PetroTal (PTAL LN)C; Target price £0.40: Important development in Peru – On August 28, 2020, the Government of Peru announced a Supreme Decree approving the financial Gap Closure Plan within a number of provinces in northeast Peru, including Loreto, the area where PetroTal operates the Bretana oil field. The decree provides for a six year financial commitment of approximately US$1.7 bn to the communities. This is important as the decree specifically addresses the local community participation criteria, that have been a recurrent key area of contention for years with some communities in Peru. US$46 mm will be designated for economic development of the localities over the next four months by the Peruvian government. Since the announcement of the Decree, government and municipality representatives have been consulting with the community representatives . After meeting with the Bretana community in the coming days, it is expected that PetroTal will restart oil production shortly thereafter.
IN OTHER NEWS
88 Energy (88E LN/AU): Update in Alaska – The final petrophysical interpretation from the recently drilled Charlie-1 well provides an increase in net pay from 280’ to 398’, with the largest contribution coming from the Lima discoveries in the Seabee Formation. These improvements are despite using higher cut-offs for both reservoir and net pay.
Alvopetro (ALV CN): Update in Brazil - In August, total sales were 1,867 boe/d. Total aggregate gross prospective resources identified at the B1 prospect (block 183) and the C1 prospect (block 182) are estimated at 59.4 bcf.
Echo Energy (ECHO LN): Operating update in Argentina - Net 2020 production at Santa Cruz Sur over the period 1 January to 7 September was 2,040 boe/d.
Exxon Mobil (XOM US): New discovery in Guyana - ExxonMobil has made its 18th discovery at the Redtail-1 well on the Stabroek Block with 70 meters of high-quality oil bearing sandstone.
Total (FP FP): Dropping operatorship of Brazilian exploration blocks – Total is resigning from its role of operator for five exploration blocks, located in the Foz do Amazonas Basin. These exploration blocks are referenced as FZA-M-57, FZA-M-86, FZA-M-88, FZA-M-125 and FZA-M-127.
Westmount Energy (WTE LN): Increasing stake in JHI Associates - Westmount has purchased 1.55 mm common shares in JHI by way of the issue of 18.3 mm new ordinary shares in Westmount, which will represent approximately 12.7% of Westmount's enlarged issued share capital. JHI holds a 17.5% carried interest in the Canje Block, offshore Guyana, where ExxonMobil is the operator. At the completion of the transaction, Westmount will hold 6.9% in JHI.
Hibiscus Petroleum: Raising ~ US$480 mm to acquire upstream assets – Hibiscus is raising up to US$480 mm from a private placement of convertible redeemable preference shares to acquire oil and gas assets.
Jadestone Energy: 1H20 results – 1H20 WI production in Australia was 12,116 bbl/d. Net cash at the end of June was US$78.3 mm. FY20 production guidance has been reduced to 11.0–12.5 mbbl/d from 12.0-14.0 mbbl/d previously, as a result of a slowdown in well interventions. Jadestone reiterated its FY20 capex guidance of US$30 35 mm. A maiden interim dividend of 0.54 US cents/share has been declared, representing a total distribution of US$2.5 mm, in line with the lower end of the FY guidance of US$7.5–12.5 mm, split approximately one-third/two-thirds between interim/final. The company anticipates to be debt free by the end of 1Q21. Most approvals are now in place with regards to the New Zealand acquisition and Jadestone expects final government approvals in 4Q20 post the upcoming general election. In Vietnam, discussions are continuing with the government on the FDP and a future gas sales agreement.
Hurricane Energy (HUR LN): Reserves downgrade in the UK – 2P reserves have been reduced from 30.7 mmbbl to 9.4 mmbbl (as of 01/09/2020) with 2C contingent resources cut from 486 mmbbl to 58 mmbbl at Lancaster and from 565 mmbbl to 45 mmbbl at Lincoln. Lancaster EPS production for September to December 2020 is expected to average 12,000-14,000 bbl/d. The company held net debt of US$123 mm at the end of June.
