Domestic E&P Statistical Package and FD&A Review

With this publication we highlight various metrics and statistics forthcoming from yearend reserve books for our Domestic E&P coverage universe (Integrateds, Large Cap, Oilsands, Intermediate, Mid Cap, and Small Cap). Similar charts for YE2014 reserves can be found in our Statistical Package dated April 7, 2015.

Posts 2015 Year-End Results

The Company’s 4Q15e production figure was ~5% behind our forecast however cash flow was 7% ahead on higher realized pricing and lower production costs. Boulder’s 2P reserves were largely flat since being spun out of DeeThree Exploration in May 2015, however 1P and PDP reserves were up 5% and 3% respectively. F&D costs over this period came in at $18.18/boe 2P and $18.90/boe 1P. The Company remains on track to close its previously announced going-private transaction with ARC Financial on or befor

Acquired for $268 mm in Going Private Agreement with ARC Financial

Boulder Energy has entered into a plan of arrangement with ARC Financial Corp. whereby the Company will be taken private for an all-cash consideration of $2.59 per share. Inclusive of $143 mm of debt, the deal is valued at $268 mm which implies compelling take-out metrics, particularly in light of where current commodity prices stand today. With our view this represents an attractive acquisition price that is unlikely to be topped, we have aligned our target price with the proposed cash bid of $

GOING PRIVATE, ANNOUNCES ALL-CASH DEAL WITH ARC FINANCIAL CORP.

Impact: Positive. The going private deal marks a 70% premium to the Company's most recent closing price, which should be welcome to shareholders who purchased Boulder at recent lows.

Intermediate/Mid/Small Cap Commodity Price Update Impact

With this publication we highlight forecast revisions associated with our crude oil commodity price update. Concurrent within a dynamic time for E&Ps, some of which have already begun the process of 2016 capital budget downdrafts, revised estimates attempt to directionally capture a shift towards capital conservation, though severely weakened futures curves have influenced our thinking for the better part of 6 months anyway. We expect further capital investment reductions forthcoming from E&Ps i

Boulder Energy Provides 2016 Capital Spending and Production Guidance

Boulder Energy’s 2016 capital program includes spending of $26 - $28 mm and annual average production of 5,500 boe/d, which is below our prior forecast made following receipt of the Company’s 3Q15 actual results in early November. This conservative capital budget will aim to keep volumes flat from current levels by focusing efforts on early stage EOR projects while engaging in a 6 well drilling program across its Belly River asset.

BOULDER ENERGY LTD. (BXO) ANNOUNCES 2016 CAPITAL PROGRAM, CREDIT FACILITY AMENDMENTS

Impact: Negative, Boulder issued what we would consider a prudently conservative spending plan, however, 2016e production guidance is below both our estimate and consensus, while current production is trending well below our expectation for 4Q15e and our notional 2015e exit production estimate, which will necessitate revisions to our forecast.

New Commodity Price Outlook Impact

“Worse? How could they get any worse? Take a look around you, Ellen. We’re at the threshold of hell”. These are the words spoken by Clark Gris-wold in the holiday classic “Christmas Vacation”, and seem aptly suited for the general sentiment in the Canadian energy space at the moment as we roll out a summary of our regular forecast revisions extending from our most recent crude oil and natural gas price forecast update.

FirstEnergy - DAILY RESEARCH SUMMARY

BOULDER ENERGY LTD (BXO CN) | CATHEDRAL ENERGY SERVICES LT (CET CN) | CENOVUS ENERGY INC (CVE CN) | GEOPARK LTD (GPRK US) | OPHIR ENERGY PLC (OPHR LN) | PERPETUAL ENERGY INC (PMT CN) | TAMARACK VALLEY ENERGY LTD (TVE CN)

REPORTS 3Q15 RESULTS

Impact: Negative in the short term given a production and cash flow miss, while current productive capacity of 7,000 boe/d is below our previous thinking and will result in revisions to our estimates. Management has signaled a shift to a more conservative capital spending budget in 2016e, which we think is the right move in this environment.

Leaving No Stone Unturned: Initiating Coverage on Boulder Energy Ltd. (BXO)

With this publication we are initiating coverage on Boulder Energy Ltd., a light-oil levered, growth oriented Small Cap E&P formed in May 2015 via the corporate reorganization of DeeThree Exploration Inc. Boulder emerged from the reorganization with a concentrated asset base located near Brazeau, AB, including ~8,000 boe/d of production, a contiguous 98,000 net acre foot print with minimal expiry issues, ~400 identified horizontal drilling locations over 7 distinct Belly River zones, and the inf

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

Falcon Oil & Gas - Funding a Multi TCF Resource

Falcon has raised gross proceeds of US$8.9m via a placing and subscription at a price of 6p/share and the granting of overriding royalty interests. The net proceeds, together with Falcon’s existing cash resources (cUS$4.3m) will be used to fund Falcon’s net share of 2024 capex (cUS$9m) associated with the 40MMscf/d Shenandoah South Pilot Project, including the drilling, stimulation, and flow testing of two 10,000ft horizontal wells. The funds will also enable Falcon to fund its share of the cost

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

Morning Note – 22 April 2024

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

• Multiple tests over multiple zones in multiple horizons were run at the Mopane-1X exploration well. The flows achieved during the well test reached the maximum allowed limits of 14 mboe/d. The flow rate was constrained by the size of the available surface facilities. • The AVO-1 horizon encountered at Mopane-1X and Mopane-2X are in the same pressure regime, suggesting that the entire area (8 km diameter) between the two wells is connected. Overall, in the Mopane complex alone, and before dril

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

LIBERUM: Ferrexpo: Production triples

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

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.

SP Angel Morning View: Gold prices slide following profit taking as traders look to US data

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

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.

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

Since November, the JOG share price has moderated from a high of 250p to current levels of 149.5p. This is despite JOG having now made significant progress towards FID on its c.70mmboe Buchan project, with FID upcoming later this year. In our view this share price move is unjustified, with current levels further enhancing the value on offer, and making an attractive opportunity for investors.

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