Oil fell the most since November with a stronger dollar and concerns surrounding inflation weighing on crude's best start to the year on record. Futures in New York declined 3.2% on Friday, with a rising dollar reducing the appeal of commodities priced in the currency. Yet, the US crude benchmark still managed to post a nearly 18% gain this month as inventories worldwide tighten and pockets of demand return. Domestic crude production dropped in 2020 for the first time in four years, according to the US government. Crude prices have notched the largest year-to-date gain than in any year prior for the same time period, in part due to OPEC+ production curbs helping to deplete global stockpiles. Plus, the unprecedented cold blast that recently halted millions of barrels of US output means oil markets are about 100,000 barrels a day tighter than previously thought, according to JPMorgan Chase & Co. Supply scarcity may worsen in the coming months as North Sea fields undergo major maintenance. The Organisation of Petroleum Exporting Countries and its allies will meet next week to decide on output levels. While Russia has signalled it favours a further easing of production cuts, the country's oil output dipped below its OPEC+ target this month, meaning it failed to take full advantage of the more generous quota it was afforded after January's OPEC+ meeting. Prices: West Texas Intermediate for April delivery fell $2.03 to settle at $61.50 a barrel. The US crude benchmark rose 3.8% this week. Brent for April settlement, which expires on Friday, declined 75 cents to end the session at $66.13 a barrel. The contract gained 5.1% this week. The more actively traded May contract declined $1.69 to settle at $64.42 a barrel. Soaring bond yields on Thursday were the latest sign that accelerating inflation could trigger a pullback in monetary policy support that has helped fuel gains in risky assets during the pandemic. While global bonds have since stabilised, a less accommodative approach to monetary policy could have ripple effects across commodity markets.
Companies: FO 88E DGOC EME TRIN UOG
Oil fell to the lowest in a week as output slowly resumed in Texas, while margins for processing gasoline surged as Gulf Coast refineries are seen taking weeks to restart operations after the deep freeze. Crude futures in New York plunged $1.28 on Friday, its biggest decline in dollar terms since late December. Producers including Marathon Oil Corp are using restored power from grids or generators to resume output that was halted by the frigid weather this week in the Eagle Ford shale basin. Meanwhile, fuel margins jumped with four of the biggest refineries in Texas seen taking several weeks to resume operations, raising the potential for fuel shortages. Oil is still up more than 20% this year due to Saudi Arabia's unilateral output cuts in February and March and an improving demand outlook. Prices: West Texas Intermediate fell $1.28 to settle at $59.24 a barrel, falling less than 1% over the week. Brent for April settlement slipped $1.02 to end the session at $62.91 a barrel, posting its largest daily drop since January 15. The contract eked out a slight weekly gain. Gasoline futures rose by 1.26 cents per gallon to $1.8069. The refining margin for Nymex gasoline versus WTI futures surged as much as over 16% on Friday, rising to the highest since April. There should be only a small and transitory impact on global oil prices from the US freeze as the supply and demand impacts balance out, Goldman Sachs Group Inc said. Still, Brent's nearest timespread remains at one-year highs in a structure indicating tighter supplies and WTI's discount to Brent has widened further past $3 a barrel this week, as replacements are sought for US crude exports. The cold snap and power cuts affected more than 20 refineries in Texas, Louisiana and Oklahoma. Crude-processing capacity fell by about 5.5 million barrels a day, said Amrita Sen, chief oil analyst for Energy Aspects Ltd. Meanwhile, the White House said it would be willing to meet with Tehran to discuss a “diplomatic way forward” in efforts to return to the nuclear deal that the US quit in 2018, adding further pressure to prices. Iran is pressing the US to lift sanctions and re-join the deal if talks are to resume.
