Estimates updated with recapitalization approved, formalized 15-1 share consolidation

On November 26th, the previously announced recapitalization transaction was formally approved by both equity and noteholders. As a part of this transaction, 2x private placements were executed, raising gross proceeds of $46.5 mm through both equity subscription receipts (ESRs) and note subscription receipts (NSRs). In conjunction with the above, the maturity of its Senior Secured Notes has now been extended from July 15, 2021 to April 15, 2023. Further to the transactions, Delphi took the opport

Announces 3Q19 results; Focus remains on November 15th Recapitalization vote

 Delphi reported 3Q19 results which were mixed in nature, as production largely overlaid both GMPFE and consensus estimates, though both capex and FFO were subject to non-recurring items that muddied the quarterly results.  Production was reported at 8,386 boe/d, in line with both GMPFE and consensus estimates of 8,404 boe/d and 8,443 boe/d, respectively. Recall, declines took hold as the company’s syndicate imparted a $4mm capital spend limit through to the end of November 2019 as it worke

Drilling to recommence in 4Q19, volume additions to follow early in 2020e

Delphi reported 2Q19 results which largely lagged expectations as funds flow of $12.0 mm ($0.06/sh) missed both GMPFE and consensus forecasts of $14.6 mm ($0.08/sh) and $13.5 mm ($0.07/sh), respectively. Having wrapped up its winter drilling program in 1Q19, capital expenditures were a scant $4.4 mm, and were primarily directed towards completion operations of the 13-34 West Bigstone pad.

FLASH: CFO leaving the company

Mr. Mark Behrman, CFO, has left the company to pursue other opportunities after tending this post over the last two years. The company has initiated an executive search with a replacement expected to be identified as soon as reasonably possible.

Monetizes unutilized Alliance Capacity, LOC review pushed out pending new well results

Delphi announced it has entered into a binding agreement to sell 16 mmcf/d of its firm service to the Chicago area on the Alliance pipeline system (~35% of original capacity) for proceeds of $11.9 mm.

1Q19 results

Delphi reported 1Q19 results where production of 8,759 boe/d was below both GMPFE and the Street at 9,317 boe/d and 9,087 boe/d, respectively.

2018 reserves showcase West Bigstone extension

Delphi released its 2018 reserve book, one which appeared positive on the surface, with PDP, 1P and 2P reserves increasing by 1%, 17% and 27%, respectively, highlighting an expanded economic footprint in West Bigstone. However, with increased debt funded spending in 2018, including 4Q18e’s $15mm capital increase, these same markers degrade to -38%, -29% and -22%, respectively, on a per share, debt adjusted basis.

Announces $15 mm increase to 2018 capital program; Luminus tops up 10% secured notes

Delphi has drilled and completed 4x (2.6 net) wells of its 5x well 2H18e drilling program. 3x of the wells are now on production, with the 4th expected to follow suit later this month.

2Q18 results match expectations

With production pre-released to the market at ~10,600 boe/d, cash flow of $14.7 mm ($0.08/sh) overlaid GMP FE and consensus forecasts, as lower realized pricing was more than offset by cash costs coming in better than expected.

Announces successful West Bigstone test; Provides operational update

Delphi announced the conclusion of its winter 2018 capital program, highlighting the successful drilling of 4 (2.6 net) wells, and the further completion of 7 (4.6 net) wells. Activity included the testing of its first West Bigstone well in six years, where a strong final 24 hour test rate of ~2,928 boe/d (64% liquids) showed early indications of a solid well. This strong showing, in conjunction with the company’s most recent Central Bigstone IP30 of 1,828 boe/d (62 %liquids), offers a positive

2Q16 Hit With Unplanned Outages, Improved Outlook for 2H16

Delphi reported 2Q16 results that were behind our production and cash flow estimates. Operations during the quarter were materially disrupted by a one month outage at the SemCAMs K3 gas plant. Operations are now on track in 2H16e with corporate volumes back in the 8,500 boe/d range. Ideally, the Company now expects to exit the year at a rate up 500 boe/d from prior guidance at the midpoint. While cash flow is up 20% on higher anticipated 2017e production, we have left our target price intact at

2Q16 RESULTS MISS EXPECTATIONS

Impact: Negative. Production was materially lower in the quarter given third-party facility downtime, which significantly impacted cash flow generation.

