability to directly compare this data provides strong evidence of the potential, in our view.  

With recent announcements demonstrating strong economics on AAL’s resource and the corporate transaction between Lithium Americas (NYSE:LAC), Ganfeng Lithium and SQM (NYSE:SQM) the Cauchari basin is proving to be one of the most attractive future lithium sources globally. LKE has recently secured a drill rig enabling it to test key targets identified via the geophysical survey. Given the interest in the basin the timing for drilling and derisking of the license area means the shares are well placed to react from near term positive catalysts from drilling.  

We reiterate our Speculative Buy recommendation.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30006/vsa-capital-market-movers-energy-storage-briefing-30006.html VSA CAPITAL MARKET MOVERS - Energy Storage Briefing https://www.oilcapital.com/columns/vsa-capital-market-movers/30006/vsa-capital-market-movers-energy-storage-briefing-30006.html Mon, 20 Aug 2018 14:43:00 +0100 This report is designed to be used as an easy-to-reference marketing briefing for investors interested in the rapidly emerging energy storage sector. It contains contributions from across our London-based natural resources and alternative energy research teams as well as input from our China office, combining our expertise across both sectors and geographies, and providing a holistic view of both the upstream and downstream markets.

In the report we outline a number of areas that we believe investors interested in the sector should be looking at. It also sets out our house view on a number of strategically important commodities and emerging energy storage sub-sectors.

Emerging Applications – Grid Storage, Electric Vehicles and IoT

- UK Grid Storage – Serious Money into the Wrong Technology
- Electric Vehicles – Chinese Dominance
- Micro Storage – Key to Development of IoT Sector

Battery Technologies

- Lithium-ion
- Selected Emerging Lithium-ion Technologies
- Selected Post Lithium-ion Technologies
- Solid-state Batteries
- Flow Batteries

Battery Raw Materials

- Battery Raw Material Requirements per KWh
- Lithium – Battery Quality Market to Stay Tight
- Copper – Oversold But EV Impact Will Take Time
- Nickel – EVs to Create an Inflection Point for Demand
- Graphite – China’s Environmental Crackdown Shakes up Market
- Cobalt – Restricted Sources Make It Highly Volatile
- Vanadium – Spikes Have Historically Been Short-lived

VSA Shanghai Office – The Chinese Perspective

 

- China – Positioning for Global Leadership of the Battery Sector

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https://www.oilcapital.com/companies/stocktube/10171/jindalee-resources-a-project-generator-for-multiple-mineral-commodities-10171.html Jindalee Resources a ‘project-generator’ for multiple mineral commodities https://www.oilcapital.com/companies/stocktube/10171/jindalee-resources-a-project-generator-for-multiple-mineral-commodities-10171.html Mon, 20 Aug 2018 02:47:00 +0100 Jindalee Resources Ltd (ASX:JRL) managing director Pip Darvall speaks to Proactive Investors about the exploration company’s diverse asset portfolio spanning myriad commodities across multiple projects in Australia and the United States.

The company is exploring for gold, magnesite, iron ore, base metals, diamonds and uranium across three Australian states and territories, as well as recently acquiring two lithium prospects in the US.

“You could probably call us a ‘project generator’ type company,” Darvall says.

He continues, “We tend to generate projects internally, [there’s] a lot of geological capability in the company, and when we feel we’ve got it to a certain point we look for a partner.”

The company funds its own activities through several farm-outs and has never had to go back to market for funds since it listed.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/30002/vsa-capital-market-movers-independent-oil-gas-30002.html VSA CAPITAL MARKET MOVERS - Independent Oil & Gas https://www.oilcapital.com/columns/vsa-capital-market-movers/30002/vsa-capital-market-movers-independent-oil-gas-30002.html Fri, 17 Aug 2018 08:30:00 +0100 Independent Oil & Gas (LON:IOG)

Independent Oil & Gas (LON:IOG) has announced a non-binding term sheet for a new non-convertible loan facility for £15m with the use of proceeds primarily attributable to the Harvey appraisal well. In addition, the funds would also be used to repay in full the remaining liabilities relating to Skipper and other working capital.

The loan will carry interest of LIBOR plus 9%pa, repayable 36 months after drawdown and secured against IOG and its assets. In addition IOG will issue 20m warrants to London Oil & Gas (the lender) at a price of 32.18p, a 10% premium to the last close, with an expiry of five years.

We assume that given the support of LOG to date that the terms will be successfully finalised and funding secured. The funding using our fully diluted target price methodology equates to 5p/sh and we reduce our target price accordingly.

The Harvey appraisal well is targeted for December 2018 and initial preparatory work is ongoing. Seismic reinterpretation is expected to conclude in August 2018.

Drilling at Harvey presents a significant potential catalyst for the shares, in our view. The high case of 286BCF in terms of prospective resources would significantly increase the company’s reserve base whilst the mid case of 114BCF would mean Harvey was IOG’s largest single asset. The field is situated close to the Vulcan Satellites hub and the Blythe hub and could therefore potentially be tied into the Southern North Sea gas project and the Thames Pipeline export route.

Although we have valued the project using the adjacent Blythe hub as an analogue and currently attribute a target value of 6p/sh. there is clear further upside should drilling be successful alongside the fact that the economics of extraction are potentially higher at Harvey. A fault line divides Harvey and Elgood which means that permeability is significantly higher on the Harvey prospect. Consequently, the appraisal well at Harvey represents an important milestone for IOG which could materially enhance the Southern North Sea Gas project.

We reiterate our Buy recommendation and adjust our target price to 91p to reflect the additional funding.

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https://www.oilcapital.com/companies/stocktube/10150/bulls-bears-brokers-alto-capital-s-tony-locantro-tips-the-next-hot-sector-10150.html Bulls, Bears & Brokers: Alto Capital's Tony Locantro tips the next hot sector https://www.oilcapital.com/companies/stocktube/10150/bulls-bears-brokers-alto-capital-s-tony-locantro-tips-the-next-hot-sector-10150.html Fri, 17 Aug 2018 02:20:00 +0100 Tony Locantro, stock market commentator and investment manager at Alto Capital, returns to the Proactive Investors' Perth studio to discuss what's hot and what's not on the ASX.

In particular Tony talks about battery metals, uranium prices, emerging fads and bubbles, and which slices of what sectors he reckons are the next big real thing.

To hear Tony's Tips this week, watch our video interview.

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https://www.oilcapital.com/companies/stocktube/10158/analyst-keith-schaefer-provides-an-update-on-lng-in-canada-10158.html Analyst Keith Schaefer provides an update on LNG in Canada https://www.oilcapital.com/companies/stocktube/10158/analyst-keith-schaefer-provides-an-update-on-lng-in-canada-10158.html Thu, 16 Aug 2018 21:47:00 +0100 Energy market analyst Keith Schaefer from the Oil and Gas Investments Bulletin joined us in the Vancouver studios of Proactive Investments to talk about LNG in Canada.

Schaefer has some updates on when we may see LNG in B.C. and how this may effect some of the small and mid cap companies in the sector.

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https://www.oilcapital.com/companies/stocktube/10154/falcon-oil-gas-taking-beetaloo-shale-project-forward-at-pace--10154.html Falcon Oil & Gas 'taking Beetaloo shale project forward at pace' https://www.oilcapital.com/companies/stocktube/10154/falcon-oil-gas-taking-beetaloo-shale-project-forward-at-pace--10154.html Thu, 16 Aug 2018 14:34:00 +0100 Philip O'Quigley, chief executive of Falcon Oil & Gas Ltd (LON:FOG, CVE:FO) tells Proactive's Andrew Scott that they, along with their partner Origin Energy, have agreed to accelerate exploration activity for the Beetaloo shale project.

Together they now deem the Stage 1 campaign to be complete, essentially meaning that in light of the 2014 successes – drilling three vertical wells and one horizontal, fracture stimulated well – that it is now appropriate to move ahead.

In all, the Stage 2 cost cap is now A$65mln. Any portion of the additional budget not spent in Stage 2 will carry over into Stage 3 (which presently has a cap of A$48mln).

''This is a huge step forward now''

''The moratorium is gone, the recommendations are being implemented by the government ... working with industry... and we're now taking this forward at pace''.

''This is a huge step forward for the Beetaloo Basin, for Falcon and for Origin ... it's a good day''.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29999/vsa-capital-market-movers-shefa-yamim-29999.html VSA CAPITAL MARKET MOVERS - Shefa Yamim https://www.oilcapital.com/columns/vsa-capital-market-movers/29999/vsa-capital-market-movers-shefa-yamim-29999.html Thu, 16 Aug 2018 09:15:00 +0100 Shefa Yamim (LON:SEFA)

Shefa Yamim (LON:SEFA) has provided an update on its licenses at its assets in Northern Israel. SEFA has had one exploration permit renewed and for the area known as the Kishon Mid Reach Zone 1, where the majority of bulk sampling to date has taken place, a Prospecting License has been awarded. This license is an upgrade on the exploration permit previously issued and enables the company to carry out the next phase of the work programme.

The programme included in the Prospecting License phase includes a conceptual mining plan and the completion of a Technical Economic Evaluation which will provide the company with key information on parameters such as capital costs to bring the Kishon Mid Reach into production. This is an important step for SEFA as once the work programme is completed it will be in a position to apply for a Certificate of Discovery which gives the company exclusive rights over a mining license.   

We reiterate our Speculative Buy recommendation.

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https://www.oilcapital.com/companies/stocktube/10131/hot-chili-working-to-double-mine-life-of-flagship-chilean-productora-copper-project-10131.html Hot Chili working to double mine life of flagship Chilean Productora copper project https://www.oilcapital.com/companies/stocktube/10131/hot-chili-working-to-double-mine-life-of-flagship-chilean-productora-copper-project-10131.html Wed, 15 Aug 2018 23:01:00 +0100 Hot Chili Ltd (ASX:HCH) managing director Christian Easterday speaks to Proactive Investors about the copper developer's growing portfolio of coastal Chilean assets, and planning for a dual listing.

In addition to the advanced, large-scale flagship Productora project, Hot Chili has acquired the El Fuego Project, comprising a trio of historical mines known as San Antonio, Valentina and Lulu. They are actively being explored to enhance the grades and margins from Productora's development. The company is looking to add further assets in the area ahead of a DFS.

"The phase that we're moving through at the moment is a phase of consolidating this entire region and really putting our arms around multiple ore sources to feed into a central plant to produce a copper operation that will be producing some 100,000 tonnes of copper per annum. And just for context, that would make Hot Chili and the Productora development indisputably the largest copper developer on the ASX," says Easterday.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29997/vsa-capital-market-movers-nulegacy-gold-29997.html VSA CAPITAL MARKET MOVERS - NuLegacy Gold https://www.oilcapital.com/columns/vsa-capital-market-movers/29997/vsa-capital-market-movers-nulegacy-gold-29997.html Wed, 15 Aug 2018 08:08:00 +0100 NuLegacy Gold (CVE:NUG) (OTCMKTS:NULGF)

 

NuLegacy (CVE:NUG) has announced the completion of the second tranche of its announced financing, raising a total of C$2.5m for 12.7mn units at C$0.20/sh. The placing received strong support from OceanaGold Corporation (OGC CN) who maintained their equity position in NUG at 16.2% whilst directors also provided strong support.

The net proceeds will be used to support further exploration at the Red Hill property where a summer exploration programme is currently underway. The shares have pulled back as the gold price has dipped below US$1,200/oz as the dollar has strengthened in the face of weak EM currencies, notably the Turkish lira. However, with CFTC data showing net shorts increasing from record positions there is potential for a strong short covering rally ahead. With this in mind and further newsflow expected from NUG as the exploration programme continues we remain positive on the outlook for NUG.    
We reiterate our Speculative Buy recommendation.

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https://www.oilcapital.com/companies/stocktube/10110/carnarvon-petroleum-will-report-dorado-volumetric-estimates-in-next-couple-of-weeks--10110.html Carnarvon Petroleum will report Dorado volumetric estimates "in next couple of weeks" https://www.oilcapital.com/companies/stocktube/10110/carnarvon-petroleum-will-report-dorado-volumetric-estimates-in-next-couple-of-weeks--10110.html Tue, 14 Aug 2018 22:31:00 +0100 Managing director of Carnarvon Petroleum Ltd (ASX:CVN) Adrian Cook provides Proactive Investors with updates on a number of the oil and gas explorer's projects in Western Australia's offshore North West Shelf and in Timor-Leste territorial waters, where development works are ongoing.

Cook summarises, "in addition to the oil field at Dorado, we have this second field to redevelop in Buffalo, as well as potentially a third element not to forget back at Phoenix around that gas condensate development. So an enormous amount of work to happen, and news flow for our shareholders."

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https://www.oilcapital.com/companies/stocktube/10115/touchstone-exploration-expands-2018-drill-programme-to-14-wells-10115.html Touchstone Exploration expands 2018 drill programme to 14 wells https://www.oilcapital.com/companies/stocktube/10115/touchstone-exploration-expands-2018-drill-programme-to-14-wells-10115.html Tue, 14 Aug 2018 15:16:00 +0100 Paul Baay, chief executive of Touchstone Exploration Inc (LON:TXP, CVE:TXP) tells Proactive's Andrew Scott they've seen strong production growth in the first half of the year and are looking ahead to an expanded drilling programme for the remainder of the year.

Baay says they're intending to drill an additional four wells in the campaign.

Touchstone expects to drill the wells across the WD-4 and WD-8 properties.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29995/vsa-capital-market-movers-lake-resources-ganfeng-lithium-lithium-americas-29995.html VSA Capital Market Movers - Lake Resources, Ganfeng Lithium, Lithium Americas.. https://www.oilcapital.com/columns/vsa-capital-market-movers/29995/vsa-capital-market-movers-lake-resources-ganfeng-lithium-lithium-americas-29995.html Tue, 14 Aug 2018 08:00:00 +0100 Lake Resources (ASX:LKE)

Lake Resources (LKE AU) has announced that having secured a drill rig it intends to commence drilling next month at its wholly owned licenses at the Cauchari project in Argentina. These licenses cover approximately 18,000ha and LKE is targeting a direct extension of the lithium bearing brine aquifers with contiguous reserves and resources that have been proven by SQM (SQM US), Lithium Americas (LAC CN) and Advantage Lithium (AAL CN). AAL recently announced an expanded resource of 3mnt LCE at 450mg/L Li in these adjoining licenses and gravity surveys have indicated that the density patterns exhibited by the lithium bearing brines extend into LKE’s license area. Indeed, drill results from the margins of LKE’s resource have yielded grades of up to 600mg/L Li and high flow rates.

Aside from AAL, the other major project on Cauchari is the SQM and LAC project which has total LCE reserves and resources of 14.8mnt. LAC yesterday announced a major transaction with Ganfeng Lithium (GFL) who have agreed to purchase SQM’s interest in the project. LAC will increase its stake to 62.5% while GFL will purchase the remaining 37.5% for US$87.5m plus a deferred payment of US$50m contingent on the successful completion of certain milestones. GFL will also provide a US$100m subordinated loan facility to be repaid from LAC’s proceeds from the project.

The transaction highlights the ongoing disparity between recent weak lithium equities performance, continued corporate activity and rising downstream demand. The fact that GFL is acquiring additional top tier lithium projects highlights to us that the demand outlook from China is far stronger than in the West and that lithium stocks are due a rerating. We also highlight that LAC and GFL have also entered into a strategic collaboration agreement to explore future opportunities and develop lithium resources.

LKE has direct exposure to the top tier lithium brine at Cauchari, a market capitalisation of just A$29m and a drilling programme due to commence in the coming weeks and we believe that the shares offer a highly attractive way to gain exposure to this play.

We reiterate our Speculative Buy recommendation.

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https://www.oilcapital.com/companies/stocktube/10102/diversified-gas-oil-very-close-to-pennsylvania-decommissioning-agreement-10102.html Diversified Gas & Oil 'very close' to Pennsylvania decommissioning agreement https://www.oilcapital.com/companies/stocktube/10102/diversified-gas-oil-very-close-to-pennsylvania-decommissioning-agreement-10102.html Mon, 13 Aug 2018 14:17:00 +0100 Rusty Hutson, chief executive of Diversified Gas & Oil PLC (LON:DGOC), tells Proactive's Andrew Scott the integration of the large batch of oil and gas assets acquired from EQT in the Appalachian Region is on track.

The acquisition, in June, cost US$575mln and more than doubled production to around 60,000 barrels a day equivalent.

Hutson also discusses their decommissioning policies in the states where they mainly operate  - Ohio, Pennsylvania, Virginia, West Virginia, Kentucky and Tennessee.

Talks are underway with the Department of Environmental Protection in Pennsylvania over a decommissioning programme.

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https://www.oilcapital.com/companies/stocktube/10101/liquefied-natural-gas-limited-well-funded-for-magnolia-lng-project-10101.html Liquefied Natural Gas Limited well funded for Magnolia LNG project https://www.oilcapital.com/companies/stocktube/10101/liquefied-natural-gas-limited-well-funded-for-magnolia-lng-project-10101.html Mon, 13 Aug 2018 13:23:00 +0100 Liquefied Natural Gas Limited (ASX:LNG, OTCMKTS:LNGLY) CEO Greg Vesey tells Proactive the development company that turns natural gas into a liquid and exports internationally is well funded for its Magnolia LNG export project in Louisiana.

Vesey says the company's original assets were in Australia, and is now shifting towards the US, with assets in the US and Canada. It has AUS$50mln in the bank with no debt -- enough money to take the company to a "final investment decision" on Magnolia, which should get the company to revenue.

LNG shares currently trade in the US as American Depositary Receipts, or ADRs, but the company isn't ruling out plans listing to the US in the future.

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https://www.oilcapital.com/companies/stocktube/10100/success-at-prospect-s-to-open-things-up-significantly-for-chariot-oil-gas-10100.html Success at Prospect S 'to open things up significantly' for Chariot Oil & Gas https://www.oilcapital.com/companies/stocktube/10100/success-at-prospect-s-to-open-things-up-significantly-for-chariot-oil-gas-10100.html Mon, 13 Aug 2018 11:55:00 +0100 Proactive's Oil and Gas Correspondent Jamie Ashcroft looks ahead to Prospect S offshore Namibia - Chariot Oil & Gas Limited's (LON:CHAR) 'next shot at a big target'.

Drilling there is now scheduled for the fourth quarter of this year.

Ocean Rig Poseidon is to drill Prospect S, a possible high impact well targeting an estimated 459mln barrel prospective resource, with an estimated probability of geologic success of 29%.

Prospect S is one of five new prospects, all of which are estimated between 283mln to 459mln barrels each.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29994/vsa-capital-market-movers-lake-resources-29994.html VSA Capital Market Movers - Lake Resources https://www.oilcapital.com/columns/vsa-capital-market-movers/29994/vsa-capital-market-movers-lake-resources-29994.html Mon, 13 Aug 2018 08:09:00 +0100 Lake Resources (ASX:LKE)

Lake Resources (ASX:LKE) has announced further results from its drilling programme at its Kachi lithium brine project in Argentina. The results build on the initial encouraging robust grades in the Northern area of the salar with K03R12 demonstrating 267mg/L Li from 358-400m depth with a low magnesium ratio of 4.4 Mg/Li. In terms of grade this is comparable to the best results achieved at K03R03 which yielded 306mg/L Li albeit from a depth of 3-242m. This confirms, in our view, that hole K03R03 was not a one off and that there is significant potential in the Northern area with robust grades and thick horizons of lithium bearing brines. Two further holes, one rotary and one diamond, are being drilling currently in the Northern area which should provide further clarity on the potential.

In the Southern area of the salar LKE has released the results of two further holes both of which intercepted lithium bearing brines. The Southern area has not previously demonstrated as strong results as the North, however, we note within hole K05D11 the significant intercepts of 175mg/L Li from 224-248m, 234mg/L Li from 291-334m and 185mg/L Li from 349-391m. These results demonstrate that there is potential across the entire Kachi target area which at 22km x 8km the latest results further confirm the scale of the project.

With the latest results the company demonstrates that it is on track for a maiden resource announcement in October 2018 while these results also confirm widespread robust lithium grades across a large scale salar.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29981/vsa-capital-market-movers-dekeloil-public-limited-29981.html VSA CAPITAL MARKET MOVERS - DekelOil Public Limited https://www.oilcapital.com/columns/vsa-capital-market-movers/29981/vsa-capital-market-movers-dekeloil-public-limited-29981.html Mon, 06 Aug 2018 13:00:00 +0100 Inherent Value Hidden by a Down Year

In five years DekelOil Public Limited (LON:DKL) has established itself as the fourth largest palm oil producer in Côte d'Ivoire through the successful development of a 60t/hr mill and smallholder project near Ayenouan in the South East of the country (expandable to 75t/hr in the high season). Building on the success of this first project, DKL has recently commenced work on a second palm oil project in Côte d'Ivoire and has also secured an option to acquire 58.5% of a cashew processing project in the country, both of which could eventually become more profitable than Ayenouan.

High Quality Mill Operation

DKL’s mill has achieved an average CPO extraction rate of c23% since starting operations in 2014. This is testament to the operational skill at the mill site and compares very well to other African mills and even those in the mature South East Asian palm oil sector. It is particularly impressive given that DKL almost exclusively processes smallholder fruit and is therefore unable to control the quality of fruit it receives, as opposed to peers that often have surrounding company-owned estates supplying their mills.

Current Share Price Provides Attractive Entry

DKL produced almost 40,000t of crude palm oil in 2017, generating sales of €30.2m, +13.5% YoY. Its reported EBITDA increased 10% YoY to €4.5m with its PAT increasing to €1.6m, +23% YoY. For the second year running, it paid £500k of its profits out as a dividend (dividend yield: c3.3%). Although ongoing climate-related issues and low CPO prices are likely to impact operational and financial results this year, an inevitable normalisation of both of these factors could mean that the current share price proves to be an extremely attractive entry price. Our conservative forecasts suggest a PAT of c€7m is possible for 2022, with the cashew project delivering an additional attributable profit of €3m, assuming the option is exercised.

Recommendation and Target Price

Having valued DKL using a five-year discontinued cash flow, we initiate research coverage with a BUY recommendation and target price of 12p.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29971/vsa-capital-market-movers-central-asia-metals-29971.html VSA CAPITAL MARKET MOVERS - CENTRAL ASIA METALS https://www.oilcapital.com/columns/vsa-capital-market-movers/29971/vsa-capital-market-movers-central-asia-metals-29971.html Thu, 02 Aug 2018 09:11:00 +0100 Strong Free Cash Flow and Stable Dividends

Following the acquisition of Lynx Resources’ Sasa mine in Macedonia, Central Asia Metals (LON:CAML) is now demonstrating the successful transition to an expanded group with not one but two well managed operations both with low operating cost bases, low capex demands and stable operational track records. We expect this performance to continue resulting in levered free cash flow generation of US$84-99m over the next three years, which underpins a “best in class” dividend yield of 7.5%, based on the stated 30-50% of free cash flow target payout range. 

Undemanding Valuation

Currently, the stock trades at a modest 6% discount to global small-mid cap mining peers on a 12-month forward EV/EBITDA of 4.7x. Following robust interim production results we anticipate production of 13.75kt Cu, 28.8kt Pb and 22.3kt Zn, well within the guidance range. Furthermore, CAML has the highest yield in our peer group at 7.5% and with other dividend paying peers typically trading on yields of 1-2% we believe that this highlights the value potential at CAML. We therefore believe that with a robust operational outlook, high dividend yield and strong balance sheet (we expect net debt/EBITDA of 0.7x by year end), the discount versus peers is unjustified.
 
Although the shares rallied 40% following the transaction which was completed in November 2017 the shares have pulled back 30% from March 2018 highs and we believe this provides an attractive entry point. As one of the lowest cost copper producers globally, US$0.52/lb in 2017, and with a first successful full year at the low cost Sasa mine likely to result in strong free cash flow generation and a doubling in group EBITDA YoY we believe that there are a number of catalysts to drive a rerating.   

Positive Commodity Outlook

We remain persuaded of the positive outlook for commodities and believe that the recent selloff has been excessive with copper, lead and zinc prices down 14%, 24% and 17% respectively YTD. We do not believe that prices currently reflect fundamentals which indicate finely balanced copper and zinc markets and a deficit in the lead market based on data from H1 2018 and therefore expect a recovery in H2.

Recommendation and Target Price

Our valuation produces a 12-month Target Price of 322p/sh, this implies 36% upside potential and 43% on a total return basis and we rate the stock a BUY.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29968/vsa-capital-market-movers-nulegacy-gold-29968.html VSA CAPITAL MARKET MOVERS - NuLegacy Gold https://www.oilcapital.com/columns/vsa-capital-market-movers/29968/vsa-capital-market-movers-nulegacy-gold-29968.html Thu, 02 Aug 2018 07:50:00 +0100 NuLegacy Gold (CVE:NUG

NuLegacy Gold (NUG CN) has announced the results of an induced polarisation (IP) gradient array survey at the VIO discovery. VIO hosts epithermal type mineralisation unlike the other targets at Red Hill and NUG has been utilising different exploration techniques that have proven successful at other epithermal discoveries along trend on the Northern Nevada Rift which occur in conjunction with Carlin style mineralisation such as Mule Canyon.


The IP survey was conducted over 2km2 starting to the west of the hole VIO17-01 which yielded 9.1m of 1.8g/t Au and 17.6g/t Ag. The results indicated four distinct areas of high chargeability. NUG will follow these results up with targeted sampling, mapping and modelling to best identify suitable drill locations. Following the initial encouraging discovery we believe that this is a positive step which should enable NUG to better capitalise on the results to date.

We also note the news from Barrick Gold (NYSE:ABX) which in its latest quarterly results upgraded its Fourmile exploration target to a discovery following recent impressive drilling results. The discovery drilling took place two years ago with senior NUG employees Ed Cope and Charles Weekly heavily involved. Fourmile is just 2km to the North of Goldrush and the latest drilling which included 13.9m at 56.8g/t Au, 16.6m at 71.6g/t Au and 16.8m at 57.9g/t Au has meant that ABX now considers the discovery a direct extension to the Goldrush deposit. This discovery yet again highlights the prospectivity of the Cortez Trend and the potential for Red Hill where the geology shares many of the characteristics of Goldrush and Fourmile. Indeed, the similarities in terms of structural geology and geochemistry are a key reason why NUG has attracted some of the most experienced geologists in the region.

The stock has been rangebound in recent months which given the softness in the gold price represents robust performance, in our view. The gold price has taken little notice of global trade concerns and lower industrial metal prices and been traded largely on the back of the Fed rate hiking cycle. However, with record net shorts reached on Friday the market is perhaps positioned for a more positive second half with a heightened risk of short covering.

We reiterate our Speculative Buy recommendation.  

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29967/vsa-capital-market-movers-egdon-resources-29967.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.oilcapital.com/columns/vsa-capital-market-movers/29967/vsa-capital-market-movers-egdon-resources-29967.html Thu, 02 Aug 2018 07:47:00 +0100 Egdon Resources (LON:EDR)

 

Egdon Resources (LON:EDR) has announced that its application for an extension for planning consent from April 2018 to August 1 2019 was refused at yesterday’s meeting of the North Lincolnshire Council Planning Committee despite a positive recommendation by the Council’s planning officers. EDR will appeal this decision in light of the fact that they recently submitted an application which comprehensively addresses the issues that largely relate to the potential impact on groundwater at the site and that a previous appeal for a similar application was successful.