Oil in London climbed for a fourth straight week as efforts to clear an oil surplus are seen holding the market over until demand comes back in force. Global benchmark Brent futures on Friday surged the most since early January, while West Texas Intermediate crude flirted with $60 a barrel for the first time in more than a year. Signs of inventories declining in the US and elsewhere point to the success OPEC+ has had in draining a surplus left in the wake of an historic demand slump due to the pandemic. OPEC expects a stronger second half of 2021, indicating this week that global inventories will face sharp declines unless the cartel boosts supply. Iraq said OPEC+ is unlikely to change its output policy at a March meeting. In the US, crude stockpiles are at the lowest in nearly a year. One of the most dramatic moves in the market this week has been in Brent's futures curve. So-called backwardation between the first and third futures contract, which indicates tight supplies, soared to its strongest level since January 2020. At the same time, brokers reported a frenzy of bullish trading in the key Dated-Frontline swap, which is tied to physical North Sea markets, flipping to a premium for the first time in a year. There are further signs of supply being constrained in the near term. A frigid Arctic blast spreading across America's largest shale oil patch has caused crude flowing from wells to slow or halt completely. Traders say several hundred barrels a day of output in the Permian Basin could be impacted by well shutdowns that began Thursday. Prices West Texas Intermediate gained $1.23 to settle at $59.47 a barrel, rising the most in nearly two weeks. Brent for April settlement rose $1.29 to end the session at $62.43 a barrel. Both benchmarks are at the highest since January 2020.
Companies: FO PRP 88E DGOC EME TRIN UOG
Oil set a fresh one-year high in New York with continued producer supply curbs helping spur strength everywhere from physical markets to the futures curve. Futures gained 1.1% in New York on Friday to the highest since late January, while Brent crude remained just under $60 a barrel in London. The number of vessels sailing toward China jumped to a six-month high on Friday, suggesting the world's largest importer may be piling back into the oil market. Meanwhile, crude stockpiles tied to oil futures in China fell to the lowest since June 2020, according to data analytics company OilX, the latest sign of ebbing inventories. Crude was buoyed this week by a pledge from the Organisation of Petroleum Exporting Countries and its allies to keep draining a virus-driven surplus. Expectations of a global economic recovery this year are also raising forecasts for stronger oil demand, even though lockdown measure are restricting mobility in the meantime. At the same time, more money is flowing into the space with investor holdings of West Texas Intermediate futures soaring to the highest since 2018. Underpinning oil's climb to one-year highs has been a sharp movement of the futures curve into a bullish backwardation structure. The key premium on West Texas Intermediate crude's nearest December contract over the following December widened out past $3 a barrel to the strongest level in a year. Meanwhile, Royal Dutch Shell Plc led a buying binge earlier this week in the North Sea market, snapping up the most cargoes on an S&P Global Platts by a single company since at least 2008. Prices West Texas Intermediate futures for March delivery rose 62 cents to settle at $56.85 a barrel, jumping nearly 9% for the week. Brent for April settlement climbed 50 cents to $59.34 a barrel, notching up its third straight weekly gain. However, there are also reasons to be cautious. Oil at $60 a barrel will bring back more supply and keep any further gains in check, according to top trading firm Gunvor Group Ltd. Average WTI prices for the rest of the year are around $55 a barrel, while for next year they are above $50, levels that could spur producers to pump more. For now though, there are signs of ongoing strength as Saudi Aramco left its oil prices unchanged for Asia in March, defying expectations of a cut. It also hiked pricing to Europe and the US.
Oil declined the most in a week with rising US crude stockpiles seen as an obstacle facing a market that is still recovering from a pandemic-induced demand slump. Futures fell 1.6% to the lowest level in nearly two weeks in New York on Friday. A US government report showed domestic crude inventories increased for the first time since December, rising more than 4 million barrels last week. However, the data also showed refiners processed the most crude since March, an encouraging sign. A stronger dollar on Friday also reduced the appeal of commodities priced in the currency. Following crude's strong start to the new year, prices have struggled to break out to new highs this month with restrictions in place to curb the spread of Covid-19. Parts of Hong Kong are locking down and the UK prime minister is signalling restrictions may last for months, while New York's governor said the state is on the verge of running out of Covid-19 vaccines. Prices West Texas Intermediate for March delivery fell 86 cents to settle at $52.27 a barrel. Prices were little changed on the week. Brent for March settlement lost 69 cents to end the session at $55.41 a barrel. Crude's market structure has remained firm this week, with key timespreads for both West Texas Intermediate and Brent crude trading in a structure indicating supply tightness. The nearest contract for WTI futures is trading at a premium to the following month, with the Energy Information Administration report showing stockpiles at the nation's largest storage hub in Cushing, Oklahoma, fell the most since May. Brent's nearest timespread is also trading in a so-called backwardation structure. Trafigura Group Chief Executive Officer Jeremy Weir told Bloomberg Television that oil prices will rise on the back of OPEC production cuts and a demand boost from a rebounding global economy. Meanwhile, Goldman Sachs Group Inc said in a note that the Biden administration's initial steps, including a focus on fiscal spending and a likely delay in lifting sanctions on Iran, will be bullish for oil prices.
