AUCTUS ON FRIDAY - 19/04/2024

AUCTUS PUBLICATIONS ________________________________________ Tethys Oil (TETY SS)C; target price of SEK100 per share: Increasing further the size of the prize/Considering Algeria – The South Lahan area on Block 58 is estimated to hold 55-523 mmbl prospective resources (P90-P10 case) with a mean case of 251.8 mmbbl prospective resources across six prospects in the Ara Carbonate. Combined with the previously disclosed prospective resources of the Fahd area in the north-eastern part of Block 58, Te

Auctus on Friday - 02/02/2024

AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; target price of A$0.65 per share: Operations on track – 4Q23 production was 218 boe/d as Anshof did not contribute to production during the quarter (in line with previous indications). Commercial production at Anshof is expected to restart in March after the commissioning of a permanent production facility. ADX held ~A$8 mm in cash as at YE23. Drilling at the high impact Welchau-1 well targeting between 365 bcf an

Auctus on Friday - 10/11/2023

AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; target price of A$0.80 per share: Rig-up at Anshof-2 – The rig-up at Anshof-2 has commenced with an expected spud date of 11 November. XST (20% WI in Anshof) will not participate in the well. ADX and MND will fund XST’s share of well costs on 50:50 basis and will in turn retain the right to 60% and 40% respectively of production from the well unless XST opts to buy back into the well at a premium of 400% to the we

Auctus on Friday - 13/10/2023

AUCTUS PUBLICATIONS ________________________________________ Pulsar Helium (PLSR CN)C; target price of C$0.90 per share: Additional acreage should increase the size of the prize – Pulsar has signed a lease with a private mineral rights holder to expand the area of the company’s Topaz helium project. The additional mineral rights are within a 6.2 mile radius of the Topaz discovery and cover a total of 2,840 gross acres (1,049 net acres). This represents ~100% increase to the existing 1,040 net

Auctus on Friday - 30/06/2023

AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; target price of A$0.100 per share: Exploration portfolio update in Austria: larger volume, lower risk – The exploration portfolio in Upper Austria is now estimated to hold 213 mmboe of best technical prospective resources (previously 200 mmboe) in 20 prospects. The importance of the upgrade is as much about risk reduction as it is about resources increase. The expansion of the portfolio also provides new opportuni

Royal Helium: Steveville fully contracted with a 39% increase in helium price; Highly experienced board additions

Royal announced an offtake agreement with an undisclosed private North American corporation for the remaining capacity at Steveville. The term of the contract is three years, commencing on first delivery (no penalties for delayed start-up) and the price has improved by 39% from its previous contract with a space launch company signed in August 2022, demonstrating the strength and tightness in the helium market. The contract is priced at US$625/mcf net of all transportation and liquefaction costs

Royal Helium: Steveville Helium Plant Fully Funded

Royal announced binding commitment letters have been received and signed with the Business Development Bank of Canada and Canadian Western Bank for a C$15mm credit facility previously announced at a rate of 3% above the Prime Lending Rate (currently 6.7%) plus a revolving working capital facility of C$2.5mm at 2% above Prime at time when mezzanine debt would incur a rate of 15-20%. Royal also announced that following the receipt of the above commitment letters, the remaining conditions have been

Royal Helium: Attractive Debt Financing Funds Royal to First Production with Multiple Further Drilling Catalysts

Royal Helium (“RHC”) announced the signing of termsheets on 21st December for a six year non-revolving credit facility of C$15mm from the Business Development Bank of Canada and a “Schedule 1” bank at a rate of 3% above the Prime Lending Rate (currently 6.5%). Additionally, a revolving working capital facility of C$2.5mm at 2% above Prime at a time when mezzanine debt would incur a rate of 15-20%. The net proceeds will be used to fund capital expenditures related to the Steveville production fac

Auctus on Friday - 25/11/2022

AUCTUS PUBLICATIONS ________________________________________ Calima Energy (CE1 AU)C; Target price of A$0.60 per share: Market cap paid back in 2 years, even after incorporating higher differentials - Four wells out of the five well 4Q22 programme have now been drilled with two wells already in production. Gemini#10 is producing in line with the type curve (IP of 120 boe/d gross and 60 boe/d net to Calima 50% WI). Gemini #11 was put into production on 24 November while Gemini#12 will be brought

