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  • 01 Jun 18
Discontinuing research coverage

We are discontinuing research coverage of Spartan Energy, as the stock has been delisted following its recently approved acquisition by Vermilion Energy. All prior production and financial estimates, as well as research ratings and target prices, must no longer be relied upon.

Companies: Spartan Energy
  • 01 Jun 18
Discontinuing research coverage

We are discontinuing research coverage of Spartan Energy, as the stock has been delisted following its recently approved acquisition by Vermilion Energy. All prior production and financial estimates, as well as research ratings and target prices, must no longer be relied upon.

Companies: Spartan Energy
  • 21 Feb 18
2017YE results and reserves

Management reported annual production of 22,200 boe/d, which is largely in line with our estimates of 22,125 boe/d and represents y/y PPS growth of 17%. This results in 4Q17 production of 22,636 boe/d, which is relatively flat QoQ but slightly ahead of our estimates of 22,340 boe/d. The company reported quarterly adjusted funds flow from operations of $65 mm ($0.35/sh dil), which was significantly ahead of our estimates of $57 mm ($0.31/sh dil) and consensus at ~$0.31/share. We don’t have the full financials yet leaving us to speculate on the reason for the large cash flow beat. Our guess at this juncture is better than forecasted realized light oil pricing and operating costs but we await the release of the audited statements in the middle of March. Reserves increased 2% on a PDP basis to 45.3 mmboe, 5% on a 1P basis to 73 mmboe and 4% on a 2P basis to 113.5 mmboe. PDP reserves made up 62% of 1P and 40% of 2P reserves, which is relatively flat y/y. Based on 2017 production, this represents a 2P RLI of 13.9 years. We have updated our model to reflect 2017YE results and reserves. With our current 2018 estimates in line with management’s 2018 guidance, we have not made any changes to our forecasts. With an implied return of 72%, we are maintaining our BUY rating.

Companies: Spartan Energy
  • 21 Feb 18
2017YE results and reserves

Management reported annual production of 22,200 boe/d, which is largely in line with our estimates of 22,125 boe/d and represents y/y PPS growth of 17%. This results in 4Q17 production of 22,636 boe/d, which is relatively flat QoQ but slightly ahead of our estimates of 22,340 boe/d. The company reported quarterly adjusted funds flow from operations of $65 mm ($0.35/sh dil), which was significantly ahead of our estimates of $57 mm ($0.31/sh dil) and consensus at ~$0.31/share. We don’t have the full financials yet leaving us to speculate on the reason for the large cash flow beat. Our guess at this juncture is better than forecasted realized light oil pricing and operating costs but we await the release of the audited statements in the middle of March. Reserves increased 2% on a PDP basis to 45.3 mmboe, 5% on a 1P basis to 73 mmboe and 4% on a 2P basis to 113.5 mmboe. PDP reserves made up 62% of 1P and 40% of 2P reserves, which is relatively flat y/y. Based on 2017 production, this represents a 2P RLI of 13.9 years. We have updated our model to reflect 2017YE results and reserves. With our current 2018 estimates in line with management’s 2018 guidance, we have not made any changes to our forecasts. With an implied return of 72%, we are maintaining our BUY rating.

Companies: Spartan Energy
  • 11 Jan 18
2018 budget and guidance

Spartan plans for 2018 E&D spending of $183 million plus $22 million for discretionary spending on waterflood and seismic initiatives. The 2018 drilling program calls for 140 net development oil wells including 64 net open-hole wells, 29 net Ratcliffe wells, 30 net frac’d Midale, and the remaining to the Viking light oil play. Management expects this to result in average annual production of 23,400 boe/d and an exit rate of 25,000 boe/d, representing growth of 6% YoY and 11% exit to exit. Average production was below our prior estimate of 24,270 boe/d and consensus of 24,470 boe/d. However, 2018 exit rate guidance aligned with our prior 4Q18 forecast of 25,100 boe/d. Based on US$60/b WTI, management forecasts cash flow of $267 million ($1.51/sh), which is higher than our prior estimates of $1.35/sh ($1.40/sh on strip) and consensus of $1.28/sh. We attribute this largely to 2018e production expense guided at $16.65/boe vs. GMP FE at $17.35/boe. We have updated our estimates to reflect the 2018 guidance. With an implied projected return of 42%, we are maintaining our BUY rating.

