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Arrow Exploration (AXL LN)C: Target price of £0.45 per share: On track for a very busy 2023 – Arrow is about to embark on a 10 well drilling programme that could add between 2,800 and 4,800 boe/d net production (before decline and in a success case) to the existing constrained production base of ~1,800 boe/d. Over January, production was ~1,800 boe/d with short term outages due to weather at Ombu and Pepper. This compares with produc
Companies: PEN TCFF MUR OMV CE1 HHR OMV AXL COPL FEC JSE PXT TAL CASP TRIN DEC CHAR MATD TTE PEN VLE MUR
• Valeura is raising C$10 mm through a bought deal priced at C$2.54 per share.
• While the additional cash was arguably not required, we understand that the board of Valeura decided to accept the bought deal to provide an additional cash buffer in the interim period prior to the closing of the acquisition of the Mubadala asset and prior to first oil at Wassana (both in 1Q23).
• It took over a year to sign the SPA with Mubadala for the Thai assets, which was much longer than initially anticipated
Companies: Valeura Energy Inc.
GeoPark (GPRK US)C: Target price of US$31 per share: Two new strong development wells at CPO-5 – Two new development wells, Indico 6 and Indico 7, tested over 11,000 bbl/d gross (in aggregate) with hardly any water (Indico 6: 6,270 bbl/d, Indico 7: 5,245 bbl/d). The wells are expected to be tied in later in 1Q23 and put on production at an initial constrained rate of 8 mbbl/d. This would take gross production from the field from ~20 mb
Companies: XOM GPRK WDS AKRBP CNE AKERBP TLW CNE IOG NOG GPRK GTE CNE XOM VLE
• Valeura has increased its stake the Thailand SPV from 85% to 87.5%, reflecting its increased investment in the SPV. As a result, Valeura will capture a larger proportion of the value of the Thai assets, which we view as very positive.
• Valeura has received notification of certification of the Wassana MOPU. This is an important milestone given that this was not under Valeura’s control and required the approval of a third party in order to make the facility insurable.
• The MT Jaka Tarub stora
Chariot (CHAR LN)C; Target price increased from £0.55 per share: Adding a new renewable power project in Zimbabwe - Chariot continues to execute on its strategy to build a 1 GW (gross) power business. Chariot and Total Eren have announced that the partners will work on a solar photovoltaic (PV) project that will provide competitive electricity for the Karo Platinum Project, in Zimbabwe. The solar project will have an initial installed
Companies: ALV MAHAA ALV PXT TXP TAL DNO SQZ PAT CHAR WEN GTE TTE CNE VLE DNO EGY
• Valeura continues to execute on its acquisition strategy in Thailand. Valeura Energy Asia (85% owned by Valeura) is acquiring 3 shallow water licences in the Gulf of Thailand with total net oil production of 21.2 mbbl/d and net 2P reserves of 24.1 mmbbl (at YE21) from Mubadala Energy for just US$10.4 mm in cash. Additional consideration of up to US$50 mm is payable if the Dubai oil benchmark averages >US$100/bbl in 2022, 2023 or 2024.
• With an effective date of 31/08/22 and ~US$12 mm post tax
ADX Energy (HHR AU)C; Target price of AS0.07 per share: Farm-in transaction at Welchau provides validation for the prospect – Kepis & Pobe Financial Group (KPFG) is acquiring 20% in the Welchau Farmin Area in return for funding 50% of the cost of the exploration well (EUR3.8 mm gross). KPFG has also the option to acquire a further 20% in the Farmin Area in return for funding a further 50% of the cost of the well (100% in total). KPFG w
Companies: PEN EQNR APA ADX WDS BLOK AXL ECHO PTR PEN EQNR VLE SENX
Panoro Energy (PEN NO)C; Target price of NOK50 per share: Dry hole in South Africa – The Gazania- 1 well did not encounter hydrocarbons. Panoro, Africa Energy (AFE CN/AEC SS) and Eco Atlantic (ECO LN/EOG CN) hold respectively 12.5%, 27.5% and 50% WI in the well.
PetroTal (PTAL LN/TAL CN)C; Target price of £1.30 per share: Production returning to normal – 3Q22 production, cash and receivables/payables as at the end of September had bee
Companies: PEN ALV MAHAA AOI ALV COPL JSE TAL TLW BOIL ZPHR ENOG SDX DEC TETY TTE PEN SNM TETY VLE
• Valeura has submitted the engineering reports to support the recertification of the Wassana MOPU. The Company anticipates receiving re-certification once minor upgrades (such as simple surface welding activities) are completed later this month.
• Valeura and PT Buana Lingas Lautan have entered a Letter of Award for the MT Vula FSO tanker. The parties are now working to finalise the remaining commercial terms by way of a formal charter agreement. Valeura anticipates that the FSO will mobilise t
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________________________________________
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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
Companies: PEN CVX ALV ALV DME RHC RHC RBD ENOG VOG CNE PEN VLE SENX CVX
• The PV Drilling I jack-up drilling rig has been contracted to start drilling at Wassana in 2Q23, in line with expectations. Despite a steep increase in world-wide rig costs, the infill drilling campaign cost is increasing by only 5-7%.
• The underwater survey work at the Wassana MOPU is now complete and the company is finalizing the paperwork to obtain certification of the vessel during 4Q22.
• A contract for an FSO continues to be expected to be signed in 4Q22. We expect some cost inflation.