Auctus on Friday - 07/10/2022

AUCTUS ON FRIDAY: PEN NO, VLE CN, AEC NO/AFE CN, ALV CN, ANGS LN, CNE CN, CVX US, DME CN, ECO LN/EOG CN, ENOG LN, RBD LN, RHC CN, SEI CN, SENX LN, SHEL LN, VOG LN________________________________________ Please click here to access the financial metrics for Auctus' coverage universe AUCTUS PUBLICATIONS ________________________________________ Panoro Energy (PE NO) C; Target price of NOK50 per share: Commencement of drilling operations at high impact well in South Africa – Eco Atlantic has indica

Auctus on Friday - 23/09/2022

Southern Energy (SOUC LN/SOU CN)C; Target price of £2.70 per share: Initiating coverage – Southern Energy Corp. is a ~US$90 mm market cap US onshore gas E&P with ~3.4 mboe/d production and ~20 mmboe 2P reserves in Mississippi. With 2 bn bbl of oil and 10 tcf of natural gas recovered to date, Mississippi was one of the main hydrocarbon basins in the US until the 60’s when the industry moved to less mature areas, leaving several tcfs of gas resources behind. Without a commercial shale play and wit

Royal Helium: Doubling our Risked NAV on Improved Prospectivity and Higher Helium Pricing (amended)

We have updated our Royal Helium model on the back of the recent CPR, new helium sales contract, 3D seismic data on the Climax conventional prospects, the Nazare production modelling simulation and the Val Marie initial drilling results. We have increased our base case helium price by 13% to US$450/mcf from US$400/mcf (in line with the GLJ CPR estimate) as a result of the new contract that has been signed with a Space Launch company in the US. We see this as important as it provides external val

Auctus on Friday - 26/08/2022

AUCTUS PUBLICATIONS ________________________________________ Arrow Exploration (AXL CN/LN)C; Target price of £0.45 per share: Reserves increase in Colombia – Arrow has added ~0.25-0.28 mmbbl 2P and 3P reserves on the Tapir licence (to respectively 1.9 mmbbl and 3.9 mmbbl) following recent drilling results. 1P reserves have increased by 0.6 mmbbl. This reflects reserves additions in the C7A, C7B and C7 stringer sands, partially offset by a reduction at the Gacheta B (tested with 95% water cut) an

Auctus on Friday - 19/08/2022

AUCTUS PUBLICATIONS ________________________________________ SDX Energy (SDX LN)C; Target of £0.22 per share: 2Q22 in line. Growing production at West Gharib – 2Q22 production and net cash at the end of June had already been reported. Development drilling at West Gharib and South Disouq has delivered good results with six out of nine wells, four at West Gharib and two at South Disouq, drilled during 2022 now in production. At West Gharib, each well encountered 56-137 ft of net pay with good rese

Auctus on Friday - 29/07/2022

AUCTUS PUBLICATIONS ________________________________________ Calima Energy (CE1 AU)C; Target price of A$0.70 per share: No surprise in the 2Q22 update – 2Q22 production was 3,839 boe/d. While this is lower that the initial guidance provided by the company, this is higher than we expected (3.7 mboe/d) following the announcement in early July of low production in June due to unexpected weather and maintenance issues. As announced in early July, production is back to 4.1 mboe/d. 3Q22 production gui

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

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 – 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

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.

Morning Note – 15 April 2024

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

Clean Power Hydrogen - New customers and licensees circling…

CPH2 has released FY23 results with the company completing the period with a slightly lower cash outflow from operations and a higher cash balance than forecast. Looking ahead, with a new and improved technical and engineering team, the company has committed to completing Factory Acceptance Testing of its first MW scale electrolyser, the 0.5MW MFE110, within the next three months. In our view, this will be a major milestone for the company which will demonstrate that its unique technology can be

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

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.

Alien Metals - Hancock Project, Mining Lease Granted

Alien today reports intraday that the Western Australian Government has granted a mining licence for the Hancock iron ore project for a 21-year term. The granting of the mining licence is the latest milestone delivered by Alien as it advances the project towards development and production.

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