Companies: Spartan Energy
  • 11 Jan 18
2018 budget and guidance

Spartan plans for 2018 E&D spending of $183 million plus $22 million for discretionary spending on waterflood and seismic initiatives. The 2018 drilling program calls for 140 net development oil wells including 64 net open-hole wells, 29 net Ratcliffe wells, 30 net frac’d Midale, and the remaining to the Viking light oil play. Management expects this to result in average annual production of 23,400 boe/d and an exit rate of 25,000 boe/d, representing growth of 6% YoY and 11% exit to exit. Average production was below our prior estimate of 24,270 boe/d and consensus of 24,470 boe/d. However, 2018 exit rate guidance aligned with our prior 4Q18 forecast of 25,100 boe/d. Based on US$60/b WTI, management forecasts cash flow of $267 million ($1.51/sh), which is higher than our prior estimates of $1.35/sh ($1.40/sh on strip) and consensus of $1.28/sh. We attribute this largely to 2018e production expense guided at $16.65/boe vs. GMP FE at $17.35/boe. We have updated our estimates to reflect the 2018 guidance. With an implied projected return of 42%, we are maintaining our BUY rating.

Companies: Spartan Energy
  • 09 Jan 18
Quality available at deep discounts amidst overt sector pessimism

The stocks on the GMP FirstEnergy Best Ideas List represent our highest conviction BUY recommendations with an expected return of 20% or more over the next 12 months. The investment thesis for each name on the list is laid out in this report.

Companies: CNQ AAV ATU PXX KEL RRX SPE WCP PXT SES PPL

  • 09 Jan 18
Quality available at deep discounts amidst overt sector pessimism

The stocks on the GMP FirstEnergy Best Ideas List represent our highest conviction BUY recommendations with an expected return of 20% or more over the next 12 months. The investment thesis for each name on the list is laid out in this report.

Companies: CNQ AAV ATU PXX KEL RRX SPE WCP PXT SES PPL

  • 09 Nov 17
3Q17 results; production continues to track ahead of guidance

 3Q17 production of 22,630 boe/d was slightly ahead of our GMP FEestimate of 21,750 boe/d and the street estimate of 21,730 boe/d.  Quarterly cash flow of $41.1 mm ($0.22/sh dil) was in line with ourestimates of $40.1 mm ($0.22/share dil) and consensus of $0.21/share.  Production costs in the quarter were down 6% QoQ and were 5% belowour estimates ($17.28/boe vs GMPFE estimates of $18.15/boe). This is due to the fact that production costs were elevated in 2Q17 so it was positive to see the reduction to more normalized levels.  Reported realized pricing look like it came in a bit light at $46.98/boe vs. GMP FE at $48.12/boe.  The company spent $35.1 mm on E&D, which included drilling 39 (28 net) wells and bringing on-stream 37 (27.2 net) wells. SPE exited the quarter with net debt (ex. financial lease) of $205.1 mm (1.3x annualized 3Q CF) and $193.3 mm drawn on its $350 mm credit facility.  We have updated our estimates to reflect quarterly results. With an implied projected return of 37%, we are maintaining our BUY rating.

Companies: Spartan Energy
  • 09 Nov 17
3Q17 results; production continues to track ahead of guidance

 3Q17 production of 22,630 boe/d was slightly ahead of our GMP FEestimate of 21,750 boe/d and the street estimate of 21,730 boe/d.  Quarterly cash flow of $41.1 mm ($0.22/sh dil) was in line with ourestimates of $40.1 mm ($0.22/share dil) and consensus of $0.21/share.  Production costs in the quarter were down 6% QoQ and were 5% belowour estimates ($17.28/boe vs GMPFE estimates of $18.15/boe). This is due to the fact that production costs were elevated in 2Q17 so it was positive to see the reduction to more normalized levels.  Reported realized pricing look like it came in a bit light at $46.98/boe vs. GMP FE at $48.12/boe.  The company spent $35.1 mm on E&D, which included drilling 39 (28 net) wells and bringing on-stream 37 (27.2 net) wells. SPE exited the quarter with net debt (ex. financial lease) of $205.1 mm (1.3x annualized 3Q CF) and $193.3 mm drawn on its $350 mm credit facility.  We have updated our estimates to reflect quarterly results. With an implied projected return of 37%, we are maintaining our BUY rating.

