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Imperial Helium (IHC CN)C; Under review: Merger with Royal Helium to build a material player with discovered resources and huge upside - Imperial Helium is merging with Royal Helium with Imperial Helium shareholders set to hold ~30% of the combined entity. The share exchange ratio suggests a 10% premium to the Imperial Helium share price on the day prior to the announcement. Shareholders will vote on the transaction in June with completion expected in the 2nd half of June. Management, insiders a
Companies: XOM XOM TRIN SHEL RBD OEX NOG MATD ALV ALV IOG GTE FEC EQNR EQNR ENOG BP/ IHC PEN PEN SDX EGY
The results are above consensus with an adjusted profit of $9.13bn (+43% qoq) and adjusted EBITDA of $19bn (+16% qoq), with gains in Upstream as well as in trading margins. Shell announces that shareholders’ distribution in H2 (div + buy-backs) is going to be above 30% of CFFO, a positive and above the guidance of 20-30% of CFFO. Currently, Shell is busy with its $8.5bn buy-back (announced in Q4 21) with $4.5bn remaining and to be executed this quarter.
Companies: Shell PLC
ADX Energy (ADX AU)C; Target price of A$0.060 per share: Flow rate at the top end of expectations at important appraisal well - The Anshof-3 well flowed ~75 bbl/d of light oil (and no water) on test from the Eocene reservoir. This has positive implications for production, reserves and the upside case. The flow rate was at the upper end of expectations (40-80 bbl/d). The well has not been acidized yet which could boost production rate b
Companies: TAL SNM XOM XOM TTE SEPL SHEL REP REP PAT OMV OMV HUR FAR ENI ENI EME EDR DELT DEC CEG AKRBP AKERBP ADX CE1 PEN PEN TETY TETY EGY VLE
Looking at E&P Free Cash Flow - While companies still carry hedges contracted at lower prices, we estimate our producer universe will generate ~25% FCF yield (defined as FCF/EV) in 2022 at ~US$100/bbl. At just US$70/bbl, the overall FCF yield is estimated at 15% for 2023 and >20% for 2024. Assuming US$110/bbl, this increases further to ~40% for each of 2023 and 2024. At YE24, balance sheet net cash, after paying shareholder distributio
Companies: SOU OMV OMV VOG TGL SNM CASP BLOK SHEL REP REP IGAS ENI ENI ECHO I3E CNE ALV ALV SDX GPRK GPRK LBE ADX AXL CE1 PEN PEN TAL PHAR TETY TETY EGY WEN
ADX Energy (ADX AU)C; Target price of A$0.040 per share: Subsidy from the Australian government – ADX has received a A$1.15 mm subsidy to cover a proportion of fixed costs incurred between September 2020 and February 2021. This amount will boost ADX balance sheet and be allocated to the appraisal and development of the Anshof discovery as well as the Vienna Basin Hydrogen Production and Storage Project. This is a material cash injectio
Companies: ADX CHAR ENQ FEC GPRK GPRK LBE SHEL TLW DNORD DNORD DEC PHAR SDX SENX 88E BP/ CEG ENOG ENI ENI IHC PMG
Vaalco Energy (EGY LN/CN)C; Target price increased from £4.80 per share to £5.30 per share: Very large reserves increase – YE21 SEC proved reserves were 11.2 mmbbl, up 250% compared to YE20 (3.2 mmbbl). This large increase reflects (1) a 5 mmbbl addition associated with improved well performance, field-life extension related to cost savings from the replacement Floating, Storage and Offloading vessel, and the addition of proved undevel
Companies: SEPL KOS SOU PGR MAHAA FEC PXT I3E IGAS EOG ENI ENI SQZ TTE SHEL SAVE AOI XOM XOM OMV OMV TAL CHAR BP/ EGY CE1
PetroTal (PTAL LN/TAL CN)C: Target price increased from £0.55to £0.70 per share: Very material reserves increase – YE21 1P, 2P and 3P reserves were ~37 mmbbl, 78 mmbbl and147 mmbbl respectively. This represents increases of 68%, 53% and 39% respectively, compared to YE20. The uplift reflects (1) an increase of the original oil in place (1P: +5%, 2P: +7%, 3P: +7%) and (2) an increase in the recovery factors of 18% (from 11%), 22% (from
Companies: WEN PPC HUR SHEL CASP TAL REP REP RHC RHC TLW
