Arrow Exploration (AXL CN) C: Raising new equity in the UK – Arrow has raised £8.8 mm of new equity priced at 6.25p per share. The shares will start trading on AIM on Monday. Investors in the fund raising will also receive one warrant for every two new shares. The net proceeds of the fundraising are expected to be used to drill two wells at Rio Cravo Este, commencing by YE21.
GeoPark (GPRK US)C; Target price of US$27 per share: The dr
Companies: AXL GPRK GPRK IGAS LEK MAHAA PEN PEN RBD UKOG
• 3Q21 production of 37,859 boe/d was broadly in line with our expectations. Production was impacted by lower gas demand in Chile.
• At Llanos-34, successful drilling at the Tigui 17, Tigui Este and Tigui 24 wells has opened new areas for further delineation at the northern and southeastern edges of the field. These three wells are currently producing approximately 3,500 bbl/d gross. Further drilling in these areas could allow GeoPark to book additional 2P or 3P reserves.
• Drilling activities
Companies: Geopark (GPRK:NYSE)GeoPark Ltd (GPRK:NYS)
ADX Energy (ADX AU)C; Target of A$0.040 per share: Agreement with major wind power provider is game changing for ADX’s green H2 business – ADX has signed a Memorandum of Agreement (MOA) with Windkraft Simonsfeld (WKS) for the supply of green electricity and the development of a green H2 production and underground storage project in Austria. Definitive agreements are expected to be signed by December. WKS is a major Austria-based Euro
Companies: BLOK SNM ADX ALV ALV CNE CNE DEC ECHO XOM XOM GENL GPRK GPRK LUPE REP REP RDSA JKX OMV OMV
• At US$65/bbl for Brent, we estimate GeoPark could generate ~US$290 mm of operating cashflow in 2022 (on ~39 mboe/d production excluding Argentina). This leaves ample room for the company to fund a very exciting drilling programme in 2022.
• Initiation of the drilling campaign in CPO-5, with 5-6 wells to be drilled on the license by the end of 1Q22. This includes 1-2 wells in 4Q21 and 3-4 wells in 1Q22 (including 2-3 exploration wells).
• The first exploration well in Ecuador is also expected
GeoPark (GPRK US) C: Target of US$27 per share: Doubling quarterly dividend – The highlight of the 2Q21 results is the doubling of the quarterly dividend to US$0.041 per share. Following the refinancing of its debt, GeoPark had indicated previously its ambitions to increase distributions. 5-6 wells will be drilled at CPO-5 in Colombia by the end of 1Q22. This includes 2-3 wells in 4Q21 (including 1-2 exploration wells) and 3 wells in 1Q22 (including 2 exploration wells). The first exploration w
Companies: ALV ALV BP/ CNE CNE CNE DEC ENI ENI GENL GPRK GPRK GTE IHC OSH PXT STO SDX TGL VOG
• The highlight of the 2Q21 results is the doubling of the quarterly dividend to US$0.041 per share. Following the refinancing of its debt, GeoPark had indicated previously its ambitions to increase distributions.
• 2Q21 production of 36,489 boe/d had already been reported and adjusted EBITDA was in line with expectations.
• 2Q21 cash flow from operations of US$42 mm was very high, partly due to a US$23 mm positive change in working capital.
• 2H21 production guidance continues to be 39-42 mbo
• 2Q21 production of 36,489 boe/d was in line with previous indications. 2Q21 oil production at Llanos-34 and CPO-5 was respectively 24,515 bbl/d and 3,445 bbl/d.
• Production is now 38-39 mboe/d as previously reported with CPO-5 generating approx. 3,900 bbl/d net to GeoPark.
• 2H21 production is expected to be 39-42 mboe/d resulting in FY21 production of 38-40 mboe/d from 41-43 mboe/d. This is very close to our expectations and our FY21 production forecast is broadly unchanged over 2021.
GeoPark (GPRK US) C: Target of US$26 per share: 2Q21 update - 2Q21 production of 36,489 boe/d was in line with previous indications. 2Q21 oil production at Llanos-34 and CPO-5 was respectively 24,515 bbl/d and 3,445 bbl/d. Production is now 38-39 mboe/d as previously reported with CPO-5 generating approx. 3,900 bbl/d net to GeoPark. 2H21 production is expected to be 39-42 mboe/d resulting in FY21 production of 38-40 mboe/d from 41-43
Companies: JKX PHAR AKRBP AKERBP FEC GPRK GPRK TAL
Arrow Exploration (AXL CN) C; Restarting in Colombia. New team. New focus – Arrow Exploration is a C$7 mm market cap E&P focused on Colombia with 7 mmboe of 2P reserves and ~535 boe/d production. While many of the early stage companies of a decade ago such as GeoPark, Parex,, Canacol or Frontera have become larger independents, the environment for start-ups in Colombia remains fertile and Arrow is one of the few micro cap companies th
Companies: ALV AXL CNE CEG DEC ENI ENI EQNR EQNR GPRK GPRK I3E IHC JSE KOS OMV OMV PXT PESA BRDT3 REP REP RDSA UKOG
• 2Q21 production was 36,500 boe/d. This is above our expectations of 34,400 boe/d that were factoring in a more material impact associated with the protest-related curtailments.