Companies: Spartan Energy
  • 11 Aug 16
ANNOUNCES 2Q16 FINANCIAL AND OPERATING RESULTS

Impact: Neutral. Spartan's 2Q16 financial results were consistent with our outlook on all key figures and inline with consensus cash flow estimates.

Companies: Spartan Energy
  • 11 Aug 16
ANNOUNCES 2Q16 FINANCIAL AND OPERATING RESULTS

Impact: Neutral. Spartan's 2Q16 financial results were consistent with our outlook on all key figures and inline with consensus cash flow estimates.

Companies: Spartan Energy
  • 03 Aug 16
ANNOUNCES SE SASKATCHEWAN ACQUISITION & CONCURRENT $70 MM BOUGHT DEAL FINANCING, UPDATED 2016E GUIDANCE

Impact: Neutral. Spartan's most recent acquisition continues to consolidate its land position at its key properties and build inventory in SE Saskatchewan at reasonable metrics. The Company's updated 2016e capital budget of $68 mm is cautiously below our prior view (FCC was $80 mm) and is expected to generate annual production of 10,700 boe/d (FCC was 11,000 boe/d) which will likely result in a minor reduction to our proforma production and cash flow outlook. Although we expect this acquisition and financing announcement, in isolation, would show as slightly dilutive to our CFPS outlook given financing proceeds well above the transaction price, recall, the Company has completed three meaningfully accretive transactions ($148.7 mm for 2,980 boe/d) since mid-May without concurrent equity issues.

Companies: Spartan Energy
  • 03 Aug 16
ANNOUNCES SE SASKATCHEWAN ACQUISITION & CONCURRENT $70 MM BOUGHT DEAL FINANCING, UPDATED 2016E GUIDANCE

Impact: Neutral. Spartan's most recent acquisition continues to consolidate its land position at its key properties and build inventory in SE Saskatchewan at reasonable metrics. The Company's updated 2016e capital budget of $68 mm is cautiously below our prior view (FCC was $80 mm) and is expected to generate annual production of 10,700 boe/d (FCC was 11,000 boe/d) which will likely result in a minor reduction to our proforma production and cash flow outlook. Although we expect this acquisition and financing announcement, in isolation, would show as slightly dilutive to our CFPS outlook given financing proceeds well above the transaction price, recall, the Company has completed three meaningfully accretive transactions ($148.7 mm for 2,980 boe/d) since mid-May without concurrent equity issues.

Companies: Spartan Energy
  • 26 Jul 16
2Q16e Quarterly Preview

Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly reversed into summer, market likely to ignore financials for natural gas producers and look ahead to winter and formalization of sell-side 2018e estimates in coming months. Spot AECO natural gas prices recently crested C$2.60/mcf, and with a reasonable alignment of previously distressed NE BC Stn2 differentials, augmented by a withdrawal expected next week, view the market psyche as constructive and looking ahead, with the analogy that this market is shaping up to mirror 2012 still holding. That said, with crude oil poised to retest support levels, combined with strong stock price performance broadly observed YTD, we would characterize sentiment as slightly pessimistic in the near-term which could reduce or unwind momentum-based investment strategies that have worked thus far in 2016.

Companies: AAV ARX BTE BNP CPG ERF POU PEY PGF PWT PSK VII TOU VET WCP BNE CJ CR DEE JOY KEL LTS NVA PPY PMT PNE RRX RMP SRX SGY TOG TET ATU CKE GXE IKM LXE MQL PRQ SPE SKX TVE TVL YO ZAR

  • 26 Jul 16
2Q16e Quarterly Preview

Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly reversed into summer, market likely to ignore financials for natural gas producers and look ahead to winter and formalization of sell-side 2018e estimates in coming months. Spot AECO natural gas prices recently crested C$2.60/mcf, and with a reasonable alignment of previously distressed NE BC Stn2 differentials, augmented by a withdrawal expected next week, view the market psyche as constructive and looking ahead, with the analogy that this market is shaping up to mirror 2012 still holding. That said, with crude oil poised to retest support levels, combined with strong stock price performance broadly observed YTD, we would characterize sentiment as slightly pessimistic in the near-term which could reduce or unwind momentum-based investment strategies that have worked thus far in 2016.

