Vaalco Energy (EGY US/LN)C; Target price of £4.20: Completing the acquisition of stake in Etame – Vaalco has now completed the acquisition of Sasol 27.8% working interest in the Etame Marin block offshore Gabon, increasing the Vaalco’s total working interest to 58.8%. The company paid US$29.6 million in cash to Sasol, taking into account the agreed upon transaction price of US$44 mm, the deposit already paid and post-effective date adjustments, with a future contingent payment of up to US$5 mm. The final payment is marginally lower than we anticipated and probably reflects the high oil price in January so far in 1Q21.
Panoro Energy (PEN NO)C; Target price of NOK30 per share: Confirming guidance and high impact newsflow – The 4Q financial headlines did not include any surprises with Tunisia production increasing to 4,500 bbl/d (gross).
FY21 production guidance has been set at >9 mboe/d (we assume 9.5 mboe/d) with US$42 mm capex (including US$6 mm for Tunisia, US$5 mm for South Africa exploration, US$10 mm for EG and the balance for Gabon) plus US$5 mm for the Salloum well in Tunisia. The high impact Hibiscus exploration well in Gabon is expected to be spudded in April 2021 with results in May. Our unrisked NAV for this well is >NOK12 per share (>50% of current share price). There are only 1-2 liftings per year in EG, each one is very large (0.95 mmbbl per lifting). One of these liftings is taking place in 1Q21 with production from July 2020 allocated to Panoro but sold at the currently high price. The next one will be in 4Q21 or 1Q22.
PetroTal (PTAL LN)C; Target price up from £0.50 to £0.60 per share on increased reserves - YE20 1P, 2P and 3P reserves were respectively 22.3 mmbbl (+4% vs YE19), 51.0 mmbbl (+7%) and 106.1 mmbbl (+25%). The YE20 estimates are net of 2.1 mmbbl production in 2020, implying a 5.4 mmbbl upwards revision for the 2P reserves compared to previous estimates. The 1P and 2P reserves increase reflect a reserves replacement ratio of respectively 38% and 157%. As we anticipated, the reserves increase is the result of higher recovery factor assumptions, reflecting the performance of the wells to date. The new 2P and 3P cases assume recovery factors of respectively 15% (+1.4%) and 17% (+2.4%). Our new 2P NAV is £0.37 per share (£0.34 per share previously), which represents >2x the current share price. Our new ReNAV incorporating the increase in reserves is £0.59 per share (£0.52 per share previously). We have set our new target price at this level. We are increasing our target price from £0.50 to £0.60 per share.
IN OTHER NEWS
88 Energy (88E LN/U): Prospective resources update in Alaska – The total prospective resources associated with project Peregrine are estimated at 1.6 bn boe.
Echo Energy (ECHO LN): Operational update in Argentina – FY20 net production from Santa Cruz Sur was 1,966 boe/d. The company will now upgrade and debottleneck the existing liquids pipelines to bring the remaining volumes previously shut in in 2Q20 back online and restore net liquid production of 336 - 420 bbl/d.
Exxon Mobil (XOM US): Selling North sea assets – Exxon Mobil is selling most of its non-operated upstream assets in the U.K. central and northern North Sea to NEO Energy for >US$ 1bn. There may be additional contingent considerations of ~ US$300 mm. The acquisition adds ~ 40,000 boe/d production and > 140 mm boe of reserves. The portfolio to be acquired consists of 21 assets, including 14 fields. This includes 50% WI in the Gannett cluster, 4.38% in Elgin-Franklin and 44%-72% in the Shearwater area.
Galp: 4Q20 results – 4Q20 production was 122.8 mboe/d including 109.8 mboe/d in Brazil and 13.1 mbbl/d in Angola. The company held 2P reserves of 700 mmboe at YE20 (-6% versus YE19) while YE20 2C resources were 1.7 bn boe. FY21 production guidance has been set at 125-135 mboe/d.
Gran Tierra Energy (GTE CN/LN): FY20 results and outlook – FY20 production in Colombia was 22,264 bbl/d. FY21 production guidance has been set at 28-30 mbbl/d with US$130-150 mm capex. Gran Tierra collected total VAT and income tax receivables of US$114 mm during 2020. At YE20, Gran Tierra held US$34.4 mm in cash and working capital surplus, a US$190 mm revolving credit facility and US$600 mm of senior notes.
i3 Energy (I3E LN): Operational update in Canada – November 2020 to January 2021 averaged 9,150 boe/d (41% liquids). The horizontal Falher formation well located on the Noel acreage in Northeast British Columbia was tested at 4,200 mcf/d on a 1/4” choke. The well is expected to be brought on production at ~500 boe/d during the 2Q21. Currently there are no booked reserves attributed to this well, or to any potential offsetting development locations.