The shares were down sharply on the announcement, closing 14% lower at 8.65p. However, this represents a significant overreaction, in our view, given that we prescribe just 0.9p/sh. to Wressle in our current valuation. This remains unchanged. Although we recognise the benefit of additional cashflow and the consequent disappointment from the decision in terms of sentiment we also highlight that EDR will benefit in H2 2018 from the restart of the Ceres well which is currently producing from backout gas.

Aside from this we see a number of catalysts in the near term which are likely to provide catalysts for the stock. These include drilling at Springs Road in which EDR has a 14.5% interest and is a play opening well for the Gainsborough Trough whilst externally increased activity at IGas (LON:GAS), Cuadrilla, Third Energy and INEOS Shale indicate significant positive momentum for the UK shale industry. 

We reiterate our Buy recommendation and 52p target price.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29964/vsa-capital-market-movers-lake-resources-orocobre-advantage-lithium-29964.html VSA CAPITAL MARKET MOVERS - Lake Resources, Orocobre, Advantage Lithium.. https://www.oilcapital.com/columns/vsa-capital-market-movers/29964/vsa-capital-market-movers-lake-resources-orocobre-advantage-lithium-29964.html Wed, 01 Aug 2018 08:03:00 +0100 Lake Resources (ASX:LKE)

 

Lake Resources (ASX:LKE) has announced a quarterly update highlighting the recent progress including the maiden drilling programme at Kachi which confirmed the discovery of a large lithium brine deposit extending 22km x 8km to a depth of over 400m. Drilling and results are expected to continue ahead of a maiden resource statement which is likely to be released in October 2018. The most significant result was from the northern part of the salar where 300m of lithium bearing brines were intercepted with grades of 306mg/l Li and a low Mg/Li ratio of 4.3. We see significant potential at Kachi, given the early drilling results which demonstrated the scale of the project with seven holes over 11km yielding positive lithium results.

With regard to LKE’s other projects, the company is still awaiting permits to drill at its Olaroz – Cauchari and Paso brine projects. LKE have indicated that this will likely be soon with drilling ready to commence in the coming weeks, LKE also intend to carry out geophysical surveys across their license areas. The adjacent tenements are held by Orocobre (ASX:ORE), SQM (NYSE:SQM) and Advantage Lithium (AAL CN) whose recent drilling, close to LKE’s license area, has yielded strong lithium brine results of 450-600mg/L with high flow rates of 19-35litre/s.
LKE finished the period ending June 2018 with a cash position of A$1.7m although have subsequently announced an underwriting agreement for options valued at A$1.9m. Therefore, LKE is well positioned for its current planned activities, in our view.

Although sentiment towards lithium stocks remains weak, corporate activity continues and we highlight the May 2018 purchase of Galaxy’s (ASX:GXY) North tenements at the Salar del Hombre Muerto by POSCO for US$280m with a total resource containing 2.54mnt LCE implying a value of US$110/t. This is around 100km from Kachi.

Meanwhile, end users have also been active with BYD announcing a trebling of their incremental target capacity to 60GWh by 2020. BMW has signed a US$4.7bn contract with the recently Shenzhen listed CATL for lithium ion batteries as well as a 14GWh battery plant in Europe. Given this strong downstream activity and rising demand outlook we see the current weakness in lithium producer shares as an attractive entry point and believe that LKE is well placed to benefit.

We reiterate our Speculative Buy recommendation.  

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29956/vsa-capital-market-movers-egdon-resources-alkane-energy-29956.html VSA CAPITAL MARKET MOVERS - Egdon Resources, Alkane Energy https://www.oilcapital.com/columns/vsa-capital-market-movers/29956/vsa-capital-market-movers-egdon-resources-alkane-energy-29956.html Mon, 30 Jul 2018 08:16:00 +0100 Egdon Resources (LON:EDR) has announced that the sale of the holdings by Infinis Energy Services (100% owner of Alkane Energy Limited) to Petrichor Holdings Coӧperatief has been completed at a price of 12.8p. Petrichor now holds 29.99% of the outstanding share capital (259.9m shares).

 

The price of 12.8p represents a premium of 22% to the last close of 10.5p, however, this premium was narrowed in recent days by the news that Cuadrilla had been awarded final consent for hydraulic fracturing at its first horizontal shale gas exploration well at its Preston New Road; a lateral 800m well at a depth of around 2,300m. Although the geological read through in terms of test results is less apparent at Preston New Road in comparison to Thrid Energy’s Kirkby Misperton 8 well, the consent is an important step for the industry and successful results are likely to provide a significant boost for shale exploration in the UK. As one of two UK listed stocks which provide exposure to UK shale exploration we believe that EDR is well placed to benefit. We value EDR’s shale acreage alone at 14.8p/sh. which is based on past transactions and does not therefore substantially factor in the potential for exploration success given the stage of the industry. Therefore, although the premium in this transaction should provide some near term support for the shares we see significant further upside potential with the Preston New Road test just one of a number of industry catalysts alongside those relating to EDR’s own assets.

 

 

We reiterate our Buy recommendation and 52p/sh. target price. 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29945/vsa-capital-market-movers-redt-energy-29945.html VSA CAPITAL MARKET MOVERS - redT energy https://www.oilcapital.com/columns/vsa-capital-market-movers/29945/vsa-capital-market-movers-redt-energy-29945.html Thu, 26 Jul 2018 08:23:00 +0100
 

redT Signs €50m Project Agreement

redT energy (LON:RED), a developer of vanadium redox flow machines for large-scale energy storage infrastructure applications, has announced an exclusive deal to develop 690MWh of energy storage projects to support the German electricity grid, with an initial two 40MWh projects (1,066 tank unit modules) to be built in 2019 and 2020, subject to financing.

  • Based on the current Gen3 price for a 60-300kWh system, the initial two projects could result in revenues of c€50m for RED split across FY 2019 and FY 2020
  • The initial projects have planning approval, grid connection and approval to supply Secondary Control Reserve (SCR) to German and Austrian markets
  • The projects will replace coal-fired power plants which typically supply Secondary Control Reserve by ramping up generation when required  
  • Agreement signed with Energy System Management, a German energy development company, part of WWF solar
  • RED is confident that the projects will obtain the required funding in the near-term

VSA Comment

This is the first ‘mega project’ announced by the company and is clearly extremely significant in terms of the mid-term financial impact. Aside from the order value, this agreement also confirms the suitability of long-duration flow machines for grid supporting projects across Europe.

Recent regulatory changes in Germany, which have also been seen in the UK, are clearly favouring long-duration storage technology, as opposed to lithium-ion battery projects that are targeting short-term grid service revenue streams in what is an increasingly crowded sector.

Our current forecasts are for 500 tank unit sales in FY 2019 and 2,500 tank unit sales in FY 2020. Depending on the eventual split of delivered modules, this one order could potential satisfy our 2019 forecast as well as providing a solid underpinning for our sales forecast in 2020.

This is clearly a very positive announcement for the company and we would expect a strong share price reaction today. In addition, we are hopeful that further large-scale projects will be announced over the next few months. RED’s outsourced manufacturing model provides us with confidence that it will be able to deliver this German pipeline, on top of any additional orders that may be secured in the coming months.   

We maintain our BUY recommendation and target price of 22p.


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Advanced Power Components

9.6

7.1

0.50

+7.5%

Drax Group

1,390.9

345.0

4.20

+1.2%

Impax Environmental Markets

496.9

276.0

2.00

+0.7%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

China New Energy

5.2

1.2

(0.05)

-4.1%

CAP-XX

25.2

8.4

(0.35)

-4.0%

Ceres Power

165.4

16.3

(0.67)

-4.0%

 

 

 

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https://www.oilcapital.com/columns/the-pay-zone/29941/the-pay-zone-oil-price-savannah-petroleum-reabold-resources-cuadrillaigas-and-finally-29941.html The Pay Zone - Oil price, Savannah Petroleum, Reabold Resources, Cuadrilla/IGas And finally... https://www.oilcapital.com/columns/the-pay-zone/29941/the-pay-zone-oil-price-savannah-petroleum-reabold-resources-cuadrillaigas-and-finally-29941.html Wed, 25 Jul 2018 12:55:00 +0100

WTI $68.52 +63c, Brent $73.44 +38c, Diff -$4.92 -25c, NG $2.73 +1c

Oil price

A slightly better day yesterday as better than expected Chinese demand numbers and a withering attack by the IMF on Venezuela (economy contracting by 18% this year and 1 million % inflation) steered the market up modestly.

After the close the API stats were pretty positive, crude drew 3.2m barrels with the scribblers looking for 2.3m, but even better gasoline drew 4.9m b’s and distillates an unexpected 1.3m draw. As always we await confirmation from the EIA tonight.

Savannah Petroleum

A most important MOU was signed yesterday between Niger and Nigeria in relation to development of the Agadem Rift Basin and its exports of crude oil. Oil Ministers from both countries signed the Memorandum watched on by their Presidents and of course representatives of both CNPC and SAVP. The deal envisages a pipeline from the ARB to a refinery at Katsima State in Northern Nigeria which will provide ‘one of the potential routes’ to market for discoveries so far and in the future.

For SAVP this is all excellent news, indeed as CEO Andrew Knott said ‘it compliments plans to initiate an early production system for the R3 East area of the ARB and hope that it will enable early monetisation of our recent discoveries’.

This deal should be considered a massive boost for SAVP in a number of ways, firstly it provides the answer to the first of two major export solutions and make no mistake, CNPC can and will deliver this project. Secondly it ticks all the boxes with regard to stranded hydrocarbons, there can be little, if any doubt that these significant discoveries will now come to market and in a short period of time. Finally, it answers the doubters big time in terms of Savannah’s ability to firstly find and then sell substantial amounts of oil, these early finds only scratch the surface of the opportunities in Niger.

Andrew Knott’s vision that I first saw on the wall of his office many years ago is is fast becoming a reality, the fact that the shares actually fell following this news is to be frank, ludicrous they offer an exceptional opportunity that should not be missed.

Reabold Resources

Reabold has announced that AFE’s have been signed for both the Wick well in the Inner Moray Firth and the Colter well in the Weald Basin. Wick is scheduled to spud in September and Colter, already much delayed, in the 4th quarter. As co-CEO Sachin Oza commented, these are two ‘potentially transformational wells within the next few months’ and fellow co-CEO Stephen Williams told me last week that these are two of six wells that RBD are expecting to drill by the year end. If some of these don’t come in and amply reward shareholders I will be astonished…

Cuadrilla/IGas

It was very pleasing, if years too late, that Cuadrilla yesterday was awarded consent to frac the first of two horizontal wells at Preston New Road. Whilst this is ironically still early days, (I seem to have been watching the Bowland shale for half of my life), it does at least put a marker down for the industry and is great news at a time when the UK and indeed the whole of Europe (note Germany/Russia pipeline deal) is becoming ever more dependent on imported gas.

The UK onshore industry has waited a long time to prove that it can safely and securely operate in sensitive areas and this will provide positive momentum as they move forward into appraisal/flow rates to prove the broader concept. It is just a shame that it has taken so long get to this stage and it is now crucial that this and future Governments maintain this appropriately positive stance, even now it will still take a long time to deliver but it is better than nothing.

And finally…

With another round of County Championship matches on the go Yorkshire easily beat Lancashire in the Roses match whilst up at Trent Bridge Surrey beat Notts by an innings and 183 runs…

And I’ve been watching with continued bemusement the football transfer market in recent years but 50 MILLION quid for Richarlison by the Toffees is surely total madness…..?

 

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https://www.oilcapital.com/columns/the-pay-zone/29936/the-pay-zone-oil-price-sound-energy-jersey-oil-gas-amerisur-resources-and-finally-29936.html The Pay Zone - Oil price, Sound Energy, Jersey Oil & Gas, Amerisur Resources And finally... https://www.oilcapital.com/columns/the-pay-zone/29936/the-pay-zone-oil-price-sound-energy-jersey-oil-gas-amerisur-resources-and-finally-29936.html Tue, 24 Jul 2018 09:04:00 +0100

WTI $67.89 -37c, Brent $73.06 -1c, Diff -5.17 +$2.56, NG $2.72 -4c

Oil price

Yesterday saw a mixed market, after a rally when oil workers in both the UK and Norway either downed tools or threatened to, any disruption  was rightly perceived to be small beer. Of more substance is the rhetoric between Tehran and Washington, the latter threatening to close the Straits of Hormuz (20m b/d) the latter offering all sorts of high level violence. With Libya opening up another small field adding 50/- b/d or so to exports, oil ended down, by a whisker, what fun it is on the oil Bourse…

Sound Energy

Sound has announced that it has commenced civil works and signed a rig contract for TE-9 on the Tendrara licence onshore Morocco. This follows the announcement of the Environmental Impact Assessment on June 6th and with yesterday’s news about Schlumberger’s commitment reinforcing the partnership things are looking up.

Jersey Oil & Gas

As operator, Equinor has advised JOG that the Verbier appraisal well and possible side-track will now be the third in the sequence of drilling rather than the first. Practically it makes little difference, the well will now be drilled in late Q4 2018 rather than late Q3/early Q4, the change in process will not effect the costs of the well.  Unsurprisingly,the shares have been marked down slightly this morning as investors calculate the time value (of course!) but now offer even more value for those with longer term aspirations.

Amerisur Resources

An extra operational update from AMER this morning who have stated that Platanillo-22 now needs a workover in order to recover production capacity in ‘this important well’. This should permanently and cheaply resolve the production decline. Logs are now being run to check various parameters such as cement integrity.

Elsewhere all is good, all three high profile exploration wells are on target to spud this quarter which should provide the impetus for the shares which have inexplicably marked time recently. In Ecuador the news is also good, the Chiritza re-pumping station project is going well, tie in to the RODA line is expected shortly when increased transport minimum capacity grows to 9,000 b/d.

And finally…

With the Tour De France (never normally mentioned here) warming up it has rarely been so close between British riders who themselves might be pipped for the Yellow Jersey.

I see that Ryan Lochte, US swimmer with 12 Olympic medals has been banned for a doping violation, not the first ban for Mr Lochte but the first for drugs…

And the cricket County Championship is hotting up, particularly in the Roses match and at Trent Bridge…

 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29931/vsa-capital-market-movers-egdon-resources-lonedr-29931.html VSA Capital Market Movers - Egdon Resources (LON:EDR) https://www.oilcapital.com/columns/vsa-capital-market-movers/29931/vsa-capital-market-movers-egdon-resources-lonedr-29931.html Tue, 24 Jul 2018 08:24:00 +0100 Egdon Resources (LON:EDR)

Egdon Resources’ (LON:EDR) operating partner, Europa Oil & Gas (EOG LN), has provided an update in relation to the Holmwood license, PEDL 143. EDR holds an 18.4% interest and is fully carried on its share of the exploration well costs up to a cap of £3.2m.

EOG intends to submit an application to Surrey County Council to extend the temporary permission for the well site by a further three years and to remove the requirement to include an identified HGV holding area. It has also applied for two other associated planning applications for the underground drilling corridor and the temporary well site security fence. The initial term of the license for PEDL 143 has been extended until 30 September 2020.

In addition, the Environment Agency has granted a permit allowing the drilling and testing of a single exploration well. This includes permits for storage of oil on site and in relation to the management of radioactive waste.

We reiterate our Buy recommendation and target price of 52p.

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https://www.oilcapital.com/columns/the-pay-zone/29929/the-pay-zone-oil-price-sound-energy-sdx-energy-trinity-exploration-production-cabot-and-finally-29929.html The Pay Zone - Oil price, Sound Energy, SDX Energy, Trinity Exploration & Production, Cabot And finally... https://www.oilcapital.com/columns/the-pay-zone/29929/the-pay-zone-oil-price-sound-energy-sdx-energy-trinity-exploration-production-cabot-and-finally-29929.html Mon, 23 Jul 2018 12:50:00 +0100

WTI $70.46 +$1.00, Brent $73.07 +49c, Diff -$2.61, NG $2.76 -1c

Oil price

It’s still the same old same old reasons for activity on the oil Bources, Libya recovering, US production arrives at 11m b/d and the Saudis cutting back by 100/- b/d next month.With further worries about trade wars between the USA and China, this time concerning whether the latter will be buying Iranian crude after November 4th, markets are jittery.

The Baker Hughes rig count on Friday showed a fall of 8 units overall to 1046 and by 5 units in oil to 858, talk remains that it is due to pipeline capacity constraints rather than a lack of ability to produce more.

Sound Energy

Sound has announced that it is ‘initiating the process of converting the Schlumberger existing synthetic 27.5% interest in the Tendrara and Lakbir permits’ into a JV licence participating interest of 27.5%. Sound will remain operator with its 47.5% operating interest but this is a very important demonstration of confidence by SLB in this project and bodes very well for the future. #Deliveringdreamsinthedesert

SDX Energy

SDX has announced yet another gas discovery at South Disouq in Egypt. Well SD-3X revealed 32.6 feet of net conventional gas pay in the Abu Madi and Kafr el Sheik horizons with average porosity of 21.7%. The company will initially complete the Abu Madi horizon before re-entering the well to complete and produce the Kafr el Sheik horizon. Assuming success this too will be ready to start-up production in the 4th quarter of this year.

The completion of the drilling programme at South Disouq has yet again showed that SDX has an outstanding operational record of success in its chosen parts of the portfolio. Here in Egypt this success will shortly be monetised as will drilling success be in Morocco where high margin production is already achieving significant commercial progress. With backing from the World Bank and revenues continuing to rise, SDX is trading at a huge discount to asset value and the shares are way too cheap.

Trinity Exploration & Production

A Q2 update from Trinity after a momentous few weeks in which the company completed its $20m fund-raise and  production commenced from 2 new infill wells, a ‘pivotal period’ indeed. The raise will accelerate onshore activity as well as repaying all outstanding debt making the company a very attractive prospect in the sector. The 2nd quarter saw a 4% rise in production, up an impressive 16% y/y.

An initial six new onshore infill wells are to commence 2H 2018 as the company get set to start increasing production even more. With a strong balance sheet and increasing production across a largely fixed operating cost base shareholders can expect a ‘step change’ in earnings in future.

Whilst it is understandable that there has been some post-raise indigestion it has to be realised that this was way the best way of sorting out the finances going forward and the company are now set fair for some time to come. With significant  cash flow and high margin production the shares look distinctly on the cheap side, my target price, adjusted after the raise is still above 30p per share making it one of the most attractive in the sector.

Cabot Energy

There are more warning signs in this RNS than on most British motorways, starting with the dreaded strategic review, suspension of drilling activity in Canada whilst ‘high-grading’ occurs and hiring of a British former army officer (educated at Sandhurst and Exeter University of course) called Hugo d’Apice as Business Development Director responsible for Italy.

New CEO Scott Aitken, has said that the company will ‘evaluate its ongoing capital requirements in Q4 2018’, enough to send shivers down the spine of investors. The CEO also states that ‘the critical first task is to upgrade the financial planning, reporting and controls procedures to the standard expected by shareholders of a publicly quoted company’ which must be pretty galling to the previous board whom I thought had been doing a pretty good job on that front. I hope that the company realise how things work in Italy and that Hugo has plenty of patience as this is a slow burning process, if you get my drift.

The announcement comes as no great surprise and after the sacking of the previous board only what was to be expected. There is little value in the company at the moment but expect things to get worse given this grim statement, the only question is probably how low will it go before the major shareholder loses patience and buys in the remainder? It is rare to see value destruction on such a large scale, the shares have halved since November, it could easily happen again.

And finally…

In a thrilling German Grand Prix with Vettel on pole and Lewis starting in 14th posi the Silverstone tables were turned when Lewis triumphed on German soil and Vettel had a dnf after visiting the tyre wall without an appointment.

The Open Championship ended with a brilliant display by Francesco Molinari who cleared the chasing pack on the 18th just when he virtually couldn’t get caught.

 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29925/vsa-capital-market-movers-shefa-yamim-lonsefa-29925.html VSA Capital Market Movers - Shefa Yamim (LON:SEFA) https://www.oilcapital.com/columns/vsa-capital-market-movers/29925/vsa-capital-market-movers-shefa-yamim-lonsefa-29925.html Mon, 23 Jul 2018 08:26:00 +0100 Shefa Yamim (LON:SEFA)

Shefa Yamim (LON:SEFA) has announced an operational update highlighting the progress made in H1 2018. Most recently, SEFA has appointed a South African project management group, Paradigm Project Management to carry out a Technical Economic Evaluation of its Kishon Mid reach project. The study will focus particularly on the project’s working and capital costs and is set to be completed in August 2018. SEFA has now set a target for trial mining in 2019 and commercial mining in 2020 and this study is a key milestone on the way to achieving that.

During H1 2018 SEFA also completed processing on 14 bulk samples from Zone 1 yielding 9,778ct from 6,384t of gravels from bulk sampling. 26 boreholes were completed in Zone 2 where exploration efforts are now focused. In addition, the company has also been cutting and polishing examples of the gemstones found to date in order to demonstrate the gem quality nature of the stones. This is an important step as SEFA looks to develop its mine to market strategy whereby the company will create gemstone jewellery. We believe that the region’s heritage and provenance of the stones will likely enhance SFEA’s unique brand value.

Over the balance of 2018 SEFA will apply for an additional exploration permit as well as upgrading to a Prospecting Lice sense for the Kishon Mid Reach Zone 1. SEFA is also targeting obtaining grade estimations along with preliminary valuations for the gem suite which will provide a key metric for benchmarking valuations for the shares.

 We reiterate our Speculative Buy recommendation.

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https://www.oilcapital.com/columns/the-pay-zone/29921/the-pay-zone-oil-price-genel-providence-and-finally-29921.html The Pay Zone - Oil price, Genel, Providence And finally... https://www.oilcapital.com/columns/the-pay-zone/29921/the-pay-zone-oil-price-genel-providence-and-finally-29921.html Fri, 20 Jul 2018 10:45:00 +0100

WTI $69.46 +70c, Brent $72.58 -32c, Diff -$3.12 -$1.02, NG $2.77 +5c

Oil price

More flip flopping around yesterday as a good start, prompted by the Saudi Opec Governor’s comments that exports may fall back by around 100/- next month, was swiftly punctured by the end of the Norwegian strike which affected only sentiment. So Brent eased off, while as reported here yesterday, WTI enjoyed more positive feedback from the inventory draw at Cushing, seen as way more important when imports rose as they did last week. At the moment it is all sorts of small pieces of information that are determining oil price moves in the absence of big news for example, Brent is 50 cents up this morning.

Genel Energy

Genel has announced that the Tawke partners have received $62.33m from the KRG as payment for April crude deliveries, this is $15.55m net to Genel. At Taq Taq the figures are $6.53m gross, $3.59m net and the company has also received an override payment of $8.12m as per the RSA. In total Genel has received $27.26m from the KRG for April exports.

Providence Resources

Providence shares with us new data this morning on Dunquin North and South. According to the new data it shows the significant chance for a major discovery in the Dunquin South prospect which the partners are hoping to drill in 2020. The data also shows that there was a major fluid escape at Dunquin North which explains the duster but ‘no such feature is evident at Dunquin South’. Obviously a long time to wait but shows that the potential is there when investors decide to revisit…

And finally…

It’s Day two of The Open Championship at Carnoustie where I notice that it is raining this morning. With 19 players under par on day one will the weather change things at all, I doubt it! Kevin Kisner leads with a magnificent display of putting yesterday and it’s all USA and RSA in top five overnight.

This weekend it is the German GP in F1 and with everything so close anything could genuinely happen. Having not won at Silverstone Lewis will be keen to make amends, particularly in Germany. He has signed a two year extension to his contract at Mercedes and Bottas a one year with another option year as well.

 

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https://www.oilcapital.com/columns/the-pay-zone/29916/the-pay-zone-oil-price-frontera-resources-dgo-echo-energy-link-and-finally-29916.html The Pay Zone - Oil price, Frontera Resources, DGO, Echo Energy Link And finally... https://www.oilcapital.com/columns/the-pay-zone/29916/the-pay-zone-oil-price-frontera-resources-dgo-echo-energy-link-and-finally-29916.html Thu, 19 Jul 2018 11:24:00 +0100

WTI $68.76 +68c, Brent $72.90 +74c, Diff -$4.14 +6c, NG $2.72 -2c

Oil price

Computers work fast and do not differentiate between news as proved yesterday when the EIA inventory stats came out. The initial build in crude stocks of 5.8m barrels sent the oil deck sprawling but soon enough the product stats came to the rescue with a draw of over 3.2m barrels in gasoline and a better than expected distillate number.

The causes were twofold, crude built because of a significant rise in imports, nullifying last week’s number and showing a net build of 7.6m bbls, looking at Cushing, there was a draw of 860/- bbls. In the product market, total product demand was up 1.4m b/d on the week which is pretty impressive even in the driving season.

Frontera Resources

An update on Block 12 in Georgia from Frontera this morning where the T-39 well has been side-tracked into the Eldari B formation. The well delivered 132m of total net pay in zones 9, 14, 15 and 19 which is a good sign and one the EWT confirmed. The EWT delivered between 250-529 b/d of 41.5° API and 350-600,000 scf/d of wet gas demonstrating ‘excellent well deliverability’ and that production rates from future development wells may be ‘significantly higher’. There is also much more potential as the Eldari B formation goes deeper as found at Niko-1 in the Miocene and of course the CPR has 3.2 TCF of recoverable gas in the Gareji formation below the Eldari.

News from Ud-2 is mixed, the well flowed dry natural gas but  poor casing cement (the well was drilled in 1981) prevented a frac job being done so only 150/- scf/d was flowed. The company are talking about ‘considering the option of a side-track’ something that they surely must consider seriously. The EWT’s on T-45 and Dino-2 continue and particularly in the former, where I visited early in the year, I am hoping for good news. I am confident that despite the relatively slow pace of activities that the outcome the very high CPR numbers and be good news for shareholders.

Diversified Gas & Oil

DGO has announced the completion of the EQT deal and has also closed a $1bn 5 year facility which increases three fold on its prior facility. With a well received $250m equity offer and a new war chest I don’t think we have seen the last of DGO on the acquisition trail…

Link

Yesterday I was delighted to interview Fiona MacAulay, CEO of Echo Energy for Core Finance TV. The link to the full interview is below and it is a most interesting discussion about this fast growing company.

Core Finance CEO Interview – Fiona MacAulay of Echo Energy

And finally…

One of the sporting greats starts today, The Open Golf Championship, this time to be held at Carnoustie in Scotland. With a long hot summer in the UK the course is brown and fast and will cause different challenges than normally offered by links courses.

 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29909/vsa-capital-market-movers-carrs-group-h2-trading-update-29909.html VSA Capital Market Movers - Carr’s Group#: H2 Trading Update https://www.oilcapital.com/columns/vsa-capital-market-movers/29909/vsa-capital-market-movers-carrs-group-h2-trading-update-29909.html Wed, 18 Jul 2018 09:07:00 +0100 Carr’s Group#: H2 Trading Update

Carr’s Group (LON:CARR)#, the agriculture and engineering group, has provided a trading update for the 17 week period ended 30 June 2018.

  • Trading slightly ahead of expectations and significantly ahead YoY across both agriculture and engineering
  • Second interim dividend of 1.075p declared, +13% YoY (2017: 0.95p)
  • Preliminary results to be released on 12 November

VSA Comment

 

In its interim results on 16 April, CARR had already confirmed that it was experiencing much better trading conditions this year, with a more than 20% YoY increase in PBT recorded for H1. This trading update confirms that, as we forecast, conditions have improved further into H2 across both divisions.