Gas composition data from the Kyalla 117 well has confirmed the presence of liquids-rich gas within the Lower Kyalla Shale, with less than 1% CO2. Analysis of the Kyalla 117 well has shown that the gas stream contains c65% methane gas, with c33% being other liquid gases such as ethane and butane. The analysis also supports the view that the Kyalla gas stream will have elevated LPG and condensate yields. Operations are scheduled to recommence at Kyalla 117 at the beginning of the dry season in Q2/21 and will initially focus on flowing back sufficient hydraulic fracture stimulation water to allow the Kyalla 117 well to flow continually without assistance.
Companies: Falcon Oil & Gas Ltd.
Origin Energy has submitted a Notification of Discovery on the Kyalla 117 well in the Beetaloo Sub-basin, following the unassisted production of 0.4-0.6 MMscf/d of liquids-rich gas over a 17-hour period. The result follows the introduction of nitrogen to lift the fluids in the well. Longer-term measures will now be put in place to flow back sufficient hydraulic fracture fluid to allow for an extended well test during the dry season (Q2/21). The Australian Government has unveiled its plans to accelerate the development of the Beetaloo Sub-basin through the A$224m Beetaloo Strategic Basin Plan, creating the right conditions to grow the onshore gas industry in the Northern Territories. A new A$50m Beetaloo Cooperative Drilling Programme will support A$200m of exploration activity before 30 June 2022, capped at A$7.5m per well. The Government has also committed to establishing a new A$174m Roads of Strategic Importance corridor to upgrade roads supporting the development of gas resources in and around the Beetaloo.
Oil slid by the most in three weeks as a stronger dollar and weak US economic data stoked concerns over an economic rebound. Futures in New York tumbled 2.3% on Friday after a rally in oil earlier in the week pushed the benchmark into overbought territory. The US dollar strengthened, reducing the appeal of commodities priced in the currency. US consumer sentiment cooled more than forecast in January and other economic data such as sluggish retail sales and producer prices also portray the obstacles still facing the country as it emerges from the pandemic. Meanwhile, President-elect Joe Biden said he will ask Congress for $1.9 trillion to fund immediate relief for the US economy that has been pummelled by the pandemic. But the large price tag and inclusion of initiatives opposed by many Republicans set up the aid package for a drawn out legislative battle. Despite the pullback in oil futures, vaccine breakthroughs and Saudi Arabia's pledge earlier this month to deepen output cuts are expected to support prices. JPMorgan Chase & Co said a “nasty deficit” could emerge in the oil market later this year. Meanwhile, technical indicators had been flashing warnings signs all week. The 14-day Relative Strength Index for both US and global benchmark crude futures traded above 70 this week in a sign they were overbought, though both slipped under that level Friday. Prices West Texas Intermediate for February delivery fell $1.21 to settle at $52.36 a barrel. Futures rose less than 1% this week. Brent for March settlement lost $1.32 to end the session at $55.10 a barrel. The contract fell 1.6% during the week. The market's structure has also softened. Brent's prompt timespread dipped back into contango on Friday, a bearish structure where nearby prices are cheaper than later-dated ones. This week has seen the annual commodity index rebalancing take place -- a move that was expected to see as much as $9 billion flow into the oil market. Since it began last Friday, there has been a surge in so called trading-at-settlement volumes, an instrument often used by participants with index exposure. For Brent, average volumes over the last five days have reached a record. Other oil-market news:
Oil posted the biggest weekly gain since late September as Saudi Arabia's plan to slice output spurred a surge in physical crude buying. Futures in New York advanced $3.72 this week and Brent oil topped $55 a barrel for the first time since February. Saudi Arabia's pledge earlier this week to cut production by 1 million barrels a day in February and March has made for a tighter supply outlook sooner than anticipated. Meanwhile, prospects for additional stimulus under a Biden administration spurred broader market gains. Saudi Arabia's surprise cut appears to have caught some Asian buyers by surprise and demand for US crude for export to Asia has gained this week. Unipec, the trading arm of China's largest refiner, bought its eighth cargo of North Sea crude in a pricing window run by S&P Global Platts this week and was seeking more in what may be the heaviest buying of its kind on record. Brent's move above $55 a barrel caps a stellar few months for the oil market, with crude emerging as a favoured play to bet on coronavirus vaccines and global reflation. Saudi Arabia's pledge has led analysts to rethink their projections for crude's price recovery. Citigroup Inc boosted its price forecasts on Friday, saying the kingdom's actions should accelerate stockpile draws. Meanwhile, annual commodity index rebalancing may provide another tailwind, with as much as $9 billion of oil contracts possibly being bought over the five days of activity that start Friday, Citigroup said. Prices Brent for March settlement advanced $1.61 to end the session at $55.99 a barrel. West Texas Intermediate for February delivery rose $1.41 to settle at $52.24 a barrel. Both benchmarks are at the highest since late February. The kingdom's shock move has rippled across the oil market this week, with the difference between the price of oil for different months firming markedly in recent sessions. WTI's nearest contract traded at a premium to the following month for the first time since May, while the closely watched spread between the nearest two December contracts is at its strongest intraday level since last January.