Companies: AAV ARX BTE BNP CPG ERF POU PEY PGF PWT PSK VII TOU VET WCP BNE CJ CR DEE JOY KEL LTS NVA PPY PMT PNE RRX RMP SRX SGY TOG TET ATU CKE GXE IKM LXE MQL PRQ SPE SKX TVE TVL YO ZAR

  • 29 Jun 16
ANNOUNCES TWO CONSOLIDATING SE SASKATCHEWAN ACQUISITIONS, RENEWS BANK LINE AT $150 MM

Impact: Positive. Spartan continues to capitalize on the low in the commodity cycle further consolidating its land base in SE Saskatchewan, adding low decline production and bolstering its well inventory at attractive metrics. We expect the Company balance sheet will continue to screen as flexible with ~$100 mm forecast to be drawn on its recently renewed and unchanged $150 mm credit facility following these transactions.

Companies: Spartan Energy
  • 29 Jun 16
ANNOUNCES TWO CONSOLIDATING SE SASKATCHEWAN ACQUISITIONS, RENEWS BANK LINE AT $150 MM

Impact: Positive. Spartan continues to capitalize on the low in the commodity cycle further consolidating its land base in SE Saskatchewan, adding low decline production and bolstering its well inventory at attractive metrics. We expect the Company balance sheet will continue to screen as flexible with ~$100 mm forecast to be drawn on its recently renewed and unchanged $150 mm credit facility following these transactions.

Companies: Spartan Energy
  • 20 May 16
Adds Mass in SE Saskatchewan, Acquires Wyatt Oil + Gas

Spartan is acquiring, privateco, Wyatt Oil + Gas Inc. for $77 mm through an all-share transaction which includes the assumption of $42 mm of debt. The deal adds 1,330 boe/d, 14.6 mm 2P reserves, 45 net sections of land and 177 drilling locations in southeast Saskatchewan which are proximal to Spartan’s existing core operations. Given our revised estimates point to 10% per share accretion on a CFPS basis while 2017e/2016e PPS share growth (debt-adjusted) jumps to 13%, we are increasing our target price to $3.75 per share.

Companies: Spartan Energy
  • 20 May 16
Adds Mass in SE Saskatchewan, Acquires Wyatt Oil + Gas

Spartan is acquiring, privateco, Wyatt Oil + Gas Inc. for $77 mm through an all-share transaction which includes the assumption of $42 mm of debt. The deal adds 1,330 boe/d, 14.6 mm 2P reserves, 45 net sections of land and 177 drilling locations in southeast Saskatchewan which are proximal to Spartan’s existing core operations. Given our revised estimates point to 10% per share accretion on a CFPS basis while 2017e/2016e PPS share growth (debt-adjusted) jumps to 13%, we are increasing our target price to $3.75 per share.

Companies: Spartan Energy
  • 20 May 16
ANNOUNCES $77 MM SOUTHEAST SASKATCHEWAN ACQUISITION

Impact: Positive. The deal brings in production and a stable of drilling locations proximal to Spartan's current assets at a reasonable valuation. This marks the Company's first significant acquisition in ~2 years.

Companies: Spartan Energy
  • 20 May 16
ANNOUNCES $77 MM SOUTHEAST SASKATCHEWAN ACQUISITION

Impact: Positive. The deal brings in production and a stable of drilling locations proximal to Spartan's current assets at a reasonable valuation. This marks the Company's first significant acquisition in ~2 years.

Companies: Spartan Energy
  • 11 May 16
SPARTAN Q1 RESULTS IN LINE TO SLIGHTLY BETTER THAN EXPECTATIONS

Neutral to slightly positive with production ~5% ahead of expectations (on higher capital spending) while cash flow overlaid our estimates. Higher 1Q16 production and mild spring break-up conditions could have positive implications for estimates for 2Q16e and beyond.