Maha Energy (MAHA-A SS): 4Q20 results – 4Q20 production in Brazil was 2,738 boe/d. Maha held US$6.7 mm in cash at YE20.
President Energy (PPC CN): Trading update and outlook in Argentina – President’s FY20 net production was >2,700 boe/d with ~3,300 boe/d production in December. YE20 net debt was US$16 mm. FY21 production guidance has been set at 3,600-4,000 boe/d, with capex of ~ US$18 mm.
Coro Energy (CORO LN): Acquisition of renewable Energy business in Asia and equity raise – Coro Energy is acquiring Global Energy Partnership Limited (GEPL) for £0.6 mm. GEPL is an originator and developer of renewable energy projects in South East Asia. Coro has also raised £4.5 mm mm of new equity priced at 0.4p per share. Additional proceeds of up to £0.5 mm are to be raised pursuant to the Open Offer.
Jadestone Energy (JSE LN): FY21 outlook – FY21 production in Australia and New Zealand is expected to be 11.5-13.5 mbbl/d with US$85-95 mm capex.
PTT EP/Petronas: Gas discovery offshore Malaysia – The Dokong-1 wildcat exploration well in Block SK417 offshore Sarawak encountered a gas column measuring > 80 metres in the Middle to Late Miocene Cycle VI-VII reservoirs.
ENI (ENI IM): Strategy update – Production is expected to grow at an average of around 4% per year over the next four years. Upstream capex will amount to around €4.5 bn per year on average. ~55% of the 1P reserves will be gas in 2024, vs. 50% today. Unlevered IRR for renewable projects is in the range of 6-9% while the IRR of upstream projects in execution is 18%.
EnQuest (ENQ LN): Farming down UK asset – EnQuest is selling 85% WI in the Eagle discovery to Anasuria Hibiscus in return for a full carry of all costs from completion of the transaction through to first oil.
Wintershall: 4Q20 results – 4Q20 production was 654 mboe/d (FY20 production of 623 mboe/d above FY20 guidance of 610-615 boe/d). YE20 net debt was EUR5.5 bn. At YE20, Wintershall held 2P reserves of 3.6 bn boe and 2C resources of 2.1 bn boe. FY21 production guidance has been set at 620-640 mboe/d with capex of EUR1.0-1.1 bn, including EUR200-250 mm for exploration.
FORMER SOVIET UNION
Enwell Energy (ENW LN): Appraisal well results in Ukraine – The SV-25 appraisal produced at a stabilised flow rate of approximately 1.9 mmcf/d of gas and 109 bbl/d of condensate from the B-22 formation only.
Kosmos Energy (KOS LN/US): 4Q20 results – 4Q20 production was 60.2 mboe/d, including 24.3 mbbl/d in Ghana, 25.5 mbbl/d in the US GoM and 10.5 mbbl/d in EG. Kosmos exited 2020 with net debt of ~US$2 bn and available liquidity of ~US$570 mm. First gas at the Greater Tortue Ahmeyim project in Mauritania and Senegal continues to be expected in 1H23. The sale of the FPSO in 2Q21 is expected to reduce Kosmos' cash requirements to first gas by ~ US$320 mm. FY21 production guidance has been set at 53-57 mboe/d. Kosmos expects to spend ~US$225 to $275 mm in 2021, excluding Mauritania and Senegal. In Mauritania and Senegal, FY21 capex capital expenditure for Kosmos' WI is expected to ~US$350 mm. At YE20, Kosmos held 2P reserves of 480 mmbbl.
Lekoil (LEK LN): Indicative offer from Lukoil – Lekoil has received a letter from Optimum, the Operator of the OPL 310 Licence, to terminate the Cost and Revenue Sharing Agreement for OPL 310. Lekoil believes that this letter is not valid.
Orca Energy (ORC.A/B CN): Increasing dividends – Orca is increasing its quarterly dividends from C$0.08 to C$0.10 per share.
Tullow Oil (TLW LN): RBL redetermination - Tullow and its technical banks have agreed a new debt capacity amount under the RBL facility of ~US$1.7 bn (down from US$1.8 bn at the end of September); this remains subject to formal approval by a majority of lending banks. Based on the new debt capacity amount, Tullow will have liquidity headroom of free cash and available debt facilities of ~US$0.9 bn.