Oil rose for a seventh straight week as efforts to pass another US virus relief package added to optimism that the vaccine's rollout will provide a long-awaited boost to demand. Futures rose 1.5% in New York on Friday, extending this week's rally to over 5%. Talks on a relief package have made some headway, with Senate Majority Leader Mitch McConnell saying he is “even more optimistic now” that an agreement is near. Recent progress in rolling out a Covid-19 vaccine has also buoyed the outlook for consumption. The Bloomberg Dollar Spot Index is set for a weekly decline and has been trading near its lowest since 2018. A weaker dollar raises the appeal for commodities priced in the currency. Underlying the climb in headline crude prices, premiums on nearer-dated contracts relative to later ones are indicating improving demand. The bullish pattern known as backwardation has strengthened at the back end of oil's forward curve. West Texas Intermediate's nearest December contract trades more than a $1 a barrel higher than that for December 2022, compared to trading at a discount less than a month before. Yet, there are signs the market's rally is due for a pause. Brent's nearest timespread ended the week at parity, compared with a premium of as much as 18 cents the week prior. At the same time, premiums for real-world barrels are easing. Prices West Texas Intermediate for January delivery rose 74 cents to settle at $49.10 a barrel. Brent for February settlement gained 76 cents to $52.26 a barrel. Both benchmarks closed at their highest since late February. The spreading virus and lockdowns are weighing on demand, but the hit is much smaller than earlier in the year and is likely only a speed bump to rebalancing the market, according to a Goldman Sachs note. This will leave the oil market range-bound and choppy in coming weeks as vaccine enthusiasm is followed by headlines on tighten pandemic restrictions, the bank said.
Oil just managed a weekly gain as an impasse in Washington over pandemic relief dimmed chances of an imminent boost to demand. Futures in New York eased off a nine-month high alongside a broader market decline as bipartisan talks on another round of US fiscal stimulus stalled. West Texas Intermediate rose less than 1% for the week. A pullback was largely expected after Brent's rally above $50 earlier in the week, with a key technical benchmark settling in overbought territory on Thursday. With the market outlook improving, US crude futures have gained roughly 30% since the end of October. Global consumption of gasoline and diesel rose to a two-month high last week, according to an index compiled by Bloomberg, suggesting the impact of recent coronavirus lockdowns is waning. Buying by Chinese and Indian refiners also indicates Asian physical demand will likely remain supported for another month. Still, there are some reasons to give pause, as the market this week shrugged off the second largest US crude build on record. At the same time, oil price upside could be capped early next year as concerns of virus-related lockdowns and rifts in the Organisation of Petroleum Exporting Countries present potential near-term headwinds, TD Securities wrote in a report. Prices West Texas Intermediate for January delivery lost 21 cents to settle at $46.57 a barrel. Brent for February settlement declined 28 cents to end the session at $49.97 a barrel. The contract rose 1.5% this week. The market has taken the OPEC+ alliance's recent decision to restore a small amount of output in January in stride, and the oil futures curve is signalling investors expect further gains in consumption. In the US, government data showed driving on US highways increased last week, though it still remains off for this time of year. But amid the recuperation in oil demand, a struggle over market share could give rise to more volatility in oil markets. It will be increasingly difficult for OPEC and its allies to walk the tightrope between volume and price, with the producer group looking to both increase revenue and prevent a sizable rebound in US market share, S&P Global Platts head of analytics said in a webinar on Friday. Other oil-market news: Equinor ASA plans to more than double its oil production in Russia after buying a stake in a Rosneft PJSC project in East Siberia. Saudi Aramco gave full contractual supplies of crude to at least six customers in Asia for January sales, according to refinery officials with knowledge of the information. The number of supertankers signalling the US as their destination rose in the past week to the highest level since early September, according to ship-tracking data compiled by Bloomberg.