Calima Energy (CE1 AU)C; Target price of A$0.65 per share: A$20 mm equity raise to fund growth – Calima has raised A$20 mm of new equity priced at A$0.20 per share to fund growth and boost its balance sheet. With ~A$16 mm capex in 1Q22, a “maxed-out” debt facility and covenant restrictions, the additional equity funding will allow Calima to sustain its capex programme and secure equipment ahead of the spring break-up period rather than
Companies: 88E AKRBP AKERBP ALV ALV BP/ CE1 CNE DNO DNO EQNR EQNR I3E JSE PAT TAL SHEL TETY TETY TTE EGY
ADX Energy (ADX AU)C; Target price of A$0.040 per share: Gearing to a busy 2022 – 4Q21 production of 254 boe/d was below our expectations of ~300 boe/d due to a number of well failures (pumping and well bore blockages) as well as planned interruptions from an ongoing workover program to fully restore field production. The workover program is expected to be concluded by the end of February 2022 and add 80 to 100 boe/d of incremental oi
Companies: VOG TTE SLE SHEL PXT PMG OMV OMV MAHAA LUPE FEC FAR ENQ CHAR SDX PEN PEN LBE IHC ADX CE1 GPRK GPRK
Strong beat with and adjusted profit of $6.4bn, +55% qoq and adjusted EBITDA of $16.3bn, +21% qoq. Gains stem from the integrated gas division (+58% qoq at $6bn) and the upstream division (+25%) thanks to the higher oil & gas prices. The company announced an $8.5bn share buy-back programme for H1 22. Essentially, this is supported by the $5.5bn of proceeds from the Permian divestment and strong cash generation in H2 21.
ADX Energy (ADX AU)C; Target price of A$0.040 per share: Logging results at exploration well in Austria – Logging results from the Anshof-3 well confirmed 2.5-4 m of productive net pay at the primary oil Eocene target and 14 m of net gas pay at the Miocene sands. The secondary Cenomanian oil zone is not likely to be productive at this location due to low permeability. The Eocene net reservoir thickness at Anshof-3 location came in at t
Companies: TOM ADX ALV ALV BLOK CE1 XOP CHAR EQNR EQNR IOG OMV OMV SHEL TGL
ADX Energy (ADX AU)C: Target price of A$0.0.40 per share: Discovery at Anshof-3 – A 9 m gross interval has been encountered at the primary Eocene oil target in the Anshof-3 well and a 20 m gross interval with strong gas shows has been encountered within imbricated Miocene formations. The intervals exhibited hydrocarbon shows indicative of moveable hydrocarbons based on the company’s extensive experience within the basin. The encountere
Companies: XOM XOM SHEL ADX CE1 CNE CASP GENL LBE MAHAA
IN OTHER NEWS
Canadian Overseas (COPL LN/XOP CN): Raising US$8 mm of new equity – Canadian Overseas has raised US$8 mm of new equity priced at 20p per share. The net proceeds of the placing are intended to be used for a bid for Cuda Energy LLC, or its assets, through a receivership process.
Southern Energy (SOUC LN): 3Q21 results – 3Q21 production in the USA was 12.3 mmcf/d with
Companies: ZEN SOU AOI XOP CHAR EQNR EQNR JSE LUPE SHEL SEPL SENX SOU
The company is (finally) getting rid of the dual share structure and will move its tax residency to the UK (from the Netherlands). The main argument is the simplicity of a single pool of shares, which would give Shell more flexibility in share buy-backs and portfolio M&As.
ADX Energy (ADX AU) C; Target price of A$0.040 per share: 3Q21 results – 3Q21 production in Austria was 275 boe/d, below our forecasts of ~315 boe/d due to well downtime. A well workover programme has started in October to add 100-150 boe/d. The Anshof-1 exploration well is expected to be spudded in December. An updated reserves report is expected in the coming weeks. The green Energy project is on track and engineering, planning and p
Companies: SOU PPC AXL CHAR DME DEC EQNR IHC LUPE NOG OMV OMV REP REP SHEL TETY TETY I3E ADX AKRBP AKERBP CE1 ENI ENI SEPL
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Companies: Savannah Energy Plc
Forecast and valuation update
Companies: IOG PLC
We are increasing our fair value estimate for Pantheon Resources to 208p, from under review (previously 184p). The change reflects what we believe was an unambiguously positive winter drilling campaign. This full note details the background analysis to the change in estimate of fair value, which includes a valuation table and an assessment of the forthcoming Alkaid#2 well.