In agriculture, CARR has seen improvement in feed volumes, retail sales, machinery sales, fuel sales and feed block sales. UK milk prices remain high with the average DEFRA price recorded at c27p as of May (last available data) and many UK milk processors announcing price increases for August.

It looks positive for CARR going into this winter as well, as the recent hot weather will be impacting the quality and amount of silage cut for storage and use during the period. Therefore, farmers will need to purchase additional animal feed.

In our opinion, the recent increases in feed wheat pricing are likely to be maintained given the hot weather will now likely impact the size and quality of the 2018 harvest. These higher prices will be passed onto farmers and should result in higher revenues for the group in FY 2019.

Having highlighted an “excellent recovery” across its various engineering businesses in H1, it is encouraging to see this has carried through into the second half as well, with a strong recovery in UK manufacturing particularly notable. Acquired in August 2017, integration of US nuclear engineering business NuVision is progressing well and significantly strengthening the group’s order book in this area. The group has also highlighted potential new opportunities for the division in the US and China, which continue to be explored. 

Current FactSet consensus forecast for FY 2018 (Y/E 1 September 2018) is for revenue of £380.1m, EBITDA of £18.5m and a PBT of £15.7m.

 

Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Carr's Group

150.81

165.00

15.50

+10.4%

Plant Health Care

26.79

15.50

0.70

+4.7%

Sirius Minerals

1,572.77

33.46

0.46

+1.4%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Agriterra

2.97

14.00

(1.00)

-6.7%

DekelOil

17.80

5.95

(0.20)

-3.3%

Camellia

321.08

11,625.00

(175.00)

-1.5%

 

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https://www.oilcapital.com/columns/the-pay-zone/29904/the-pay-zone-oil-price-genel-energy-independent-oil-gas-and-finally-29904.html The Pay Zone - Oil price, Genel Energy, Independent Oil & Gas And finally... https://www.oilcapital.com/columns/the-pay-zone/29904/the-pay-zone-oil-price-genel-energy-independent-oil-gas-and-finally-29904.html Tue, 17 Jul 2018 09:38:00 +0100 WTI $68.06 -$2.95, Brent $71.84 -$3.49, Diff -$3.78 -54c, NG $2.76 +1c

Oil price

Yesterday prices fell sharply with the usual combination of factors, mainly on supply this time weighing down on crude oil. Maybe it was the blog ‘wot did it’ as I read this morning that there are worries that the USA may start to release supplies from the SPR to keep a lid on prices as mentioned here yesterday…

It was probably more a combination of Chinese demand stats, small increases in production from Nigeria and Libya and words from Mr Mnuchin that really caused it. Whilst he did say that some special cases would be considered for waivers, I think what he actually said/meant was that the administration would temporarily help countries who needed to change their suppliers with a glance at India as a big customer of Iran.

Genel Energy

An update on the Tawke PSC this morning from Genel which states that there has been a 2/3 increase in production at the Peshkabir field to 25/- b/d following completion of the Peshkabir-4 well testing process. The well is producing at 10/- b/d through a 72/64″ choke with 790 psi wellhead pressure through capacity restrained test facilities. The well was drilled 4km west of the Peshkabir-3 well and 11 zones were tested which flowed between 1,500 and 7,000 per zone.

The next well, Peshkabir-5 has been drilled 7km west of Peshkabir-3 and has already successfully tested the westward extension of the field. It is undergoing trial testing and will be brought onstream in August making the operator DNO confident that it will ‘reach and surpass’ their summer target of 30/- b/d of production. With wells P-6 and P-7 drilling ahead confidence is high that yet further gains in production will be made.

The company say that the field ‘continues to exceed expectations’ in particular as the field is part of the Tawke PSC and accordingly will ‘bolster free cash flow’ currently exceeding $10m per month. Yesterday Genel went into the Bucket list and this is a welcome early boost for investors, I am expecting significantly more to come.

Independent Oil & Gas

IOG has updated on the Thames pipeline integrity confirmation, analysis shows that 60km of the offshore sector  indicates that the pipeline condition is ‘as new’. The company are now completing this integrity test by inspecting the Bacton end of the line in the coming weeks.

As a result of these tests the company are now not going to do the intelligent pigging until first gas although given that the last test was ‘inconclusive’ it will surely need to be done. I imagine that doing it all when the extra 7km has been added is where the cost savings lie given the nature of the process. Finally there has been a small delay in the FID which is now expected at the end of September. I am meeting with the team next week so will update more after that.

Reminder- Bucket list and London South East Investor Evening

Just in case you didn’t see it yesterday, or that two blogs in one day went under the radar, here is the interim bucket list update.

The 2018 Interim Bucket list

And I am very much looking forward to seeing a number of you at tonight’s LSE investor evening.

https://www.eventbrite.co.uk/e/oil-gas-investor-evening-with-malcolm-graham-wood-malcy-and-aim-listed-ceos-tickets-46763627268

And here is the interview I gave to LSE ahead of tonight’s show.

London Sout East interview: Rockhopper tops Malcy’s 2018 Interims Bucket List gains

And finally…

I have been reminded that I didn’t mention the England victory over India in the ODI at the weekend, very remiss of me as victories in white ball cricket are quite rare against India…

Ronaldo signs for Juve which should liven things up a bit, who will Real replace him with, Eden Hazard?

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29902/vsa-capital-market-movers-independent-oil-gas-loniog-29902.html VSA Capital Market Movers - Independent Oil & Gas (LON:IOG) https://www.oilcapital.com/columns/vsa-capital-market-movers/29902/vsa-capital-market-movers-independent-oil-gas-loniog-29902.html Tue, 17 Jul 2018 09:23:00 +0100 Independent Oil & Gas (LON:IOG)

Independent Oil & Gas (LON:IOG) has provided an update on the integrity of the Thames Pipeline which demonstrates that further testwork and analysis of the existing data has demonstrated that the condition of the pipeline is “excellent”. Testwork on the cut section by Oilfield Testing Services demonstrated less than expected internal corrosion which shows the pipeline can be considered virtually new.

As a result, of these encouraging results IOG has updated its integrity confirmation plan. It will run a 24 hour hydrotest required under the Pipeline Code in July and August on the section of the pipeline most likely to have suffered from degradation since decommissioning in 2015 i.e. between the Bacton terminal to 1km offshore. However, further intelligent pigging is not now expected to be required until shortly ahead of first gas when the entire export route will be tested, including extensions.

The Thames Pipeline is a critical part of IOG’s project providing a 100% owned export route for its Southern North Sea gas project. These results confirm our view that the pipeline will save the company hundreds of millions in development capital overall, significantly enhancing the economics of the project. Furthermore, at peak production we anticipate c180mmcfd indicating a minimum 120mmcfd spare capacity on which IOG could benefit from exporting third party gas for additional tariff revenue which would further strengthen returns.

There will consequently be some expected cost savings in relation to the updated plan although Field Development Plan approval has now been pushed back to the end of September. With the project approaching FDP and following significant positive announcements regarding the pipeline and resource expansion the shares have rallied 87% since our initiation in March 2018. Although historically sharp rallies in the shares have eased back, with FDP now approaching we believe that further positive progress towards first gas is likely to result in stronger support for the stock.

 

We reiterate our Buy recommendation and target price of 96p.

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https://www.oilcapital.com/columns/the-pay-zone/29899/the-pay-zone-oil-price-sdx-energy-zenith-energy-pantheon-resources-and-finally-29899.html The Pay Zone - Oil price, SDX Energy, Zenith Energy, Pantheon Resources And finally... https://www.oilcapital.com/columns/the-pay-zone/29899/the-pay-zone-oil-price-sdx-energy-zenith-energy-pantheon-resources-and-finally-29899.html Mon, 16 Jul 2018 11:26:00 +0100

WTI $71.01 +68c, Brent $75.33 +88c, Diff -$4.32 +20c, NG $2.75 -4c

Oil price

With the rally of some sort at the end of the week, crude posted only modest falls after black thursday. WTI fell $2.79 and Brent $1.78, it could have been worse but conflicting pressures remain obstinate even confusing. For example, Libya was the primary reason for the Thursday fall as traders expected a swift return of a short 1m b/d onto the market, as it happened  two workers at the Sharara field were kidnapped and now we are back to square one.

Along with the Norwegian strike escalating and France being refused an Iran waiver the oil market is delicately balanced, with increased production primarily from Saudi Arabia and Russia as well as a modest amount elsewhere it will be fine but margins for error are strictly limited, it may come down to using the US SPR… And the rig count shows us little with overall units up 2 at 1054 and oil u/c at 863 last week.

SDX Energy

More good news from SDX as they announce a successful production test at the SD-4X well at South Disouq in Egypt. The well flowed at a maximum rate of 30.4 MMscfd during an 8 hour clean up period then was shut in for 8 hours with no pressure decline. Then by varying the choke sizes the well flowed for two successive 12 hour periods at average rates of 5.4 MMscfd and 8.6 MMscfd respectively and one extended flow period of 24 hours at 10.5 MMscfd. The well is now shut in for 120 hours then it will be suspended before being connected to local production facilities, in total 23.38 MMscf of gas was produced in the test.

The company has also announced that the acquisition of 240km² of 3D seismic has commenced in the Gharb Centre in Morocco, this should take between 45 and 60 days and will be processed and interpreted in the 4th quarter of this year.

This news from Egypt means that the company’s plan to achieve a plateau of 50 MMscfd of conventional natural gas looks like being easily met, ‘additional confidence’ is the phrase Paul Welch uses and with more drilling ongoing is likely to be exceeded, maybe by quite a bit. The share price, virtually unchanged this morning, does not do justice to what is the firing up of a key part of the company’s strategy.

Zenith Energy

Zenith has provided a detailed RNS this morning regarding its proposed acquisition in Indonesia and also with regard to operations in Azerbaijan. News that the company is not proceeding with the proposed acquisition does not come as a surprise after the due diligence process ‘evidenced negative discrepancies largely exceeding 5% of the book values declared in the financial statements dated February 28th 2018’. Zenith is not the only company that has experienced such difficulties in country and whilst this is disappointing it leaves the management clear to concentrate on Azerbaijan.

In Azerbaijan, the company report that Mr Mike Palmer has resigned and that they have appointed David Sadoway as Operations manager with effect from 1st September. Mr Sadoway has significant experience in workovers and completions in the country and elsewhere so should be able to hit the ground running. This should coincide with the arrival of the new rig and the autumn months will be crucial as Zenith starts to prove up the significant hydrocarbons in country.

Pantheon Resources

Following the sad death of Bobby Gray it seemed inevitable that Pantheon would have to shake up the relationship in the Tyler and Polk County project and today they announce that they hope to acquire Vision’s interests there. The challenge is substantial, the company say it is to be non cash, unsurprisingly, accretive to PANR shareholders and will be financed either by equity, warrants (premium priced of course), a success based royalty or some other non equity consideration. This would bring with it operatorship after which Pantheon are intending to enter a farm-out process to bring in partner(s) to ‘finance future drilling operations’.

Although it is a daunting task, with equally challenging chance of success, this scenario is probably the only one available to the company. It has to buy out Vision whilst maintaining their upside, take over operatorship and then sell down a good chunk of the project to finance the drilling campaign. And this with a notably tricky operational history but also still with potential upside.

And finally…

The World Cup ended with France beating Croatia 4-2 with two dodgy goals and poor reffing but VAR comes out of the process mainly with credit. England looked a touch dispirited and lost the 3rd place play-off to Belgium 2-0. Harry Kane however, has the Golden Boot award for his trophy cabinet.

At Wimbledon Djoko beat Anderson in straight sets after both had had extended semi finals, I know they want to change the rules but these long final sets are rare fun…

At the German MotoGP Jorge Lorenzo’s improving Ducati stormed away from the line, followed by his next years team mate Marquez on the Honda. Marquez hounded him for 12 laps before diving into the lead. Valentino Rossi, also passed Lorenzo who was struggling with deteriorating tyres, and tried hard to stay with Marquez until the Honda rider got the message and pulled away to his 9th successive Sachsenring win and a 46 point Championship lead. Rossi’s 2nd. place was his best result this year, followed by Yamaha team mate Maverick Vinales in 3rd. but Lorenzo’s tyre problems saw him slip back to finish 6th.
Cal Crutchlow slid out of a strong 6th position with 20 laps to go but KTM mounted Bradley Smith sporting his St. Georges flag helmet came a superb 10th showing that, along with Lorenzo, receiving their P45s was perhaps the wake up call they needed.

 

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https://www.oilcapital.com/columns/the-pay-zone/29893/oil-price-columbus-solo-bucket-list-alert-and-finally-29893.html Oil price, Columbus, Solo, *Bucket list alert* And finally... https://www.oilcapital.com/columns/the-pay-zone/29893/oil-price-columbus-solo-bucket-list-alert-and-finally-29893.html Fri, 13 Jul 2018 09:53:00 +0100

WTI $70.33 -5c, Brent $74.45 +$1.05, Diff -$4.12 +$1.10, NG $2.80 -3c

Oil price

Some recovery yesterday as the IEA report showed concern that with all participants now flat out the market is very vulnerable to serious price swings. Funny that, in 2016 when oil was collapsing and the majors were in panic mode, cutting capex to the bone only a few of us forecast exactly this situation…

But the gloom has returned this morning as Chinese oil consumption data has proved bad and oil is down again, ensuring a down week. The Libyan situation is roughly as expected, not a return to 1.2m b/d but according to tanker watchers already up to 720/- b/d.

Columbus Energy Resources

Columbus has announced the acquisition of Steeldrum Oil Company for £4.4m to be paid in 92.7m in shares plus add-ons. The acquisition, which seems to be a pretty good fit, bring with it 200-250 b/d (5.6m bbls) from the Innis-Trinity and South Erin fields plus a 83% WI in the Cory Moruga development (1.1m bbls). The sellers will hold around 18% of CERP shares in the enlarged company and have a lock-in period of only six months which should be noted.

Columbus are also raising £3.25m via a convertible with Lind AM excersisable at 8.1p as ‘the establishment of such a facility would, in effect, provide an appropriate “financial insurance policy” for the Company for the next six months whilst the new integrated organisation beds-in’.

All in all this is another sensible deal by Columbus which is synergistic and paid for with shares as per their ‘financial discipline’ regime. I think that Leo Koot wants to build the company and has very high ambitions and whilst this is relatively small, it is part of the grand scheme to expand. Keeping his new shareholders on board will be important as I’m sure there are plenty more deals down the road.

Solo Oil

Following the Aminex announcement earlier this week Solo has said that it is ‘reviewing’ its own position in the project although believes that the AEX move is a positive development. It also says that it is in discussions with potential financing partners and more interestingly ‘in parallel with the ongoing marketing process for Solo’s interest in the project’. This confirms, if confirmation was needed, that Solo cannot afford to finance the project and the current shake-up at the company is at last bringing with it a large dose of realism.

Also in the announcement the company say they are waiting for testing at Horse Hill and that there is a shake-up of the board which sees the departure of current Executive Chairman Neil Ritson. Recent moves at Solo indicate that at long last the company is being shaken up and given this morning’s share price move, much appreciated by its shareholders.

*Bucket list alert*

This week I have written the interim Bucket list which due to so much company news this week I intend to publish over the weekend so watch out for a blog then.

And finally…

The MotoGP circus moves to Sachsenring in Germany this weekend for possibly the final time following record losses in 2017. Marc Marquez is unbeaten here in all classes since 2010 so will be looking to add to that record whilst Brit Cal Crutchlow will be hoping to consolidate his Independent Rider lead despite viewing this track as “horrible”

England lost the first ODI to India in what is going to be a hard summer as the visitors are a very special side, at least in white ball cricket.

There is the small matter of two more World Cup games with the useless 3rd place play-off tomorrow with England playing Belgium and France play in the final on Sunday.

Wimbledon is now starting to become interesting, Rafa v Djoko will probably be worth watching…

Racing at Ascot and Newmarket tomorrow looks worth watching, not much else on in the afternoon…

 

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https://www.oilcapital.com/columns/the-pay-zone/29887/oil-price-premier-ophir-reabold-europa-and-finally-29887.html Oil price, Premier, Ophir, Reabold, Europa And finally... https://www.oilcapital.com/columns/the-pay-zone/29887/oil-price-premier-ophir-reabold-europa-and-finally-29887.html Thu, 12 Jul 2018 10:30:00 +0100

WTI $70.38 -$3.73, Brent $73.40 -$5.46, Diff -$3.02 -$1.73, NG $2.83 +4c

Oil price

Oil prices crashed yesterday amidst a welter of news, ironically not all bad which left traders to be frank, a bit shocked. Primarily it was the news that export ports in Libya were reopening but that was in the blog, the realisation that tankers were loading hit the market hard. Whether they get back up to over 1m b/d we don’t know but it was the sentiment. Also the extension of trade wars didn’t help as China retaliated by threatening US oil imports. Finally on the negative side there seemed to be some slippage of the hard line case on Iranian sanctions as Mike Pompeo seemed to suggest that there may be some special cases.

On the bullish side the Opec report indicated that 2H of this year would remain pretty tight whatever the supply situation is, an argument with which I concur, it’s next year when supply potentially becomes a problem. Finally the EIA reported a huge stock draw of  12.6m barrels, way in excess of forecasts and primarily due to higher than expected imports. This morning WTI has rallied by 66c and Brent by $1.43 after more contemplation of the news.

Premier Oil

A trading and operations update from Prems this morning but little to get one’s heart beating much, production was in line with expectations, Catcher is going very well offset slightly by early summer maintenance work at Huntingdon and Solan. Guidance of 80-85/- boe/d is unchanged with more maintenance but recent run rates of 90/- boe/d keeping the number up. Tolmount has received approval by the Prems board and should be partner approved in Q3.

In Mexico the new Government appears to be transitioning quite smoothly with no sign of any reversal of policy and PMO has a team down there at the moment. Assuming no change, all is in train to progress with appraisal of Zama 4Q of this year and with regards to the new licences seismic work is also expected to start later this year.

Sea Lion progresses with much work being done, the recent appointment of Standard Chartered indicates that the process is very much under way as is formalising contractors LOI’s and Governmental contributions likely to take ‘most of the year’ as expected.

2018 forecast operating costs remain at $17-18 boe and all other expenditure remains at $380m in line with guidance. Debt reduced to $2.65bn in the period and is expected to fall by $300-400m by the year end and the covenant leverage ratio is forecast to fall to 2.5x EBITDA by end Q1 2019. All in all things going according to plan for Premier with an exciting line up of developments to look forward to this year and moving forward.

 

Ophir Energy

Things at Ophir would be going quite well if it wasn’t for Fortuna and the resultant departure of former CEO Nick Cooper. No replacement has been found although there is it seems a short list of ‘highly experienced and qualified external candidates’ has been identified. Given that the Fortuna licence expires at the end of this year and still no financing options have been concluded it is not surprising that the shares are stagnant although there is plenty of built in upside should this change.

I had become more optimistic about Ophir at the beginning of the year as I felt that the worst was behind it but absence of financing for Fortuna made my bullishness premature, this is the key to Ophir’s fortunes for the time being which is a shame as I think that the Santos deal is a very good one indeed.

Reabold Resources

Reabold announced yesterday that it had received the CPR for their Romanian assets which confirm previously announced contingent resource estimates and exceed previously announced prospective resources estimates. The company expect to spud later this year and consider the assets to have ‘extremely attractive economics’.

Europa Oil & Gas

EOG has updated its prospect inventory for the FEL 1/17 and 2/13 licences in the South Porcupine Basin offshore Ireland. It has also launched a farm-out process for three licences, FEL 1/17, 2/13  and 3/13 ‘which together are estimated to hold gross mean un-risked prospective resources of 4.3 billion barrels of oil equivalent’.

CEO Hugh Mackay said that the ‘PSDM reprocessing of our proprietary 3D seismic data sets over our South Porcupine licences has transformed the prospect inventory’ so with the farm-out process now underway the proof of the pudding, so to speak, will be in the eating…

 

And finally…

The excellent run by the English team in the World Cup ended last night as they visibly ran out of steam against an improving Croatian side. Still much credit must go to Gareth Southgate who has indeed restored some faith in football.

On the subject of football I notice that the Boropa Cup is back and Rangers play tonight at Ibrox in the Qualifying preliminary round, first leg against Shkupi who finished fourth in the Macedonian First Football League last season, never an easy game, Shkupi….

Nor was it for Roger Federer who thought he was coasting to an easy victory against Kevin Anderson yesterday before realising that he was chasing the game.

 

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https://www.oilcapital.com/columns/the-pay-zone/29881/oil-price-savannah-petroleum-sound-energy-providence-aminex-and-finally-29881.html Oil price, Savannah Petroleum, Sound Energy, Providence, Aminex And finally... https://www.oilcapital.com/columns/the-pay-zone/29881/oil-price-savannah-petroleum-sound-energy-providence-aminex-and-finally-29881.html Wed, 11 Jul 2018 11:00:00 +0100

WTI $74.11 +26c, Brent $78.86 +79c, Diff -$4.75 +53c, NG $2.79 -4c

Oil price

Yesterday wasnt so bad for oil bulls, the Norway strike meant some shortage appearing and after the close the API stats showed a 6.8m draw in crude and  1.6m  in gasoline even if distillates did build by 2m barrels. Also the Iranian NOC conceded that they might lose ‘up to 500/- b/d’ due to sanctions, in your dreams matey…

This morning is a very different matter with Brent in particular easier ($1.61 as I write) mainly due to an indication from one of the Libyan NOC’s that production and exports are about to resume. And with trade wars sharpening up as Mr Trump arrives in Europe to see NATO, the UK and the Mr Putin politics isn’t getting any more relaxed.

Savannah Petroleum

Yet more good news from Savannah who have announced that  Kunama-1 is an oil discovery. This is the third consecutive discovery in the R3 portion of the R3/R4 area in the Agadem Rift Basin in S E Niger. Preliminary results indicate a total estimated 9m of net oil bearing sandstones in the E1 and E5 reservoir units within the primary Eocene Sokor Alternances objective.

Reservoir properties as indicated by wireline logs, show good quality, light oil, equivalent to that found at Amdigh-1 and consistent with offset wells along trend and the depth/API trend observed across the basin. The drilling of this well was incredibly efficient, only 14 days to TD against an estimated 22 and the whole well was completed in 23 days against an estimate of 30-35 days which clearly has a knock-on effect on budgets. Clearly delighted with this campaign so far, the company has elected to exercise the first of six individual options with Great Wall and the rig will move to drill Eridal-1 also in R3 of R3/R4 PSC only 6km from Amdigh.

These discoveries will now almost certainly mean that the company can seriously consider an early production system that can be put in place quite quickly as the three wells should underpin a commercial development in a short space of time.

This is not the only piece of good news for SAVP this week as yesterday the Group MD of NNPC detailed the seven critical projects, 5 by them and 2 by NPDC one of which includes ‘full utilisation of the Uquo Gas Plant to deliver 200 mmscfd through its Utapate gas in OML 13’. This is aimed at bridging the supply shortage in the domestic market and will be achieved by expanding the Uquo gas processing facilities owned by Accugas, currently being taken over by SAVP and AIIM as part of the Seven Energy deal. Under the Seven agreement SAVP are carried by AIIM for any expansion costs which would make Uquo of strategic value as a local infrastructure hub.

The market are clearly waiting for Seven to close but investors should be aware that the tide is turning very strongly in Savannah’s favour and the shares should be significantly higher.

Sound Energy

Sound has announced that J.J. Traynor, its CFO has joined the Board of the company, a continued beefing up of the team in recent months and with much work ahead of it in Morocco.

Providence Resources

The site survey for the Newgrange exploration well has been completed with ‘exciting’ new data now available. All this is to be shared with potential farminees who are being approached at present. Sealed pock marks are present at the site which could be seepage indicating a petroleum system or of course a risk to the seal.Overall I get the impression that the new data is much better than expected.

Aminex- Stop press…

Just going to press but as I write the long awaited deal from Aminex has been announced, more to follow after I’ve spoken to Jay. It seems that they have indeed signed a farm-out of Ruvuma to Zubair Group which will accelerate the development of the project whilst reducing costs to Aex. They will receive $5m in cash plus carry costs of $35m in respect of their remaining 25% interest. The new company will drill one new well and 200km² of 3D seismic which has never been done before. A fast track EPS should provide a minimum gross production rate of 40 MMcf/d. Finally, it is worth noting that the Zubair Corporation has existing businesses in Tanzania and enjoys a good relationship and has an excellent reputation, this will almost certainly lead to a flourishing development of Ruvuma in which Aex will maintain a stake.

More to follow but a great deal for Aminex as expected.

Link

Here is the link to this week’s Voxmarkets Podcast only slightly out of date with reference to SAVP!

VOX Markets podcast: Malcy on Echo Energy, Savannah Petroleum, Rockhopper, Premier Oil and Amersur Resources

And finally…

There is only one thing on sports fans minds today and that is England v Croatia in the World Cup Semi final tonight….They have been an inspirational group from coach downwards and it is for once good to be proud of such a squad…

 

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https://www.oilcapital.com/columns/the-pay-zone/29876/oil-price-petro-matad-iog-and-finally-29876.html Oil price, Petro Matad, IOG And finally... https://www.oilcapital.com/columns/the-pay-zone/29876/oil-price-petro-matad-iog-and-finally-29876.html Tue, 10 Jul 2018 08:59:00 +0100

WTI $73.85 +5c, Brent $78.07 +96c, Diff -$4.22 +91c, NG $2.83 -3c

Oil price

Yesterday it was Brent’s time to shine primarily as the Libyan NOC chairman stated that his country’s production was ‘falling every day’. With little signs of this impasse being settled it is another blow to world supply that will have to be filled by the KSA and Russia.

In North America whilst some of the Syncrude facility is returning it seems that most will not be back until September.

Petro Matad

So, for those with long memories MATD have returned to the scene of the crime and have announced the spud of Snow Leopard-1 in the Taats Basin of Block V in Mongolia. This 100% well for MATD is targeting 90 MMBO and is the first in a four well campaign this year.

When I met with CEO Mike Buck he was full of confidence although since then the selection of well sites has changed and the company has had an opportunistic fund raise that to be fair the shareholders lapped up. No pressure here then as the next 70 days will prove.

Independent Oil & Gas

Fiona MacAulay has been appointed to the Board of IOG as Independent Non-Executive Director with immediate effect. As if being CEO of Echo, on the Board of Coro Energy and serving as European President of the AAPG is not enough! I am sure that the Board of IOG will be seriously strengthened by her arrival and is a very good move for them.

And finally…

Today sees the first of the World Cup semi finals as Belgium take on France. This will be an opportunity for both squads to show that they have some of the best players in the world at their disposal and it will be a fascinating clash.

 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29872/vsa-capital-market-movers-shefa-yamim-lonsefa-29872.html VSA Capital Market Movers - Shefa Yamim (LON:SEFA) https://www.oilcapital.com/columns/vsa-capital-market-movers/29872/vsa-capital-market-movers-shefa-yamim-lonsefa-29872.html Tue, 10 Jul 2018 07:38:00 +0100 Shefa Yamim (LON:SEFA)

 

Shefa Yamim (LON:SEFA) has announced results from the first of five bulk samples from Zone 2 in the Kishon Mid Reach. The initial sample (BS-1230) consisted of 568.9t of largely basal gravels yielding a Gem Box grade of 242.59cpht; this covers all nine types of gemstone included in the Gem Box target mineral assemblage. This compares favourably to the overall grade of 154cpht in Zone 1 (6,384t). However, we highlight the variable grade distribution typically associated with alluvial type deposits and this applies to both the overall grade and that of the constituent types of gemstones.