Oil rose for a fifth straight week with support from an OPEC+ deal and hopes for another round of US stimulus. Futures in New York and London closed at fresh nine-month highs on Friday, with signs that momentum is building toward a fiscal stimulus plan that could provide an immediate demand boost, before a vaccine is widely available. Prices had already been rising after OPEC+ reached a compromise agreement that offers something for members concerned about the fragility of the market, as well as nations who want to pump more to take advantage of higher prices. The agreement involves adding 500,000 barrels a day of production to the market next month, then hold monthly meetings to decide on subsequent moves. Oil has recently reached the highest levels since March amid optimism over an impending vaccine rollout lifting demand next year. Alongside the rally in headline crude prices, the oil futures curve is signalling tighter supply as demand in Asia booms and the key North Sea market strengthens. The prompt timespread for Brent crude moved back into backwardation this week, while the nearest December contract is trading at a higher level than the same contract for December 2022. Prices West Texas Intermediate for January delivery advanced 62 cents to settle at $46.26 a barrel, posting a 1.6% weekly gain. Brent for February settlement climbed 54 cents to end the session at $49.25 a barrel, with the contract rising more than 2% this week. Both benchmarks are at the highest since early March. While Democrats and Republicans have been at an impasse for months over another round of US fiscal stimulus, signs of progress have led broader markets to rally heading into the weekend. House Speaker Nancy Pelosi said she and Senate Majority Leader Mitch McConnell have discussed attaching the relief measures to an omnibus spending bill that the parties are working on separately to keep the government funded beyond 11 December into 2021. Meanwhile, the rally in headline crude prices is not a welcome sign for every corner of the market. Europe's beleaguered oil refineries are struggling to pass on the higher cost to buyers as they face weak fuel demand due to the pandemic. In the US, the combined refining margin for gasoline and diesel remains near $9 a barrel at its lowest in roughly a decade for this time of year.
Brent oil edged lower but was on track for a fourth weekly gain -- amid signs of division among OPEC+ members just days before a key policy meeting on whether to extend production curbs. Futures in London traded near $48 a barrel after falling 1.7% in the previous session. West Texas Intermediate dropped 2% from Wednesday, with prices not closing on Thursday due to the Thanksgiving holiday in the US. While most analysts surveyed by Bloomberg are forecasting OPEC+ will postpone a planned supply hike by three months to March at a meeting early next week, some see a chance of a shorter delay amid resistance from the United Arab Emirates and Iraq, which are eager to resume oil sales. OPEC's president said the group must remain cautious, with internal data pointing to the risk of a new surplus early next year if output is hiked in January. That came after Iraq's deputy leader criticised the cartel, saying the economic and political conditions of member countries should be considered before they are asked to withhold production. The recent rally gives leverage to members who want to pump more, Standard Chartered Plc said in a note. Crude is up around 6% this week as signs Covid-19 vaccines could soon be rolled out brighten the consumption outlook, even as a resurgent virus led to more lockdown measures, particularly in Europe. There was also fresh evidence the demand recovery in Asia is gaining traction. Chinese industrial profits rose at the fastest pace in almost nine years in October, while Indian economic growth data due Friday is forecast to show a sharp recovery last quarter. Prices Brent for January delivery declined 0.4% to $47.59 a barrel on the ICE Futures Europe exchange at 7:43 a.m. in London and is up 5.8% this week. WTI for the same month January delivery fell 2% from Wednesday to $44.80 on the New York Mercantile Exchange. Crude futures on the Shanghai International Energy Exchange rose 0.2% to 289.1 yuan per barrel and have risen around 11% this week.