Companies: Spartan Energy
  • 11 May 16
SPARTAN Q1 RESULTS IN LINE TO SLIGHTLY BETTER THAN EXPECTATIONS

Neutral to slightly positive with production ~5% ahead of expectations (on higher capital spending) while cash flow overlaid our estimates. Higher 1Q16 production and mild spring break-up conditions could have positive implications for estimates for 2Q16e and beyond.

Companies: Spartan Energy
  • 11 May 16
Spartan’s 1Q16 Results In Line to Slightly Better than Expectations

Spartan delivered 1Q16 results that were in line on a cash flow basis, however ahead on a production basis. Spending was modestly higher than anticipated.

Companies: Spartan Energy
  • 11 May 16
Spartan’s 1Q16 Results In Line to Slightly Better than Expectations

Spartan delivered 1Q16 results that were in line on a cash flow basis, however ahead on a production basis. Spending was modestly higher than anticipated.

Companies: Spartan Energy
  • 26 Apr 16
Intermediates, Mid Caps & Small Caps

With this publication we briefly summarize our projections for 1Q16e quarterly results for the Junior E&P (Intermediate, Mid & Small Cap) segments of our coverage universe

Companies: AAV ARX BTE BNP CPG ERF POU PEY PGF PSK VII TOU VET WCP BNE CJ CR DEE JOY KEL LTS LRE NVA PPY PMT PNE RRX RMP SRX SGY TOG TET ATU CKE GXE IKM LXE MQL RE SPE SKX TVE TVL YGR YO ZAR

  • 26 Apr 16
Intermediates, Mid Caps & Small Caps

With this publication we briefly summarize our projections for 1Q16e quarterly results for the Junior E&P (Intermediate, Mid & Small Cap) segments of our coverage universe

Companies: AAV ARX BTE BNP CPG ERF POU PEY PGF PSK VII TOU VET WCP BNE CJ CR DEE JOY KEL LTS LRE NVA PPY PMT PNE RRX RMP SRX SGY TOG TET ATU CKE GXE IKM LXE MQL RE SPE SKX TVE TVL YGR YO ZAR

  • 16 Mar 16
Posts Solid 2015 Financial and Reserve performance, Conservative 1H16e Budget, Closes $96 mm Financing

After coming off restriction following our participation in Spartan’s $96 mm equity financing wherein the Company issued 39.9 mm shares at $2.41 per share, we summarize the Company’s 4Q15 results, 2015 reserves and 2016 capital guidance. Fourth quarter results beat both our production and cash flow estimates while the Company posted single digit 1P and 2P basis F&D costs in a relatively quiet and organic year of operations, aided by a y/y reduction in FDC. A conservative 1H16e budget of $18 - $20 mm will see volumes remain at at Spartan’s 2015 average of just over 8,850 boe/d. Our target price continues to be supported by our updated NAV methodology, offering decent returns, particularly on a risk-adjusted basis.

Companies: Spartan Energy
  • 16 Mar 16
Posts Solid 2015 Financial and Reserve performance, Conservative 1H16e Budget, Closes $96 mm Financing

After coming off restriction following our participation in Spartan’s $96 mm equity financing wherein the Company issued 39.9 mm shares at $2.41 per share, we summarize the Company’s 4Q15 results, 2015 reserves and 2016 capital guidance. Fourth quarter results beat both our production and cash flow estimates while the Company posted single digit 1P and 2P basis F&D costs in a relatively quiet and organic year of operations, aided by a y/y reduction in FDC. A conservative 1H16e budget of $18 - $20 mm will see volumes remain at at Spartan’s 2015 average of just over 8,850 boe/d. Our target price continues to be supported by our updated NAV methodology, offering decent returns, particularly on a risk-adjusted basis.

Companies: Spartan Energy

Research, Charts & Company Announcements

Research Tree provides access to ongoing research coverage, media content and regulatory news on Spartan Energy. We currently have 31 research reports from 1 professional analysts.