Overall, 1,381ct of gemstones were discovered in BS-1230 and this was dominated by spinel (57%), followed by garnet (18%), ilmenite (15%), sapphire (5%) and Carmel Sapphire (3%). As with Zone 1, based on the updated data, spinel continued to have a dominant presence and in this bulk sample also produced the largest single gemstone at 6.20ct whilst a 3.61ct garnet was also found. The size distribution data indicates that 4.6% of the findings were above 1.2ct, with a further 5.2% between 0.66-1.19ct. We believe the continuing presence of Carmel Sapphire and sapphire is encouraging and look forward to the remaining results from Zone 2.

We reiterate our Speculative Buy recommendation. 

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https://www.oilcapital.com/columns/the-pay-zone/29868/oil-price-echo-energy-cairn-energy-and-finally-29868.html Oil price, Echo Energy, Cairn Energy And finally... https://www.oilcapital.com/columns/the-pay-zone/29868/oil-price-echo-energy-cairn-energy-and-finally-29868.html Mon, 09 Jul 2018 08:49:00 +0100

WTI $73.80 +86c, Brent $77.11 -28c, Diff -$3.31 -$1.56, NG $2.66 +2c

Oil price

Oil price diverged on Friday as Brent eased with a bit more crude on international markets but WTI strengthened as continued distribution difficulties and of course Syncrude not helping matters. The rig count moved back up a bit as overall units were up 5 at 1052 and oil up 5 also at 863 units.

Echo Energy

Echo has announced successful completion of its fourth well in Argentina in what looks like another very positive result. The well has interpreted a ‘notable’ gas column in the Tobifera indicating some 30m of potential net pay which suggests wet gas (with liquids) and at the upper end of the range in both contingent and prospective resource estimations. Targets of 19 bcf of gross best case contingent and 18.7 bcf prospective as per the CPR should be hit.

Echo seems to be in a good position now that the four well drilling campaign has completed and the Quintana-1 completion and testing rig rolls into town. ELM 1004 will be tested first and all the other potential discoveries will undoubtedly reveal exciting further news as work continues and thus giving a chance to make an early decision on monetisation options for Fracción D.

Cairn Energy

Cairn has announced that all written submissions have been made by them and the Indian Government and final arbitration will commence in The Hague on 2oth August and last for two weeks. With a result not due until next year Cairn shareholders will have to wait a while but as I have always said this is a bit of a side show given value created particularly in Senegal in the last few years. Having said that I find it galling that the Indian authorities have not only seized dividends from Vedanta but also sold off a stake in the company which must be against both the letter and the spirit of the law, as if that mattered….

And finally…

On Friday France beat Uruguay and Belgium knocked out Brazil in this mad crazy World Cup. On Saturday England beat Sweden 2-0 and Croatia beat Russia on penalties…

Over at Silverstone Kimi managed to force Lewis off and received only a 10 second penalty, imagine what if he had passed him and ended up in front….

India won the T20 series 2-1 and look very dangerous ahead of the ODI series which starts this week.

Wimbledon goes into the second week looking very much for specialist viewers only, few thrills and in the ladies draw few seeds also..

And I was reminded about the T de F which I have never covered even though I am aware that it is now clean….

 

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https://www.oilcapital.com/columns/the-pay-zone/29863/oil-price-hurricane-energy-echo-energy-links-and-finally-29863.html Oil price, Hurricane Energy, Echo Energy, Links And finally... https://www.oilcapital.com/columns/the-pay-zone/29863/oil-price-hurricane-energy-echo-energy-links-and-finally-29863.html Fri, 06 Jul 2018 10:34:00 +0100

WTI $73.19 -95c, Brent $78.06 -18c, Diff -$4.87 +77c, NG $2.85 +1c

Oil price

Oil drifted yesterday led by WTI after the EIA inventory figures disappointed (compared to API) although they were a bit mixed. Crude built 1.245m barrels as opposed to scribblers guesses of a draw of 5.2m but stocks at Cushing drew 2.1m b/d and gasoline stocks drew on a 0.4% fall in refinery utilisation.

The KSA announced that June production was 10.488m b/d so had jumped the gun a tad but it hasn’t worried money managers who are again increasing long positions.

Hurricane Energy

Hurricane has announced the completion of well operations at Lancaster and the rig has left the field. Both production wells for the development are now ready to be tied-in to the subsea infrastructure. This was the first of the three main elements of the installation campaign, in addition the mooring installation is underway to be followed by SURF installation. These are the key elements prior to the arrival of the FPSO and first oil remains on target for 1H 2019.

Just in case anyone was away at the time, I recently interviewed CEO Dr Robert Trice on Core Finance TV and the link is here.

Core Finance CEO Interview: Dr Robert Trice of Hurricane Energy

Echo Energy

Echo has announced that the mobilisation of the Quintana 01 testing/completion rig to FC, FD and LLC assets in Argentina is under way. Work is expected to commence the week beginning 8th July and will start at ELM 1004 for 2-3 weeks, after which the rest of the wells in the four well programme will be done in an order yet to be decided. This is because the design of the EMS-1001 is still to be finalised and its position in the order uncertain dependent on that design.

Echo has said that whilst they have the rig on contract they are considering a number of additional well interventions and workover in Estancia La Maggie, FC and FD to either restore or increase well productivity from existing wells. I put Echo in the bucket list in February as although I knew that quite a lot of the work was likely to be 2H of 2018 and beyond they might get an early wiggle on, thank goodness I did, the shares are up 32.4% since inclusion and are in 6th position as a result. (All being well the interim Bucket list will be in Monday’s blog)

Links

Yesterday I was delighted to interview Brian Mitchener, Exploration Director of Sound Energy who came in to talk about the huge amount of technical work that he and his team have been doing in Morocco. The link is here and it does give an interesting insight into the detailed studies that have been going on in this exciting basin.

Core Finance interview: Brian Mitchener, Exploration Director of Sound Energy

I was also in the Core Finance studios yesterday with myself and Tim Gregory, Chief Investment Officer of Vermeer Investment Management being interviewed by Core CEO Nick Batsford. We talked about oil in the context of Tim’s overall investment strategy within his portfolio.

Core Finance interview: Brent Oil up 19%, NASDAQ up 9%, Bitcoin down 58%p;

And finally…

What a weekend of sport is approaching, indeed this very afternoon we have Uruguay v France and this evening Brazil v Belgium. Tomorrow of course sees England play Sweden and Russia take on Croatia.

Not just that but the F1 British Grand Prix is on Sunday with Lewis and Mercedes trying to do better than last week’s disaster….

The cricket this weekend is two more ODI’s against the visiting and very good Indian team who are at the moment certainly better than us and out No 1 world ranking must be in jeopardy…

And at Sandown it is the Coral-eclipse Stakes with a small but quality field headed up by Derby winner Masar.

Wimbledon continues and situation normal for England as by the end of the first week only one player remains in the competition. Good luck to Kyle Edmund in the next round….

 

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https://www.oilcapital.com/columns/the-pay-zone/29858/rockhopper-amerisur-sdx-energy-29858.html Rockhopper, Amerisur, SDX Energy https://www.oilcapital.com/columns/the-pay-zone/29858/rockhopper-amerisur-sdx-energy-29858.html Thu, 05 Jul 2018 09:22:00 +0100

Rockhopper

The main news this morning fron RKH is the confirmation that Standard Chartered bank has been appointed to lead the work on the senior debt for Sea Lion. This is another welcome tick in the box as Premier and Rockhopper move towards sanctioning a project that as I said in my bucket list video yesterday must throw off huge money at these oil prices and project economics. The release also welcomes the imminent start of the drilling campaign at Abu Sennan which is to be welcomed as the ‘Greater Med’ area is an important part of the company’s funding.

Amerisur Resources

Amer has announced its monthly production numbers, 5,171 b/d with a peak of 5,400. The OBA did 4,332 b/d with a peak of 4,530. Plat-22 restarted at 650 b/d but dropped again to 350 b/d and is being monitored. This production is benefitting from continued work on upgrading well performance at the moment. Having said that the upside increasingly looks like being the upcoming drilling campaign which is pretty much on target despite dreadful weather conditions. Pintadillo-1, where the company is targeting the key ‘N’ sand anomaly, should spud in July. Elsewhere both the Miraparriba-1 and the Indico-1 wells are on schedule for Q3 spudding.

SDX Energy

SDX has announced the spud of appraisal well SD-3X at South Disouq in Egypt. If successful this will be connected to the SD-1X infrastructure. They have also announced that testing of the SD-4 discovery is expected in the next ten days.

 

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https://www.oilcapital.com/columns/the-pay-zone/29851/oil-price-bp-tullow-links-and-finally-29851.html Oil price, BP, Tullow, Links And finally... https://www.oilcapital.com/columns/the-pay-zone/29851/oil-price-bp-tullow-links-and-finally-29851.html Wed, 04 Jul 2018 09:36:00 +0100

WTI $74.14 +20c, Brent $77.76 +46c, Diff -$3.62 +26c, NG $2.87 +1c

Oil price

With the US markets closed for Independence Day today the chance for traders to have a mash up was too good an opportunity to miss and according to my spy, WTI in particular was all over the place. Up before a crash and followed by a very decent rally saw the bulls eventually win the day.

The Saudis said that they ‘will use spare capacity to deal with any future changes in oil supply and demand rates’ which translated says that they will do as they feel. Inventory stats are split by the holiday, the API came out last night with a 4.5m draw in crude and a 3m draw in gasoline and unless the EIA numbers, out on Thursday this week are much different then we will remain on the strong side.

BP

BP has announced that it has bought a 16.5% stake in the Clair field West of Shetland from ConocoPhillips and as part of the transaction sold it some Alaska production. BP now has 45.1% of the giant Clair complex and tenuous as it is just shows how hot the West of Shetlands is right now…

Tullow Oil

Tullow has announced that it has lost its case to Seadrill re the termination of a rig contract in December 2016 in which it declared Force Majeure.  Tullow retain the right to appeal but if it doesnt the sums are now relatively speaking quite small. The net amount Tullow will have to pay is $140m of which $128m was already provisioned in the end 2017 accounts. The Kosmos part of the litigation is expected to be handed down soon.

Links

It is time for the interim look at the bucket list and ahead of my speaking at the London South East Oil & Gas investor evening on July 17th here is at least a sneak preview as to how the numbers look and maybe a change or two…

London Sout East interview: Rockhopper tops Malcy’s 2018 Interims Bucket List gains

And details of the event are here…

https://www.eventbrite.com/e/oil-gas-investor-evening-with-malcolm-graham-wood-malcy-and-aim-listed-ceos-tickets-46763627268?aff=Malcy

And relegated to Tuesday again my VoxMarkets Podcast finally aired yesterday. For a look at one or two companies in the news here is the link.

VOX Markets podcast: Sound Energy, Echo Energy, Victoria Oil & Gas, Faroe Petroleum, Diversified Gas & Oil and Rockrose Energy

And finally…

Well I never, after the rather boring Sweden 1-0 v Switzerland the evening match was as about as full of drama as one could get with England finally prevailing 4-3 on penalties. We now have two footy free days, it will feel a bit strange and now til Saturday isnt long to prepare for a Q/F with Sweden.

England’s cricketers came up against quality opposition last night in the form of the Indian touring team who demolished the home side, fortunately everyone was watching the footy but I think the bowling machine in the nets has to be set to wrist spin for a while…

 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29843/vsa-capital-market-movers-shefa-yamim-lonsefa-29843.html VSA Capital Market Movers - Shefa Yamim (LON:SEFA) https://www.oilcapital.com/columns/vsa-capital-market-movers/29843/vsa-capital-market-movers-shefa-yamim-lonsefa-29843.html Tue, 03 Jul 2018 08:52:00 +0100 Shefa Yamim (LON:SEFA) has announced that it has updated its target mineral assemblage of gemstones to better reflect the make-up of its Kishon Mid Reach Deposit. Previously the gemstone focus was on Diamond, Moissanite, Corundum and Hibonite (DMCH) although now spinel is being added along with garnet and ilmenite to this target group which will be renamed the “Gem Box”. This has been retroactively applied to Zone 1 and will be applied to the bulk sampling for Zone 2. The overall grade from Zone 1 bulk sampling has therefore increased from 45cpht to 154cpht.

In Zone 1 a total of 2,177ct of garnets were recovered and subsequent polishing and cutting has demonstrated gemstone quality of the garnets having previously been conservatively classified as industrial quality. The overall garnet grade for Zone 1 was 34.09cpht.

Spinel is now considered the most abundant mineral within the Gem Box suite with a total Zone 1 recovery of 3,953ct (69.91cpht). The largest of which was 6.2ct and SEFA have indicated that much of the recovered spinel is of gem quality. Spinel data and stones have been stored through the bulk sampling process since it is a kimberlitic indicator mineral although given its potential as a gemstone is now being included in the gem box suite.

We reiterate our Speculative Buy recommendation.

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https://www.oilcapital.com/columns/the-pay-zone/29841/the-pay-zone-oil-price-savannah-petroleum-echo-energy-and-finally-29841.html The Pay Zone - Oil price, Savannah Petroleum, Echo Energy And finally... https://www.oilcapital.com/columns/the-pay-zone/29841/the-pay-zone-oil-price-savannah-petroleum-echo-energy-and-finally-29841.html Tue, 03 Jul 2018 08:36:00 +0100 WTI $73.94 -21c, Brent $77.30 -$2.14, Diff -$3.36 -$1.93, NG $2.86 -6c

Oil price

There was little change in the market fundamentals although the differential closed up with August Brent expiring making all look worse than it was, both crudes are up this morning. The market could have been forgiven for being worse, Reuters suggested that the Saudis were already up to 10.7m b/d and Russia to 11.7m b/d which shouldn’t come as a surprise except to those bears with very little brains.

Savannah Petroleum

SAVP has updated the market today which is very wise as there are people out there who worry about the Seven Energy Transaction not completing. The company are completing formalities and whilst these cannot be taken for granted are expected to complete in the 3rd quarter of 2018. As a reminder the company has previously received a letter of authorisation to proceed from the authorities in Nigeria, and I note the quotes from both the Accugas banks and private equity partner AIIM in the release giving their support.

On the production front, average daily numbers from Jan-May were 18.8 kboepd of gross gas with sales down Q2/Q1 due to power plant maintenance which should be back to normal in H2. With the Accugas GSAs are subject to take or pay provisions higher than anticipated 2018 production volumes, and it’s reassuring to see Andrew Knott talking about the impact the World Bank payment guarantee is having on cash flows. Also they have applied to extend the Accugas pipeline network, which is part of the growth story to generate more, higher paying customers. Finally, the company are cancelling the share premium account which will provide the directors the flexibility to pay dividends and buy back shares.

SAVP might have been held back by length of time the completion has taken but with such success in Niger once these technicals have been seen to I consider that the shares should move materially higher.

 

Echo Energy

Echo has announced that drilling has started on CSo-2001(d) in Fracción D in Argentina. It is targeting a Tobifera high identified by 2D data and looking for 19 bcf of gross best case contingent resources plus a further 18.7 bcf gross best case of prospective resources all identified by Gaffney Cline in their CPR.

And finally…

Last night saw yet more exciting footy in this years World Cup as after Brazil despatched Mexico Belgium left it late to finally beat Japan 3-2 with 15 seconds left on the clock. This afternoon it is Sweden v Switzerland and this evening Colombia take on England….

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https://www.oilcapital.com/columns/the-pay-zone/29839/the-pay-zone-oil-price-sound-energy-zenith-energy-wentworth-resources-columbus-e-r-and-finally-29839.html The Pay Zone - Oil price, Sound Energy, Zenith Energy, Wentworth Resources, Columbus E R And finally... https://www.oilcapital.com/columns/the-pay-zone/29839/the-pay-zone-oil-price-sound-energy-zenith-energy-wentworth-resources-columbus-e-r-and-finally-29839.html Mon, 02 Jul 2018 10:53:00 +0100 WTI $74.15 +70c, Brent $79.44 +$1.59, Diff -$5.29 +89c, NG $2.92 -2c

Oil price

A good week for oil with WTI up $5.57 and Brent up $3.89 for all the reasons written about at the time. As we head into July some supply shortages remain, Venezuela of course but Libya is increasingly worrying with export terminals remaining blocked. Longer term buyers will have to decide whether or not to buy Iranian crude with the strongest of all sanctions if they do..

There is no doubt that, following the Opec+ meeting that some reasonable production increases will be made although quite how much and how soon are up for debate. President Trump Tweeted that he had spoken to his ‘good friend’ King Salman of Saudi Arabia who had promised an increase of 2m b/d to get the price of oil down. Mutual distrust of Iran aside, 2m b/d of extra production, especially during the summer is just not possible at short notice and it transpired that the President actually asked for an increase in capacity, not production.

I suspect that 1m b/d is doable quite soon, 1.5m by the 3rd quarter and 2m a bit further down the line, either way, with or without Mr Trump’s intervention, the KSA is fully able to manage the oil price on the upside or the downside on their own…

If the President really wants to get world oil production up he should facilitate more and faster pipeline expansion in the US onshore. Baker Hughes reported on Friday that oil wells actually decreased last week probably as a result of shortage of capacity, ‘the price of oil is too high’ as they say in the best Washington circles…

Sound Energy

Sound has announced that it has raised $15m at 37p (a 7.5% discount) to ‘strengthen the company’s cash position before initiation of the high impact 3 well exploration programme in Eastern Morocco’. This is contingency money so to speak which puts Sound in a strong position at the negotiating table at a later date as they have enough cash at this stage anyway and therefore a smart move I suspect.

Zenith Energy

Zenith has announced that its results have been posted and brings an update on their proposed acquisition in Indonesia. The due diligence has evidential negative discrepancies ‘exceeding 5% of the book values’ and ‘therefore Zenith intends to renegotiate the total consideration of $6.6m. I am aware that a number of companies are attempting to do asset deals in the country at the moment and this story is familiar to many of them.

It is also worth noting that there have been some interesting share purchases announced lately with Brian Clark, Mirabeau and most recently Miton adding to holdings…

Wentworth Resources

Wentworth has announced that June payments for Mnazi Bay in Tanzania total $3.1m net to the company. Payments from both TPDC and Tanesco were received for one months gas sales. The company also announces that June gross production was 87 MMscfd which is in line with expectations.

Columbus Energy Resources

Columbus has announced that it is rolling over the practice of paying Directors and senior management partially in shares which will now be done at 5.1p. I think that there is little doubt that CERP are doing the correct thing here although the market has trimmed the shares this morning. Later this month I am on a panel with Leo Koot amongst others, the link is here and the evening should  be most interesting…

https://www.eventbrite.co.uk/e/oil-gas-investor-evening-with-malcolm-graham-wood-malcy-and-aim-listed-ceos-tickets-46763627268

And finally…

At the Austrian GP at the Red Bull circuit Max Verstappen cruised home unaware of the carnage behind him. With tyres blistering and engines failing the Ferrari’s came in behind him and unusually both Mercs DNF’d.

The MotoGP at Assen became one of the best motorcycle Grand Prix races ever with six riders taking it in turn to lead.The resurgent Lorenzo stormed off the line from 10th place to 2nd and quickly took the lead from Marquez leading a train of eight riders all within a second.The close racing caused Vinales to collide with Marquez which temporarily upset his rhythm and Rossi to ram Lorenzo but all stayed onboard. Marquez’s Honda finally escaped the bunch to take the chequered flag followed by Alex Rins on the improving Suzuki and Vinales’ Yamaha took 3rd. meaning Spain dominated the podium, small compensation for events in Russia later on. Cal Crutchlow struggled with tyre wear at the end but managed to hold 6th place and be the top independent rider again.

Apologies, tiredness at the end of a  long blog promoted Poland and Senegal beyond their station! At the weekend France ko’d Argentina, Uruguay beat Portugal, Croatia got past Denmark on pens but most surprisingly Russia held Spain to a draw and went on to win also on pens.

Today sees Brazil play Mexico and Belgium take on Japan in what might have been England’s side of the draw…

Wimbledon starts today, usually the signal for torrential rain which particularly in the North West would be grateful for at the moment with many moors in the area burning and out of control.

Finally I notice that having gone out of contract, LeBron James has signed a massive contract with the LA Lakers, I wonder if that consecutive number of finals will be added to next year?

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https://www.oilcapital.com/columns/the-pay-zone/29823/rose-petroleum-savannah-petroleum-29823.html Rose Petroleum, Savannah Petroleum https://www.oilcapital.com/columns/the-pay-zone/29823/rose-petroleum-savannah-petroleum-29823.html Fri, 22 Jun 2018 07:42:00 +0100 Rose Petroleum

Am on the move already this morning but had to mention the Rose announcement regarding the updated CPR on the Paradox project in Utah. Bearing in mind that this was focused solely on the single reservoir, the Cane Creek reservoir one of the multiple prospective areas in the Paradox formation it is incredibly good news .

I couldn’t put it better than CEO Matt Idiens who says ‘ we are hugely encouraged by the reclassification of Contingent Resources within the 3D seismic area reporting net to Rose a 2C Contingent Resource of 9.25 million barrels of oil, 18.5 bscf of gas and an unrisked pre-tax NPV-10 of $122m’.

Patient investors will welcome this extremely good news bearing in mind the significant upside potential and thus prospectivity of the Paradox project. More next week when I’ve chatted to Matt Idiens whom I’m sure will be delighted by this news.

Savannah Petroleum

 

SAVP has announced that it has spudded Kunama-1 in the R3 portion of the R3/R4 Area in the Agadem Basin in Niger. Primary target is Eocene Sokor Alternances and secondary is Eocene upper Sokor which would be considered as upside.

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https://www.oilcapital.com/columns/the-pay-zone/29818/oil-price-genel-lamprell-empyrean-and-finally-29818.html Oil price, Genel, Lamprell, Empyrean And finally... https://www.oilcapital.com/columns/the-pay-zone/29818/oil-price-genel-lamprell-empyrean-and-finally-29818.html Wed, 20 Jun 2018 10:30:00 +0100

WTI $65.07 -78c, Brent $75.08 -26c, Diff -$10.01 +52c, NG $2.90 -5c

Oil price

What can I say that hasn’t already been said ahead of Friday, and possibly Saturday’s Opec meeting? For the first time in a while this will be an ‘unfriendly’ meeting as those who can’t increase production oppose increases suggested by those who can. The final reckoning in my view will still probably be an increase in allowances, but for all the reasons I have said this week, will be unlikely to be enough to push the oil price down, if at all. It might be a busy afternoon at Royal Ascot though……

Genel Energy

Genel has announced that the Tawke Partners have received $62.19m from the KRG for their March crude sales of which $15.51m is net to them. For Taq Taq the number is $6.2m gross and $3.41m net and there is also the override payment of $8.37m representing 4.5% of the Tawke gross licence revenues for March as per the terms of the RSA. In total the company has therefore received a total of $27.29m and with a good deal of exciting news to come will be almost certain of inclusion in the next bucket list changes.

Lamprell

Lamprell posted this week an update on Saudi Arabia which they now call ‘core’ to the Group’s growth strategy which must mean all is bedding down well with the JV with Saudi Aramco, Bahri and Hyundai on the maritime yard. Now the objective is to qualify as a contractor  for Aramco for EPC projects which means complying with the IKTVA process. This is the In Kingdom Value Add programme which is to ensure local investment and so LAM has partnered with Asyad Holdings which has had a double whammy as its owner also owns Blofeld which now has 10% of LAM equity.

Empyrean Energy

Tom Kelly has been saying there is more to come away from Dempsey and he has announced further positive news from China this week. His oil migration study on 29/11 its offshore China block has indicated that both Jade and Topaz are ‘potentially filled’ from at least two different pathways and the Pearl prospect is interpreted to be filled via a pathway from a large oil and gas field to the North. With news from Indonesia still due shortly I consider EME to be looking in a very good place just now.

Links

Two links today, the first is my Monday VoxMarkets Podcast which was aired late and thus only in today. The second is a highly informative CEO interview with Paul Welch of SDX Energy which I urge you to watch, it is one of the best, even though I say it myself…

VOX Markets podcast: Malcy on SDX Energy, Cabot Energy, President Energy, Diversified Gas & Oil, Echo Energy, Petro Matad, Reabold Resources, Block Oil

Core Finance CEO interview: Paul Welch of SDX Energy

And finally…

Yesterday Russia almost completed getting out of the group stages with an easy win over Egypt for whom Mo Salad was clearly still in recovery. Japan beat Colombia who had a player sent off after only three minutes and Senegal beat Poland. Today sees Portugal play Morocco, Uruguay v Saudi Arabia and Iran play Spain in that competitive group.

Yesterday England broke the world record for runs scored on an ODI posting 481-6 at Trent Bridge and won the game to go 3-0 up in the five match series.

At Royal Ascot John Gosden and Frankie Dettori had a great day  and might come back for more this afternoon especially with Cracksman up their sleeve but also with Stream of Stars and Tricorn ridden by James McDonald.

 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29814/vsa-capital-market-movers-wynnstay-group-h1-2018-results-29814.html VSA Capital Market Movers - Wynnstay Group: H1 2018 Results https://www.oilcapital.com/columns/vsa-capital-market-movers/29814/vsa-capital-market-movers-wynnstay-group-h1-2018-results-29814.html Wed, 20 Jun 2018 08:21:00 +0100 Wynnstay Group: H1 2018 Results

Wynnstay Group (LON:WYN), a UK manufacturer and supplier of agricultural inputs, has announced results for the six-month period ended 30 April 2018 (H1 2018).

  • Revenue: £218.5m, +10.3% YoY (H1 2017: £198.1m)
  • Adjusted Group PBT: £4.9m, +15.5% YoY (H1 2017: £4.3m)
  • Net debt of £6.9m at 30 April 2018 (30 April 2017: £8.3m).
  • Interim dividend: 4.41p, +5.0% YoY (H1 2017: 4.2p).
  • Agriculture Division: Revenues £160.1m, +9.9% YoY; operating profit £2.1m, +33.1% YoY (H1 2017: £145.8m, £1.5m).
  • Specialist Retail Division: Revenue £58.3m, +11.4% YoY; operating profit £3.1m, +6.2% YoY (H1 2017: £52.3m, £2.9m).

VSA Comment

WYN’s trading statement on 20 March confirmed that it had begun the year in an encouraging manner with increased demand for most of its products (feed, fertiliser, grain volumes, seeds, retail products). Although the onset of spring farm activities was delayed by weather, arable product volumes have now recovered to normal levels, with particularly strong demand reported in April and May.

In the fertiliser sector, although margin pressure remains, yesterday’s Q3 trading update from Origin Enterprises (LON:OGN), which reported higher like-for-like volumes in its Q3 (WYN’s Q2) as well as an expectation that volumes would continue to be favourable in Q4 (WYN’s Q3) may finally indicate the start of an improving market in this area.

Grain trading has continued to be a difficult place to make money as grain prices have shown little volatility and margins have therefore been hard to achieve. However since March, we have seen a bit more volatility enter the market with the benchmark UK feed price breaking out of its range and moving above £155/t earlier this month.

In animal feed, DEFRA data has continued to show good UK market demand. WYN has also reported the positive impact of the prolonged winter and subsequent wet weather, which has limited grass growth and led to increased animal feed demand as on-farm fodder stocks have depleted.