Pantheon Resources (PANR LN): Rig contract for the Talitha #A well secured | Falcon Oil & Gas (FOG LN): Kyalla 117 N2-1H ST2 still awaits measurable gas breakthrough | Mosman Oil & Gas* (MSMN LN): FY20 results, revenues and cash flows continue to grow | Tullow Oil plc (TLW LN): Strategic update ahead of CMD
Companies: FO MSMN TLW PANR
Falcon has provided an update on exploration activity in the Beetaloo Sub-basin, Northern Territory, Australia following the recent successful hydraulic stimulation of the Kyalla 117 N2-1H ST2 well. Falcon and its JV partner, Origin Energy, have identified greater pressures in the horizontal section of the well than in the surrounding reservoir, which they believe is preventing the flow of gas from the reservoir into the fractures and then to the surface. To lower the pressures in the well, the JV will re-enter the well with coiled tubing and apply nitrogen lift – a technique that is used extensively across the oil and gas industry and was previously applied to the successful Amungee NW1-1H well tested by the JV in 2016. Based on all the other technical information gathered to date, we remain optimistic on the potential of Kyalla liquids rich gas play. We maintain our target price at 39p (a 406% premium) and reiterate our BUY recommendation.
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Shanta Gold (AIM: SHG), the East Africa-focused gold producer has, this morning, released its full year results for 2020. The company previously announced production and operational figures for 2020 alongside group-wide reserves and resources update. As such the figures reported today are in line with our forecasts down to EBITDA level, but generally better than expected elsewhere– see Fig 1. Overall it has clearly been a strong year financially with revenue, EBITDA and EPS up by 31%, 34% and 270% respectively from the previous year. The company has also kept to its promise of a maiden dividend with 0.10p per share payable in April as part of a semi-annual programme.
Companies: Shanta Gold Limited
Proposed move to AIM from the main market (standard) by Emmerson (EML.L) to provide Emmerson with access to a market and environment which is more suited, in the Board's view, to the Company's current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development work. Subject to EGM on 21st March. Rogue Baron plc have announced its application for admission to the AQSE growth market. Rogue Baron owns five subsidiaries, namely: Shinju Spirits, Inc., Shinju Whiskey LLC, Mazeray Corporation, STI Signature Spirits Group LLC and Legacy Retail Group LLC. The Company’s goal is to build each of its brands that makes them a buyout target. Deal size TBC an expected admission date 12th March 2021. Global review platform, Trustpilot has announced its intention to float on the premium list of the LSE. Trustpilot provides an open platform, which creates a place where businesses and consumers can gain actionable insights and collaborate. Consumers are able to share feedback, at any time, about any business with a website and review feedback left by other consumers. Total revenues were US$64.3 million, US$81.9 million and US$102.0 million for the years ended 31 December 2018, 2019 and 2020, respectively. The Offer would comprise new Shares to be issued by the Company (raising gross proceeds of approximately US$50 million to support Trustpilot's growth plans and repay indebtedness) and an offer of existing Shares to be sold by certain existing shareholders, directors and employees. Timing TBC. In The Style, the e-commerce womenswear fashion brand with an influencer collaboration model, announces their intention to float on AIM. In The Style is a pure-play e-commerce fashion brand with a l customer base of women predominantly aged between 16 and 35. Founded in 2013, the group has delivered £35.4 million net sales and £3.6 million Adjusted EBITDA in the nine months to 31 December 2020, with sales up 159% from £13.7 million for the nine months to 31 December 2019. Admission is expected to take place on or around 17 March 2021. Deal size TBC. Media reports video game firm, Catalis is mulling a London IPO, just over a year after being bought by a private equity firm. Catalis’s accounts are reportedly expected to show revenues increasing to £60m in 2020, up from £43m, with adjusted earnings of £15m. Deal details and timing TBC. tinyBuild— a leading video games publisher and developer with global operations. tinyBuild's strategic focus is in creating longlasting IP by partnering with video games developers, establishing a stable platform on which to build multi-game and multimedia franchises is to join AIM. Offer details TBC. Due mid-March. AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC. Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world's largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021. NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company's target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021. Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021. Team PLC announced their plans for an AIM IPO. Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 . The Company is seeking to raise no less than £5m. The Placing will be priced on a pre-money valuation for the Company of £7m. Targeting March Admission. Fix Price announces its intention to float on the Main Market of the London Stock Exchange. Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company. Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA. Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT's investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance. According to media reports, Deliveroo is expecting to release its IPO plans on 8th March. The company raised more than $180m in January with a valuation of more than $7bn.