EVENTS TO WATCH NEXT WEEK
01/03/2021: Seplat Petroleum (SEPL LN) – 4Q20 results
04/03/2021: Aker BP (AKERBP NO) – 4Q20 results
04/03/2021: Frontera Energy (FEC CN) – 4Q20 results
Companies: XOM XOM TLW 88E ENI ENI ENQ GTE I3E JSE KOS MAHAA PEN PEN TAL EGY
Next weeks' OPEC+ meeting likely to lead to lifting of production restrictions
Companies: Jadestone Energy, Inc. (JSE:LON)Tullow Oil plc (TLW:LON)
PetroTal (PTAL LN/TAL CN)C; Target Price: £0.50: Successful US$100 mm bond raise opens new horizons – PetroTal has raised ~US$100 mm through a 3 year senior bond issue with a fixed coupon of 12% per year and a borrowing limit of US$125 mm. ~US$20 mm will be used to repay the US$16.6 mm derivative liabilities to Petroperu (formalized in November) and the US$2.9 mm government pandemic loan, while US$20 mm are earmarked to make acquisitions. The balance will be invested in the Bretana field to accelerate production, along with funds to secure a hedging programme. We had incorporated the bond issue in our forecasts that are based on a US$100 mm capex programme for 2021. The programme includes a total of four new producing wells and one disposal well. Drilling is expected to restart in March. With ~11.5 mbbl/d production in 2021 increasing to >16 mbbl/d (we assume cautiously 15 mbbl/d) in 2022, we continue to forecast respectively ~US$90 mm and US$170 mm operating cash flow (pre finance costs) in 2021 and 2022. This implies EV/DACF multiples of 2.2x in 2021 and 0.6x in 2022. There are multiple sources of upside that the company will now pursue: (i) The 3P reserves at Bretana represent ~100% upside to the 2P case. (ii) The Constitucion prospect (70 mmbbl) on Block 107 is expected to be drilled in 1Q22 or 2Q22. A success at Constitucion would also derisk larger prospects on the licence. (iii) PetroTal has also identified a total of ~115 mmbbl prospective resources at various prospects and leads on Block 95.
Valeura Energy (VLU LN/VLE CN)C: Initiating Coverage - Valeura is a Toronto and London listed ~US$40 mm market cap cash shell. The firm holds ~US$31 mm in cash and, in 1Q21, is expected to complete the divestment of its legacy producing asset for US$15 mm in cash. Valeura’s management team is very well-rounded with diverse transaction and operational experience and commercial acumen. The company attracted Equinor as a 50/50 partner for its deep gas Turkish assets where Valeura operated the drilling of multiple wells. Valeura is now looking to leverage its ~US$45 mm pro forma cash and listed equity to make acquisitions of undervalued assets or companies with producing assets and exploration upside within Eastern Europe, North Africa and the Middle East. Valeura is differentiated from other acquirers on three other counts. (i) It offers quality equity paper listed on the LSE main market and the TSX that can be used as a currency. (ii) It holds much more cash than many other shells. This is important because private equity sellers will require a degree of cash consideration alongside shares. Holding cash rather than having to rely on the market to access cash reduces execution risk. It also allows Valeura to target larger transactions combining the cash on the balance sheet with funds from other sources including debt and potentially further equity raises, depending on value accretion. (iii) Valeura’s shares trade near cash value which ought to result in fewer arguments regarding relative value.
Wentworth Resources (WEN LN)C; Target price: £0.40: Looking beyond the 2P reserves: proved developed reserves up by ~50% - The gross field YE20 2P reserves of 445.3 bcf at Mnazi Bay are unchanged compared to YE19 when adjusted for 2020 production. However, the field’s gross proved developed reserves at YE20 of 191 bcf have increased ~50% year on year. Adding back 23 bcf of production in 2020 suggests 87 bcf has been converted from proved undeveloped reserves to the developed category. This derisking of proved reserves reflects the lower sands being put in production, as these reserves had been previously classified as “behind pipe”. The independent auditor’s after tax NPV10-15 of US$98-117 mm for Wentworth’s interest in the field represent 2.5-3.0x the current EV of the company. The shares continue to trade at EV/DACF multiples of 2.9x in 2021 and 2.2x in 2022.
IN OTHER NEWS
Alvopetro (ALV CN): Production update in Brazil - January sales averaged 1,923 boe/d.