OPEC+ meets to discuss cuts
Companies: PEN AOI AFE ECO AFE EDR UJO PEN VLE
ADX Energy (ADX AU)C; Target price of A$0.06 per share: Raising new equity to accelerate high impact drilling – ADX has raised A$ 2.55 mm of new equity priced at A$ 0.006 per share. New investors will also receive one option for every two placement shares at a strike price of A$ 0.013 per share with an expiry date of 2 years. The proceeds of the raise will fund (1) the planning and purchase of long lead items for the high impact 800+ b
Companies: 88E ADX DETNOR AKRBP 0MDP ALV ALV FEC JSE SU TXP SQZ HUR ZPHR DEC TETY GPRK KOS GTE AOI CNE DNO TGL SNM 0GEA 0A1V VLE DNO EGY
• Valeura completed the acquisition of the Thai assets from KrisEnergy during 2Q22 and the MOPU acquisition is proceeding as planned.
• Work has commenced on the MOPU to ensure its readiness for production operations and Valeura will shortly complete the inspection work relating to the re-certification of the facility. All of these key activities are expected to be completed in 3Q22.
• Valeura is also in advanced commercial discussions for a suitable FSO for Wassana. This will drive the exact sc
PetroTal (PTAL LN/TAC CN)C; Target price of £1.20 per share: 0.72 mmbbl sales will trigger a US$60 mm payment to PetroTal earlier than expected – Section II of the Northern Peruvian Pipeline has been temporary re-opened. As a result, 0.72 mmbbl of PetroTal’s Bretana oil has been tendered at the Bayovar port by Petroperu for the July lifting. This oil previously entered the pipeline in late 2020 for which PetroTal was paid just ~US$45/b
Companies: APA FEC TAL APA MEN HUR ZPHR IGAS TETY R4Y WEN STL EQNR 0A1V VLE
Research Tree provides access to ongoing research coverage, media content and regulatory news on Valeura Energy Inc..
We currently have 32 research reports from 3
Companies: Sylvania Platinum Ltd.
Companies: Pantheon Resources plc
• Chariot is acquiring ENEO Water PTE for US$0.5-1.0 mm in Chariot shares.
• ENEO utilises an efficient, modular and scalable reverse osmosis technology that can be entirely powered by solar energy to produce desalinated water. ENEO is developing a proof of concept at a windfarm on the Red Sea in Djibouti that is under construction and is intended to provide local communities with access to potable water for the next 20 years. The capex of the project is very small (a few hundred thousand US dol
Companies: Chariot Limited
Companies: Savannah Energy Plc
Arc is in exclusive Joint Venture (JV) discussions with Anglo American (due to complete by end March 2023 – RNS 07.02.2023) to advance its highly prospective concessions in the Central African Copperbelt in Zambia, a belt host to numerous significant copper and cobalt deposits in both Zambia and the DRC. Arc is also advancing the Virgo copper-nickel-silver project in Botswana, where prospective litho-stratigraphic contacts with associated copper and nickel geochemistry have been identified under
Companies: ARC Minerals Limited
Ongoing strong production from Wressle. Union Jack has released an update on revenues from its Wressle field (Union Jack 40%). Wressle has now achieved US$13m of cumulative net revenues from the field since mid-August 2021, from US$12m as of early January 2023. The field continues to produce under natural flow and with zero water cut (most recently reported at a gross rate of 825-850bbl/d, and with current production described as being at “record” levels). These Wressle revenues continue to help
Companies: Union Jack Oil Plc
Cadence has secured a 30% stake in the Amapá iron ore mine, Brazil, for $9.3m, a project
valued by Anglo American in 2012 at over $600m. With established infrastructure,
Amapá is a company-making opportunity. Cadence has recently published a PFS on
Amapá, which highlights the obvious value in the project. With equity interests in
European Metals Holdings (Cinovec lithium-tin project in Czech Republic), Hastings
Technology Metals (Yangibana REE project in Australia) and Evergreen (lithi
Companies: Cadence Minerals PLC
Diversified Energy has released a positive FY22 Trading Update and we increase our EBITDA forecasts by +3% in FY22 and 2023.
Companies: Diversified Energy Company PLC
Higher production at Vanchem coupled with another stable year at Vametco saw Bushveld deliver record annual vanadium production in 2022, though the adverse impact of electricity load shedding on the ramp up of Vanchem meant that the full-year total narrowly missed the group’s target. We still anticipate a return to positive EBITDA for 2022 and further earnings growth this year as Vanchem continues to gather pace. However, evidence of positive progress on load-shedding mitigation measures at Vanc
Companies: Bushveld Minerals Limited
Alternative Resource Capital
Flow rates from Southwark A2 continue to be poor. IOG has released an update on activities at its Southwark A2 well. In mid-January, IOG reported initial stabilised flow test rates from its Southwark A2 well of 4.2mmcf/d gross of gas and also 1.6mbbld/d of water. This gas rate was not likely to be commercial. The company has since progressed a programme to isolate several of the producing zones, aiming to achieve higher gas flow rates and lower water cut. This programme has now been completed, a
Companies: IOG PLC
Companies: Atlantic Lithium Limited.
Companies: ITM IOG KOD AVCT
Companies: Touchstone Exploration Inc
Figure 1 provides the historical EV/CF multiples for selected high-growth peers of i3 Energy operating in Canada. Table 1 provides the EV/CF multiples for our selection of the “best of the best” of Canadian junior E&P stocks, of which i3 Energy is one. We highlight that i) the outlook for the oil price has rarely been so robustly supported into the long-term and ii) the wells being drilled systematically in Canada today are some of the most economic wells being drilled by Canadian E&P companies
Companies: i3 Energy Plc