Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on WESTERNZAGROS RESOURCES LTD. We currently have 18 research reports from 1 professional analysts.
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WESTERNZAGROS RESOURCES LTD
WESTERNZAGROS RESOURCES LTD
Reports 2Q16 Results
12 Aug 16
WesternZagros reported 2Q16 production results of 4,884 (1,953 bbl/d net) from the Sarqala-1 well on the Garmian Block. To date, the well has now produced over 3 mmbbl of light oil with no indications of formation water and no hydrogen sulphide. As previously announced in 2Q16, the Garmian field development plan was approved and the Kurdamir field development plan was submitted. At the present time, there is very little operational activity being undertaken. The Sarqla-2 well is expected to spud in 1H17e.
WESTERNZAGROS RECEIVES FIELD DEVELOPMENT PLAN APPROVAL FOR THE GARMIAN BLOCK, SARQALA DISCOVERY
31 May 16
WesternZagros has received field development plan (FDP) approval for the Garmian Block, Sarqala discovery (40% WI). Approval will enable WesternZagros to proceed with the development drilling of the Sarqala-2 and -3 wells, which also realizing incremental value via the expected reclassification of prospective resources to reserves.
Continues to Work toward Field Development Plan Approval – Stay Tuned
20 May 16
WesternZagros reported 1Q16 results that were inconsequential. As previously announced, production in 1Q16 was significantly curtailed as new payment arrangements were being finalized. The Kurdistan export pipeline also experienced a disruption. At the Garmian Block (Sarqala discovery), WesternZagros continues to wait for field development plan approval. WesternZagros is ready to drill the Sarqala-2 well, post FDP approval. At the Kurdamir Block, WesternZagros and Repsol are progressing negotiations with the Kurdistan Regional Government to advance the field development plan. The co-ventures have completed engineering, are reviewing bids for construction of the natural gas plant, and negotiating a gas sales agreement. Work continues to advance.
RESUMES PRODUCTION FROM THE SARQALA-1 WELL
03 May 16
Market Impact: Positive. WesternZagros has resumed production from the Sarqala-1 well on the Garmian Block (40% WI). We were not anticipating production to resume until late 2Q16e/early 3Q16e. The well is expected to average approximately 5,000 bbl/d (2,000 bbl/d net), which is in line with production levels prior to being temporarily shut-in.
INCREASES DEBT FACILITY FLEXIBILITY
27 Apr 16
Market Impact: Positive. WesternZagros has amended its US$200 mm unsecured and undrawn credit facility. The revised drawdown dates are now expected to more appropriately match capital spending. The Company's current working capital is sufficient to meet the current commitments in 2016e.
Reports Year-End 2015 Results
17 Mar 16
Production in 4Q15 of 1,952 bbl/d and cash flow of negative US$1 mm were slightly below our estimates. Our 2016e production forecast has been reduced, given shut-in volumes in 1Q16e and delays in drilling the Sarqala-2 well. Our 2016e cash flow estimate has decreased to nil, due to our reduced production forecast and realized pricing becoming pegged and fluctuating with Brent. The development plans for the Kurdamir Block and Garmian Block have not yet been approved by the KRG. Field development plan approval would be a major milestone for the Company, and help alleviate some of the current uncertainty.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
01 Nov 16
Since our last outlook note, Quadrise has begun to supply MSAR for extended LONO sea trials, paving the way for commercial adoption from calendar H217 onwards. In August it signed a memorandum of understanding with clients in the Kingdom of Saudi Arabia (KSA), which is a key enabler for progressing the production-to-combustion pilot there. In October it completed a placing and open offer raising a total of £5.25m (gross). This should enable it to transition comfortably to the commercial phase on successful completion of the LONO and KSA trials.
Dividends reinstated; is it time to turn (more) optimistic?
08 Dec 16
Glencore continues to surprise the markets, earlier with its fast pace of asset disposals and now with the reinstatement of dividends. The following were the key details shared with investors in a meeting held on 1 December 2016: 1/ completed $6.3bn of asset disposals; 2/ reduced net debt (including readily marketable inventories) by $12.5bn over the last 18 months; 3/ reiterated trading’s 2016 EBIT guidance towards the upper end of the $2.5-2.7bn range; 4/ expects healthy annualised 2016 free cash flows – even at Q1 16 commodity price lows; at 2017 forward prices, FCFs are guided to be $6.5bn; 5/ dividends would be reinstated from 2017 – with $1bn to be paid in two equal tranches in H1 and H2; thereafter (i.e. 2018 onwards), $1bn would be a fixed annual dividend payment (banking on the stability of trading’s cash flows) plus a minimum 25% of FCFs from industrial activities. Production guided to grow Source – Investor Presentation December 2016 While copper would be negatively impacted by the end-of-life impact at Alumbera and the Ernest Henry divestment, the output for all other commodities is guided to be higher (in varying degrees).
Conviction List Q4 2016
05 Oct 16
Since its inception in 2010, the Conviction List has outperformed the market in 13 of 18 periods and a reinvested Conviction List would have returned 255% against a Small Companies index that would have returned 130%. Our Conviction List returned 3.7% over the last quarter; this was set against the benchmark UK Small Companies index that returned 11.3% over the same period. Our Q4 portfolio reflects our outlook for a temporary sweet spot for UK growth during the second half of 2016. The downside risk from the uncertainty of the EU Referendum result has been countered by stimulus from the Bank of England, signs of a looser fiscal stance and an 18% YoY reduction in the Sterling Exchange Rate. Compressed corporate fixed income spreads continue to provide a valuation underpin for global equities.