Reabold Resources (RBD LN) and ADX Energy (ADX AU): Partner not farming in Romania assets? – Tamaska Oil & Gas has decided not to proceed with the farmin transaction relating to the EX-10 Parta Exploration licence in Western Romania held by Danube Petroleum (49% ADX, 51% Reabold). Tamaska does not intend to proceed with the planned acquisition of 3D exploration seismic.
Serica Energy (SQZ LN): 1H20 results – 1H20 production in the UK North Sea was 21,600 boe/d. First gas at Columbus continues to be expected by the end of 2021. Serica held £101 mm in cash at the end of June.
The Parkmead Group (PMG LN): Licence awards in the UK – Parkmead has been offered 50% WI in Blocks 14/20g & 15/16g situated in the Central North Sea, adjacent to Parkmead's extensive Greater Perth Area. Two further licences have been offered to Parkmead as part of the 32nd Round. Block 14/20c (Parkmead 100%) is located in the Central North Sea and contains extensions to the Lowlander oil field and the Fynn Beauly oil discovery. Block 42/28g (Parkmead 100%) is situated in the Southern North Sea near the Tolmount gas discovery.
FORMER SOVIET UNION
Cadogan Petroleum (CAD LN): 1H20 results – 1H20 production in Ukraine was 230 bbl/d. The company held US$11.6 mm in cash at the end of June.
MIDDLE EAST AND NORTH AFRICA
Chariot Oil & Gas (CHAR LN): Resources update in Morocco – Anchois is now expected to hold 361 bcf of contingent resources (2C) and 690 bcf of prospective resources (P50).
Energean (ENOG LN): 1H20 results – 1H20 pro forma production (including Edison E&P) was 52.1 mboe/d, with FY20 production guidance unchanged at 44.5 - 51.5 mboe/d. The acquisition of Edison E&P is expected to be completed during 4Q20. The FY20 pro forma capex guidance has been reduced by US$75-125 mm to US$635 - 705 mm, primarily due to (i) the rescheduling of expected milestone payments under the Karish EPCIC contract; and (ii) expected timing of capital expenditure on Edison E&P in Egypt. Net debt at the end of June was US$597 mm.
ShaMaran Petroleum (SNM CN): Receives payment from Kurdistan – ShaMaran has received a net payment of US$6.5 mm from the Kurdistan Regional Government for Atrush oil sales invoice entitlements for the month of July 2020.
Tethys Oil (TETY SS): Production update in Oman – WI production in August was 10.8 mbbl/d.
Zenith Energy (ZEN LN): Acquisition in Tunisia – Zenith is acquiring a 26% interest in the North Kairouan permit and the Sidi El Kilani Concession, which contains the Sidi El Kilani oilfield for US$0.3 mm.
Africa Oil (AOI/SS CN): Extension of Kenya licences – The partners on the 10BB and 13T licences have been given the right to extend the second exploration period until 31 December 2020, with a further extension until 31 Dec 2021.
Kosmos Energy (KOS US/ LN): Selling frontier exploration assets for US$100-200 mm – Kosmos is selling interests in blocks offshore São Tomé & Príncipe, Suriname, Namibia, and South Africa to Shell. The consideration consists of an upfront cash payment of ~US$100 mm, plus contingent payments of US$50 mm payable upon each commercial discovery from the first four exploration wells drilled across the assets, capped at US$100 mm in aggregate. Three of the four wells are currently planned for 2021.
Tullow Oil (TLW LN): 1H20 results – 1H20 production was 77 mboe/d. Net debt at the end of June was US$3.0 bn. FY20 production guidance has been narrowed from 71-78 mbbl/d to 73-77 mbbl/d following good well performance in Ghana. During 1H20, Jubilee and TEN produced 84,700 bbl/d and 50,900 bbl/d gross respectively. This strong performance is a result of (1) increased gas offtake nominations, (2) permission to temporarily increase flaring, (3) higher than forecast facility uptime of over 95% at both FPSOs and (3) greater reliability and redundancy in the water injection facilities on the Jubilee FPSO. The Ntomme-09 production well came on stream in August and is adding c.5,000 bbl/d gross to TEN oil production. FY20 free cash flow is forecast to break even at the current Brent forward curve. The semi-annual RBL debt capacity redetermination is expected to complete in early October 2020. The next redetermination will be in January 2021. Drilling of the Goliathberg-Voltzberg North well in Block 47, Suriname, is planned for 1Q21.