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  • 20 Jan 20
The Industrial Revelation

US factory output rises in Dec better than expected, Schlumberger sees continued weakness in North America, Fastenal saw a continued slowdown in Q4

Companies: HEAD HILS HTG JHD RNO SCPA TRI ZTF SOM

  • 20 Jan 20
Hurricane Energy - Updated drilling campaign for 2020–21

In December 2019, Hurricane Energy provided a trading and operational update on its activities, announcing a strong ongoing performance of the Lancaster early production system (EPS), with well tests supporting guidance of 20,000bopd for FY20 (before operational downtime). Hurricane was also granted a five-year extension to its P1368 licence, covering Lancaster and Lincoln, which resulted in changes to its near-term work programme. One or more sub-vertical wells will be drilled on both Lincoln (in 2020) and Lancaster (in 2021) to determine the maximum vertical extent of each reservoir. Hurricane estimated FY19 revenue of c $165m and year-end unrestricted cash of c $150m, relatively in line with our estimates for the year. Our risked valuation stands at 109.9p/share (from 102.8p/share) as we roll forward our NAV, adjust our short-term oil price assumptions and update forecasts to reflect Lancaster EPS performance and the 2020–21 work programme.

Companies: Hurricane Energy
  • 20 Jan 20
Cenkos: Trinity Exploration and Production Plc -- Strong Cash flow Generation

Trinity has ended 2019 on a high, increasing year-on-year cash balances whilst continuing with its onshore drilling programme. Year-on-year production increased by 5%, with the full impact of the 2019 drilling campaign only being realised during Q4/19, with an exit production rate c3,400 bopd. Through SCADA and the Company's hedging programme Trinity has put in place measures to protect bottom-line free cash flow generation and ensure a resilient financial performance, with the impact of oil price and tax take mitigated. We update our model, maintaining our 37p buy target and our BUY recommendation

Companies: Trinity Exploration & Production
  • 20 Jan 20
Cenkos: Oil & Gas Sector -- Falcon Oil & Gas, ConocoPhillips, Lekoil, Tullow Oil, PetroTal, Serica Energy, China National Offshore Oil Corporation (CNOOC), Cairn Energy, Africa Oil Corp, Genel Energy, RockRose Energy, Egdon Resources

General News: Norway The Norwegian Government has awarded 28 oil and gas companies a total of 69 offshore blocks as part of the APA 2019 licensing round. 33 blocks were awarded in the North Sea, with 23 in the Norwegian Sea and a further 13 in the Barents Sea. Equinor received the most licences with 23, followed by Var Energi with 17 and Aker BP with 15. PE backed firms, Neptune Energy and Chrysaor received eight and thirteen blocks respectively. Norway. Senegal's 2020 Licensing Round will be launched on the 28 January 2020 at the King Fahd Hotel in Dakar. The licensing round comprises 12 blocks in the MSGBC Basin, offshore Senegal. The Round officially launches on the 31 January 2020, with applications to be delivered by the 31 July 2020. Petrosen, along with TGS, GeoPartners and PGS have provided 14,000km of 2D seismic, 10,000km of 3D seismic and 50,000sqkm of multibeam data. Further investment events are planned in London on 19-20 February and in Houston 24-25 February. Senegal.

Companies: FOG PVR DGOC EME TRIN 88E

  • 23 Jan 20
The Industrial Revelation

UK industrial trends improves in Jan, South Korean GDP rises at fastest pace since Q3 17, Japan's exports miss but chip-making bounces in Dec

Companies: HEAD HTG JHD OXIG RSW GHH

  • 20 Jan 20
First look

Trinity has released a positive 4Q19 operational update, with average FY19 production up 5% yoy to 3.01kb/d and an exit rate of c.3.4kb/d. The company’s first High Angle Well has also been successful, reaching daily production rates in excess of 80b/d, and the development team will prioritise identifying similar HAW locations for its 2020 capex programme. We reiterate our BUY recommendation given Trinity’s compelling valuation, strong balance sheet, efficient execution and visibility on production growth.