2Q16e Quarterly Preview

Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly rev

ANNOUNCES INCREASE AND PRICING OF OFFERING

Impact - slightly positive as the increased offering will provided additional financial flexibility over the nearterm in the context of the Company's revised credit facility, although will result in a modest increase to our forecasted interest expense

Delphi Energy Announces Notes Offering, Reduction to Bank Line

Given challenging market conditions, Delphi’s bank line is being reduced and replaced with what we assume will be higher cost debt. In the event the senior notes offering does not close by the end of June then the Company will be in default of its senior credit facility. The Company is looking to issue $40 mm of senior secured notes, effectively terming out some of its debt structure, while the Company’s bank line will be reduced by ~35% to $85 mm leaving a limited amount financial flexibility

Jubilee Metals - Operational Update Q3 FY2024

Jubilee today reports its Q3 and third quarter operational results from its expanding operations in Zambia (copper) and South Africa (chrome and PGM). South Africa is on a growth trajectory with record chrome production of 409kt in the quarter (Q2 FY2024 381kt) and a monthly record in March of 145kt and production YTD of 1.13Mt (0.94Mt). Jubilee is well underway to its annual target capacity of 2,1Mt/yr especially with the new 300kt/yr chrome plant at Thutse expected to be operational in August

Trinity Exploration and Production - Reserves Reduction but Solid Core Business

Trinity has announced a c28% reduction to its 2P reserves following a YE23 review. Despite the decrease in the Company’s 2P reserves, Trinity’s core business remains robust, with a reserves/production ratio of >12.5 years at YE23. Whilst there is significant potential for growth within the current portfolio, this will be difficult to unlock from the current balance sheet and we believe further financing will be required. We update our target price to 76p (from 202p), a c85% premium to the curren

Morning Note – 16 April 2024

Valeura Energy (TSX: VLE): Three exploration wells deliver three discoveries

• The Nong Yao-13 exploration well in the new Nong Yao D area that was targeting multiple zones has encountered >30 feet of new oil play across several new shallow intervals which have not been produced elsewhere on the concession. These reservoirs are believed to be recurring across the Nong Yao D area. • The drilling result confirms that oil has successfully migrated into this area of the block (a factor that was seen to be a risk in the Nong Yao D area) and open the opportunity for further a

I3 Energy (I3E LN) - Canada royalty assets sale

I3 has announced the sale of the majority of its royalty interests in Canada, for US$24.8m cash. This allows the company to fully repay amounts drawn on its debt facility and create a working capital surplus, giving I3 significant additional funding flexibility going forward

NextSource Materials - Initiation

NextSource is uniquely positioned to build a leading vertically integrated position, ex China, in the supply of Lithium-ion battery anode material which is essential for the Energy Transition. The company is commissioning phase 1 of its world-class Molo graphite mine in Madagascar and is in the final permitting process for its first Battery Anode Facility (BAF) to be located in Mauritius. The company is backed by Vision Blue, established by Sir Mick Davis, former CEO of Xstrata. On our calculat

Morning Note – 15 April 2024

DEC FY23 Results Update

DEC reported FY23 results which were in line with expectations and announced the acquisition of joint venture assets from Oaktree along with an updated capital allocation framework.

Oil & Gas - Cavendish sector note

Chariot, Energean, Touchstone Exploration, Longboat Energy, Hartshead Resources, BP, Helix Exploration, PetroTal, Pantheon Resources, Caspian Sunrise, Petrofac, DNO ASA, Valeura Energy, Aker BP, Var Energi Source: FactSet, weekly change 08/04/24-12/04/24 Oil rose as Israel braced for a possible attack from Iran, a development that would threaten major disruptions in a region that accounts for a third of the world’s crude output. An assault is expected to come as soon as the next 48 hours, which

Union Jack Oil (UJO LN) - Wressle update

Union Jack has released an update on its Wressle asset, reporting maturing production from Wressle-1, alongside progress for significant further development activities on the field going forward.

SP Angel . Morning View . Copper prices hold higher as China processing fees fall below $0/t amid low feedstock availability

PROGRESSIVE: Pharos Energy: Delivering on operations and balance sheet

Pharos Energy reported FY23 results on 27 March. Group net production of 6,508 boepd (FY22: 7,166 boepd) was in line with guidance, assisted by successful development drilling in Vietnam and exploration successes in Egypt. Pharos’s strong cash generation resulted in a stronger balance sheet, with net debt reduced to US$6.6m (from US$28.9m at the end of 2022) and cash balances totalling US$32.6m. This left the group free to return more cash to shareholders, including a 10% increase in dividends,

Union Jack Oil+ (UJO, House Stock at 23p) - Wressle update

Hunting (HTG LN) - Q1 2024 trading update

Hunting has released its Q1 trading statement, reporting a strong period for OCTG and Subsea, steady growth in Advanced Manufacturing, and a softening in Perforating Systems.

Union Jack Oil* (UJO LN) - Wressle update and dividend plans

Union Jack announced an operational update on its onshore UK Wressle field and confirmed plans to announce the payment of a cash dividend to shareholders along with the FY23 results in May. Wressle continues to deliver material revenues to the Company, generating positive cash flow and providing it with sufficient cash resources to fund shareholder returns and invest in new development projects.