Companies: Pantheon Resources plc
With several opportunistic but timely acquisitions in 2021, coupled with the recent surge in the oil price, Zenith Energy has, in our view, completely transformed itself and its value proposition to investors. While for various reasons it has not been easy for the market to fully recognise and reward this transformation, we expect 1) doubling production, 2) further strengthening of its balance sheet and 3) becoming Free Cash Flow (FCF) generative this year, will make it difficult for the market
Companies: Zenith Energy Ltd.
Alternative Resource Capital
AfriTin Mining (“ATM”) has announced another record-breaking quarter from Uis Phase 1. Tin production increased 13% QoQ to 152t for the three months to May (Q1 FY’23), supported by record recoveries, which along with cost initiatives drove a 16% improvement in All-In Sustaining Costs. The strong performance continues to support growth projects including incorporation of petalite lithium and tantalum by-products, upon which AfriTin recently announced positive drilling and metallurgical test work
Companies: AfriTin Mining Ltd.
Hannam & Partners
Chariot has signed a front-end engineering and design (FEED) agreement with Schlumberger and Subsea 7 (the Subsea Integration Alliance) for the Anchois gas development project. Chariot and the Subsea Integration Alliance will adopt a “one team” integrated and collaborative approach to fast-track first gas from Anchois to maximise the return on investment for all stakeholders. The scope of work covers all the development's offshore elements including well completions and subsea production systems
Companies: Chariot Limited
EQTEC has reached a key milestone in its Southport energy from waste project with the appointment of Anaergia as EPC and O&M partner. This is a complex project using multiple waste treatment solutions and we see EQTEC’s inclusion as a demonstration that it’s technology can combine with these to create an optimal outcome.
Companies: EQTEC PLC
RCS-1 flow testing results
Companies: Arrow Exploration Corp.
Oil posted its seventh weekly gain as tight fuel-supply balances sustain bullish fundamentals, though headwinds brought on by accelerating US inflation capped crude's advance.
West Texas Intermediate fell 0.7% after trading in a $4 range during a volatile session on Friday. Despite the fall, WTI ended the week 1.5% higher. The US Labor Department reported inflation quickened to a 40-year high, chilling broader markets and potentially signalling to the Federal Reserve to extend an aggressive
Companies: FO 88E CHAR DEC EME GTC TRIN WEN
Wentworth has announced a positive operational update ahead of its AGM to be held later today. Daily production year-to-date (YTD) has averaged 92.2MMscf/d, a c15% YoY increase (2021: 79.9MMscf/d) and ahead of Wentworth's 2022 guidance of 75-85MMscf/d. As noted previously, the strong performance of the Mnazi Bay asset YTD has allowed Wentworth to increase its total dividend distribution in respect of 2021 to 1.7p per share, a yield of c7.1%. Mnazi Bay continues to supply Tanzania with half of th
Companies: Wentworth Resources PLC
Wentworth has announced the acquisition of a 25% non-operated working interest in the Ruvuma PSA from Scirocco Energy for an initial consideration of US$3m plus contingent payments of up to US$13m. The consideration is structured to ensure that the majority is only paid in a success case, providing Wentworth with a low-cost entry point into a high growth opportunity. The transaction has the potential to nearly double the Company's production by 2026 and add over 190Bcf of 2P reserves on a Final
EQTEC has accepted the offer of a loan with an up to 75% LTV on an existing waste to energy project in development in Greece. We think this shows that EQTEC’s technology is now able to demonstrate a commercial maturity ahead of most others in the sector. With the additional potential for funding support under the Recovery and Resilience Facility, the potential for both this and other EQTEC projects in Greece is strong.
AfriTin Mining Limited (AIM: ATM), has released initial results from its Lithium and Tantalum drilling program at the Company's flagship polymetallic asset, the Uis Mine. This comes on the back of the announcement of positive lithium test work where a high purity (up to 94%) petalite lithium concentrate was produced from bulk ore samples by independent test facilities. Today's announcement combined with the test work adds further confidence of the Company successfully extracting lithium and doin