Maha Energy (MAHA-A SS): Reserves update and FY21 outlook – At YE20, the company held ~45 mmbbl of oil and 20 bcf of natural gas of 2P reserves in Brazil, USA and Oman. Maha also holds ~22 mmbbl contingent resources in Oman. Maha expects to produce 4.0-5.0 mboe/d in 2021 with US$26 mm capex.
Parex Resources (PXT CN): Reserves update in Colombia – 4Q20 production was 46,642 boe/d. Parex held 194 mmboe of 2P reserves at YE20 (-2% vs YE19).
Jadestone Energy (JSE LN): Trading update in Australia/Vietnam and New Zealand – Jadestone had net cash of US$82.0 mm at YE20. The completion of the acquisition of the New Zealand asset is expected to take place in 1H21.
ADX Energy (ADX AU)C: Upsized Equity raise – ADX is raising A$3 mm of new equity from its shareholders at a price of A$0.006 per share. In addition, participating shareholders will be granted one option for every two subscribed shares to acquire new shares at a strike price of A$0.08 per share.
Aker BP (AKERBP NO): 4Q20 results – 4Q20 production in Norway was 223.1 mboe/d, with US$1.73 bn capex for FY20. YE20 net debt was US$3.6 bn. FY21 production guidance has been set at 210-220 mboe/d with total capital spend of USD 2.2-2.3 bn. The company anticipates a dividend for 2021 of US$450 mm (up from US$425 mm in 2020).
BP (BP LN): 4Q20 results – Adjusted net profit for 4Q20 was US$115 mm. FY20 production was 3,473 mboe/d with US$12 bn capex. The organic reserves replacement ratio was 78% for the year. Including acquisitions and divestments, the total reserves replacement ratio was -5%.
DNO (DNO NO): Discovery in Norway – DNO has made a 45-70 mmboe discovery at the Røver Nord prospect in the Norwegian North Sea license PL923 in which the Company holds a 20% WI.
EnQuest (ENQ LN): Acquisition of UK assets – EnQuest is acquiring 26.69% WI in Golden Eagle from Suncor. The transaction adds production of ~10 mboepd, ~18 mmbbl of net 2P reserves and ~5 mmbbl of net 2C resources. FY21 opex for the acquired asset is ~US$5/boe. The effective date of the transaction is 01/01/2021. The initial consideration is US$325 mm, with an additional contingent consideration of up to US$50 mm depending on oil price. EnQuest plans to finance the transaction through a combination of a new secured debt facility and an equity raise of up to US$50 mm. FY20 production was 59,116 boe/d with capex of ~US$130 mm. Gross production at Kraken was 37,518 bbl/d. YE20 net debt was US$1,280 mm. FY21 production is expected to be between 46,000 boe/d and 52,000 boe/d; Kraken gross production is expected to be between 30,000 bbl/d and 35,000 bbl/d.
Lundin Energy (LUNE SS): Dry hole in Norway – The 7219/11-1 exploration well on the Bask prospect in production licence 533B was dry.
OKEA Energy (OKEA NO): 4Q20 results – 4Q20 production in Norway was 16,171 boe/d. At YE20, OKEA held NOK2,400 mm in debt and had NOK 871 mm in cash. OKEA expects go produce 15.5-16.5 mboe/d in 2021 with NOK0.6-0/7 bn.
OMV (OMV AG): 4Q20 results – 4Q20 production was 472 mboe/d. The company expects to produce 480 mboe/d in 2021 with cape of US$2.7 bn.
Royal Dutch Shell (RDSA/B LN): 4Q20 results – Shell reported 4Q20 adjusted net earnings of US$0.4 bn with production of 3,371 mboe/d and FY20 capex of US$18 bn. FY21 production guidance has been set at 3,300 3,500 mboe/d. 1Q21 dividend has been increased by 4% from 4Q20 to US$0.1735 per share.
FORMER SOVIET UNION
Caspian Sunrise (CASP LN): Operational update in Kazakhstan – The company currently produces 1.2-1.5 mbbl/d. Domestic oil prices in Kazakhstan are currently only US$6/bbl.
Nostrum Oil & Gas (NOG LN): Operating update and reserves downgrade Kazakstan – FY20 sales volumes were 21,514 boe/d. Net debt is expected not to exceed US$1.1 bn at YE20. YE20 2P reserves are estimated at 39 mmboe (down 91 mmboe compared to YE19). The revisions in reserves are mainly due to the downgrade of reserves attributed to the development of the Biyski-Afoninski West & North-West reservoirs to the contingent resources category. FY21 production guidance has been set at 17,000 boe/d, corresponding to a sales volume of 16,000 boe/d.