Companies: 88E AOI ALV ENOG XOM HUR JSE KOS PMG TAL RBD SQZ SNM TPL FP TLW
PetroTal (PTAL LN)C; Target price £0.45: Field shut down– PetroTal has shut down the Bretana Field as a pre-emptive measure due to civil unrest outside the oil field camp. Bretana had restarted production on the 15th of July. An altercation between the police and protestors resulted in a dozen injuries and three deaths among the protestors. The civil unrest has been conducted by the same group that took over Petroperu’s Pump Station No.5. PetroTal indicated that this group is not from the Bretana area and that it is seeking Government assistance against the COVID-19 crisis. The community’s complaints are not related to PetroTal but rather are between the community and the Government. PetroTal will keep the field closed until things settle down and the local district prosecutor files its report, which is expected in the next few days. We estimate PetroTal’s cash position at ~US$20 mm at the end of June. PetroTal has produced ~0.2 mmbbl and delivered a total of 0.08 mm bbl to Iquitos and to the Petroperu pipeline equating to ~US$1.6 mm of cash inflow (net of transport and barging cost) since the field restarted mid-July. While the field is shutdown, we estimated PetroTal cash costs at ~ US$1 mm per month (including US$0.6 mm at the field). The share price is down over 12% on the announcement to ~£0.12 per share. We believe that a return to normality would unlock £0.30 per share of value for the company based on its 2P reserves only.
IN OTHER NEWS
Alvopetro Energy (ALV CN): 2Q20 results | Bahamas Petroleum Company (BPC LN): Update in the Bahamas and Trinidad | Diversified Gas & Oil (DGOC LN): 2Q20 results and dividend increase | Touchstone Exploration (TXP LN/CN)C: 2Q20 update in Trinidad
Condor Petroleum (CPI CN): 2Q20 results | Deltic Energy (DELT LN): Increased prospectivity in the UK | Reabold Resources (RBD LN): Not acquiring Deltic Energy | Serinus Energy (SENX LN): 2Q20 results | Valeura Energy (VLU LN/VLE CN): 2Q20 results
FORMER SOVIET UNION
JKX Oil & Gas (JKX LN): 1H20 results
MIDDLE EAST AND NORTH AFRICA
ShaMaran Petroleum (SNM CN): 2Q20 results | TransGlobe Energy (TGL LN/CN): 2Q20 results
Africa Oil (AOI SS/CN): 2Q20 results | Orca Energy (ORC.A/B CN): Operating update in Tanzania
EVENTS TO WATCH NEXT WEEK
21/08/2020: Premier Oil (PMO LN) – 2Q20 results
Companies: VLE TXP TGL SNM SEN RBD TAL DGOC BPC ALV AOI
GeoPark (GPRK US)C; Target: US$20 - Delivering more with less | Diversified Gas and Oil (DGOC LN): Acquisition in the US and US$87 mm equity raise | Gran Tierra Energy (GTE LN/CN): 1Q20 results| Parex Resources (PXT CN): 1Q20 results | Trinity Exploration and Production (TRIN LN): FY19 results | Touchstone Exploration (TXP LN/CN): 1Q20 results | Condor Petroleum (CPI CN): 1Q20 results | Premier Oil (PMO LN): 1Q20 update and FY20 production guidance reduction | Serinus Energy (SEN LN): 1Q20 update | Valeura Energy (VLU LN/VLE CN): 1Q20 results |Caspian Sunrise (CASP LN): Production update in Kazakhstan | Genel Energy (GENL LN): 1Q20 update | Pharos Energy (PHAR LN): 1Q20 results | ShaMaran Petroleum (SNM CN/SS): 1Q20 update in Kurdistan | TransGlobe Energy (TGL LN/CN): 1Q20 results | Africa Oil (AOI SS/CN): 1Q20 results | Vaalco Energy (EGY LN/US): 1Q20 results | Kosmos Energy (KOS LN/US): 1Q20 results
Companies: KOS GPRK DGOC GTE PXT TRIN TXP CPI PMO SEN VLE CASP GENL PHAR SNM TGL AOI EGY KOS