In retail, as previously announced on 30 April, WYN bought eight stores from the administration of Countrywide Farmers to expand significantly its retail presence into the South West of the UK. It also acquired two others stores during the period (in mid-Wales and Cornwall) to bring its total retail network to 60 stores.

 

These results are not surprising given the March trading update, the bullish trading update from NWF Group (LON:NWF) last week and well-publicised improvement in the underlying UK agriculture market. Despite these factors, WYN has been the only stock in the sector not to experience a significant share price increase. We think this is unjustified and is perhaps a hangover from the issues experienced with Just for Pets last year.

WYN looks well on track to meet or even exceed current consensus (revenue of £407.6m, +4.3% YoY, and an adjusted PBT of £8.2m, +2.5% YoY).

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https://www.oilcapital.com/columns/the-pay-zone/29813/rockhopper-29813.html Rockhopper https://www.oilcapital.com/columns/the-pay-zone/29813/rockhopper-29813.html Tue, 19 Jun 2018 09:57:00 +0100

Rockhopper

RKH has announced an Egypt update this morning and progress is certainly being made in the ‘Greater Med’. At Abu Sennan production is being maintained at 4/- boe/d gross, net 880 to RKH. They have also announced the drilling campaign for the summer which comprises exploration and development wells and a water injection programme.

The rig is mobilising and should spud the first of two development wells by the end of June. This will be followed by the second and then the exciting exploration well on ‘prospect S’ which is targeting the Roash reserves as at Al Jahraa. There is also water injection programme at the Al Jahraa field ongoing. This programme is planned to take around six months with total capex net to RKH of $3m.

At El Qa’a the Raya-1X spudded on 17/06 targeting the Nukhul Formation reservoir, here the net cost is less than $1m. The market’s eyes may be focused further south but the Greater Med is an important part of RKH’s strategy as it pays the G&A keeping the powder dry for Sea Lion

Financially the situation in Egypt is improving all the time, with EGPC making ‘a number of payments’, recoverables are falling and now only $2.2m. With the oil price steady enough here and the Sea Lion economics looking robust ali is looking good for RKH and patience should be rewarded.

And finally…

I don’t normally do an and finally in a flash blog but it’s not normally the day after an England win in the first match of a World Cup campaign and the start of Royal Ascot!

 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29796/vsa-capital-market-movers-columbus-energy-resources-lncerp-29796.html VSA Capital Market Movers - Columbus Energy Resources (LN:CERP) https://www.oilcapital.com/columns/vsa-capital-market-movers/29796/vsa-capital-market-movers-columbus-energy-resources-lncerp-29796.html Tue, 12 Jun 2018 10:04:00 +0100 Columbus Energy Resources (LON:CERP)

Columbus Energy Resources (LON:CERP) has announced full year results for the year ending December 2017. The new team, which took charge in May 2017, has recapitalised the company, which ended the year with a cash position of £4m, and began an ambitious operational overhaul seeking to realise the significant value potential of the underlying assets whilst instilling capital discipline.

Revenues were up 5% YoY, to £4.8m while the loss from operations widened to £4.3m from £4m, largely due to the costs associated with closing the Spanish assets. Due to a lower impact from impairments, the net loss narrowed from £11.9m to £5m YoY.

These results, however, largely reflect the last of the old regime and the turnaround being enacted is yet to show through fully. Operational improvements began to take effect from August and so the full year numbers reflect little of the positive working practices and low cost enhancements which took production from 365bopd in July 2017 to a peak of 562bopd by the end of the year.

Group production averaged 368bopd, down 21% YoY, primarily as a result of the reduced contribution from the Spanish assets which have been shuttered. This was modestly lower than our estimate based on management guidance of 399bopd for the full year and was largely due to the challenges of coarse sand impacting on pumps. CERP has now applied new techniques to alleviate this. Group revenues were, however, up 5% YoY at £4.8m driven by a recovery in oil prices and the increased production contribution from Goudron in the latter part of the year. We highlight that revenues from Trinidad increased 24% YoY to £4.5m while Spanish revenues declined 68% YoY to £0.3m and these have been discontinued for 2018.

Cost of sales were modestly higher, up 8% YoY to £3.6m reflecting CERP’s largely fixed operating cost base, however, as a result of a stronger top line CERP generated a small gross profit of £78k versus a loss of £148k in the prior year. The closure of the Spanish operations did, however, increase SG&A costs by around £700k and following the successful agreements in Q1 2018 in relation to the La Cora concession these can be considered a one off. Excluding Spain, CERP reduced SG&A by 11.5% YoY. However, as a consequence the loss from operations widened YoY to £4.2m from £4m.

Finance charges increased to £824k from a negligible net amount YoY owing to the use of the Lind facility which the new team successfully renegotiated during 2017 raising the conversion price to 4.5p. CERP reduced its outstanding debt through the year from £1.87m to £1.21m despite Lind exercising its right to lend a further US$0.75m during the year. The debtposition at the end of March was approximately £0.69m demonstrating continued further progress in this regard. Indeed, having raised £4.1m in October, CERP has considerably strengthened its balance sheet and is well placed to carry out its operational turnaround at Goudron as well as initial exploration on the South West Peninsula, now due in H1 2019.

Post year end, CERP completed a renegotiation of the license ownership in relation to the SWP which paves the way for the much anticipated exploration programme necessary to unlock the significant value potential we believe exists. In addition, the company announced the potential Icacos acquisition which we believe is attractive for both CERP and Touchstone (TXP CN) since its completion better aligns the interests of the relevant parties with their core strategies and will enable CERP to take advantage of potential synergies between Bonasse and Icacos.

Although the financial data for 2017 shows little of the initial benefits from production and operational enhancements managements’ impact on capital discipline is clearly demonstrated in these results. The improvements in production of around 50% during H2 have resulted from minimal capital spending of just £1.38m. Although this was significantly higher than the prior year (£310k), this lack of investment owed to the company’s constrained financial position and we believe that capital spending of £8m in 2015 and £10m in 2014 are more reflective of the prior management’s approach. We believe that this is the key takeaway from these results and is the most clear indication of the change of direction for the company.  

The full year 2017 results represent only a small part of the early impact that the new management team has had, in our view. We believe that the financial benefits of the operational turnaround will be more fully reflected in the coming periods and much of the first 12 months for the new team has been about building a robust platform on which to build; resolving legacy issues at the SWP with regard to the BOLT transaction and in Spain now mean that the company is well placed to fully reflect the financial turnaround at Goudron in 2018 and begin exploration on the SWP.
 

 

We reiterate our Buy recommendation and 26p target price.

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https://www.oilcapital.com/columns/the-pay-zone/29792/oil-price-echo-energy-block-energy-and-finally-29792.html Oil price, Echo Energy, Block Energy And finally... https://www.oilcapital.com/columns/the-pay-zone/29792/oil-price-echo-energy-block-energy-and-finally-29792.html Mon, 11 Jun 2018 12:40:00 +0100

WTI $65.74 -21c, Brent $76.46 -86c, Diff -$10.72 -65c, NG $2.89 -4c

Oil price

Oil was down modestly on Friday and pushed it into negative territory for the week, WTI lost just 7c and Brent 33c after the usual ups and downs. There are still opposing forces operating which will likely keep things range bound at least until the Opec meeting on 22nd of this month. With 11 days to go posturing is very much underway, at the weekend Iran, unsurprisingly, took offence at the US appeal to the Saudis to increase production to keep prices down.

What Opec/Non-Opec will do may well be decided on Thursday as I understand that senior Saudis have been invited to Moscow to watch the opening fixture of the World Cup which is between Russia and Saudi Arabia, who would have guessed at such a coincidence?

Some oil watchers are still pinning their hopes on a price fall led by ever increasing US production, last week it reached 10.8m b/d but still short of having any real impact of the market. The rig count showed a rise of 2 units overall, and up by only 1 in oil to 862 units which won’t rock the boat too much I would have thought, to put it into perspective Venezuelan production has fallen by more this year than the US has risen…

At this stage I still think the Opec meeting will decide to carefully monitor the situation and where necessary ensure that the market is supplied with crude oil as and when the situation demands, or something similar, certainly not a free-for-all which would delight Iran.

Echo Energy

Echo has announced that it has successfully completed its EWT on the CSo-85 well on their Fracción D acreage in Argentina. They report 16 days of stabilised gas production at a variety of choke sizes from 6-14mm achieving a maximum rate of 2.5 mmscf/d at tubing head pressure of 432 psi. After this the pressure gauges were left on for 19 days to monitor pressure build up, the results of which were very positive and indicate that the well is in direct communication with a volume of the 4 bcf in the Springhill reservoir.

Integration of this data indicates that it will be possible to convert some or all of the currently classified gross best case prospective resources of 15.3 bcf immediately into contingent resources. Also, the deeper Springhill C3 reservoir has some 11.6 bcf which may have a similar expectation of reclassification. The company, along with partner CGC are evaluating drilling an additional Tobifera gas well on the western flank of Cañadon Salto to target 18.8 bcf of total gross prospective resource of 18.8 bcf (best case) in addition to confirming existing contingent resources of 19 bcf (gross best case) in the current campaign. Success on this would support an early decision for a gas development at Fracción D and the companies are working on a fully costed development plan, including pipeline and associated gas processing facilities, upon which such a process could go ahead and on what timeline.

Echo have had remarkable success with amongst their first projects in the portfolio of Argentinian assets they purchased only last year already potentially going ahead. With a recent raise with high quality institutional investors made to take advantage of current low prices in oilfield service companies, and significant potential from the current drilling campaign it seems odd that the market has yet to take this onboard, a pick up in the share price must be on the cards before long.

Block Energy

First day of dealings today for Block Energy the latest Georgia based company to appear on the market. The company has raised £5m at 4p which I am led to believe is significantly more than they had originally expected and has some high quality institutional backing. I am meeting with the management tomorrow so will report back after that as there are some important questions to ask them.

Finally the arrival of another Georgian based company on the market can only be good news for Frontera Resources as it will surely highlight the huge potential in the country which up until now has been to a large extent missed by the market.

And finally…

In my haste to complete Friday’s blog I left out half of the important sporting events due at the weekend…

Although the F1 roadshow is providing us with a number of potential winners which is refreshing, the actual races are turning out to be remarkably boring. With extra wide cars and circuits that prohibit overtaking, qualifying now generally is way more fun than the race itself. Yesterday’s procession proved that and whilst the table is very close, the racing is not.

Talking of not close is the mismatch arranged for Tyson Fury who fought an Albanian five stones lighter and a foot shorter than himself. Woefully out of touch it took him four rounds to despatch someone he should have done in four seconds…

The Scotland v England cricket match yesterday was close and with England treating it like a warm-up match for the series against the Aussies this week they deserved what they got. Very poor bowling on a pocket handkerchief of a pitch deservedly got despatched and when it came to cruising to victory the middle order folded in a typically cavalier fashion reminiscent of ye old England.

The rugby was also interesting and close, notably England just losing in South Africa and Ireland shaded in Australia, whilst Wales won in Argentina and Scotland in Canada. Round two next weekend should provide more good games. France provided interest by going in at half time against the All Blacks 8-11 ahead and promptly lost 48-11….

 

 

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https://www.oilcapital.com/columns/the-pay-zone/29787/oil-price-amerisur-sound-ascent-zenith-empyrean-and-finally-29787.html Oil price, Amerisur, Sound, Ascent, Zenith, Empyrean And finally... https://www.oilcapital.com/columns/the-pay-zone/29787/oil-price-amerisur-sound-ascent-zenith-empyrean-and-finally-29787.html Fri, 08 Jun 2018 12:21:00 +0100

WTI $65.95 +$1.22, Brent $77.32 +$1.96, Diff -$11.37 +74c, NG $2.93 +3c

Oil price

Oil prices got back down to $65 and $75 so it was time to rally and apart from the strong greenback most of the news was positive. Firstly, news gets worse in Venezuela where PDVSA are apparently not meeting their contractual obligations leading to empty tankers queuing around the block and no sign of anything getting any better. The two Chevron workers have been released from jail but i’m sure that their tales will hardly inspire anyone to work there.

In the discussion about whether to increase production or not two countries yesterday helped the price spike by suggesting that there should be no increase in production. The Algerian Oil Minister wants to keep the market tight but balanced whilst the Iraqi minister went further by saying that no production increase is to be discussed at the June 22nd meeting. As I said earlier in the week, positions being taken for the meeting even earlier than ever and it also looks like $75 is the price to defend.

Amerisur Resources

Sometimes there is just too much data around which can obfuscate the longer term message, in this case seeing monthly data from each well from AMER is fine but can create unnecessary panic. Today’s news from the company is a case in point, we knew that there was a rolling programme of treatment and maintenance ongoing and also that it was being successful, that didnt stop the market from banging the shares as the raw data was assessed.

May production of 4,807 b/d was indeed down and a peak of 5,344 b/d didn’t seem to help offset the gloom however well it was explained by the good Doctor. The 6 well had seen some increase in water cut which is being investigated but the treatment on both the 11 and 20 wells was effective. The 21, 22 and 24 wells are now being reviewed for intervention but this should come as no surprise, in his latest presentation JW stated that ‘some sleeve erosion’ is inevitable but also treatable.

The excitement for AMER in coming months is the drilling campaign across three or more important areas of the acreage. There is a modest delay to the Pintadillo-1 well due to appalling weather conditions but a July spud date is expected, both the other wells at Indico-1 and Miraparriba-1 are still on schedule for Q3 2018.

Whilst I can understand that these monthly figures look disappointing, a 14% fall in the share price from an already remarkably low number is difficult to reconcile. If you combine this years substantial revenue with the ongoing and largely successful work on the wells, with the potential for one or all of the big prospect wells to come in then AMER looks like very attractive option money to me at this level.

Sound Energy

If there is a y in the day it must mean an RNS from Sound who have now completed the full house of announcements this week. Today they announce that their application for a development concession relating to the Tendrara gas discovery has gone into the Moroccan Ministry of Energy in the hope of a successful result later this year. The company say that this will be a ‘significant step to both de-risk and commercialise this gas discovery’ and also say that they are advancing discussions with regard to a GSA, not a bad week all round I would suggest.

Ascent Resources

Life has been tough for Ascent Resources, the highs of 2.75p last August have been forgotten as troubles pile up in all corners. News today is mixed but overall should bring some, modest comfort. The Pg-11A update is that it is up and running again after kit was brought in to stem the water production problem. Regarding the IPPC permit application I detect some infuriation from Colin Hutchinson with the seemingly never ending delay in a process that the Slovenian authorities should be fast tracking to enable further in-country investment. It is still a watch this space situation but a combination of an acceptable flow rate at Pg-11A and a decision re the permit should ameliorate things somewhat, and that’s about the best of it…

Zenith Energy

Following the announcement earlier in the week regarding the new, bigger rig for the Zardab and Muradkhanli which I wrote up briefly on Wednesday I managed to spend some time with the CEO who talked me through the situation in the field. I have visited the operations within the last year and whilst the challenges have been significant there is little doubt that they are being met head on.

With the bringing in of a much bigger rig, which will in all likelihood start to clear up the most important wells at Z-21, Z-28, Z-3 and then at MOC-1,  the chances of opening up even one of these wells would be transformational. The share price seems to reflect only the chance of operational failure whereas should any success occur it must be, with a market cap of less than £10m, at a huge discount to what it should be remembered are 2P reserves of 31.7 mmbo in Azerbaijan and 16.4 bcf in Italy. The 1/- b/d target in Azerbaijan is not unreasonable and with costs of $19 a barrel would be highly profitable and the company is worth watching.

Empyrean Energy

As suggested in my report after recently chatting to Tom Kelly he snuck in some good news this week about his asset in China where the interpretation of the 3D seismic has now been completed. The Jade and Topaz prospects are both being described as ‘highly material opportunities’ with best estimate prospective un-risked resources of 625 MMbbl with further prospect Pearl also adding to the total figure of 774 MMbbl.

As Tom Kelly put it himself ‘put simply the potential size of the prize in China just got materially bigger’ and with Dempsey still offering substantial potential the portfolio is looking good. Indeed the prospects from Indonesia, which we havent heard from recently, may well also be looking interesting, all in all EME is beginning to look very attractive indeed…

And finally…

England played their last friendly before next week’s World Cup last night and the whole squad has had a few minutes to prepare themselves. Costa Rica weren’t quite the side they were the last time we played them but neither were we… Certainly Marcus Rashford looked sharp enough and may get a slot.

 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29774/vsa-capital-market-movers-independent-oil-gas-loniog-29774.html VSA Capital Market Movers - Independent Oil & Gas (LON:IOG) https://www.oilcapital.com/columns/vsa-capital-market-movers/29774/vsa-capital-market-movers-independent-oil-gas-loniog-29774.html Tue, 05 Jun 2018 09:39:00 +0100 Independent Oil & Gas (IOG LN)#

 

Independent Oil & Gas (IOG LN) has announced a significant operational update demonstrating initial positive results from the pigging programme undertaken to determine the integrity of the Thames Pipeline. The pipeline is a crucial part of the Southern North Sea gas hub strategy which enables IOG to save hundreds of millions in development capital and maximise the returns from extraction of gas. Therefore, initial confirmation indicating the pipeline is in “extremely good condition” is a major positive step towards the Final Investment Decision (FID) due in H2 2018 and further confirmation of the viability of IOG’s development strategy.

Three 12m sections of the pipeline were cut out 60km offshore and retrieved to surface which showed little signs of degradation or corrosion. This is slightly further out than where the Southwark field will be tied back in to the pipeline. Subsequent pressure testing by elevating water pressure in the pipeline for 24 hours yielded positive results further confirming the integrity of the pipeline and over a greater extent than the short sections cut-outs.

Due to a malfunction with the pigging device insufficient data was collected during the 60km run to clean and assess roundness and thickness in the pipeline. Although the other tests provide a clear indication of the pipeline’s integrity, IOG will run this latter stage of the pigging programme again as it is important to fully complete the surveys to provide contractors and investors with full confidence. We expect this to be completed within the coming weeks. This does potentially delay the remainder of the process ahead of FID which may now be delayed by a short period beyond the planned August 2018 target.

In addition to the intelligent pigging programme, IOG has also been conducting offshore survey programmes via its contractor Fugro MV Galaxy. The programmes, which included geophysical surveys, shallow seismic of the four platform and five drill sites as well as other environmental and geotechnical surveys, have provided important additional data required ahead of FID.

The announcement today provides strong confirmation of the progress IOG is making in its development programme. The Thames Pipeline is a fundamental part of the development and one of the major factors in determining the significant upside potential we believe exists. Confirmation of its integrity is therefore a major positive step for IOG. 

We reiterate our Buy recommendation and 96p target price.

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https://www.oilcapital.com/columns/the-pay-zone/29772/oil-price-sound-energy-iog-europa-oil-gas-and-finally-29772.html Oil price, Sound Energy, IOG, Europa Oil & Gas And finally... https://www.oilcapital.com/columns/the-pay-zone/29772/oil-price-sound-energy-iog-europa-oil-gas-and-finally-29772.html Tue, 05 Jun 2018 09:34:00 +0100

WTI $64.75 -$1.06, Brent $75.29 -$1.50, Diff -$10.54 -44c, NG $2.93 -3c

Oil price

The run in to the Opec meeting on June 22nd has, as I mentioned recently started remarkably early but with 24 seats around the table now and ‘pre-meetings’ needed ’twas ever going to be so. The usual five dollar boiling over has happened again and will serve a useful reminder to the enlarged group of what might happen if discipline is lost although the fundamentals still show the market to be short if one assumes that Venezuela, Angola and ultimately Iran to be unable to deliver.

Sound Energy

It looks like the mention yesterday by Sound of ‘a period of intense newsflow’ was no joking matter as today the company announce Ministry approval for Sidi Moktar and following ‘significant inbound third party interest’ a potential farm-out of part of its 75% operated stake. The objective of any farm-out would be to achieve funding for the 2018 programme and Sound expects to retain operatorship.

The company has completed its remaining subsurface evaluation and is close to finalising the mapped portfolio and comprehensive Petroleum System Model over the entire area and in its study has mapped 28 Liassic, Triassic and Paleozoic leads and has a best case of 8.9 Tcf of gross unrisked gas originally in place. Also, Sidi Moktar has an existing gas discovery in the Lower Liassic at Kechoula which is close to local infrastructure and the gas hungry OCP phosphate plant.

By the nature of its time consuming work in the area it has been an unusually quiet time for Sound in Morocco but the mothership of the Holy Trinity rarely stays quiet for long and the news already this week gives grounds for optimism. Expect more news from these two announcements, and perhaps a hashtag, as this period of intense newsflow has surely not come to an end…

Independent Oil & Gas

An update on ‘intelligent pigging’ and offshore surveys programmes from IOG this morning as they progress on the Thames pipeline. Initial work shows that the pipeline is in good condition and two pipeline pressure tests have confirmed its integrity. Unfortunately the intelligent pigging run gathered ‘insufficient data’ so clearly wasn’t quite as intelligent as it was made out to be and will need a second run which might take another 6 weeks to complete.

This will have delayed the process but assuming the second run achieves its data satisfactorily all will continue with IOG’s plan to move ahead with the FDP plans for the Bythe and Vulcan hubs that I wrote about recently. Finalising the pipeline should ultimately connect Bacton to the company’s 303 BCF of 2P gas reserves with all the upside in the area.

Europa Oil & Gas

Much better news this morning from EOG as they announce a 93% increase in estimated combined gross mean un-risked prospective resources on FEL 3/13 to 2.9bn boe. This marked improvement comes following PSDM reprocessing of the 3D seismic acquired in 2013 and fully justifies its investment at the time. Next stop for EOG is to farm-out FEL 3/13 but not until work on licences FEL 2/13 and 1/17 have been brought up to the same level of evaluation as this one. Investing in EOG has always been for the long haul and today has moved that a small step in the right direction, there is still a long way to go but I assume that having got this far the management still see the sunlit uplands  in the distance.

Link

After the Bank Holiday break I was back with Vox Markets for my weekly Podcast yesterday. Here is the link and the slightly longer list of companies covered.

VOX Markets podcast: Malcy on Range Resources, Empyrean Energy, Coro Energy, Hurricane Energy, Ophir Energy, Sound Energy, Pantheon Resources, Victoria Oil & Gas, Echo Energy

And finally…

Very little to report this morning as the pre World Cup friendlies continue but Germany are already frightening as they can leave Sane out of the squad….

 

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https://www.oilcapital.com/columns/the-pay-zone/29769/oil-price-sound-energy-vog-sdx-reabold-pantheon-chariot-and-finally-29769.html Oil price, Sound Energy, VOG, SDX, Reabold, Pantheon, Chariot And finally... https://www.oilcapital.com/columns/the-pay-zone/29769/oil-price-sound-energy-vog-sdx-reabold-pantheon-chariot-and-finally-29769.html Mon, 04 Jun 2018 12:57:00 +0100 WTI $65.81 -$1.23, Brent $76.79 -77c, Diff -$10.98 +46c, NG $2.96 +1c

Oil price

The greenback was probably as much of an influence on the oil price on Friday as anything else as the economic data all provided ammunition for a rate rise soon and another before the year end. The CFTC data shows the professional punters trimming their length, so to speak, as they consider that $80 Brent has rung the bell somewhat. That level has certainly been of interest, Opec and friends would have taken note that worries about a demand hit are claimed here and the four dollar drop backed up the theory.

Rumours that Russia has already started producing a bit more to keep the market satisfied, how nice, were offset by the Saudis keeping the spigots turned off, at least until 22nd of June. The big discussion point of last month was that WTI actually fell, by $1.53 whilst Brent rose by $2.42 increasing the differential markedly, today it is nearly $11. With the Baker Hughes rig count showing a rise of 1 generally to 1060 and 2 in oil to 861 not giving any clues as to US production only pipeline capacity issues will matter here.

Sound Energy

Sound has released the final CPR for the A1 prospect on the Tendrara-Lakhbir permit in Eastern Morocco and whilst it shows no difference to the one published back in April (Gross prospective resources on a mid-case basis of 335bcf) it does signal the start of ‘a period of intensive news flow as we de-risk the development of our existing discovery and finalise preparations for the exploration drill programme’.

The first well, TE-9 will go for the TAGI as its primary target and aim for potentially similar scale volumes in the underlying Palaeozoic as a secondary target. CEO James Parsons suggests that success here could ‘unlock significant value for Sound and our partners, reduce the risk on nearby leads, and further our overall confidence in the broader TAGI Structural Play trend.

Sound is about to emerge from a relatively quiet year which it has spent shooting seismic (at Schlumberger’s expense) and preparing for the next exploration programme. For investors who want to revisit this potentially substantial Moroccan gas story as the newsflow starts again, now may be one of the last opportunities…

Victoria Oil & Gas

VOG has announced a Logbaba field reserves update of significant proportions. 1P reserves of 69 bcf is an increase of 29 bcf or 73%, field remaining 2P reserves are up to 309 bcf up 106 bcf or 52% and the reserves/production ratio is now 10 years at 90 mmscfd which supports growth in the Douala market as well as new long term gas contracts. This security of supply to long term buyers of gas will enable VOG to enter contractual negotiations with companies and generators safe in the knowledge that they will be able to deliver.

Whilst it has a been a difficult year following the ENEO problem VOG are getting themselves into a very strong position in Douala. Businesses, more eager than ever to have a reliable, long term contractual supply of gas will like this news and competitive power generators will thrive also. VOG is likely to end up with a bigger, stronger and higher margin business extremely well placed to satisfy the inevitable growing needs of Cameroon.

SDX Energy

SDX has spudded the SD-4X appraisal well at South Disouq the first of two planned appraisal wells on the permit. The well is expected to take up to 30 days to drill and if successful will be completed, flow tested and connected to the infrastructure being developed at the SD-1X discovery location.

Reabold Resources

RBD as 32.9% owner has published the Schlumberger CPR for Corallian’s 100% owned Outon project in the North Sea. The Schlumberger report attributes 2C contingent resources of 13.9 million barrels of oil and 4.4 BCF of gas.  The report attributes a best estimate prospective resource of 31 million barrels of oil and 26 BCF of gas. Along with Colter and Wick, RBD now has an enviable set of projects with near term potential within the Corallian portfolio.

Pantheon Resources

Some good news at last from Pantheon which has been in short supply for some time. It seems that the problems of excess water at VOBM#5 were caused by fraccing ‘communicating with a deeper water source’ below the perforations. This should be solved by perforating only the Eagle Ford sandstone in future, maybe not rocket science?

As for VOBM#1 they hope to spud ‘as early as late July’ the sidetrack to the well where the casing collapsed. Here the operator gives a ‘high probability of success’ as the previous problem was time related. Although these problems have been of an operational nature the market is still indicating that PANR is in the last chance saloon which is understandable, bucket list changes in July are not looking good for them I’m afraid but the shares have at least ticked up slightly this morning…

Chariot Oil & Gas

Chariot has contracted a rig for drilling one firm fully funded well and an optional second well depending on success on Prospect ‘S’ offshore Namibia in Q4 2018. The company describe Prospect S as ‘independently estimated as a gross mean prospective resource of 459 mmbbls and a probability of geologic success of 29% by Netherland Sewell Associated Inc., is one of five dip-closed structural traps, totalling 1,758mmbbls gross mean prospective resources, that have been identified in the Upper Cretaceous turbidite clastic play fairway’.

So that tells us then, they are hoping to farm-out this prospect and told me recently that there are a number of most exciting follow-on opportunities in these Central blocks which they hope to share if successful.

