3Q19 results behind consensus, focus remains on debt repayment and forthcoming maturities

Petrus reported 3Q19 results which largely trailed expectations, as sustained commodity price weakness once again saw the company defer drilling activity in favour of $2.1 mm of further debt reduction. With development drilling pushed until late in the quarter, declines took down corporate production to 7,785 boe/d, 8% below both GMPFE and consensus expectations. Further exacerbating the above, weak top line natural gas and NGL pricing led to FFO generation of $4.4 mm ($0.09/sh), well below the

2Q19 results slightly ahead, grinding away at debt repayment

Petrus reported 2Q19 results which were slightly ahead of consensus estimates, as a continued focus on balance sheet fortification saw the company avoid the drill bit in favour of $5.8 mm in net debt reduction. Production of 8,647 boe/d was in line, while funds flow of $8.4 mm ($0.17/sh) was ahead of GMPFE estimates of $0.15/sh, as the negative impact of commodity price deterioration was muted by reduced cash costs and stronger liquids volumes. The company received approval for a 3Q19 capital pr

Announces 1Q19 results, liquids focus continues to unfold

Petrus reported 1Q19 results which were in line to modestly ahead of consensus estimates, with this quarter delivering higher oil weightings and excess FCF for the duration of the year.

Increased liquids weighting driving higher value for production/reserves exiting 2018

With the arrival of 4Q18 operational/financial results, and year-end 2018 reserves, we are transferring coverage of Petrus Resources.

Second Quarter Results In Line with Expectations, No Changes to Outlook

Petrus Resources second quarter results carried no surprises with production, cash flow, and capital expenditures all tracking our estimates. In addition, Management reiterated its 2H16e capital program that will continue to see development focused on its Ferrier Cardium asset. Recall subsequent to quarter-end the Company sold its assets in the Peace River area of Alberta to shore up the balance sheet. With no meaningful changes to our forecast we maintain our Outperform ranking and $3.25 per sh

ANNOUNCES SECOND QUARTER RESULTS

Impact - neutral with second quarter results in line with our expectations and no change to 2H16e guidance

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 $30 mm Disposition of Peace River Assets, Updates 2016e Spending Forecast

Petrus announced the disposition of its oil weighted Peace River assets for total proceeds of $30 mm, including $29 mm of cash and 1 mm shares of the acquirer at a deemed price of $1.00 per share.

ANNOUNCES $30 MM DISPOSITION OF PEACE RIVER ASSETS, UPDATES 2016E SPENDING

Impact: Slightly positive, as Petrus has disposed of a higher operating cost asset that was attracting minimal capital and will redirect proceeds to improve financial flexibility and drill additional wells targeting the Cardium at its core asset at Ferrier.

First Quarter Results, Bank Line Reduced

Petrus Resources’ first quarter production was reasonably in line with our expectations, although cash flow for the period came in short of our thinking.

ANNOUNCES FIRST QUARTER RESULTS

slightly negative with cash flow trailing our forecast, while the Company's credit facility has been reduced by $40 mm

Reports Year-End Results

Petrus Resources fourth quarter results were in line in terms of production figures, although trailed our thinking on a cash flow basis on the back of higher royalties and cash costs. Year-end reserves were reasonably in line with expectations given a mid-year update. Management reiterated capital spending plans that will see $11 mm spent in 1H16e to drill 4 (3.6 net) wells. We have updated our forecast and NAV methodology based on year-end results, while also incorporating the impact from our l

ANNOUNCES YEAR-END RESULTS

Impact - neutral with year-end financials and reserves largely in line with expectations

Initiating Coverage on Petrus Resources Ltd.

Petrus Resources Ltd. is a Junior E&P company that recently entered the public realm through the acquisition of all outstanding shares of PhosCan Chemical Corp., a TSX listed company.

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

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

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

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.