Panoro Energy (PEN NO)C: Initiating coverage | 88 Energy (88E LN/AU): Acquisition in Alaska | BP (BP LN): Transaction in Alaska with Hilcorp renegotiated | Columbus Energy Resources (CERP LN): Oil discovery in Trinidad | Premier Oil (PMO LN) and Rockhopper Exploration (RKH LN): Sea Lion farm out (Falklands) exclusivity period extended | BP (BP LN): 1Q20 results | Equinor (EQNR NO): Dry hole in Norway | Getech (GTC LN): Business update | Hurricane Energy (HUR LN): Business update in the UK North Sea |IGas Energy (IGAS LN): Shutting some production in the UK | Lundin Energy (LUP SS): 1Q20 results | OKEA (OKEA NO): 1Q20 update in Norway | OMV (OMV AG): 1Q results | Premier Oil (PMO LN): Court approves schemes of arrangement | Royal Dutch Shell (RDSA/B LN): 1Q20 results and dividend reduction | RockRose Energy (RRE LN): Operational update in the UK | UK Oil & Gas (UKOG LN): £1.275 mm equity raise | Caspian Sunrise (CASP LN): Operating update in Kazakhstan | Exillon Energy (EXI LN): February and March production in Russia | Nostrum Oil & Gas (NOG LN): 1Q20 update in Kazakhstan | PetroNeft (PTR LN): Operations update | Genel Energy (GENL LN): Update in Kurdistan – While negotiations are ongoing the KRG will not exercise the notice of an intention to terminate the Bina Bawi PSC | ShaMaran Petroleum (SNM CN): Business update in Kurdistan | Tethys Oil (TETY SS): Production reduction in Oman | Total (FP FP): Dry hole in Lebanon | Aminex (AEX LN) and Solo Oil (SOLO LN): Licence extension in Tanzania | Far Limited (FAR AU): Update in Senegal | Lekoil (LEK LN): Final payment with Nigerian partner rescheduled | Orca Exploration (ORC.A/B CN): FY19 results | Savannah Energy (SAVE LN): Financial and operating update in Nigeria | San Leon Energy (SLE LN): Special dividend | Seplat Petroleum (SEPL LN): 1Q20 results
Companies: 88E AEX PEN BP/ CASP CERP EQNR EXI FAR FP HUR GENL GTC IGAS LEK LUNE NOG OKEA OMV ORC/B PMO PTR RKH RDSA RRE SAVE SLE SEPL SNM TETY SOLO UKOG
GeoPark (GPRK US)C; Target price US$20: Delivering on plan; boosting balance sheet | PetroTal (PTAL LN/TAL CN)C: Operation update | 88 Energy (88E AU/LN): Update in Alaska | Trinity Exploration and Production (TRIN LN) | Empyrean Energy (EME LN): Equity raise cancelled, launching open offer | Jadestone Energy (JSE LN): FY19 results | Aker BP (AKERBP NO): 1Q20 update in Norway |Dry hole in Norway |ENI (ENI IM): 1Q20 results | Equinor (EQNR NO): Reducing dividend | i3 Energy (I3E LN): Need to negotiate with noteholders |Serica Energy (SQZ LN): FY19 results | Gulf Keystone Petroleum (GKP LN): FY19 results and update in Kurdistan | SDX Energy (SDX LN): Flow rate results at exploration well in Egypt | ShaMaran Petroleum (SNM CN): Update on payments in Kurdistan | Sound Energy (SOU LN): Update in Morocco and FY19 results | Zenith Energy (ZEN LN/ZEE CN/ZENA-ME NO): Acquisition in Tunisia | Tullow Oil (TLW LN): Selling Uganda | Wentworth Resources (WEN LN): FY19 results
Companies: 88E AKERBP ENI EQNR GKP GPRK I3E JSE TAL SDX SNM SOU SQZ TLW TRIN WRL ZEN
GMP FirstEnergy ― UK Energy morning research package | ShaMaran Petroleum (SNM CN) (not covered): 3Q19 results | Sound Energy (SOU LN) (not covered): Agreement
Companies: ShaMaran Petroleum Corp. Sound Energy Plc
uchstone Exploration (TXP LN/CN)1 ; BUY, £0.25: Debt funding to address dilution concerns | OKEA (OKEA NO) (not covered): 3Q19 results | Genel Energy (GENL LN); SPECULATIVE BUY, £3.20: Trading update in Kurdistan | ShaMaran (SNM CN) (not covered): Operation update in Kurdistan | Africa Oil (AOI CN/SS); BUY, C$2.60: Acquiring a larger share of Nigerian target
Companies: TXP GENL SNM AOI
PetroNor (PNOR NO) (not covered): Nigeria acquisition | Royal Dutch Shell (RDSA/B LN) (not covered): Brazil farm out | Aker BP (AKERBP NO) (not covered): 3Q19 results | Royal Dutch Shell (RDSA/B LN) (not covered): Exiting soma Kazakh assets | Royal Dutch Shell (RDSA/B LN) (not covered): Looking to sell Egypt asset | ShaMaran Energy (SNM CN) (not covered): Production update in Kurdistan
Companies: Royal Dutch Shell Plc ShaMaran Petroleum Corp.