And finally…

In the Italian MotoGP Jorge Lorenzo scored his first win since joining Ducati. World championship leader Marc Marquez crashed out while trying to put pressure on the lead but Lorenzo never looked threatened and dominated the race from the start. Dovizioso made it a Ducati double in 2nd place and Valentino Rossi in 3rd made sure the Italian fans didn’t have to take their fireworks home with them. Cal Crutchlow was the first Honda home and the highest independent rider again in 6th place.

England won a test match which is a first for some time but several players actually showed grit and determination in a match which was a mirror image of the first in the series. Next test cricket in August and against India who will be no pushover…

The ‘boys in blue’ won the Derby with Masah and against an odds on favourite that just didn’t get the trip. With all the results at the weekend the major races during the summer are going to be most interesting.

And the Golden State Warriors beat the Cleveland Cavaliers to take a 2-0 lead in the series, that awful mistake by the Cavs in the first game may be looking worse every time you see it….

And with apologies from last week, I forgot to mention that Sarries won the Premiership beating the Exeter Chiefs in the final….

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29766/vsa-capital-market-movers-egdon-resources-29766.html VSA Capital Market Movers - Egdon Resources https://www.oilcapital.com/columns/vsa-capital-market-movers/29766/vsa-capital-market-movers-egdon-resources-29766.html Mon, 04 Jun 2018 08:40:00 +0100 Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) has announced that it has increased its interest in PEDL 180 and PEDL 182 by 5% in each. The licenses contain Wressle and Broughton North respectively and the positions have been acquired from Celtique Energie Petroleum for a deferred cash consideration of £0.417m payable on first oil. Union Jack Oil (LON:UJO) and Humber Oil & Gas will each also acquire 12.50% in the same license areas on the same terms under separate deals from Celtique Energie.


This structure is attractive, in our view, given there is no immediate cash payment and the transaction is effectively contingent on successful planning application. EDR intends to submit a new planning application for the Wressle development following additional boreholes drilled on site. The information from these boreholes should provide information to directly address the matters highlighted in the prior application.


Following the announcement, our valuation is adjusted accordingly to reflect the higher interest. Although Wressle’s near term cash flow potential is of significant benefit to EDR, it forms only a small part of the valuation (1p/share) and the additional 5% interest takes our target price only modestly higher to 52p/share.


Therefore, despite a strong recent rally in the share price, we believe that with major catalysts coming up in the next few months for both EDR’s conventional and unconventional portfolio that there is significant further upside potential.

We reiterate our Buy recommendation and adjust our target price up to 52p.

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https://www.oilcapital.com/columns/the-pay-zone/29762/oil-price-hurricane-energy-ophir-energy-wentworth-resources-and-finally-29762.html Oil price, Hurricane Energy, Ophir Energy, Wentworth Resources And finally... https://www.oilcapital.com/columns/the-pay-zone/29762/oil-price-hurricane-energy-ophir-energy-wentworth-resources-and-finally-29762.html Fri, 01 Jun 2018 09:54:00 +0100

WTI $67.04 -$1.17, Brent $77.56 -16c, Diff -$10.52, NG $2.95 +7c

Oil price

With July Brent expiring and August closing at $77.56, down only 16 cents, the differential has now exceed ten bucks for the first time in three years. WTI is a mix-up, flat to the boards where it can but pipeline capacity almost fully utilised and with no sign of that changing much for the best part of a year trucks and trains will be transport option of choice.

Recent price strength has many parents, geopolitical concerns of course but genuine shortage of production are clear, in May Opec only produced 32m b/d, another fall with tightening in some Gulf countries and of course with Venezuela continuing to collapse. Yesterday’s delayed EIA inventory stats also helped, a draw of 3.6m barrels was way in excess of the scribblers +244/- b’s and with stocks drawing at Cushing even the gasoline add wasnt a concern. After all the driving season started officially on Monday and even in March good old vehicle miles increased to 268.7bn miles…………………..

Hurricane Energy

Hurricane has released an operational update this morning stating that the Lancaster EPS well re-entry and completion operations have started. The Lancaster EPS will use two currently suspended horizontal wells , 205/21a-6 and 205/21a-7Z which produced 9,800 stb/d and 15,375 stb/d constrained by surface equipment.

This is more good news from Hurricane who are demonstrating that so far the Lancaster EPS development is being carried out on time and budget and that first oil is still expected 1H 2019.

Ophir Energy

News yesterday that Schlumberger had ‘exited’ the Fortuna LNG project was pretty grim for Ophir but goes some way to explaining the recent departure of former CEO Nick Cooper. This means the dissolution of the One LNG venture SLB had with Golar LNG Partners and potentially the development falling over.

The RNS states that remaining partners Golar and Ophir remain ‘actively engaged’ in senior level discussions with ‘a number of counterparties’ over a financing solution for the project. The new CEO or maybe the temporary one will have their work cut out to revive this one, presumably SLB had found better projects to invest in but it leaves Ophir in a pretty sorry state. Having said that I actually liked the recent acquisition and maybe management can focus on this type of deal in the future especially if Fortuna doesn’t happen right now.

Wentworth Resources

Wentworth has updated the market on recent payments from Mnazi Bay. May saw $2.7m in which TPDC paid for one month and Tanesco for two months of gas sales. Gross production in May was 79 MMscf/d which is good and the long-awaited arrival of the new CEO will start with a positive situation and plenty of upside.

And finally…

A true summer’s weekend of sport is on the way and nothing sums that up more than the Epsom Derby tomorrow with the Oaks this afternoon.

Another sign of summer is the playing of test cricket at home and today sees the start of the second match against Pakistan at Headingly. We must hope that in the week England have reminded themselves of how to play the game but after a shameful performance at Lords we should expect nothing.

The MotoGP circus moves to Mugello in Italy this weekend where the fans will be preparing their fireworks for local hero Valentino Rossi. Championship leader, Marc Marquez might just upset their party.

 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29756/vsa-capital-market-movers-redt-energy-lonred-post-fy-2017-results-imminent-gen3-launch-29756.html VSA Capital Market Movers - redT energy (LON:RED) - Post FY 2017 Results - Imminent Gen3 Launch https://www.oilcapital.com/columns/vsa-capital-market-movers/29756/vsa-capital-market-movers-redt-energy-lonred-post-fy-2017-results-imminent-gen3-launch-29756.html Wed, 30 May 2018 10:07:00 +0100 On 17 May redT energy (LON:RED) reported FY 2017 results in-line with our expectations, recording revenues of €11.8m and an adjusted LBITDA of €6.7m. As in previous years, more than 90% of group revenues were delivered through its legacy Camco business, which has now been substantially divested.

FY 2017 Orders to Contribute to FY 2018 Results

The modest redT energy storage divisional revenues consisted of grant funding (€0.4m) and the release of 2016 licence fees (€0.5m). Although the company secured 43 tank unit sales during the year, financial contribution from these will be included in its FY 2018 results, when systems become operational at customer sites. RED reported €2.1m in deferred income on its year-end balance sheet in respect of these orders.

2018: Focus on Pipeline Conversion; Gen3 Launch

At the end of 2017 RED reported 330 tank units in the Final Stage of Customer Selection (40 of which were Gen3 orders), representing a total order value of €18.3m. Its broader Active Customer Pipeline increased more than 50% during the period and stood at €357m by the end of the year.

At the end of Q1 2018 RED announced an additional 155 Gen3 tank units were in the Final Stage of Customer Selection, meaning that the company had 485 units in the Final Stage of Customer Selection (Gen2 & Gen3) at that point, with potential combined revenues of more than €25m. We view the formal launch of RED’s Gen3 product in H2 2018 as an extremely important milestone for the company, representing the first time RED will be selling its commoditised product to generate a gross margin.

Recommendation and Target Price

 

We have made some changes to our forecasts (see page six) and rolled our DCF valuation on one year. We maintain our BUY recommendation and a 10-year DCF-derived target price of 22p. 

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https://www.oilcapital.com/columns/the-pay-zone/29751/oil-price-range-resources-echo-energy-erratum-and-finally-29751.html Oil price, Range Resources, Echo Energy, Erratum And finally... https://www.oilcapital.com/columns/the-pay-zone/29751/oil-price-range-resources-echo-energy-erratum-and-finally-29751.html Tue, 29 May 2018 08:47:00 +0100

WTI $67.88 -$2.83, Brent $76.44 -$2.35, Diff -$8.56 +48c, NG $2.94 n/c

Oil price

I suspect that seeing the oil price fall by $4 just on the rumours of a change in policy by the Opec/Non-Opec participants may make them think what would happen if they really did start to jack up production across the board. Maybe just take up the slack from any production lost from Venezuela and Iran and see what happens then.

It was not the best day for the rig count to pick up, generally up 13 units to 1059 and in oil up by 15 to 859 but with the delivery problems they have it’s not going to make much difference.

Range Resources

Range has announced that they are up and running in Indonesia with operations started in the last few days. The rig has been rigged up at the POG-D location and reopening has already commenced, completion is expected by the end of the month and the same rig will conduct the workover. After that it moves to POG-E also reopening and performing a workover.

The ambitious programme comprises up to ten reopenings of previously producing wells, two workovers as well as performing geological, geophysical and integrity studies. The plan to swiftly initiate production and add up to 220 b/d of gross production will broaden the company’s international production, gives potential scope for increasing that in the not too long term and should pay back in a pretty short period of time. The renaissance of Range is under way and whilst some holders are still well under water it is difficult to complain about the way current management are setting about the job.

Echo Energy

The ELA-1 well on Laguna de Los Capones in Argentina spudded on Saturday, the second in the company’s four well campaign in the region where Echo has a 50% interest. The well is being drilled at the South Eastern extent of the licence and is targeting a structural four way closure at the Springhill and Tobifera levels with TD at approximately 1,800m.

Gross unrisked gas in place on the structure is on a Pmean basis is estimated at approximately 40 bcf in the recent CPR by Gaffney Cline. Further success here would add to the spectacular start that Echo has made in its South American journey and together with the smart raise last week, now shown to be in a very small window of opportunity. To be able to move on at Tapi Aike with a saving of such massive amounts in the programme costs will prove to be another smart decision on the part of the management.

Erratum

Having been to see the Frontera operations in Georgia (not Azerbaijan) and found it to be very promising indeed the last person to mess this one up should be me but on Friday I did so apologies to them and to Block which is on its way as another Georgian play. As my mother used to say, ‘more haste, less speed Malcolm’ and she was right, apologies again!

And finally…

The weekend provided some serious ups and downs for clubs and players, concentrating on the ups, congratulations to Fulham, Rotherham and the Sky Blues who all won their play-offs at the weekend. Best forgotten is a bad night for goalkeeping which probably unfairly won’t be forgotten in a hurry.

Staying on the sour note, English cricket and the farce that has become, zeroes to zeroes one might say. I’ve tried to remain loyal to Stoneman but he was just the worst of a bad bunch, not sure how that can change at Headingly on Friday…

Danny Ric won what really was a most boring Monaco GP, with him having engine bother and those behind with scraggy tyres and unable to overtake it was a slow procession. Canada in a fortnight should be a different matter…

I could hear the basketball being played downstairs in the early hours, the result was an amazing victory by the Golden State Warriors who came back from 15 points down against the Houston Rockets and will now play the Cavs -again- in the NBA finals.

 

 

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https://www.oilcapital.com/columns/the-pay-zone/29748/oil-price-echo-energy-frontera-resources-zenith-energy-president-energy-and-finally-29748.html Oil price, Echo Energy, Frontera Resources, Zenith Energy, President Energy And finally... https://www.oilcapital.com/columns/the-pay-zone/29748/oil-price-echo-energy-frontera-resources-zenith-energy-president-energy-and-finally-29748.html Fri, 25 May 2018 12:47:00 +0100 WTI $70.71 -$1.13, Brent $78.79 -$1.01, Diff -$8.08 +12c, NG $2.94 +3c

Oil price

The big question now is, have we reached a level at which most industry participants find acceptable? At $80 it seems that talks between producers are scheduled to see if they shouldn’t release a bit of crude into the market to avoid any panic from consumers, as evidenced by the Indian pleas last week. Certainly it seems that the KSA and Russia are talking with an idea of scaling back the cuts from the joint producers. Khalid Al-Falih said this morning that these were ‘on the table’ and that whilst no decision had been made yet ‘we will not overcorrect’ and that the two countries would meet at least twice before the full Opec/Non-Opec meeting next month.

It is a good time to be thinking about the effect $80 oil will have on the consumer particularly in the US where the Memorial Day Holiday on Monday signals the start of the driving season. For what it’s worth my guess is that if it does turn out to be that $80 is a level to be defended then it pretty much works for both sides, let’s see.

Geopolitics heated up a bit overnight with the news that the Trump/Kim summit is off, at least for the time being, no reason why it can’t be reinstated another time though although tensions are still high.

Echo Energy

Echo has announced that it has raised £8.5m through a placing and subscription at 12p with funds raised to accelerate their full seismic commitment over Tapi Aike at a really competitive price saving the company some $7-8m. It seems that the company needed to strike whilst the iron was hot, so to speak, and with the current offer for the seismic work being some 30% less than expected and about to expire this is a no-brainer. When you are looking at 2,000km² and that Tapi Aike is the blue chip asset waiting to be assessed this concentrates the mind and shareholders should rejoice.

As to the raise it also seems eminently sensible to me, getting institutions on board at a reasonable discount is very wise and that an open offer was impossible given the time needed to produce documentation. With the rate of progress on the Fracción C drilling programme, where the next well spud is imminent, finding the necessary ten clear days would be at best counter productive. As I understand it the quality of institutions is first class and balances the shareholder list well.

The share price has fallen 15% at time of writing which is technically understandable given the discount offered but definitely provides an opportunity for those who believe that this shows all the hallmarks of a really good play with significant upside.

Frontera Resources

Morr good news from Taribani today from Frontera where results have continued to please since I reported back from T-45 in February. News is that the T-39 sidetrack well has reached TD and the combined pay from zones 9, 14 and 15 is 102.5m with 14.2% porosity and some 12.3m of pay in zone 13. One certainly can’t accuse these wells of creating a surprise, all zones are performing at the highest of expectations.

The company has also announced that it has received a drilling permit for the Niko-1 well which is scheduled for November of this year, unsurprisingly the zones expected are as per previous successes. The company has been offered a $3m investment by an institutional investor to finance this well which makes life significantly easier. These drilling successes will before long feed through to a ‘strong revenue stream’ and the company are promising details shortly of the drilling campaign for 2019. FRR looks to be in increasingly good nick and with what I hear is promising news from Block the Azerbaijan is going to be increasingly in the news for all the right reasons.

Zenith Energy

Zenith has announced that it has signed a $2m non-convertible loan facility, it will be used to provide additional funding ‘for the Company’s operations when required’. It will be drawn down intranches when required and has no warrants attached. Zenith is quite rightly concentrating its fire power on current operations in Azerbaijan where recent investment is beginning to pay off, this will enable it to continue with this strategy.

President Energy

A brief mention of a reception held by President earlier in the week at which the Argentinian Ambassador to St James and the Energy Minister made presentations. Whilst there is a concern about short term economic conditions, acknowledged by the Ambassador, longer term advantages of investing in this country remain and i’m sure that the President share price will in due course rise accordingly.

And finally…

As we close in on the end of the winter sporting season it is a weekend where spring and summer collide. Football sees the Champions League final in Kiev with the HubCap Stealers taking on Real Madrid. If previous rounds are to be believed anyone could win and there could be many goals scored.

Earlier on in the afternoon the Championship play-off has Fulham taking in the Villa in what is being labelled the £100m game….That is followed on Sunday by Rotheram v Shrewsbury and on Monday Coventry v Exeter.

Rugby’s season closes with the Premiership final between the Exeter Chiefs  and Sarries, again if scores in the semis are any reflection it too could be a cricket score.

Talking of cricket England were wishing that the no toss rule was in place as it was a bad toss to win, as it was they batted and on day one of the series reminded us of the phrase England middle order batting collapse’…..

Last year I was in Monaco for the GP, this year i’m here wishing I was back but the early pace is being made by the Red Bulls with Mercedes saying that this is just not their track.

Finally thank you for helping with so many people obeying the GDPR and today is the first day of the new mailing list.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29740/vsa-capital-market-movers-independent-oil-gas-30th-uk-licensing-round-awards-29740.html VSA Capital Market Movers - Independent Oil & Gas#: 30th UK Licensing Round Awards https://www.oilcapital.com/columns/vsa-capital-market-movers/29740/vsa-capital-market-movers-independent-oil-gas-30th-uk-licensing-round-awards-29740.html Thu, 24 May 2018 09:37:00 +0100 Harvey Expanded, Broader Structure Captured

Independent Oil and Gas (IOG LN) has received four additional blocks in the 30th round of UK Licensing in the North Sea, with the shares up 8% on the news meaning the stock is up 38% YTD. The blocks could, in our view, strengthen the development of the Southern North Sea gas hub IOG is developing.

The first of these blocks (48/24a) completes IOG’s licensing of the Harvey structure increasing its attributable prospective resource from 90BCF to 114BCF on a best estimates basis. Although we had expected IOG to expand the license to the whole structure it was not included in our prior valuation which is adjusted up as a consequence.

Additional Goddard and Abbeydale Blocks

As well as the extension to Harvey, IOG received blocks in two additional areas. The first known as Goddard (48/11c & 48/12b) is now the single largest discovery within IOG’s portfolio with a management estimate of contingent resources at 1C/2C/3C, 45/189/396 BCF. Five wells were drilled between 1985 and 2019 proving the resource and IOG has committed to reprocessing 3D seismic and drilling one well within 3 years of license award.  The Abbeydale block 53/1b, to the West of Camelot Central South, contains a dormant gas discovery and management estimates contingent resources at 1C/2C/3C 5/11/24BCF. With only outdated existing seismic data, we expect a new 3D programme to expand on this estimate and demonstrate the broader potential.

Recommendation and Target Price

The additional blocks materially enhance IOG’s portfolio and we have revised our valuation to reflect the added total gas resources from 393BCF to 617BCF. In all cases the blocks could reasonably be tied back to the Thames Pipeline, in our view, further strengthening the gas hub strategy.

The intelligent pigging programme continues with results due soon. Confirmation of the Thames Pipeline’s expected good condition will be a major step towards the Final Investment Decision in August 2018. With a supportive backdrop of gas pricing and concerns over UK energy security we believe IOG is well placed to execute its strategy and realise the significant upside potential.

We reiterate our BUY recommendation although increase our target price by 33% to 96p.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29717/vsa-capital-market-movers-egdon-resources-29717.html VSA Capital Market Movers - Egdon Resources https://www.oilcapital.com/columns/vsa-capital-market-movers/29717/vsa-capital-market-movers-egdon-resources-29717.html Fri, 18 May 2018 10:20:00 +0100 Egdon Resources (LON:EDR)

Yesterday the UK Government provided a Written Ministerial Statement on the UK shale gas industry. Despite backing from the Government in its election manifesto, progress has been slow in terms of project development although. However, with a number of key milestones coming up this summer this intervention is a timely and positive step, in our view.

The statement which reiterates the Government’s support for shale gas development and its national importance given rising UK energy imports must now be considered by planning committees when making decisions on applications. In addition the Government will publish revised planning practice guidance on shale development this summer and will launch two consultations; one to consider allowing wells to be drilled under permit rather than a full application and one to consider including shale production projects in the Nationally Significant Infrastructure Projects regime.

Given the complexity and technical nature of oil and gas permitting, the statement also indicates further support for Local Authorities to help them better understand the issues surrounding the development process.

Although the UK Government has previously indicated its support for shale gas development we believe this more direct approach is likely to be more effective and bodes well ahead of a key summer of testing by Cuadrilla, Egdon (LON:EDR) and IGas (LON:IGAS). As one of two companies listed in the UK offering exposure to shale gas development we believe that EDR offers attractive exposure to the industry. Currently trading at around 9p the shares reflect little of the upside potential and have been deeply discounted largely as a result of permitting risk, however, this announcement strongly indicates that the Government intends to support applications.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29682/vsa-capital-market-movers-nulegacy-tsx-vnug-otcmktsnulgf-29682.html VSA Capital Market Movers - NuLegacy (TSX-V:NUG) (OTCMKTS:NULGF) https://www.oilcapital.com/columns/vsa-capital-market-movers/29682/vsa-capital-market-movers-nulegacy-tsx-vnug-otcmktsnulgf-29682.html Wed, 09 May 2018 09:02:00 +0100 NuLegacy ((TSX-V:NUG) (OTCMKTS:NULGF)#

NuLegacy (TSX-V:NUG) has announced that its new drilling programme has commenced with two rigs now on site. The programme is expected to cover 15,000ft (c4.6km) over 12 holes. The drilling is being targeted based on a reappraisal of the existing data and NUG are primarily targeting new and higher grade zones of gold mineralisation in the 2km area between Avocado and Serena deposits.

NUG is now targeting the juncture of the Wenban 5 limestone horizons (a known host for Carlin style mineralisation) and low angle thrust faults which act as the conduits for gold bearing fluids during formation. Previous drilling has shown that these thrust faults cut across the limestone horizons and that mineralisation may be present in both features. The reinterpretation of the existing data indicates that it is where these features meet that NUG now expect higher grade mineralisation to occur.

As we have previously highlighted NUG has adapted its approach to avoid the caving issues which affected drilling at Avocado last summer. This means first using reverse circulation drilling to get through the gravel overburden before casing the hole and following up with core drilling. The initial programme will consist of five drill holes with two in Avocado and three stepping out from Serena and the North Iceberg zones; this will then inform the latter part of the programme.

In addition to drilling, NUG will also undertake a gradient array IP geophysical survey at VIO; a volcanic hosted epithermal gold silver mineralisation. This will be carried out in late May and the technique was successfully used in the exploration of Mule Canyon; an analogous regional deposit to VIO.

NUG has budgeted C$5m for drilling and field exploration in 2018 and the announcement of the start of drilling marks the start of a key period of newsflow for the company with the potential for significant near term share price catalysts. We remain confident in the potential for NUG’s deposits and believe that the company has learnt a significant amount from last year’s exploration and the information is being used to best effect to inform this year’s programme.

We reiterate our Speculative Buy recommendation.

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29600/vsa-capital-market-movers-independent-oil-gas-loniog-29600.html VSA Capital Market Movers - Independent Oil & Gas (LON:IOG) https://www.oilcapital.com/columns/vsa-capital-market-movers/29600/vsa-capital-market-movers-independent-oil-gas-loniog-29600.html Tue, 17 Apr 2018 08:01:00 +0100 Company Name (Ticker)#

 

Independent Oil & Gas (IOG LN) has announced that it has now completed the acquisition of the Thames Pipeline. The pipeline provides a ready built, secure and wholly owned export route for gas from the Blythe and Vulcan Satellite hubs, saving IOG significant development capital and enhancing the economics of the Southern North Sea gas project. In addition, IOG has announced that it intends to acquire the onshore reception facilities at the Perenco Bacton Terminal where the Thames Pipeline ends. A period of exclusivity has been agreed until the end of September 2018. 

IOG is now the operator of the 100% owned Thames Pipeline which at peak production is expected to carry 180mmcfd; although since this would not fully utilise the pipeline’s capacity (300mmcfd in total) IOG is considering opportunities for additional third party gas.

Currently IOG is conducting an intelligent pigging programme to confirm the state of the pipeline. However, since the pipeline was decommissioned in 2015 with an estimated 25-40 years of life remaining we expect it to be in good condition with any necessary remedial work likely to be limited in nature. Results are expected in early May. We also note a potential modification to the pipeline which is currently being considered. This could reduce the time and cost of the pigging programme by using a new tie in point for the Southwark platform which is in the Vulcan Satellites hub.

This announcement reflects a key milestone for IOG and the company continues to make strong progress towards the Final Investment Decision due in August 2018.

We reiterate our Buy recommendation and 72p price target. 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29595/vsa-capital-market-movers-columbus-energy-resources-loncerp-29595.html VSA Capital Market Movers - Columbus Energy Resources (LON:CERP) https://www.oilcapital.com/columns/vsa-capital-market-movers/29595/vsa-capital-market-movers-columbus-energy-resources-loncerp-29595.html Mon, 16 Apr 2018 07:50:00 +0100 Columbus Energy Resources (LON:CERP)

 

Columbus Energy Resources (CERP LN) has announced that it has agreed in principle to purchase the remaining 50% of the Icacos Field from its JV partner Touchstone Exploration (TXP LN/CN) via their respective subsidiaries; Leni Trinidad Limited (LTL) and Primera Oil & Gas Limited. LTL will subsequently become the 100% owner of the Icacos field and the operator. The Icacos Field is located at the far end of the South West Pensinsula and we believe that the transaction will enable both CERP and TXP to focus more fully on their respective strategies. 

The transaction remains subject to regulatory approval and a definitive sale and purchase agreement, however, CERP is confident that the deal will be finalised during Q2 2018. Our estimates remain unchanged whilst the transaction is finalised.

Gross production on the field was consistently around 22bopd during 2017 having peaked at 34bopd in 2011. The Field consists of six wells with three on production although new work programme activities and workovers have been limited recently. The transaction is valued at US$500,000 and will mean operatorship transfers from TXP to CERP along with the 50% share of production. This will be paid over time until 1 January 2021 with Primera receiving net revenue it would have received had it retained its interest. In the event of increased production, Primera will also receive, 25% of any net revenue above the current baseline; until 1 January 2021.

The terms of the transaction are attractive in our view enabling CERP to use existing cash resources to fund operational activities at Icacos rather than being used for upfront payment. With TXP’s current strategy focussed on infill drilling on its developed acreage and CERP heavily focussed on development of the SWP we believe that CERP is better placed to oversee Icacos Field development.

We reiterate our Buy recommendation and 26p target price.  

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https://www.oilcapital.com/columns/the-pay-zone/29571/oil-price-hurricane-faroe-zenith-and-finally-29571.html Oil price, Hurricane, Faroe, Zenith And finally... https://www.oilcapital.com/columns/the-pay-zone/29571/oil-price-hurricane-faroe-zenith-and-finally-29571.html Tue, 10 Apr 2018 08:16:00 +0100 WTI $63.42 +$1.36, Brent $68.65 +$1.54, Diff -$5.23 +18c, NG $2.69 -1c


Oil price
It’s a bit of a see-saw life in the oil market at the moment with traders having to be on their toes even more than usual. Yesterday crude oil rallied sharply as it was tariff war off and Syria war back on which switched attention back to geopolitical problems in the Middle East. This morning that trend is continuing with both grades up nearly a dollar and Brent knocking on the $70 door again.


Hurricane Energy - LON:HUR 
The final results for HUR are relatively meaningless but they hide a truly transformative year for the company as Lancaster moved into project execution phase. They also delivered two CPR’s that gave them 2.6bn barrels of 2P reserves,(a first) and 2C contingent resources (up 450%). They also raised $547m which was no mean feat under the circumstances (in joke) and are moving fast with procurement of very large bits of kit which are coming along nicely. Cash is $381m which keeps them in a very strong position to develop Lancaster. First oil is on target for 1H 2019 which will only increase the company’s strength in terms of cash flow and I remain convinced that this world class development has still not been appreciated in terms of sheer size but also as a significant milestone in the history of hydrocarbon exploration in the UKCS. Target price is still in excess of 100p.


