Following the completion of drilling operations at the Merlin-1 well in April, 88 Energy's focus has been on the post well analysis. Geochemical analysis of sidewall cores taken during drilling have confirmed the presence of hydrocarbons, with two samples in particular indicating the presence of oil. Importantly, these samples correspond with depths where good oil shows were noted during drilling, including petroliferous odour, fluorescence and cut. Further analysis will confirm not only the pre
Companies: 88 Energy Limited
Oil squeezed out its first weekly gain in three on signs that global demand is holding up despite concerns that the renewed spread of the virus could stall the recovery.
Futures in New York rose 0.2% this week, completely recouping a selloff on Monday that was stoked by the rapidly spreading delta variant. Fuel demand and road traffic from the US to Asia and Europe remains resilient, underscoring expectations that the recovery has not been derailed and global inventories will continue to shri
Companies: FO 88E DEC EME GTC TRIN UOG
Oil declined the most this week since March as a resurgence of Covid-19 threatened the outlook for global fuel consumption in the near-term. While futures in New York edged up on Friday, yet but settled 3.7% lower this week. The rapidly spreading delta variant is triggering renewed restrictions on movement as it sweeps across the globe. The UK is considering stricter measures due to a surge in cases, Singapore is shutting hundreds of nightlife venues, and in the US, a mask mandate has been reins
Oil fell this week for the first time since May after days of volatile trading in the wake of OPEC+'s stalemate over a production increase in the near term. Futures in New York declined 0.8% this week, although the US crude benchmark closed higher on Friday amid a broader market rebound. Prices whipsawed this week amid ambiguity over the future of the OPEC+ alliance and swings in the US dollar. A stronger dollar makes commodities priced in the currency less attractive to investors.
Oil posted its sixth straight weekly gain, the longest winning streak since December, as the standoff between OPEC+ ministers over output dragged on at the alliance's full meeting on Friday. Futures in New York rose 1.7% this week. Most members of the alliance backed a proposal to increase supply and extend the deal into later next year, but United Arab Emirates remains opposed, according to delegates. The ongoing dispute leaves open the possibility of a supply deficit in the global oil market o
Companies: COP COP EOG SEN AOI 88E ADME AEX CASP ENOG GTC HTG LAM I3E PFC SLE SDX UKOG VOG ZOL CVN EQNR EQNR
Oil posted its fifth straight weekly gain, the longest winning streak since December, as demand recovers, and supplies continue tighten in the US and China.
Futures in New York rose 3.4% this week to the highest level since October 2018. Demand continues to rebound while the market expects output will only get a modest increase from the OPEC+ alliance, which meets next week to discuss supply policy.
Stockpiles are draining rapidly as fuel consumption rebounds in key regions including the U
Challenger Energy (CEG LN)C; Target of 12p per share: 42’ of additional pay. Additional casing to protect the integrity of the primary target - Since the last update, the Saffron-2 well has encountered a further 42’ of net pay in the lower Middle Cruse increasing the total of oil-bearing sands thus far identified in the Upper Cruse and Middle Cruse (up to a total depth of 3,530’) to over 200’. Because of more challenging drilling condi
Companies: 88E ADX CNE CNE CEG ENI ENI EQNR EQNR IHC RBD TTE TGL
Market update - 24/06/2021
Companies: 88E BLOE TRP
Geochemical analysis of the fluids extracted from selected sidewall core samples taken from the Merlin-1 well have confirmed the presence of hydrocarbons. Significantly, the prospective zones were among those not able to be tested with the fluid extraction tool, but where good oil shows were encountered during drilling, including petroliferous odour, fluorescence and cut. Whilst the initial results are encouraging and provide further evidence as to the commercial potential of the Project Peregri
88 Energy has announced that it has entered into an agreement for the sale of the Company's tax credits for US$18.7m in cash. The proceeds of the sale will be applied towards the full repayment of the Company's current outstanding debt of US$16.1m, with the residual sale consideration of US$2.6m to be used for the Company's working capital requirements. The early repayment of the Company's outstanding debt will also reduce 88 Energy's annual overheads by US$1m in associated finance costs. At a U
Oil posted its third straight weekly rise on improving demand, with the International Energy Agency warning the market will need extra supply next year.
Futures in New York rose 1.9% this week, extending its rally to the highest settle since October 2018. The IEA said that OPEC and its allies will need to lift output to keep the market adequately supplied, though the agency predicted demand will not reach pre-virus levels until late 2022.
Meanwhile, road traffic in the US and much of Euro
Calima Energy (CE1 AU)C; Target of A$0.035 per share: Increasing investment and production outlook - Production at the end of May was 3,100 boe/d with a further eight wells expected on stream by YE21. This level of production is above forecast and reflects the strong performance of the drilling at Brooks. Calima is increasing its capex programme from C$17 mm to C$20 mm with two new wells being added to the FY21 drilling programme (exc
Companies: XOM XOM SQZ PTR MAHAA JSE FEC EQNR EQNR CNE CNE CE1 88E PEN PEN GPRK GPRK
88 Energy has announced that it has reached an agreement to acquire an additional 50% working interest in Project Peregrine from Alaska Peregrine Development Company (APDC). The initial upfront consideration of US$14m is payable in new 88 Energy shares, allowing 88 Energy to preserve cash ahead of the 2021-22 winter drilling season. Further contingent payments are due on the Company achieving certain success based milestones and represent just a fraction of the total value on success to 88 Energ
Market update - 07/06/2021
Companies: 88E IOG TRP
Oil and gasoline futures both posted their second weekly gain in a row as expectations for a demand pick-up from the northern hemisphere's summer begin to come to fruition.
Futures in New York rose nearly 5% this week, the largest such increase since mid-April. A string of data this week so far affirmed the market's bet that higher vaccination rates and continuing reopening efforts are unleashing pent-up demand this summer.