Arrow Exploration (AXL CN) (not covered): 1Q19 results | Renaissance Oil (ROE CN) (not covered): 1Q19 results | i3 Energy (I3E LN)1; Speculative Buy, £1.80: FY18 results | ShaMaran Petroleum (SNM CN) (not covered): Update in Kurdistan | Savannah Petroleum (SAVP LN) (not covered): Corporate update
Companies: ROE I3E SNM SAVE
Canacol Energy (CNE CN) (not covered): 1Q19 results | Pan Orient Energy (POE CN) (not covered): Update in Thailand | TransAtlantic Petroleum (TNP CN/TAT US) (not covered): 1Q19 results | Valeura Energy (VLU LN/VLE CN) 1,7; BUY, £6.00: 1Q19 results | Caspian Sunrise (CASP LN) (not covered): Operational update in Kazakhstan | Exillon Energy (EXI LN) (not covered): April production in Russia | JKX Oil & Gas (JKX LN) (not covered): Update on Well 5 sidetrack in Russia | ShaMaran Petroleum (SNM CN/SNM NO) (not covered): 1Q19 results | Chariot Oil & Gas (CHAR LN) (not covered): Resources estimates in Morocco | Vaalco Energy (EGY US) (not covered): 1Q19 results | Victoria Oil & Gas (VOG LN)1,6 ; SPECULATIVE BUY, £0.35: Operating update in Cameroon
Companies: CNE POE TAT VLE CASP EXI JKX SNM CHAR EGY VOG
Cairn Energy (CNE LN); BUY, £2.80: Further delay in court decision on tax dispute with India | Igas Energy (IGAS LN) (not covered): Operational update, Springs Road Well | Gulf Keystone Petroleum (GKP LN) (not covered): Operational update in Kurdistan | ShaMaran Petroleum (SNM CN) (not covered): Update in Kurdistan
Companies: CNE IGAS GKP SNM
Europa oil & Gas (EOG LN): Placing to fund Ireland project | Valeura Energy (VLE CN)1,6; BUY, C$11.00: Water reflections | ShaMaran Petroleum (SNM CN): Hurdle on acquisition of interests in Atrush in Kurdistan
Companies: EOG VLE SNM
Parex Resources (PXT CN); BUY, C$32.00: 3Q18 results and preliminary guidance for 2019e | Petroneft Resources (PTR LN) (not covered): Drilling update in Russia | ShaMaran Petroleum (SNM CN/SS) (not covered): 3Q18 results in Kurdistan | TransGlobe Energy (TGL LN/CN)1 ; BUY, £3.50: 3Q18 results and FY19 budget | Bowleven (BLVN LN) (not covered): 1H18 result
Companies: BLVN TGL SNM PTR PXT
Eco (Atlantic) Oil & Gas (ECO LN/EOG CN) (not covered): Total (FP FP) (not covered) exercise option to acquire stake in Guyana’s asset | PetroTal (TAL CN) (not covered): Resources update in Peru | Ophir Energy (OPHR LN); HOLD, £0.60: 1H18 results | Gulf Keystone Petroleum (GKP LN) (not covered): Payment in Kurdistan | ShaMaran Petroleum (SNM CN) (not covered): Payment in Kurdistan
Companies: EOG OPHR GKP SNM
President Energy (PPC LN) (not covered): Trading update in Argentina | RockRose Energy (RRE LN) (not covered): Acquisition offshore UK | TransAtlantic Petroleum (TNP CN/TAT US) (not covered): 2Q18 results | Petroneft Resources (PTR LN) (not covered): Quarterly production in Russia | ShaMaran Petroleum (SNM CN) (not covered): 1H18 results
Companies: PPC RRE TAT PTR SNM
Research Tree provides access to ongoing research coverage, media content and regulatory news on ShaMaran Petroleum Corp..