Companies: LND GDR GAMA SOLI SHED RLE CRU WRES SBI MNO
UK railway privatisation, which was launched in the mid-1990s, has finally turned full circle: the Department of Transport has recently confirmed that its controversial railway franchise system will be scrapped. In this month's feature article, Nigel Hawkins, the Infrastructure analyst at Hardman & Co, examines the 25-year history of railway privatisation and chronicles its ups and its downs. The successes of railway privatisation, such as new rolling stock, are addressed, along with the many shortcomings, which included minimal vertical integration. With the winding up of the franchise system, the UK railway sector is effectively reverting to its former status as a nationalised industry, a shift started with the renationalisation of the collapsed Railtrack – later re-badged as Network Rail – in 2001.
Companies: ARBB BBGI CLIG DNL FLTA ICGT OCI PCA PIN PXC RECI SCE TRX SHED VTA YEW
Today's news & views, plus announcements from MRW, BNZL, HICL, AGK, SEPL, SEIT, SDY, BGO, SHED
Companies: BGO SEIT SEPL
Lancaster activity update
Companies: Hurricane Energy Plc
Pantheon Resources has this morning announced that the better than expected well-logs from the Kuparuk formation warranted a change in plan for the testing of that formation, namely, from an open hole test to a more rigorous cased hole test (with a 4 ½ inch liner). However, due to equipment failures and technical issues, the formation started to become damaged in its current location and as such it was not possible to set the casing string (4 ½ inch liner). Accordingly, the company has made the decision to drill a new modestly angled sidetrack in the Kuparuk formation. It is estimated that the sidetrack will take 2-3 days to drill, some 650 feet through the Kuparuk formation, which should then allow a better testing operation. As a result of the cold weather in Alaska, the drilling season may be extended into early April.
Companies: Pantheon Resources plc
Anglo Asian Mining* (AAZ LN) BUY – H2/20 exploration work returns exciting results at Gedabek CA Bushveld Minerals* (BMN LN) - Strong Buy 31p – Vanadium prices rise as new demand meets tight supply Gemfields (GEM LN) – Resumption of operations at Kagem and Montepuez after a year of disrupted production and sales GoldStone Resources* (GRL LN) – Exercise of warrants raises £1.2m Power Metal Resources* (POW LN) – Portfolio update Strategic Minerals* (SML LN) – Continued access to Cobre confirmed while current copper prices boost Leigh Creek economic returns
Companies: GML AAZ BMN GRL POW SML
tinyBuild— a leading video games publisher and developer with global operations. tinyBuild's strategic focus is in creating longlasting IP by partnering with video games developers, establishing a stable platform on which to build multi-game and multimedia franchises is to join AIM. Offer details TBC. Due mid-March. AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC. Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world's largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021. NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company's target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021. Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021. Team PLC announced their plans for an AIM IPO. Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 . The Company is seeking to raise no less than £5m. The Placing will be priced on a pre-money valuation for the Company of £7m. Targeting March Admission. Fix Price announces its intention to float on the Main Market of the London Stock Exchange. Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company. Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA. Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT's investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance. According to media reports, Deliveroo, are expecting to release their IPO plans on 8th March. The company raised more than $180m in January with a valuation of more than $7bn.