Faroe Petroleum - LON:FPM
Faroe announce the result of the Fogelberg appraisal well this morning which confirms the reservoir sequence and lateral extent as well as proving better reservoir quality with a deeper gas-water contact. Next stop is a DST to confirm well and reservoir productivity. Fogelberg is only 18 km North of the Åsgard complex which like other recent discoveries provide efficient, convenient opportunities for hydrocarbon movement. As an aside the Norwegian Ministry has approved the development of the Fenja oil field which is 33 km South West of the Njord facility.


Zenith Energy - LON:ZEN
An operational update from Zenith this morning which is encouraging as it shows that the significant investment in new kit is starting to pay off and is already being rewarded by a record oil production revenue month in March. At the Z-21 workover in the Zardab field the new equipment and the workover rig is now on site and will shortly pull out the tubing string and cut the tubing before running in-hole with the drill bit and hopefully start production.
With this new, owned kit these operations are significantly more efficient and work is now performed by Zenith engineers and subcontractors are rarely needed. As I mentioned gross revenues in March were $490/- which is a good start to the ‘new’ Zenith and in that sentiment the company has sensibly decided to shut in a number of uneconomic wells which had extremely high water cuts. This will leave 300 b/d of more efficient production and 31 less wells to service. Finally the ESP upgrade programme continues with 11 new pumps added since February. Zenith is turning round with strong management, a good operational team that I have met and slowly admittedly but surely is getting back in shape.

And finally…
All you need to know is that it is the Noisy Neighbours v the HubCap Stealers part 2 tonight, anything might happen….

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29552/vsa-capital-market-movers-egdon-resources-lonedr-independent-oil-gas-loniog-29552.html VSA Capital Market Movers - Egdon Resources (LON:EDR), Independent Oil & Gas (LON:IOG) https://www.oilcapital.com/columns/vsa-capital-market-movers/29552/vsa-capital-market-movers-egdon-resources-lonedr-independent-oil-gas-loniog-29552.html Tue, 03 Apr 2018 10:16:00 +0100 Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) has announced a further farm out of 5% on the PEDL253 property which includes the Biscathorpe Prospect in Lincolnshire. The transaction is on the same terms as the previously announced farm outs and Humber Oil and Gas Limited (Private) will acquire 5% of EDR’s interest by paying the pro rata cost of the Biscathorpe-2 well cost plus an additional £50k (£10k per percentage point). Humber will also acquire 5% from Montrose Industries Limited (Private). The transaction is subject to approval from the Oil and Gas Authority and EDR will retain a 35.8% in the license once completed.

We reiterate our Buy recommendation and 48.5p target price.

Independent Oil & Gas (LON:IOG)

Independent Oil & Gas (IOG LN) announced full year results which showed a loss of £2.75m compared to a loss of £21.4m in 2016. Excluding impairments on oil and gas properties the operating loss was broadly in line YoY at £798k in 2017 versus £525k in the prior period. Finance expenses increased from £899k in 2016 to £1.8m in 2017. IOG reported a year end cash position of £145k, however, we note that in February 2018 the company announced the provision of a new convertible loan of £10m by London Oil & Gas (LOG) which we believe will mean that IOG has sufficient liquidity until Final Investment Decision for the Southern North Sea gas project which is due in August 2018.

IOG has made significant progress in 2017 towards the development of its Southern North Sea gas project. During the year IOG announced significant upgrades to its Reserves at the Vulcan Satellites, Blythe and Elgood along with a CPR confirming the potential at Harvey. The company subsequently committed to an appraisal well at Harvey which could provide further upside to the strong project economics of the core hub. The hub strategy is made possible by the acquisition of the Thames Pipeline which was agreed in April 2017. It provides a secure export route for gas produced from IOG’s licenses whilst saving the company significant development capital.

This year will centre around the Final Investment Decision which is expected in August 2018. Key milestones will include demonstrating the viability of the Thames Pipeline following an intelligent pigging programme and delivering an appropriate capital structure to finance construction. We expect this to incorporate debt and equity as well as gas offtake and contractor finance. Given the achievements of 2017 we believe that IOG is well placed for an important year ahead.

We reiterate our Buy recommendation and 72p target price.

To read our recent report on IOG, please click here.

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https://www.oilcapital.com/columns/the-pay-zone/29539/oil-price-sdx-energy-savannah-petroleum-sundry-aminex-gulfsands-frontera-lamprell-and-finally-29539.html Oil price, SDX Energy, Savannah Petroleum, Sundry-Aminex-Gulfsands-Frontera-Lamprell-And finally... https://www.oilcapital.com/columns/the-pay-zone/29539/oil-price-sdx-energy-savannah-petroleum-sundry-aminex-gulfsands-frontera-lamprell-and-finally-29539.html Fri, 23 Mar 2018 11:23:00 +0000

WTI $64.30 -87c, Brent $68.91 -56c, Diff -$4.61 +31c, NG $2.62 -2c

Oil price

After a fast and furious week, for me and the oil price, it looks like crude will end up testing important levels, WTI is close to $65 as I write and Brent is $69.21. The main reason for the strength this week has been the inventory stats which showed in both API and EIA numbers a decent draw when a build was forecast, indeed total inventories of -7m barrels this week put stocks to 1% below the crucial 5 year average.

The other positive note was struck by the Saudi Oil Minister who declared that the Opec/Non-Opec agreement will likely be extended beyond 2018 suggesting that further draw on stocks was needed. Coupled with the news that compliance was 138% in February suggested that in this, the harder part of the year, things were looking hunky dory, so to speak.

The only fly in the ointment is that the Squids have upped their oil price target to $82.50 for mid-year which worries me something rotten…

SDX Energy

Finals from SDX this morning which merely serve to confirm what a good year it was and how well 2018 has started. Understandably they concentrate on reserves, as one should, their WI of 2P reserves was 13.5 mmboe, up 45%, a very creditable performance with their existing business and the Circle acquisition delivering well. With revenues up 204% to $39.2m, on production up to 3,237 boepd up 171%, the 100% success with the drill bit last year came through to the bottom line.

And there is plenty of drilling excitement still to come, two more exploration wells will complete the Moroccan campaign, for the time being only, I am sure. Then attention focuses on South Disouq where we can expect two exploration wells and two appraisal wells with first production likely 2H this year. At NW Gemsa there were successful workovers and at Meseda two successful exploration wells plus of course the recently announced success at Rabul-5.

SDX had $30.6m of cash on the balance sheet as at 28 February this year partly as a result of favourable receivables incoming which is a big result and so SDX is fully funded for all operational needs and of course any potential acquisition opportunities that may arise. SDX remains amongst the most solid plays within the bucket list for its low cost, high margin offering and significant upside potential.

Savannah Petroleum

Full year results also for SAVP for a period in which the landmark Seven Energy transaction occurred, with completion due 2Q 2018. The deal adds 2P reserves of c. 92 mmboe and 2C resources of c. 44 mmboe, in production terms it means guidance for 2018 of 20,000 bopd. This production, which has started the year very well, encouraged the company to indicate that a dividend should be paid and $12.5m is indicated in today’s results.

Of course the original business has continued to go ahead even if the drilling campaign in Niger was delayed somewhat by the Seven asset deal. The three back to back wells are expected to be under way by the end of March as operations are well underway and the drill bit at Bushiya is ready to spin.

2017 was a good year for Savannah as its perceptive and hard working management delivered a ground breaking acquisition and kept on top of the activities in Niger. With strong and senior support from politicians in both Nigeria and Niger export routes should be available upon success at the well campaign.

Sundry

Aminex announces that Eclipse Investments, part of shareholder Zubair Group, may farm-into the Ntorya appraisal area, those who read my AEX comments in the bucket list will know that this is not unexpected…

Gulfsands is de-listing but will remain an unlisted public company which will come as no surprise to anyone I imagine, certainly not me. With no capital coming into the company from outside equity, the effective owners have raised more money together and will move on more efficiently. The ultimate irony is that I suspect we are nearly at the stage when the Syrian assets may eventually come good and the investors deserve to make something back.

Frontera has announced that mobilisation of more pumping equipment and services to the T-45 well as fraccing and testing is imminent. After this the kit will move to Ud-2 and then to Dino-2 which was announced as having spudded this week as well. Having visited the company’s operations and taken a close look at the potential I think that there is every chance that at long last these assets may about to deliver.

Lamprell announced results which showed yet again that it has a feast-famine-feast existence and with the huge losses on the East Anglia One project showing in these numbers we are in the famine section at the moment. But I remain convinced that the company has the wherewithal to fight its way out and can reach the sunlit uplands again before too long. My comments on the Saudi JV recently show that this can provide profitable work and I wouldnt be surprised if there were not more contracts for the yard around the corner. Not for the first time I am suggesting that ditching Lamprell at this juncture would be wrong….

Links

It has been a busy week for interviews, here is my Monday Podcast talking about a number of stocks.

VOX Markets podcast: Malcy on Range Resources, Columbus Energy Resources, Touchstone Exploration, Trinity Exploration, Rockrose Energy and Lamprell

And here is my CEO interview with Tony Durrant of Premier Oil…

Core Finance CEO Interview: Tony Durrant of Premier Oil

And yesterday I managed another CEO interview, this time with Nick Cooper of Ophir Energy

Core Finance CEO Interview: Nick Cooper of Ophir Energy

And finally…

It’s the dreadful international break where ‘friendlies’ happen that no one wants to play in or watch…

The cricket can be added to footy and rugby that we dont want to talk about…

Please tell me that the boat race tomorrow at 5.30 is not the highlight of the weekend’s sport…

At least be up early for the Australian Grand Prix from Melbourne, who will have the best new kit and who’s halo will be the best?

 

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https://www.oilcapital.com/columns/the-pay-zone/29519/hurricane-energy-far-ltd-link-to-igtv-interview-29519.html Hurricane Energy, Far Ltd, Link to IGTV interview. https://www.oilcapital.com/columns/the-pay-zone/29519/hurricane-energy-far-ltd-link-to-igtv-interview-29519.html Tue, 20 Mar 2018 10:45:00 +0000

WTI $62.06 -28c, Brent $66.05 -16c, Diff -$3.99 +12c, NG $2.65 -4c

Hurricane Energy

In an operational update released this morning HUR has announced further important progress towards the development of Lancaster as two horizontal christmas trees and the FPSO subsea control system have been delivered by TechnipFMC. These are some of the key long lead items for the development and represent an important step to enable HUR to maintain the schedule for the Q2/3 well completion and installation programme.

CEO Robert Trice said that ‘this is a significant milestone in readiness for the 2018 well completion programme and that we remain on schedule for first oil in H1 2019’.

With further operational news from the company and other operations still very much on schedule I am confident that the Hurricane story is very much still up and running.

Far Ltd

Far has announced the findings of the Independent Resources report compiled for them by RISC for the FAN discovery offshore Senegal. Key information has 2C contingent recoverable oil resources of 198 mmbbls with undrilled prospects having prospective resources of 673 mmbbls on a best estimate basis. The JV is progressing appraisal plans for the FAN South and SNE North oil discoveries with a further review due mid year. According to MD Cath Norman ‘There seems little doubt that there is huge potential to unlock more oil when these undrilled prospects are tested in the future’.

Although the Far share price has yet to respond I am yet further encouraged by this news and am sure that the addition of more hydrocarbons here will not only extend the size and life of the field but to improve yet further the long term economics of this ‘world class’ development. Shareholders should be very happy that Far has a strong cash position and as a result of the recent very impressive farm-out a very exciting well to drill in The Gambia towards the end of the year.

IGTV link

I recently did an interview with Jeremy Naylor at IGTV in which I spoke about last years bucket list and ran through a few of the new additions to the list, the link is below.

IG interview: Malcy’s bucket list gets a boost with six new stocks

 

 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29516/vsa-capital-market-movers-wynnstay-group-2018-agm-statement-29516.html VSA Capital Market Movers - Wynnstay Group: 2018 AGM Statement https://www.oilcapital.com/columns/vsa-capital-market-movers/29516/vsa-capital-market-movers-wynnstay-group-2018-agm-statement-29516.html Tue, 20 Mar 2018 10:17:00 +0000 Wynnstay Group: 2018 AGM Statement

Wynnstay Group (WYN LN), a UK manufacturer and supplier of agricultural inputs, has announced a trading update for its H1 2018 period, which runs from November 2017 to April 2018, ahead of its AGM this morning.

  • Trading for the first four months of FY 2018 described as encouraging with increased demand for most products
  • Feed demand ahead YoY; increasing fertiliser sales; improving grain volumes but margins remain under pressure; seed demand encouraging; higher LFL sales YoY in its agricultural stores

VSA Comment

In animal feed, total UK ruminant feed production across the first two months of WYN’s H1 increased 9% YoY. Although data is not yet available for subsequent months, we believe demand has remained strong, with the recent abnormal cold weather also having benefited this operation in the last few weeks, particularly with regards to sheep feed.

As a reminder, in 2013 the listed feed suppliers all received an economic boost (and a resulting increase in share price) as colder temperatures extended into March, with peer NWF Group (NWF LN) the most financially leveraged to this trend. However, it is worth noting that performance in 2013 was also positively impacted by a very wet summer 2012, which reduced on-farm silage volumes and quality (summer 2017 was wetter than average but not significantly so). So far this year, only NWF and ForFarmers (FFARM NA), the largest feed supplier in the UK, have shown any positive share price reaction.

In arable, and as we wrote at the end of January, with early estimates for the 2018 UK wheat harvest suggesting it will be 2-3% smaller than last year, we are expecting a slightly lower YoY performance for WYN’s seed business and a similar YoY performance for its fertiliser operations. WYN’s fertiliser business will also be boosted this year by its expansion into the Scottish fertiliser sector through its acquisition of a blending facility at Montrose last November.

As highlighted by WYN in its FY 2017 results, having experienced a reduction in early, out-of-season orders at the end of FY 2017, stronger fertiliser demand is now starting to come through and will increase further as farmers begin to buy in the spot market for the spring usage period.

In January, we also stated that we expected WYN’s grain trading volumes would increase this year as volumes from the slightly bigger 2017 harvest continued to be traded and farmers began to clear on-farm stocks in light of higher grain prices ahead of the upcoming 2018 harvest. WYN has confirmed this trend this morning, although margins remain under pressure.

We also suggested that WYN’s specialist retail operations would benefit from a much improved sentiment in the underlying UK agriculture market this year, as highlighted by recent announcements from peers. This is also confirmed by WYN today with improved LFL sales reported for the first four months of FY 2018.
 
WYN looks set for an improved FY 2018, given the improved underlying market conditions and the decisive action taken last year with regards to the closure of its Just for Pets business.

Consensus for FY 2018 is currently revenue of £405.5m, +3.8% YoY, and an adjusted PBT of £8.2m, +2.5% YoY.

 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29515/vsa-capital-market-movers-egdon-resources-edr-ln-29515.html VSA Capital Market Movers - Egdon Resources (EDR LN)# https://www.oilcapital.com/columns/vsa-capital-market-movers/29515/vsa-capital-market-movers-egdon-resources-edr-ln-29515.html Tue, 20 Mar 2018 10:02:00 +0000 Egdon Resources (EDR LN)#

Egdon Resources (EDR LN) has announced that it has reached a Heads of Terms agreement in respect of a farm out of interests in PEDL 253 to Union Jack Oil (UJO) and Humber Oil and Gas (Private). PEDL 253 in Lincolnshire contains the Biscathorpe project.

The terms which were previously announced as a Definitive Farm Out Agreement are unchanged with UJO and Humber to each acquire 6% of EDR’s interest in PEDL 253 by paying their share of a Biscathorpe 2 well cost plus an additional £10k per percentage point interest acquired. UJO and Humber will also acquire 4% each of Montrose Industries Limited interest in PEDL253 under the same terms. This equates to a farm in with a 1.36 times promote at the estimated well cost. The agreement remains subject to approval from the Oil and Gas Authority and EDR will then retain a 40.8% interest with a 29.31% share of the currently estimated well cost.

The mean gross prospective resources at Biscathorpe are estimated at 14mmboe. The planned well is down-dip of the crestal Biscathorpe-1 well drilled by BP in 1987 which encountered oil shows from a 1.2m thick sandstone and EDR expects the reservoir sands to thicken down-dip following reprocessing of seismic data.

We reiterate our Buy recommendation and 48.5p target price

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29514/vsa-capital-market-movers-redt-secures-tidal-energy-project-order-29514.html VSA Capital Market Movers - redT Secures Tidal Energy Project Order https://www.oilcapital.com/columns/vsa-capital-market-movers/29514/vsa-capital-market-movers-redt-secures-tidal-energy-project-order-29514.html Tue, 20 Mar 2018 09:55:00 +0000 redT Secures Tidal Energy Project Order

redT energy (RED LN)#, a developer of vanadium redox flow machines for large-scale energy storage applications, has signed a partnership to be primary energy storage provider for an unnamed large-scale tidal generation project in the UK.

  • 0.6MW, 3MWh flow machine system (five hours of storage) selected by the project consortium, subject to finance and formal contract awards
  • Project expected to be delivered in 2019

VSA Comment

 

An encouraging large project order from RED (assuming finance and formal contract awards are secured), with its flow machine solution favoured over alternative battery solutions, given the heavy cycling, non-degrading nature of its technology. It is also positive to see RED securing an order in a sector other than solar plus storage, where the majority of its UK orders to date have been won.

This order forms part of RED’s ‘large project’ strategy for 2019 and will be fulfilled with its margin-generating Gen3 machines (to be launched in H2 2018). This order will require 40 tank unit modules - our current forecasts are for more than 1,000 tank unit modules sold to customers in 2019.

The project owner is unnamed but some of the most prominent UK tidal projects are being developed by Atlantis Resources (ARL LN), which designed, built and delivered the first phase of the flagship MeyGen tidal energy project in Scotland. ARL is currently merging with certain assets of SIMEC Energy (part of the GFG Alliance), owner of an interest in Tidal Lagoon plc, which is also developing a number of tidal projects in the UK, predominately in Wales, and internationally.

We currently have a BUY recommendation on RED with a 10-year DCF-derived target price of 22p. 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29508/vsa-capital-market-movers-columbus-energy-resources-cerp-ln-29508.html VSA Capital Market Movers - Columbus Energy Resources (CERP LN)# https://www.oilcapital.com/columns/vsa-capital-market-movers/29508/vsa-capital-market-movers-columbus-energy-resources-cerp-ln-29508.html Mon, 19 Mar 2018 09:32:00 +0000 Columbus Energy Resources (CERP LN)#

 

Columbus Energy Resources (CERP LN) has announced a significant update in relation to the South West Peninsula (SWP) and the successful completion of the restructuring of the Beach Oilfield (BOLT) transaction. This will enable CERP to begin a fully funded exploration programme including well reactivation in Q2 2018 on the Bonasse field as well as analysis of 3D seismic on the SWP. This is expected to be followed by 2-3 appraisal wells drilled in H1 2019, subject to results. Although the operational turnaround at Goudron is a critical part of the strategy and drives near term cashflow generation, it is the exploration potential at the SWP which provides the key catalysts for a major rerating of the stock; this announcement is therefore a significant milestone for CERP in realising its longer term strategy.

Previously CERP help a 25% equity interest in BOLT via a local subsidiary and was due to acquire the remaining 75% for cash payments totalling US$184k and the adoption of a US$1.1m loan held by BOLT. The new terms which are significantly more attractive, in our view, are as follows. CERP will make a cash payment of US$450k to BOLT as well as a US$80k payment to Petrotrin to complete the purchase of a 27.5% interest in the Bonasse field. CERP will give up its 25% equity stake in BOLT and BOLT will retain the US$1.1m loan. CERP acquires access to oil and gas rights on the SWP.

CERP will pay deferred fees of US$500k to BOLT upon development of any other field than Bonasse within the lease and a royalty of 3% on net production from a development of the SWP license (excluding Bonasse). The royalty is payable on net production in excess of 10mmboe per annum and capped at US$1.25mpa.

In addition to the BOLT transaction, CERP has signed a lease agreement with Singh’s (Cedros) Estates Limited to provide CERP with guaranteed access to 100% of the SWP for oil and gas operations until January 2019 and from February 2019 a lease which provides CERP the same rights for a further 27 years. From February 2019 CERP will pay Cedros US$70kpa (escalated in line with the WTI oil price) as well as a royalty of up to 12.5% capped at US$2m for years 1-2, at 10% for years 3-8 and reverting to 12.5% thereafter. Drilling bonuses of US$15k will be paid upon spud of each of the first three wells.

The above is fully funded from existing cash resources.

The attraction of the SWP for exploration is that it has been relatively underexplored in comparison to the broader region. CERP’s existing interpretation of the multiple prospects indicates 20-400mn barrels in place. Furthermore, since the targets can be drilled from onshore costs are expected to be modest at between US$2-4m per well.

Currently CERP already has a small amount of production from the shallow Icacos oilfield while the Bonasse oilfield is currently producing c10bopd of 23 degree API gravity oil. CERP expect to be able to reactivate as many as ten wells. Other historic drilling at Bonasse included 16 wells dilled to depths of up to 2,500ft. The only deep onshore well was drilled to a measured depth of 12,301ft found oil shows in the Lower Cruse and Lengua formations at a true vertical depth of 10,180ft. This well did not reach the Herrera Sandstone formation which leaves further undiscovered potential. SWP contributes 10p of our 26p target price despite its early stage which should highlight to investors the significant underlying potential.

The region is highly prospective due to its close proximity to the East Venezuelan Basin with which SWP shares its geology and on trend structures, offshore from SWP, have yielded discoveries in excess of 200mmbbls. We also note the recent announcement by BHP Billiton (BLT LN) which underpins the exploration potential in Trinidad. BLT has committed to testing three gas plays off Trinidad this year with a longer term objective of making oil discoveries.

This latest announcement CERP has confirmed the company’s ability to begin to realise its longer term ambitions in defining the exploration potential of the region via low cost onshore drilling. The announcement from BLT and the other interest from majors in the region underpins that exploration potential, in our view, although we highlight that their exploration is offshore. With the shares having eased back recently as the WTI oil price has pulled back from above US$65/bbl we believe that CERP’s current valuation provides a compelling entry point for investment exposure to Trinidad’s exploration upside.

We reiterate our Buy recommendation and 26p target price. 

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https://www.oilcapital.com/columns/vsa-capital-market-movers/29506/vsa-capital-market-movers-redt-energy-gen3-due-h2-2018-29506.html VSA Capital Market Movers - redT energy: Gen3 due H2 2018 https://www.oilcapital.com/columns/vsa-capital-market-movers/29506/vsa-capital-market-movers-redt-energy-gen3-due-h2-2018-29506.html Mon, 19 Mar 2018 08:56:00 +0000 redT energy: Gen3 due H2 2018

redT energy (RED LN)#, a developer of vanadium redox flow machines for large-scale energy storage applications, has announced that its margin-generating third generation flow machine will be available for delivery to customers in H2 2018.

VSA Comment

 

Having now completed its initial stack design and engaged its manufacturing partner, RED has confirmed that first deliveries of its Gen3 system will occur in H2 2018 (narrowing its previous guidance of ‘2018’).

RED has also confirmed that it expects the first pre-orders of its Gen3 system to be concluded shortly. We also imagine that some of the previous Gen2 orders will now be converted into Gen3 deliveries (as we saw with Gen1 orders when Gen2 was launched).

The company has announced that it has 195 units (€11m order value) of Gen3 pre-orders in the Final Stage of Customer Selection. This is new interest in its Gen3 product and is in addition to the Final Stage of Customer Selection pipeline announced on 5 February, which had 330 units with an order value of €18.3m.

As a reminder, Gen3 machines are expected to provide a margin of 15-25%, including various services associated with each sale, compared to 0-5% for the Gen2 systems (including services).

Aside from further sales announcements, investors have been looking for certainty as to when the first Gen3 machines will be available for customers, given its potential significant positive financial impact on the business. This announcement, alongside the Gen3 specific pre-order pipeline, should provide comfort in this regard.

We currently have a BUY recommendation on RED with a 10-year DCF-derived target price of 22p.

 

 

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https://www.oilcapital.com/columns/the-pay-zone/29505/oil-price-range-resources-rockrose-lamprell-and-finally-29505.html Oil price, Range Resources, RockRose, Lamprell And finally... https://www.oilcapital.com/columns/the-pay-zone/29505/oil-price-range-resources-rockrose-lamprell-and-finally-29505.html Fri, 16 Mar 2018 12:21:00 +0000

WTI $61.19 +23c, Brent $65.12 +23c, Diff -$3.93 n/c, NG $2.68 -5c

Oil price

The most unreliable of the three main forecasters, the IEA started to back track on its more bearish than most demand forecasts yesterday and at this rate, despite the US shale ‘torrent’, equilibrium might be achieved in Q2 of this year. Whilst they were changing their numbers they snuck in a crafty rise in world oil consumption past the historic 100m b/d number, they must have been reading back issues of the blog…

Having said that Russia is going to be on everyone’s mind for the time being, with Putin’s coronation after Sunday’s vote a shoe-in things might change but the world is hardly likely to become a more peaceful place…

Range Resources

Interims to 31/12/17 are out this morning and present a welcome return to health for Range where genuine operational focus is leading to positive results. I visited Trinidad last week and was allowed full access to all its operations and met with CEO Yan Liu and the new COO, Lubing Liu, no relation. As readers know I always think that field trips are important for two main reasons, one obviously to take a look at the assets but also to spend some time with the management and the operational leaders.

I am happy to say that Range ticked the boxes in all these areas, operationally things are picking up and specifically, as can be seen in today’s results, the Beach Marcelle waterflood is reacting positively to investment of time and money. We were also able to take a good look at the fleet of rigs which are indeed modern and in one case almost ready to go out on assignment. On the management front it was more important than usual to meet the CEO, Mr Yan Liu who as far as I know has not yet met many analysts or investors, this being the first visit to the company for some considerable time. He, and the new COO who is new in his position but not to the company, having been a non-exec until recently are clearly hands on and determined to make a success of the company.

Today’s results therefore give an indication as to how things are progressing under their charge, early doors admittedly but there are definite signs of a recovery. Operationally, in Trinidad production in the period averaged 606 b/d, up 22% which was mainly due to concentration on the waterflood programme, selective development drilling where two wells were brought on-stream, and with workovers where 130 were completed. The Beach Marcelle waterflood is a ‘vast majority’ of the company’s reserves in Trinidad and it already accounts for around 30% of production.

The recent CPR confirmed net 2P reserves of 16 MMstb and net 2C net resources of 8 MMstb which gives plenty of room for upside now that the work programme is being put into action.

In Indonesia the company are in the process of building an experienced operational team and undertaking initial geological and geophysical studies as well as preparing a suitable work programme for which a budget is being finalised. Here the CPR gives Range  confirmed net 2C contingent resources of 10.9 Bscf and 3.1 MMstb. The company has a fairly undemanding set of work commitments and I expect that they will easily pass through them as they re-initiate production in this area.

The RRDSL acquisition gives Range a Trinidad based fleet of modern drilling rigs, workover rigs and equipment that will reduce costs and provide ‘operational flexibility’ as well as expand its third party client base. We saw rig 19 ready to go onsite and I noted that the drilling manager had already made some very smart adaptations so that it could be used in tight locations with a smaller load of kit if needed, often the case here. Rig 16 is a more powerful rig and could easily be moved elsewhere in the Caribbean or nearby Latin America as it can easily handle a +13,000 foot drill, deeper than normal on Trinidad. We also saw a number of workover rigs either working or on warm stand-by all having been used recently either by Range or for other local drillers, the fleet is more modern than almost anything in the region and whilst margins could be better will provide very useful ‘flexibility’ as they say.