We currently have 39 research reports from 3
In H1, 2020 and the period directly following (Q3, 2020), EQTEC has made substantial operational progress, significantly boosting its project pipeline and strengthening its balance sheet with an over-subscribed £10m fund raising in July 2020. Revenue generation in H1, 2020, however, was constrained due to the impacts of Covid-19 and severe fires in California. We now forecast revenue of €2.4m in 2020E, compared with our previous forecast of €7.0m. Importantly, no projects have been cancelled. Delayed revenue is expected to flow into 2021E. Select new projects, having been secured in 2020, are expected to reach financial close in 2021E and 2022E, in addition to those existing projects under development in those years. As a result, we are increasing our 2021E and 2022E forecasts.
Companies: EQTEC Plc
Adriatic Metals* (ADT1 LN) – Annual results and review of exploration | AfriTin (ATM LN) –– H1 report highlights production ramp-up at the Uis mine | Ariana Resources* (AAU LN) – US$30m partial disposal of Turkish Assets | Anglo Asian Mining* (AAZ LN) – BUY – Gedabek continue unaffected by the Nagorno-Karabakh conflict | Cornish Lithium (Private) - Cornish Lithium looking to bring the EV supply chain closer to home | IronRidge Resources* (IRR LN) – FY20 results: well positioned to continue de-risking portfolio projects with A$7.3m in the bank | Kavango Resources (KAV LN) – Resuming field exploration of the Kalahari Copper Belt, Botswana | Power Metal Resources (POW LN) – Exploration gets underway on Botswana joint-venture | Rambler Metals and Mining* (RMM LN) – Interims and refinancing of debt and planned restoration of mine production at higher copper grade | Renascor Resources (RNU AU) – Offtake agreement with Chinese anode manufacturer highlights China’s dominance of supply chain | Trans-Siberian Gold (TSG LN) – 8c interim dividend declared reflecting robust FCF and strong outlook | Versarien* (VRS LN) – New Advisory Panel brings together global leaders in graphene within Versarien
Companies: ADT1 ATM AAU AAZ IRR KAV POW RMM RNU TSG VRS
The offtake agreement between Piedmont lithium (ASX:PLL) and Tesla (NasdaqGS:TSLA) announced on 28.09.2020, whereby Piedmont will supply a new lithium hydroxide plant to be built by Tesla in Texas with spodumene concentrate, has created some strong buying momentum for lithium stocks in North America and Australia. The Piedmont share price was up over 200% after the announcement with Tesla – though the magnitude of the rise perhaps had more to do with the Tesla brand.
Companies: Savannah Resources Plc
Talitha Shelf Margin Deltaic LKA resource report
Companies: Pantheon Resources Plc
H1 2020 results; progress on concept selection
Companies: Jersey Oil & Gas Plc
Another set of record results from Iofina, with H1 2020 benefiting from improved iodine pricing, solid cost controls and robust operational performance. Some of the shine will be taken off by the cautionary tone over the impact of COVID-19 on current iodine demand and pricing. Nevertheless, these results on top of the recent debt refinancing again demonstrate the continued improvements Iofina is delivering both operational and financially. It now has a solid platform of diversified low cost iodine production from five plants, a range of iodine and non-iodine specialty chemicals products, an improved balance sheet and a new lending partner with which to deliver its ‘prudent growth’ ambition.