• Based on 1Q21 production, 2Q21 production at Llanos-34 could be ~24,000-25,000 bbl/d and ~3,500 bbl/d at CPO-5.
• Production is now 38-39 mboe/d. We continue to forecast ~40 mboe/d production over 2021.
• Drilling activity continues to accelerate with exploration drilling at CPO-5 starting in 2H21.
• The exploration
Calima Energy (CE1 AU) C; Target of A$0.035 per share: Trading update in Canada – The Gemini #1 and #3 well encountered oil and gas shows as prognosed with production expected to be in line with the predicted type curves. Initial flow-back and production started on 26 June for the Gemini #1 well and on 24 June for the Gemini #2 well. Production will start at Gemini #3 in mid/late July, Calima has re-iterated its YE21 production guidanc
Companies: SNM AOI BP/ CE1 CEG ENQ GENL GPRK GPRK I3E IHC SDX
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
• GeoPark has appointed an independent chair for the first time in its history. Sylvia Escovar Gomez, who is currently an independent director at the company, will succeed Gerald O’Shaughnessy.
• GeoPark has also nominated Maria Fernanda Suarez for election as a new independent director.
• This will boost the profile of the company as one of the major publicly listed E&P companies operating in Latin America. The board of GeoPark will include three recently appointed independent directors and b
• Over the recent days, conditions in Colombia have improved. and a significant portion of curtailed production has been brought back online.
• Currently, net production curtailments vary between 4,000-5,000 boe/d, of which approximately 50% correspond to the Platanillo block, which is shut in. Remaining production curtailments correspond to the CPO-5 and Llanos 34 blocks, which depending on surface logistics are currently producing at 70-85% and 90-95%, respectively, of their capacity.
Bahamas Petroleum Company (BPC LN)/Challenger Energy Group (CEG LN)C; Target of 1.20p per share: Completing financing – BPC has raised £6.9 mm of new equity. This is an important step for the company to fund the upcoming work programme. The key near term newsflow is the drilling of the saffran#2 appraisal well that could derisk ~11 mmbbl. The company has now changed its name to Challenger Energy and will trade under the ticker of “CEG LN”.
GeoPark (GPRK US)C; Target price
Companies: CEG BP/ CNE CNE DEC ENI ENI FEC GPRK GPRK GTE HUR NOG PXT PGR RDSA SDX SNM TETY TETY
Research Tree provides access to ongoing research coverage, media content and regulatory news on GeoPark Ltd.
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Companies: Sylvania Platinum Ltd.
We are initiating coverage of VAST Resources (VAST), which has wholly-owned Baita Plai and Manaila polymetallic mines plus an interest in two exploration projects, all located in Romania. At this stage, Baita Plai is the main driver for our valuation as it is currently being ramped up to 14kt per month. As such, we expect Baita Plai’s Cu eq output to reach c 2.4ktpa in FY23F followed by 3.3ktpa in FY24F. This, coupled with Manaila’s potential re-start of an additional 3ktpa of Cu eq over the sho
Companies: Vast Resources plc
Phoenix copper today provides an update on its ground geophysical survey over the Red Star prospect near its Empire copper project in Idaho. The Red Star skarn mineralisation (lead and silver ± copper, zinc) is associated with magnetite; the survey just undertaken was to better understand the distribution and orientation of magnetite to find potential mineralisation and to inform the location and direction of a further drilling programme.
Companies: Phoenix Copper Ltd. (United Kingdom)
We see the UK Government’s Net Zero Strategy as being overall helpful but not especially definitive. Amongst our coverage group, Drax Group (DRX LN) and Velocys (VLS LN) benefit from the Humberside CCS cluster prioritisation and Velocys from SAF support. The amount of renewables is likely to boost the need for flexibility solutions where Drax, Gore Street (GSF LN) and SIMEC Atlantis (SAE LN) can benefit. Hydrogen companies ITM (ITM LN) and Powerhouse Energy (PHE LN) are likely to find support. T
Companies: ADN DRX GSF ITM NESF PHE SAE SIT STRLNG TLG VLS
Companies: Shanta Gold Limited
Today’s IPO of Tungsten West (TUN-LON) unlocks a valuable, long term revenue stream for Hargreaves. This comprises a £1m per annum fee (first payment next month) as well as a mining services contract once the mine recommences production. The resulting EPS upgrades are 6% and 7% in FY22 and FY23 respectively, followed by 9% in FY24 with the first partial contribution from the mining services contract. This continues Hargreaves’ impressive recent run of forecast upgrades and reinforces our convict
Companies: Hargreaves Services plc
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Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz. Offer TBA. Due early Nov.
Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties providing investors with exposure
Companies: SYS1 ARE SO4 SNG TMG TMT OHG IDE KIBO MRL
Shanta Gold (AIM: SHG) has, this morning, announced its production and operational results for the quarter ended 30th September 2021 – see Fig 1. Operationally this was a slightly weaker than expected quarter but very promising from the corporate side with a new five-year plan announced, an 0.10cps interim dividend announced and a resource update at the West Kenya Project (WKP).
QoQ production was flat at 14,194 oz and AISC rose to $1,480/oz caused by a temporary drop in grade as well as hig
Oil posted the longest stretch of weekly advances since 2015 as OPEC+ producers only modestly supply the market and as US crude supplies shrink.
Crude futures rose 1.5% Friday in New York, up for a ninth straight week. President Joe Biden said Thursday night that Americans should expect high gasoline prices to continue into next year because of supply being withheld by OPEC and other foreign oil producers. Stockpiles at the biggest US storage hub are draining to levels last seen when crude pr
Companies: FO 88E DEC EME GTC TRIN UOG WEN
Trifast has released a good interim trading update ahead of its interim results due on 23 November. Overall trading has been in line with management expectations at “both revenue and profit levels” since the AGM update in July although this belies the strength of the Group's top line performance in our view. We remain buyers.
Companies: Trifast plc
Rio’s investors day was focused on two of the most critical mining industry thematics in today’s times, i.e. green and growth. The announced measures couldn’t have materialised at a better time, given the (recent) woes pertaining to governance and the iron ore market sell-off. Remember, considering Rio’s enviable balance sheet strength, it has the flexibility to pursue the targeted plans with rigorously and, at the same time, maintain ‘relative’ shareholder reward attractiveness. Hence, we reite
Companies: Rio Tinto plc
Anglo Asian Mining* (AAZ LN) - BUY – 180p – 4.5c special dividend
BeMetals (BMET CN) –– Drilling commences at South Mountain, Idaho
Condor Gold* (CNR LN) – BUY, valuation 102.5p – Progress of the La India feasibility study
Hochschild (HOC LN) - Hochschild to spin off rare earth assets
Rambler Metals and Mining* (RMM LN) – BUY, fair value 10.7p - Ming mine underground drilling programme demonstrates grade and width improvements at depth
SolGold* (SOLG LN) – Tandayama-America initial resour
Companies: BMET AAZ CNR HOC RMM SOLG
Tungsten West (TUN.L) has joined AIM. Tungsten West is the 100% owner and operator of the historical Hemerdon tungsten and tin mine located near Plymouth in southern Devon. Hemerdon represents the world's third largest tungsten mineral resource, with a JORC (2012) compliant Mineral Resource Estimate of approximately 325Mt at 0.12 WO3. Capital raised on Admission: £39m. Anticipated Mkt Cap: £106.2m.
Future Metals NL (ASX:FME, FME.L) (formerly named Red Emperor Resources NL) had joined AIM
Companies: SOLI RBD ALU ATQT BBI CWR DRV ORCP WATR
Adriatic Metals (“ADT”) announced on 13th October that it has raised a cumulative US$244.5m (~£178m) via a combination of equity, senior debt and a copper stream. A total of ~49m new shares were issued at a price of GBp 1.5174/sh, which was a discount of ~11% to the 10-day WVAP price to 12th October. The main use of the proceeds is for the construction and working capital requirements of Adriatic’s fully permitted flagship Vareš project, which has a capital cost of US$168m as outlined in the Def
Companies: Adriatic Metals Plc Shs Chess Deposit Interests Repr 1 Sh
Botswana Diamonds (BOD LN) – £550,000 fund-raising
Castillo Copper (CCZ LN) – IP Survey identifies potential drill targets at Luanshya
KEFI Gold and Copper* (KEFI LN) – Security incident resolved
Kore Potash (KP2 LN) – Quarterly operations update
Petropavlovsk (POG LN) – Q3 update highlights recovering production at own mines with increasing POX Hub utilisation
Sibanye-Stillwater (SSW JSE) – In talks to buy Brazilian projects for $1bn
Strategic Minerals* (SML LN) – £400,000 fund-raising
Companies: BOD KEFI KP2 POG SML CCZ SSW