Companies: Trinity Exploration & Production
  • 21 Jan 20
WHI First Light: Caledonia Mining, Pennant International & Oriole Resources

Caledonia today announced it has finalised the transaction to purchase a 15% holding in the Blanket mine in Zimbabwe taking its total holding in the mine to 64%. This was first announced in November 2018 and comprised the cancelling of a loan between Fremiro and Caledonia and the issuance of 0.73m shares in Caledonia (valuing the 15% stake at $16.7m). Fremiro will now own 6.3% of the enlarged share capital of Caledonia. PEN's announcement this morning appears well-aligned to its strategy of lifting recurring earnings while also intensifying its focus on software products and related services as part of the product mix. This approach is expected to free PEN to exploit to the fullest extent its technical advantages in the specialist field of integrated logistics support software for the aviation and other sectors, while increasingly limiting its exposure to large, lumpy contracts. The intended acquisition of Absolute Data Group (ADG) adds a complementary new product suite, gives PEN a step up in key global markets, and adds both high margin licences and expanded maintenance services. Completion, expected by the end of February, is contingent on contractual conditions being satisfied by the vendors as well as on the conclusion of financing agreements. The acquisition is small, but looks potentially meaningful all the same, and we expect it to be modestly earnings enhancing (allowing for investment and integration costs) as early as FY2020E. Oriole, the West-African focussed gold explorer, today announces that its tenure in Senegal has been extended for up to 10 years (plus a potential 2 years special extension), with the former Dalafin licence now designated Senala.

Companies: CMCL ORR PEN

  • 23 Jan 20
Q4/2019 Trading Update

Petropavlovsk PLC (LSE: POG) have released their Q4 trading update this morning. Not only are the results for 2019 impressive with a 28% increase in sales from the company’s three operating gold mines to 471.6koz, plus another 42.4Koz from third party concentrates (comfortably in line with estimates), the guidance for 2020 is literally on another level. The company is guiding to 620koz to 720koz of production including third-party concentrate sales. We were previously assuming 565koz including 80koz of third party.

Companies: Petropavlovsk
  • 02 Sep 19
LIBERUM: Sylvania Platinum* - Results beat, Grasvally disposal but light on dividend

Sylvania has reported FY19 results (June Y/E) of $6.37/sh versus expectations of $5.95/sh due to a lighter tax expense than assumed. They have entered into a binding agreement to sell Grasvally for R115m ($7.6m at current FX), which should be settled in the next eight months.

Companies: Sylvania Platinum
  • 21 Oct 19
Quarterly Research Outlook Autumn 2019

Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.

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  • 21 Jan 20
Gulf Keystone Petroleum#

Operational update

Companies: Gulf Keystone Petroleum
  • 20 Jan 20
Cenkos: 88 Energy Ltd -- Quarterly Update

This morning, 88 Energy released its quarterly update ahead of the spudding of the potentially transformational Charlie-1 well in February. Charlie-1 will appraise BP's 1991 Malguk-1 well, which encountered oil shows across multiple horizons but was not tested due to operational complications. Charlie-1 will intersect seven stacked targets, with a total gross mean prospective resource of 1.6bnbbls (480mmbbls net to 88 Energy). As part of farm-out to Premier Oil, Premier will fund the cost of the well up to a cap of US$23m. With everything on track for a February spud, we look forward to one of the most anticipated onshore wells in 2020. We maintain our 4.8p price target and our BUY recommendation.

Companies: 88 Energy
  • 23 Jan 20
Pantheon Resources*

Alkaid resource report

Companies: Pantheon Resources
  • 23 Jan 20
Irish farm-out update

Europa’s farm-out negotiations with a Major oil company for three of its Irish offshore licences have been terminated. This is disappointing, but not unexpected, given these discussions have been ongoing for more than 12 months. All is not lost though, as discussions with several other parties continue. In particular, Europa remains upbeat on the likelihood of a deal for its Inishkea prospect on FEL 4/19 in the Slyne basin. This prospect is large, low risk, gas not oil, and adjacent to the producing Corrib gas field infrastructure. As a result of this we are raising the commercial risking on Europa’s acreage within our NAV. This has an impact and sees our risked-NAV and price target fall from 32p to 14p/sh. Inishkea accounts for 3.3p/sh of this, which if fully de-risked would rise to 18.5p/sh, demonstrating the material potential still offered within the portfolio.

Companies: Europa Oil & Gas
  • 13 Dec 19
Hurricane Energy

Operational update

Companies: Hurricane Energy