On the numbers things are also looking up, there is a 77% reduction in pre-tax losses to $8.5m, revenues are up 39% to $5.4m and with opex down 14% to $34.50 a barrel and G&A down 40% things are moving in the right direction. Cash is $10.9m down after recent spending and for the first time in a while the CFO hasn’t had to report an impairment charge.

It has been a long haul but much went on when the shares were suspended last year, as the operational success in Trinidad continues, Indonesia starts to see some action and RRDSL gets some 3rd party work should easily see Range be back on the right road.

RockRose Energy

RRE has commissioned ERC to evaluate existing upside potential for the Blake field and its nearby Tain satellite discovery ‘with a view to inform FID on Tain development’. RockRose has also commissioned Crondall Energy to review the FPSO options on the Blake and Ross field where options are to either replace the vessel or to to extend the life of it.

The interesting point of this announcement is to point out that whist RRE continues its policy of acquisition driven growth it has also seen upside potential through organic growth. The last time I spoke with the management they pointed out that the life of every asset that they owned has been pushed out by at least a year by the operator since acquisition thus giving yet more value to shareholders, what’s not to like…

Lamprell

An update from Lamprell today that indicates that all is going well at the JV in Saudi Arabia and that IMI is now fully in business. Construction is underway at the maritime yard at Ras Al Khair for which Lamps has already paid its initial cost of $20m of a total of $140m. Things should really start to motor for the company as ARO drilling are committed to ordering 20 jackup rigs from the yard over the next ten years, whilst construction is underway ‘significant component parts of the first 2 rigs are expected to be subcontracted to Lamprell’s UAE facilities’.  This announcement is very important in that it looks like any lingering doubts about the JV should now be dismissed. As for current trading that is a different thing altogether to be discussed at the forthcoming results meetings…

And finally…

The draw for the Quarter Finals of the Champions League has been made and – you’ve guessed it the Noisy Neighbours and the HubCap Stealers have been drawn together….

This weekend we are back to the FA Cup QF’s in which the Swans host Kane-less Spurs and the Seagulls go to the Theatre of Nightmares and after the Sevilla disaster they must feel they have every chance. On Sunday the Latics host the Saints and Chelski go to the Foxes.

The last round of the Six Nations is tomorrow with Ireland expecting to celebrate St Patrick’s day with a win over hapless England at Twickenham. Elsewhere Italy host Scotland and Wales host France.

My Moto GP correspondent informs me that the new season starts this weekend under floodlights in Qatar..

And of course, saving the best until last this afternoon sees the Cheltenham Gold Cup, the blue riband event of the jump racing season.

 

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https://www.oilcapital.com/columns/the-pay-zone/29498/oil-price-savannah-petroleum-ceo-interview-and-finally-29498.html Oil price, Savannah Petroleum-CEO Interview And finally... https://www.oilcapital.com/columns/the-pay-zone/29498/oil-price-savannah-petroleum-ceo-interview-and-finally-29498.html Thu, 15 Mar 2018 10:27:00 +0000 WTI $60.96 +25c, Brent $64.89 +25c, Diff -$3.93 n/c, NG $2.73 -6c

Oil price

A modest rally yesterday with some good and some bad news in the market. The good news was the announcement that February Opec production fell again, this time to 32.2m b/d which is indeed impressive even if Venezuela continues to involuntarily help out the cause.

The EIA inventory stats were, as expected here, poor, this time of the year US refineries are not falling over themselves to buy crude during routine seasonal maintenance and the 5m build was twice what the teenage scribblers expected. However, the American driver always comes to the rescue and any signs of Spring tempts them into the gas guzzlers and gasoline demand rocketed, drawing 6.2m barrels the highest for many months.

Savannah Petroleum- Andrew Knott interview

Yesterday on Core Finance in my CEO interview I spoke with Andrew Knott of Savannah Petroleum. This was an interview I had been waiting for for some time, indeed pretty much since the Seven Energy deal was announced. Now that the deal is almost complete Andrew kindly shared some time with me to answer some of the key questions that arise from that deal, as well as the resumption of the drilling programme in Niger which was halted whilst the shares were suspended.

The link to the interview is below and I think that is gives some very strong support to my view that the acquisition of the Seven assets along with the impending drilling campaign in Niger will be highly beneficial to Savannah shareholders.

Core Finance CEO interview: Andrew Knott of Savannah Petroleum

And finally…

In the Champions League Chelski had it all to do away in Barcelona and when King Lionel scored in the 3rd minute it just got that much harder. Antonio Conte said afterwards that the result was ‘unfair’ but the little maestro made all the difference.

In the Boropa Cup tonight the Gooners host AC Milan and you would have thought that even Wenger’s men can’t mess this one up….

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https://www.oilcapital.com/columns/the-pay-zone/29491/oil-price-cairn-energy-and-finally-29491.html Oil price, Cairn Energy And finally... https://www.oilcapital.com/columns/the-pay-zone/29491/oil-price-cairn-energy-and-finally-29491.html Tue, 13 Mar 2018 09:41:00 +0000 WTI $61.36 -68c, Brent $64.95 -54c, Diff -$3.59 +14c, NG $2.78 +5c

Oil price

As I mentioned yesterday crude oil was marked back first thing and never recovered, probably ahead of an uncertain week of inventory stats. At this time of year analysts are usually over optimistic as they miscalculate the effect of refinery maintenance so lets see what the API and EIA say before getting carried away.

Cairn Energy

Full year results from Cairn this morning which contain no great surprises, nor should they in this era of constant updates from companies. The statement is primarily about Senegal and so it should be as so much is going on there at the moment. Much work is under way with tenders out for the FPSO and subsea infrastructure and the FEED is set to commence 2H 2018. Change of operatorship is now scheduled for 2H as well which has presumably been pushed back until after the arbitration case has been settled.

The exploitation plan is set for submission in 2H 2018, to be followed by the FID. First oil is still aimed at 2021-2023 which is a wide range but clearly dependent upon various unknowns. Cash is only $68m although the potential  RBL pot is very substantial but may be needed given the development expenditure required for Catcher and Kraken, Senegal and the exploration budget. Having said that and given the potential substantial increase in revenues to come the financial position is strong. I shall not bang on about it much more but I still believe that a partial sale of Senegal was, and probably still is, a live and wise option for Cairn as they look at the bills running through to first oil, potentially still five years away. Nevertheless Cairn is in a strong position, in charge of its own destiny, financially sound and with a portfolio of exciting prospects.

And finally…

Last night the Noisy Neighbours went one stage closer to claiming the title with a 0-2 win at the Potters who are  not that safe at the moment. Tonight Sevilla visit the Theatre of Dreams in what should be a proper, old fashioned night of European Cup football.

But most of all today sees the start of the Cheltenham festival and for the first time in heavy conditions so none of these lightweights trotting up with the sun on their backs…With 250,000 visitors and £350m to be wagered, never mind all that Guiness that won’t drink itself punters headed for the  course will have a great time

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https://www.oilcapital.com/columns/the-pay-zone/29484/sdx-energy-pantheon-resources-29484.html SDX Energy, Pantheon Resources https://www.oilcapital.com/columns/the-pay-zone/29484/sdx-energy-pantheon-resources-29484.html Fri, 09 Mar 2018 14:43:00 +0000 SDX Energy

Heading home and have spotted the announcement from SDX which details a gas discovery at the SAH-2 well on the Sebou permit in Morocco. This makes a success rate of 5/7 and here the company found 5.2m of net conventional natural gas pay across two zones in the Guebbas and Hoot formations with a porosity of 33%. The well came in on prognosis but the reservoir thickness was above pre-drill expectations. The well benefited by being the first time that the company has used downhole directional tools and it penetrated two targets with a single well bore. I hope to add to that after speaking to Paul Welch on my return.

Following my trip to Morocco I certainly came away even more positive about SDX if that was possible and this news is very encouraging in terms of the plan to increase production to 8-10 MMscf/d by the end of this year. With costs extremely low and gas prices increasing towards $10 and then $12 the outlook for the company is extremely bright as they move to Lalla Mamouna for two exploration wells.

Pantheon Resources

In the lounge and running out of time I have just seen the PANR announcement. I will cover in much more detail on Monday when I have spoken to Jay but I am highly encouraged by the news. Clearly there are some mixed messages but at the 5 well it looks very promising and they appear to be getting to the bottom of the seemingly endless operational problems at VIBM#1. Over at the 4 well the sidetrack has been non-commercial but they may re-enter with a horizontal lateral. News that two separate US groups have approached them to explore possibilities in the Wilcox is very promising indeed. More on Monday when I return home and speak to Jay….

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https://www.oilcapital.com/columns/the-pay-zone/29477/ophir-energy-premier-oil-29477.html Ophir Energy, Premier Oil https://www.oilcapital.com/columns/the-pay-zone/29477/ophir-energy-premier-oil-29477.html Thu, 08 Mar 2018 14:15:00 +0000 Ophir Energy

I spotted Ophirs figs from my hotel yesterday and am looking stone wrong on this one after a reasonable set of figures were hijacked again. So, reserves up (13%), funds flow from production up (46%), reduced G&A(17%), increased liquidity (57%) and delivered NAV growth (6.4%).

But, and it’s a big but, no delivery of Fortuna which is ‘a priority’ I bet it is….. Otherwise it all looks ok as they are well enough funded, subject to no Fortuna nightmares and Bualuang and Kerendan fields are set to do the job and despite a much reduced exploration budget opportunities still exist in Equatorial Guinea (Yes!) and Mexico.

I met with Nick Cooper a couple of months ago and came to the conclusion that my long held bearish stance should be reversed, how wrong I was but I still believe that I did it for all the right reasons and am now in no mans land. The good thing is that Nick has agreed to come on my CEO interview slot on Core Finance in a couple of weeks and chat about Ophir, watch this space…..

Premier Oil

Results today from Premier who have confirmed all that we already know which is what finals are all about, the day that something new or unexpected turns up it’s time to worry.

Production wise it’s 75/- boepd (71,4) and Catcher came on stream on time and under budget at Christmas and will deliver a small present by eventually producing 60/- boepd. Thus guidance is a very conservative 80-85/- boepd but then these are promises made to be broken.

Elsewhere, Tolmount funding has been secured in an innovative way as befits a company with $2.7bn of debt and the impressive Zama discovery in Mexico (600 mmbbls gross) is still on the books and will see appraisal drilling 2H of this year. In SE Asia demand for gas has been strong especially in Indonesia from Singapore buyers and Vietnam also saw impressive operational performance. Prices remain solid if flat but the days of big highs and low lows appear to be over.

Sea Lion, I knew you would ask about that but nothing has noticeably changed although much must be going on behind the scenes. Discussions are still continuing with senior debt providers and supply chain contractors to ‘secure suitable funding and commercial terms’. All this adds up to a FID ‘ by the end of 2018 which smacks of further dawdling in the hope that the fairy godmother pitches up with a wad of cash. The scenario however remains the same, on the one hand the ‘senior debt providers’ they mention are unlikely to have their hands out proffering cheap moolah but on the other, as Prems point out, SL is the company’s largest pre-development project and by, say, 2023 if sanctioned would be a meaningful part of the business. With a decent combination of senior debt and a host of lower debt and supply chain contributions it should go. Rocks and hard places come to mind but to me the bottom line is clear, the economics of the project have got significantly better and at $60 ish it must be a runner, also whilst not really wanting to lend any more PMO is in my view dependent on the Falklands and the sooner they get on with it the better.

Financially the company report disposals of $300m in the year which is a tiny step but of course is how all journeys start. Reserves and resources are 902 mmboe (835) with opex of $16.4/boe being an impressive show of work in the last three years.

So, where does that leave us, in my view in a surprisingly good position looking forward over the next five years or so. Cash flow at say, $65 could finance and even reduce  debt substantially, deliver the key projects and have a company with 100/- bd of production to feed those hungry mouths. Premier therefore stays in the bucket list and I have Tony Durrant back in my CEO interview slot in a few days time, we shall what he can add to today’s numbers.

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https://www.oilcapital.com/columns/the-pay-zone/29464/trinity-exploration-production-29464.html Trinity Exploration & Production https://www.oilcapital.com/columns/the-pay-zone/29464/trinity-exploration-production-29464.html Tue, 06 Mar 2018 11:49:00 +0000 Trinity Exploration & Production


Another blog from far flung lands will keep you informed from Trinidad .


2017 financial highlights from TRIN this morning which I’m glad to say are in line with my expectations with operating profits up 74.6% to $11m (6.3) and more importantly in my mind operating margins of 24.3% (17.7), this is equal to $12 pb (6.7) and reflects the positive nature of my most recent comments. TRIN has reported ‘robust’ breakeven costs of $30.9 pb and has cash of $11.8m and net debt of $0.1m. Also, cash due to the Inland Revenue and the Energy Ministry is down substantially and below the amount envisaged in the ratified payment plan.
2H production growth was 10.2%, a very impressive figure wherever you are coming from and reflects excellent operational work with work overs, re activations, swabbing and re completions in full swing. Current production short term production targets are 2,800-3,000 bopd which augurs well for the future.
Trinity’s attraction has always been that it is set up to be a low cost, high margin play and with further onshore drilling to come will give the medium term production, as if it needed it, further growth.
CEO Bruce Dingwall says that 2017 was a ‘transformational year’ and that the ‘r’ word (restructuring ) has now been retired to the lexicon which is good to hear. Investors can now expect a scaling up and as he says, spinning off the flywheel by leveraging up the P&L to enable longer term growth to kick in.
Trinity has an enviable production growth already and increasing that at the margins they expect

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https://www.oilcapital.com/columns/the-pay-zone/29454/oil-price-amerisur-frontera-sundry-saffron-rkh-jog-eco-president-rbd-and-finally-29454.html Oil price, Amerisur, Frontera, Sundry-Saffron-RKH-JOG-ECO-President-RBD- And finally... https://www.oilcapital.com/columns/the-pay-zone/29454/oil-price-amerisur-frontera-sundry-saffron-rkh-jog-eco-president-rbd-and-finally-29454.html Fri, 02 Mar 2018 15:54:00 +0000

WTI $60.99 -65c, Brent $63.53 -90c, Diff -$2.84 -25c, NG $2.70 +3c

Oil price

Oil will end the week down after a series of events but mainly due to the EIA inventory stats that surprised the teenage scribblers that pass for analysts on Wall Street. If they had been around last year or the one before that, or the one before that they will have remembered that as we approach March so does the Spring maintenance season and with it a fall in refinery runs and thus demand for WTI. The rise in gasoline stocks by 2.5m was also a surprise for the market but at least distillates drew.

Amerisur Resources

Monthly production numbers from AMER were almost  in line with expectations, a daily average of 6,749 bopd with a peak of 6,960, whilst the OBA saw 5,424 and 5,939. These numbers are down slightly but only temporarily, due to a workover on Platanillo-6 which will take around 300 bopd off the schedule until the middle of March.

The company has also announced that on 20th of February the 2 millionth barrel went through the OBA, this was a saving of $20.3m in the fifteen months of operation. With the OBA costing $18m to build and reducing transport costs from $14.05 to $3.90 and operating opex of $15 per barrel,  the pipeline has paid for itself after just 15 months of operations and is set to increase the cost savings as production from the Putumayo increases.

At anything over $60 Amerisur is making proper revenues and it needs not many of its dozen planned wells to come in to increase that number by a meaningful amount. It would not be beyond the realms of possibility to assume that the company might decide to do what the market has failed to do recently and reward shareholders who have been more than patient.

Frontera Resources- Georgia on my mind…

I have recently visited Georgia where I met with all levels of local management and also spent a day visiting the operations at the Taribani field including the currently operating T-45 well. I will write more about my time with the company when this well has completed and the final details are known but my visit was perfectly timed as every sign is that this well, and therefore quite possibly all three in the programme, may have a meaningful implication for both FRR and Georgia.

Tuesday’s announcement from T-45 was in itself very positive with news of the completion of open hole well logging which had deepened the well to 2,700m. The oil stained cuttings at 2460-2475m were confirmed to be within a 14.9m combined pay interval of Zone 13, further good news. This is a further developed pay section in addition to the original Zone 9, 14 and 15 targets and it should be remembered that Zone 13 was not included in the base case when the reservoir modelling was done.

The casing should now have been set and I would expect the rig to be de-mobilised in the next few days so that the well can be perforated and the frac job can be started, after which time production can be ascertained and oil from the appropriate zones can be co-mingled and brought to surface. Although nothing can be taken for granted at this stage, it is clear that very ‘live’ oil flowed back in substantial quantities with the mud and that it is therefore highly likely that this well has indeed exceeded management’s expectations.

Sundry

In my absence this week a number of companies have made announcements, here are the highlights.

Saffron Energy updated the market on its progress in SE Asia and announced that it was withdrawing from the PO Valley acquisition. In the former the company says that it is ‘reviewing and negotiating a number of substantial and highly prospective opportunities in SE Asia that are consistent with its multi-TCF exploration strategy’. In the latter it appears that the deal has been called off ‘at mutual agreement’ due to regulatory and tax issues and to avoid upfront dilution.

Rockhopper updated on its Greater Mediterranean portfolio by announcing improved production from Abu Sennan with net to RKH production of 880 boepd. Pricing here is good with local realisations a small discount to Brent. A four well programme is planned this year across Abu Sennan and El Qa’a Plain. Finally Egyptian receivables have been significantly reduced with all liabilities to Beach Energy now satisfied.

Jersey Oil & Gas has announced that a rig contract has been signed for the Verbier appraisal and it and potentially a sidetrack will be drilled this summer. Starting from a base of 25-130m barrels of oil equivalent there must be huge potential upside for JOG which carries none of this in the current share price. Any validation of nearer the top of this range would surely move that price by a significant amount.

Exxon has announced a 7th significant discovery offshore Guyana at its Pacora-1 well. Eco Atlantic was quick to point out that this was the closest well to their own Orinduik block and that Exxon has signed up a second rig for exploration in the area.

President Energy announced this week that it was to obtain a secondary listing on The Bolsa de Comercio de Buenos Aires, the Argentinian Stock Exchange. Being an Argentinian listed company as well  will help significantly attract investors both institutional and private who are looking for high growth companies operating in country.

Reabold Resources has announced that it has raised up to £7.33m at 0.6p to exploit a number of opportunities that ‘have the capacity to provide significant returns on investment’. Whilst I was expecting a much larger raise I understand that new institutional shareholders have come in and existing ones have stayed. With the company’s determination to maintain price discipline and with the ability to pick and choose its investments over the coming months they decided not to accept what was a long order book at lower prices.

Link

My recent Core Finance CEO interview with Edward Bowen of EPI Group was in the bucket list edition of the blog, for those who missed it I am putting the link below.

Core Finance CEO interview: Ed Bowen of EPI Group

And finally…

The Gooners must be sick of the sight of the Noisy Neighbours but equally aware of their generosity of stopping after just three goals when they meet. On Sunday the next fodder will be Chelski who visit the Etihad, the Gooners meanwhile visit the Seagulls who should provide some respite…Spurs host the Terriers which should be straightforward as should the HubCap Stealers who entertain the Magpies. The Swans host the Hammers and Burnley entertain the Toffees whilst the Red Devils visit the Eagles on Monday night.

 

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https://www.oilcapital.com/columns/the-pay-zone/29406/oil-price-frontera-resources-and-finally-29406.html Oil price, Frontera Resources And finally... https://www.oilcapital.com/columns/the-pay-zone/29406/oil-price-frontera-resources-and-finally-29406.html Tue, 20 Feb 2018 10:49:00 +0000 Oil price

IP Week started more with a whimper than a bang, what with the US shut for GW’s birthday it seemed that traders were focused more on the cocktail circuit than the oil price. That combined with WTI for March expiring (price above is April) and the Chinese New Year also claiming numbers, trading was always going to be a bit thin. As it was the Opec Secretary General rode to the rescue announcing adherence of 133% which did the trick and oil dutifully rose.

The sight of the first ever fully laden VLCC leaving port in Louisiana with US crude destined for China was, if only for historic reasons, most interesting. The fact that the ship was Saudi registered maybe ironic, but another first was such a ship coming into and leaving a US port fully loaded shows how US import/export trade in crude oil has changed lately. With the trader being Royal Dutch Shell and the buyer being Sinopec it was a right little international event….

Frontera Resources

News from T-45, the first of a three well drilling programme at the Taribani complex in Block 12 in Georgia where TD has been reached at 2,700m in the Eldari formation. A lot of news was crammed into the RNS, multiple oil and gas shows were found most notably as follows. Oil stained cuttings were found at 2,460-2,475m in zone 13 with a formation gas kick at 2,535m in zone 14 reducing mud weight materially indicating a highly charged hydrocarbon formation.

Gas was detected at surface while drilling at 2,565-2,575m in zone 14 and ‘significant gas shows’ were recorded between 2,630-2,650m in zone 15. Here they also had a major gas kick at 2,633m after which they initiated hydrocarbon flowback operations which resulted in 383 b/d of flowback with bottom hole  pressure of 7,500 psi being recorded. Further down they were to encounter oil shows with associated gas and a ‘significant’ gas kick between 2,685-2,695m with psi of 7,800. Next stop wireline logging and analysis until which the company correctly caution initial indications should be treated with caution.

CEO Zaza Mamulaishvili said that ‘very encouraging early indications of a highly charged hydrocarbon formation are an exciting opportunity to develop zones 14 and 15 of the Eldari formation’ whilst of course the already proven zone 9 has considerable promise.

I am highly encouraged by these results and whilst they are only preliminary, feel that this well has made significant progress which may well be borne out by testing. I am looking forward to visiting the site next week and meeting local management, I couldnt have picked a better time and remain very positive about Frontera where the current price is tiny compared to the potential if this campaign is successful.

Link

Here is the link to my Podcast from yesterday.

VOX Markets podcast: Malcy covers Hurricane Energy, Faroe Petroleum, Saffron Energy, Reabold Resources, United Oil & Gas, Upland Resources and Baron Oil

And finally…

The latics did what most Premier sides have failed to this season and beat the Noisy Neighbours 1-0 to get in the FA Cup Quarter Finals and a tie against the Saints. A right royal cup tie with a disputed sending off and scuffles in the tunnel.

Tonight its the Champions League where Chelski play Barca, ooh err…..

 

And thanks to all those who have kindly donated, Netty’s page is below.

https://mydonate.bt.com/fundraisers/annettegraham-wood1

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https://www.oilcapital.com/columns/the-pay-zone/29400/oil-price-zenith-energy-enquest-sundry-rockrose-baron-oil-and-finally-29400.html Oil price, Zenith Energy, EnQuest, Sundry-RockRose-Baron Oil- And finally... https://www.oilcapital.com/columns/the-pay-zone/29400/oil-price-zenith-energy-enquest-sundry-rockrose-baron-oil-and-finally-29400.html Tue, 20 Feb 2018 08:49:00 +0000 Oil price

Last week WTI was up $2.48 and Brent +$2.05, it didnt feel that good but the heavyweights came in from Opec and Non-Opec and lifted the gloom. The final piece in the jigsaw was the Saudi Energy Minister stating that they would prefer to keep the market short than the other way around, marginal barrel and all that as we have discussed. If that means what is says, and the agreement stays in place for at least all this year then it is realistic to assume some degree of consistency in the oil price.

The overall rig count on Friday was unchanged at 975 with oil units up 7 at 798, the US cannot be a swing producer or even decide the price of the marginal barrel the last time I looked…

Zenith Energy

An operational update from Zenith this morning where the workover programme in the Zardab Field is what can best be described as challenging. The Z-21 workover has seen the coiled tubing intervention successful but there is more to do and this should complete in April after new kit arrives in country in March. At the Z-28 workover, again much work has been completed, leaks have been sealed and the well cleared down to 3583m, but with the aim being to clear to 3944m that will be completed after the Z-21 when that kit is available.

The company has been upgrading its A-80 workover rig to increase its capabilities and will be able to use it much more regularly, this coupled with the recent purchase of the A-100 truck mounted rig in January, which is being constructed nearby, should arrive in late April.

The ESP upgrade programme has increased from 11 to 13 wells of which 7 have already been installed, these pumps uplift production and reduce downtime but there is a delay on the delivery of the next six units, accordingly Zenith has arranged another supplier with delivery in May. With current production of 350 b/d and a higher than expected natural depletion rate having been exacerbated by loss of wellbores in some primary targets, (due to uncemented casing collapsing) when rehabilitation starts there should be significant upside in production levels. Accordingly the production target of 1,000 b/d is still intact but now is planned for by this year end.

I met with COO Mike Palmer when I visited Zenith recently and he is a first rate operations man, he and his team have clearly learned a lot from this process where the workovers were not ‘as historical information had led us to believe but our view of the quality of the geology and the opportunity presented by these wells remains unchanged’. With a good quality team and plenty of new kit, these recent problems should soon be behind them  and are of ‘little material consequence when considering the longer term, very significant, prize at hand, and the broader picture of our profitable oil production activities in a field with vast, untapped oil reserves’. It is for these reserves that I believe will mean that Zenith should be able to deliver the goods in the coming months.

EnQuest

An update from EnQuest today that some people thought might not happen….The news is unsurprisingly getting better, production last year was 37,405 boe/d and with Kraken steaming ahead guidance for this year is 50-58,000 some 33-55% up. Kraken was 35/- bop/d in January and is on track for its 50/- bop/d target and producing much needed cash flow, even debt is starting to be paid down, net debt is now $1,989m.

Sundry

After my mistake last week RockRose really has returned to the market today and has traded between 340-390p which is a very pleasing result for backers.

A very interesting move by Baron Oil who have taken an option to farm into the North Sea block that contains the very exciting Wick prospect. Drilling here is expected to be in September of this year at a cost of £4.2m, Baron are paying 20% of well costs plus £6,500 of back costs for a 15% interest in the licence.

The Market Timing Report

I thought that this offer, exclusive to blog readers might be of some interest. I have subscribed to this service for over two years and find it an invaluable help, as an amateur chartist you will understand, very much worth a look. Andy Pancholi of Cycles Analysis has kindly offered to continue this one-off deal for readers of the blog. 

‘Covering Oil, Gold, S&P500 Dollar Index and EURUSD, The Market Timing Report does “what it says on the tin” –  gives you key timing points created from our proprietary cycles system. This allows traders and investors to get an edge on when markets are likely to turn. The MTR has been forewarning readers that a large equity pullback was due- the dates were as given on the chart. Were you prepared?’

The Market Timing Report covers a whole host of topics from geopolitical affairs to the technical position of the markets.

Try the report now and you will receive the current February Edition, last months 2018 Special Edition COMPLETE with a 28 day money back guarantee – no questions asked! All for $97!

https://ws227.isrefer.com/go/MTR-ONEOFF/MGW/

www.markettimingreport.com

 

Marathon

Here is a message from my lovely wife Netty who is for reasons best known to herself running the London Marathon, again in April. Any donations would be really appreciated and your previous years kindnesses are not taken for granted!

I am running the Virgin London Marathon on 22nd April 2018 in aid of the Lords Taverners, giving disabled and disadvantaged children a sporting chance.

https://mydonate.bt.com/fundraisers/annettegraham-wood1

And finally…

The FA Cup provided few surprises at the weekend, Spurs only drew at Rochdale so a replay there and a tie with the Owls or the Swans who drew. Chelski and the Foxes both won on Friday and play each other next, the Red Devils beat the Terriers and now host the Seagulls who beat the Sky Blues. The Noisy Neighbours are at the latics tonight and the winner gets to play the Saints.

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