SHORE CAPITAL - Savannah Energy+ (Under Review, Suspended)

Outlook Unchanged

Savanna reported 2Q16 EBITDAS of $9 mm, which was above our estimate of $7 mm due to better than expected cost controls. Performance contracts in Australia had a positive impact of ~$5,000 per day on drilling day rates in 2Q16, indicating the switch to this type of contract could be beneficial to Australian profitability. We have increased 2016e EBITDAS by 10% to $52 mm and 2017e EBITDAS by 11% to $59 mm.

REPORTS 2Q16 EBITDAS IN LINE WITH CONSENSUS

Impact: Neutral, as the results and outlook were largely in line with expectations

1Q16 RESULTS

We believe Savanna will trade lower as concerns over future activity in Australia are likely to weigh on the stock.

1Q16 Results

Savanna reported adjusted EBITDAS of $22 mm (FCC: $21 mm). EBITDAS margins of 22.5% exceeded our estimate of 20.9% as cost cutting efforts continue to be realized in financial results. We have updated our estimates to reflect additional details on contract expiries in Australia and the United States. We have lowered our 2016e EBITDAS to $46 mm ($48 mm after adjustments) from $54 mm and 2017e EBITDAS to $52 mm from $62 mm. Positive revisions to our estimates could occur if re-contracting of rigs

1Q16e Preview and Commodity Update – All Is Quiet on the Western Front

We are updating our oilfield industry forecasts post the release of FirstEnergy’s new commodity price forecast for crude oil and natural gas on March 24, 2016. We have updated our 2016e Canadian well count/drilling days forecast to 3,209/37,335 from 3,800/43,325. In 2017e, we have left our forecast unchanged at 6,200 wells/70,200 days. In the U.S., our 2016e rig count forecast is now 482 (prior: 610) and 2017e is 675 (prior: 775). Data for 1Q16e came in weaker than our prior forecast anticipated

AMENDS CREDIT FACILITY

Impact: neutral

Reports 4Q15 Results

Savanna reported 4Q15 EBITDAS of $23 mm, in line with our expectation of $22 mm. We have reduced our 2016e capital program to $15 mm from $20 mm, which aligns with the Company’s updated guidance. We believe one of the key developments to pay attention to over the course of 2016e will be gross margins for Savanna’s Australian contract drilling and service rig business due to contract rollover. We estimate that Australian operations will contribute 46% of Savanna’s 2016e corporate gross margin. Ou

REPORTS 4Q15 RESULTS

Impact: Neutral, as results were in line and the outlook was as expected.

Energy Services 4Q15e Preview and Updating Activity Outlook – Buckle Up

In conjunction with the new oil price forecast released by FirstEnergy on February 8, 2016, we have updated our 2016e Canadian well count/drilling days forecast to 3,800/43,325 from 4,950/54,853. In 2017e, we are now forecasting wells/drilling days of 6,200/70,200 from 7,900/86,600. In the U.S., our 2016e rig count forecast is now 610 (prior: 763) and 2017e is 775 (prior: 1,063).

Introducing 2017 Estimates

We have updated our 2016e WCSB drilling days forecast to ~54,900 days, which is 18% below our prior forecast and a 16% decline y/y. We are also rolling out our 2017e drilling days forecast, which is 86,600 days, or a 58% improvement from 2016e. In the context of the last 25 years, our 2017e forecast ranks 19th for active drilling days. Our 2016e U.S. rig count forecast has been reduced to 763 rigs from 888 rigs. In 2017e, we are forecasting a U.S. rig count of 1,063 rigs.

FirstEnergy - DAILY RESEARCH SUMMARY

Cardinal Energy Ltd. (CJ) Generates Predictably Solid 3Q15 Results | Lightstream Resources Ltd. (LTS) 3Q15 Estimates Slightly Ahead of Expectations | Pengrowth Energy Corporation (PGF) Third Quarter Results Largely As Expected | Faroe Petroleum Plc (FPM LN): Value Stock | LGO Energy Plc (LGO LN) Reduced Production Outlook and Financing Risk Results in Strategic Investment Process | Savanna Energy Services Corp. (SVY) Reports Stronger-Than-Expected 3Q15, Additional Asset Sales | AltaGas Ltd. (AL

Savanna Energy Services Corp. (SVY) Reports Stronger-Than-Expected 3Q15, Additional Asset Sales

Savanna reported a strong 3Q15 with reported revenue in line with our forecast, but EBITDAS of $24 mm beat our estimate of $20 mm. In addition, the Company announced additional asset sales which will help de-lever the balance sheet. Our 2015e EBITDAS has been increased to $100 mm (prior: $92 mm) and 2016e has been increased to $85 mm (prior: $82 mm) to reflect ongoing benefits from cost control initiatives.

REPORTS STRONGER-THAN- EXPECTED 3Q15, ADDITIONAL ASSET SALES

Impact: We expect Savanna to trade higher tomorrow due to EBITDAS coming in higher than expectations (actual: $24 mm, FCC: $20 mm, Consensus: $19 mm) and additional asset sales which will help reduce debt.

Savanna Energy Services Corp. (SVY) Sees Benefits of Cost Reduction Strategies and Standby Margin

Savanna reported 2Q15 EBITDAS of $24 mm, which was far above our expectation of $5 mm as cost controls were realized faster than anticipated and standby revenue (margin) of $5.6 mm earned in 1Q15 was part of 2Q15 results due to revenue recognition policies. In 2015e, we have increased our EBITDAS forecast to $99 mm from $79 mm, which is due to the 2Q15 beat, but our 2H15e modelling changes were mostly housekeeping. In 2016e, we have reduced our revenue forecast to reflect weaker utilization for

NextSource Materials - Initiation

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Falcon Oil & Gas - Funding a Multi TCF Resource

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Morning Note – 22 April 2024

Initiation of Coverage - Critical raw materials for Europe’s green transition

Beowulf is advancing a portfolio of projects in Europe focussed on metals and minerals that are critical to enabling the continent’s transition to a greener economy. Awareness of Europe’s over-reliance on external supply sources for such vital raw materials is driving growing political support for ‘home-grown’ projects. Beowulf is strategically positioned to leverage this fast-evolving trend – its Kallak project in Sweden holds potential to deliver high-quality iron ore to lower the carbon-inten

Touchstone Exploration+ (TXP, House Stock at 44p) - Closing of expanded bank facilities

Sintana Energy Inc. (TSX-V: SEI): Constrained test rate of 14 mboe/d at Mopane-1X. 10+ bn boe in place confirmed.

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SP Angel Morning View: Copper prices hit $9,700/t as China smelts concentrates for zero charge Tc/Rc

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.

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

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

LIBERUM: Ferrexpo: Production triples

SP Angel Morning View: Gold resilient as US interest rates climb on long-term inflation concerns

Jersey Oil & Gas (JOG LN) - Share price fall creates opportunity

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Transition to Mining Operator

Adriatic Metals has announced their transition from mining contractor to mining operator at Rupice. The transition is expected to continue to benefit the development and productivity rates being achieved at Rupice mine, as well as result in cost efficiencies and improved HSE standards. The company has also announced a short-term loan facility with Orion of $25m, that is drawable at the option of the company in Q3/4 this year.

Trinity Exploration and Production - Reserves Reduction but Solid Core Business

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