Companies: ADME NFC CHAR WHR MKA IXI MOS D4T4 ALS TERN
Today's news & views, plus announcements from SMDS, PSN, POLY, RIO, BIFF, SONG, HSX, PAGE, RLE, SHED
Companies: PSN RLE RIO
Today's news & views, plus announcements from RIO, TW, CRDA, TPK, PHP, MGGT, SHI, WHR
Companies: PHP RIO SHI TPK
Concept select update
Companies: Jersey Oil & Gas PLC
i3 Energy has provided an interim update the highlights of which are: • Production is exceeding expectations with lower declines than modelled resulting in stable production from November 2020 to January 2021 averaging 9,150 boe/d (41% liquids) – about 1,000 boe/d greater than expected by the forecasts of the company's competent persons' reports at the time of its relisting. • Based on the futures curves for oil & gas, the company anticipates net operating income for 2021 (revenue minus royalties, operating costs, transportation and processing) of approximately CAD $35m (US $27.6m). • Maintenance capital expenditure guidance in conjunction with the net operating income amounts to CAD$3m. • i3 Energy completed an 80 hour flow-test on a horizontal Falher well located on its Noel acreage in Northeast British Columbia. The flow test ran for a sustained period at 4,200 mcf/d (700 boe/d) on a 1/4” choke. The well is expected to be brought on production at approximately 500 boepd during the second quarter of 2021, following tie-in. This well was not included in the company's 2P reserve estimates. The result represents a materially value enhancing development. Both the net income guidance and maintenance capital guidance excludes the potential contribution of the Noel acreage. • The Company continues to progress the legal process to allow it to declare a dividend in Q1 2021. As previously disclosed, the Company aims to distribute up to 30% of free cash flow as a dividend to shareholders. • The company indicated that discussions continue with a potential farm-in partner for the Serenity discovery and terms are being negotiated. The recent strengthening in commodity prices has reinvigorated activity within i3's virtual data room, and additional parties previously contacted during early 2020 have now re-engaged with the company. The company indicated that the market will be updated if and when an agreement is reached. (see Table 1 for asset scale/value estimates in relation to the company's North Sea assets).
Companies: i3 Energy Plc
tinyBuild— a leading video games publisher and developer with global operations. tinyBuild's strategic focus is in creating longlasting IP by partnering with video games developers, establishing a stable platform on which to build multi-game and multimedia franchises is to join AIM. Offer details TBC. Due mid-March. AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC. Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world's largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021. Cellular Goods a UK-based provider of premium consumer products based on biosynthetic cannabinoids announced its intention to join the main market (standard). Has raised £13M in an oversubscribed placing. £25m mkt cap. Due 26 Feb. NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company's target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021. Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021. Team PLC announced their plans for an AIM IPO. Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 . The Company is seeking to raise no less than £5m. The Placing will be priced on a pre-money valuation for the Company of £7m. Targeting March Admission. Virgin Wines UK Plc has out their plans for an AIM IPO. Virgin Wines is a direct-to-consumer online wine retailer that sells products to retail customers in the UK through two subscription schemes and a pay-as-you-go offering. The Group also sells a range of beers and spirits and operates a B2B sales channel for corporates. Anticipated mkt cap £110m. Raising £13m in new money and vendor sale of £34.9m . Due 2nd March. Fix Price announces its intention to float on the Main Market of the London Stock Exchange. Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company. Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA. Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT's investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance. According to media reports, Deliveroo, are expecting to release their IPO plans on 8th March. The company raised more than $180m in January with a valuation of more than $7bn.
Companies: YEW IKA UPR WYN ENW BWNG TRAK DBOX HZM G4M
BlueRock Diamonds (BRD LN) – BlueRock reports $423/ct tenders, raises £1.5m in oversubscribed placing Cornish Metals* (CUSN LN) – Warrants exercised Metal Tiger (MTR LN) – Progress at Kitlanya East Pure Gold Mining (PUR LN) – Further drilling results from Red Lake Savannah Resources* (SAV LN) – Processing circuit optimization points to capital and operating costs savings at MdB Nornickel to Stabilize Water Inflows at Arctic Mine by Next Week
Companies: CUSN PGM BRD SAV MTR
Central Asia Metals (CAML LN) has reported Q4 2020 production with 3,365t of copper taking full year output to 13,855 in line with our forecast of 13.9kt and at the top end of guidance. Q4 lead output was 7,442t meaning 29,741t over the full year, up 2% YoY and in line with our forecast of 30kt while zinc output of 5,848t took full year output to 23,815t again in line with our forecast of 24kt and up 2% YoY despite the disruption at Sasa which CAML has overcome rapidly as we expected.
Companies: Central Asia Metals Plc
