Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on AFRICAN PETROLEUM CORP LTD. We currently have 8 research reports from 2 professional analysts.
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AFRICAN PETROLEUM CORP LTD
AFRICAN PETROLEUM CORP LTD
GMP FirstEnergy ― UK Energy morning research package
24 Nov 16
GeoPark Limited (GPRK US)1,6: BUY, US$6.50; expansion of Jacana oil field | Parex Resources (PXT CN)4 : Buy; C$24.00, Expansion of Jacana oil field | Canacol Energy (CNE CN) (not covered): New gas sales contract and production outlook in Colombia | Nostrum Oil & Gas (NOG LN)6; BUY, £6.00: Model roll forward & 3Q16 financial results | Sound Energy (SOU LN) (not covered): £24 mm raise & Tendrara flow rate onshore Morocco | African Petroleum (APCL NO) (not covered): Exits Liberia
Ophir farm-down deal complete
18 Mar 16
In December 2015, African Petroleum (APCL) announced it had entered into a farm-down agreement with Ophir Energy over its CI-513 licence area. On 10 March the transaction completed. This will trigger a payment of US$16.9m towards APCL’s back costs, provide it with a well-funded partner and is a vote of confidence in its asset quality. The deal was made possible by the flexibility shown by the Côte d’Ivoire government to make fiscal terms more attractive and the extended drilling timetable, which is important in the current macro environment. The cash payment will fund APCL to continue to farm down its other assets in West Africa, many of which are close to recent discoveries in Senegal and Mauritania. We await further deals and the probable announcement of drilling in 2017.
Farm-out signed with Ophir
06 Jan 16
African Petroleum (APCL) has announced it has entered into a new PSC with Ophir Energy on its CI-513 licence area, Côte d’Ivoire. Ophir will take a 45% interest in return for a US$16.9m contribution towards APCL’s back costs and paying an additional 10% towards drilling costs. Importantly, the PSC has also been renegotiated to reflect the current commodity price environment and outlook for deepwater developments. This has resulted in an extension of the minimum work commitments (a well is now required within two years), adjusted fiscal terms and holding costs. The involvement of a company of Ophir’s size is a vote of confidence in the acreage, which contains Ayame West, a prospect with mean unrisked resources of 800mmstb across a number of horizons.
OPHIR ENERGY ACQUIRES 45%WI IN CI-513 IN COTE D'IVOIRE FOR US$16.9 MM AND A 10% NET CARRY
21 Dec 15
Market reaction: Very positive. Just based on Cash, this would value Block-513 at US$33.8 (100% WI), in line with our valuation for the asset at US$34 mm (about NOK0.25 per share). This excludes the small (10%) carry component. This transaction is also boosting African petroleum balance sheet by US$16.9 mm.
Equity placement completed
22 Oct 15
APCL has completed the private placement, raising NOK16.5m (c $2m). This capital injection allows the company to continue to fund itself, while finding partners for drilling across its extensive offshore African portfolio. The previously announced farm-down of an interest in CI-513 continues to progress, with completion expected following negotiation and government approval. The company is also in advanced discussions with several interested parties across the Senegalese and Gambian licences. Industry interest has been piqued by exploration success in Senegal (Cairn/FAR) and Kosmos (Mauritania) and we are hopeful of successful deals.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
01 Nov 16
Since our last outlook note, Quadrise has begun to supply MSAR for extended LONO sea trials, paving the way for commercial adoption from calendar H217 onwards. In August it signed a memorandum of understanding with clients in the Kingdom of Saudi Arabia (KSA), which is a key enabler for progressing the production-to-combustion pilot there. In October it completed a placing and open offer raising a total of £5.25m (gross). This should enable it to transition comfortably to the commercial phase on successful completion of the LONO and KSA trials.
Dividends reinstated; is it time to turn (more) optimistic?
08 Dec 16
Glencore continues to surprise the markets, earlier with its fast pace of asset disposals and now with the reinstatement of dividends. The following were the key details shared with investors in a meeting held on 1 December 2016: 1/ completed $6.3bn of asset disposals; 2/ reduced net debt (including readily marketable inventories) by $12.5bn over the last 18 months; 3/ reiterated trading’s 2016 EBIT guidance towards the upper end of the $2.5-2.7bn range; 4/ expects healthy annualised 2016 free cash flows – even at Q1 16 commodity price lows; at 2017 forward prices, FCFs are guided to be $6.5bn; 5/ dividends would be reinstated from 2017 – with $1bn to be paid in two equal tranches in H1 and H2; thereafter (i.e. 2018 onwards), $1bn would be a fixed annual dividend payment (banking on the stability of trading’s cash flows) plus a minimum 25% of FCFs from industrial activities. Production guided to grow Source – Investor Presentation December 2016 While copper would be negatively impacted by the end-of-life impact at Alumbera and the Ernest Henry divestment, the output for all other commodities is guided to be higher (in varying degrees).
Conviction List Q4 2016
05 Oct 16
Since its inception in 2010, the Conviction List has outperformed the market in 13 of 18 periods and a reinvested Conviction List would have returned 255% against a Small Companies index that would have returned 130%. Our Conviction List returned 3.7% over the last quarter; this was set against the benchmark UK Small Companies index that returned 11.3% over the same period. Our Q4 portfolio reflects our outlook for a temporary sweet spot for UK growth during the second half of 2016. The downside risk from the uncertainty of the EU Referendum result has been countered by stimulus from the Bank of England, signs of a looser fiscal stance and an 18% YoY reduction in the Sterling Exchange Rate. Compressed corporate fixed income spreads continue to provide a valuation underpin for global equities.