Companies: Iofina Plc
Jersey Oil & Gas has announced that it has selected a greenfield four-legged platform to develop the Greater Buchan Area which will utilise existing export pipeline infrastructure. We see near-term scope to increase materially our fair value estimate from 268p. We believe that today's news is price material and that it sets the scene for a near-term catalyst rich outlook for the company. It is an opportune time, in our opinion, to gain exposure to the Jersey Oil & Gas investment opportunity.
The stock was up 12% on Friday, 25/09, sparked by the positive outcome on Vodafone’s dispute with the Indian tax authorities. This is encouraging for Cairn, but note that both cases differ. While the tax authorities simply erased Vodafone’s tax bill, they owe up to $1.4bn to Cairn, and could offer more resistance.
Companies: Cairn Energy Plc
On Monday, Piedmont Lithium announced a Tesla offtake agreement for 30% of its future spodumene concentrate production. Piedmont’s shares jumped from A$0.10 cents to A$0.38 cents and closed at A$0.30 cents this morning. In addition to the positive association with Tesla, we believe that the market now recognises the reality of Piedmont’s project and upcoming spodumene shortages. Key takeaways for Savannah shareholders are:
Since our last note, KEFI has continued to advance towards its goal of achieving production in FY22. Among other things, this has included raising £3.7m in equity in May and establishing early-stage mining specialist, RAB Capital, as a cornerstone investor. More recently, it has also announced a maiden mineral resource at Hawiah (in Saudi Arabia) of 19.3Mt at a grade of 1.86% copper equivalent containing 359kt CuE (or 1.2Moz AuE) and a corresponding preliminary economic assessment (PEA), which confirms it as a high priority target. The company has consistently maintained its goal of formally agreeing its full funding structure with all participants in October 2020, ahead of construction in FY21 and first gold in FY22 and, to this end, development activities have continued unabated, despite COVID-19.
Companies: KEFI Gold & Copper Plc
Stable platform agreement with creditors extended
Companies: Premier Oil Plc
Central Asia Metals (CAML LN) reported robust interim results in the context of the H1 2020 backdrop; solid production and the company’s fundamentally low cost base meant that CAML remained profitable despite the sharp pullback in commodity prices during the period which led to a 17% YoY decline in revenue to US$70.8m. Consequently, EBITDA was down 25% YoY to US$42.5m despite a decline in unit costs of 6% YoY at Kounrad and 9% YoY at Sasa to US$0.48/lb and US$0.43/lb respectively which cushioned the impact of the weaker the top line. With no significant one offs in the period, EPS of US$0.10/sh. was 33% lower YoY.
Companies: Central Asia Metals Plc
Chariot’s interims represent something of a line in the sand for the new management team, with historic oil-focussed deepwater exploration spend written-off, demonstrating its recent corporate and strategic ‘reboot’, which has ushered in a more entrepreneurial approach. Strategy has shifted away from higher-risk frontier exploration in favour of opportunities that better fit the energy transition. With the annual cash burn cut 45% to US$2.5m, no remaining work commitments and period-end cash of US$5.8m, management has a clear path ahead to deliver on its ambitions.
Companies: Chariot Oil & Gas Ltd.
Caledonia today announces another raise in the dividend to 10c a quarter; a rise of 18% from 8.5c a quarter previously. This is the third time the dividend has been raised within the last 12 months, with the dividend up 45% over the period, which demonstrates the underlying strength in its Blanket gold mine in Zimbabwe.
Companies: Caledonia Mining Corp. Plc
H1/20 has been a highly successful period for United Oil & Gas, during which time it has successfully transformed into a full-cycle E&P company. Key to this success has been the Abu Sennan acquisition, with net production increasing to 2,700boepd at the end of June. The significant production and reserve additions delivered as part of the 2019-20 drilling campaign emphasises the considerable upside that still remains in the block. Post period, United were granted a 100% operated working interest and an 18-month extension to the Walton-Morant licence, offshore Jamaica. At 229mmbbls, the Walton-Morant licence has the potential to have a major impact on United, which we value at US$724.3m or 76.8p/share unrisked. We update our valuation, increasing our price target to 19.1p/share, a 549% premium to the current share price and reiterate our BUY recommendation.
Companies: United Oil & Gas Plc