On the supply side, oil is garnering support from deferred expecta
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Companies: Sylvania Platinum Ltd.
Hargreaves’ FY21 results confirm a period of material profit growth and cash generation. It has been a transformational period, in which all direct coal related activities ceased, HRMS profits surged and net debt was eliminated. As expected, the first 12p additional dividend has been proposed (total FY21 DPS 19.2p) and we expect this to recur for a further three years, at least. As we wrote in our recent detailed note, Hargreaves has been wholly repositioned and now has genuine momentum. The sha
Companies: Hargreaves Services plc
ADX Energy (ADX AU) C: Target of A$0.040 per share: High impact newsflow in 2H21 - 2H21 will be very important for the company with significant upcoming newsflow. In our view, the most meaningful eventis the drilling of the Anshoff well in Austria. We were previously anticipating that the company would need a farm-in partner to fund the well. However, in the context of the current high oil price, >A$4 mm in cash at the end of June and
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Yet again, Rio managed to maintain its dividend extravagance. Although, besides mighty iron ore, the exceptional H1 results were partly also driven by aluminium and copper – where normalcy is gathering momentum. With key divisions moving in the right direction, and balance sheet flexibility being put to good use, i.e. rewarding shareholders and pursuing growth – this time via a greenfield lithium investment, Rio remains a promising large-cap mining play. Further re-rating may materialise if gove
Companies: Rio Tinto plc
i3 Energy announced that it has completed tie-in operations for its two recently drilled Marten Hills wells into the Clearwater Formation (each consisting of 8 horizontal laterals). The 01-12-075-26W4 and 02-12-075-26W4 wells penetrated 13,057m and 12,644m, respectively, of reservoir – both at maximum vertical depths of circa 630m. The wells are now on production and flowing back drilling fluid. This clean-up process is expected to take approximately three to four weeks. The company indicated th
Companies: i3 Energy Plc
Wressel proppant squeeze completed
Companies: Union Jack Oil Plc
While the start of the buy-back programme was announced (but not its amount), the positive surprise comes from the dividend. While the dividend is still down by 50% vs pre-COVID-19, management made a good decision, as this level is sustainable and will get rewarded.
Companies: Royal Dutch Shell Plc Class A
Companies: Genel Energy PLC
United Oil & Gas has provided a H1/21 operational and trading update ahead of a shareholder call at 12pm today. United continues to go from strength to strength with the Company announcing three positive well results at Abu Sennan in H1/21 – providing a material uplift to the Company's low-cost production base, whilst also demonstrating the material remaining potential within the Abu Sennan licence. United's H1/21 net working interest production averaged 2,730boepd, c14% above the Company's 2,40
Companies: United Oil & Gas Plc
Chaarat announced a strong 1H21 as Kapan produced 25,896 gold equivalent ounces - 13,466 oz gold, 272,635oz silver, 852t of copper and 3,170t of zinc. This resulted in mine level EBITDA of US$13.5m and Kapan’s debt has been reduced to US$24m (Jun). Management has reiterated FY21 guidance of 57koz AuEq.
The main YoY changes were an increase in third-party ore processed - 70kt versus 10kt, and a gold equivalent grade improvement of 12%. Consistent supplies of third-party ore are to be expected go
Companies: Chaarat Gold Holdings Ltd.
Altus Strategies* (ALS LN) - La Mancha launches La Mancha Fund, a Luxembourg based long only fund dedicated primarily to gold mining.
Ariana Resources (AAU LN) – Kiziltepe production guidance maintained
Castillo Copper (CCZ LN) – Quarterly report highlights the ‘Big One' prospect
Chaarat Gold (CGH LN) – Robust Kapan production in H1/21 with Tulkubash funding completion pushed to Q3/21
Glencore (GLEN LN) – Glencore to pay $9.85m to settle zinc rigging dispute
Jervois Mining (JRV AU) – Jervoi
Companies: SO4 ALS AAU CGH GLEN POW TYM CCZ JRV LYC
The group’s AGM statement highlights a strong rebound in activity during Q1, with improved market demand, helped by new customer and project wins. Indeed, it reports revenues up >50% year on year. Progress continues with Atlas, with Spain and Holland now live. The previously flagged supply chain constraints and price pressures continue but are being mitigated by price rises. No change to forecast expectations are signalled. The shares have moderately underperformed in the quarter and offer good
Companies: Trifast plc
South Harz Potash is expected to start drilling its first of two planned confirmation holes at Ohmgebirge in Q4/CY21. The Company has submitted supplementary detailed information to regional mining authorities to support the final step in the permitting process.
As a result of the delays experienced in procuring landowner and tenant approved drill sites and the competition for drill rig availability, South Harz Potash now expects drilling of the second confirmatory twin hole in Q1/CY22. The tw
Companies: South Harz Potash Ltd
What a difference a year makes - 12 months ago, the focus, quite understandably, was on the course of the pandemic and the lifting of the Lockdown (1) measures. For investors, it was the sustainability of the rally in markets seen since March 2020. Today, while we are still thinking about the lifting of lockdown measures, we are also concerned about two “old favourites” from previous decades. Inflation and the parlous state of public finances. The BoE has said that although CPI inflation rose to
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• 2Q21 production was 8,825 bbl/d marginally above guidance.
• While the 3WD water disposal well has now been completed, one of the booster pumps is not fully operational, constraining water injection . This in turn has constrained current field oil production to~8,800 bbl/d. (Production from the recently drilled 7D well has naturally declined from 3.5 mbbl/d to 2.5 mbbl/d outperforming the company’s expectations). The booster pump is expected to be either repaired or replaced over the next
Companies: PetroTal Corp.