MIDDLE EAST AND NORTH AFRICA
BP (BP LN): Divesting assets in Oman – BP is selling a 20% participating interest in Oman’s Block 61 to PTTEP for US$2.6 bn. Following completion of the sale, BP will remain operator of the block, holding a 40% interest.
United Oil & Gas (UOG LN): Trading update – FY20 WI in Egypt production was 2,195 boe/d. At YE20, the company held US$2.1 mm in cash. 1H21 production in Egypt is forecast to average between 2,300 and 2,500 boe/d for 1H21 with US$5.3 mm capex.
Seplat Petroleum (SEPL LN): Update in Nigeria – Seplat ‘s Joint Venture, the ANOH Gas Processing Company, has raised US$260 mm in debt to fund the completion of its ANOH Gas Processing Plant. Construction cost is now expected to be no more than US$650 mm, inclusive of financing costs and taxes, below the original projected cost of US$700 mm.
EVENTS TO WATCH NEXT WEEK
09/02/2021: Tethys Oil (TETY SS) – 4Q20 results
11/02/2021: DNO (DNO ASA) – 4Q20 results
11/02/2021: Royal Dutch Shell (RDSA/B LN) – Strategy day
Companies: NOG CASP RDSA ADX AKERBP ALV BP/ DNO ENQ JSE LUNE MAHAA OMV PXT TAL SEPL WEN
Market update 01/02/2021
Companies: JSE UJO UOG
Jadestone Energy (JSE LN): Positive trading update, balance sheet strengthened | 88 Energy (88E LN): 88E confirms farmout in Alaska | United Oil & Gas (UOG LN): Latest payment from Habiscus slated for early next year
Companies: JSE 88E UOG
88 Energy (88E LN/AU): Farm out in Alaska – 88 Energy is selling 50% WI in the Peregrine project to Alaska Peregrine Development Company (APDC). in return, APDC will contribute US$11.3 mm towards the cost of the Merlin-1 well (estimated gross cost US$12.6 mm). APDC is a special purpose investment vehicle organized for Project Peregrine. Its members are a consortium of private US entities.
Bahamas Petroleum Company (BPC LN)C: PSC contract in Trinidad renewed and Resources update – The company has entered into a new PSC for the Goudron Block with Heritage. The contract is valid until 30 June 2030. 2P reserves on the company’s licences are estimated at 1.3 mmbbl. In addition, the company is estimated to have 7.5 mmbbl contingent resources in Trinidad and Suriname, excluding the Saffron discovery. The company’s base programme for 2021 will include (1) the drilling of the Saffron well with up to 7 production follow-on wells on success; (2) an EWT at Weg Naar Zee in Suriname in February 2021 followed by up to 6 development wells; and (3) up to 2 exploration wells on the South West Peninsula of Trinidad. The programme is expected to cost US$20 mm. An accelerated programme (US$35 mm capex) would include 8 further Saffron wells in Trinidad, 3 further Weg Naar Zee wells and one exploration well in the SWP.
Echo Energy (ECHO LN): Update in Argentina – Production in Santa Cruz from 1 January to 17 November 2020 was 1,990 boe/d.
Touchstone Exploration (TXP LN/CN): Drilling results in Trinidad – The Cascadura Deep-1 well encountered natural gas pay totalling ~1,315 net feet in four unique thrust sheets in the Herrera sands. This includes 308 net feet in two previously untested Herrera thrust sheets located below the sands observed in the Cascadura-1ST1 well. While the well was originally planned to be drilled to a total depth of 10,600 feet, the gas sands encountered in the deepest sheet proved difficult to manage, and the decision was made to cease drilling at a depth of 8,303 feet to preserve the substantial pay section encountered in the well.
Jadestone Energy (JSE LN): Trading update – Group production from January to November was11,356 bbl/d. FY20 production guidance remains 11,000–12,500 bbl/d. At the end of November Jadestone held net cash of US$82.6 mm. The Maari acquisition is now expected to close in 1H21 rather than by YE20 as previously anticipated as a result of delays caused by COVID-19 and New Zealand’s recent general election.
Providence Resources (PVR LN) and Lansdowne Oil & Gas (LOGP LN): Farm out in Ireland – Providence and Lansdowne are farming out 50% WI in Baryroe to SpotOn. In return SpotOn will provide a non-recourse loan to Providence and Lansdowne for their share of the development cost. The funding will incur a blended average annual interest rate of less than 8% through the repayment period which will be repayable from SEL 1/11 production cashflow. SpotOn is entitled to 80% of the net production cashflow from SEL 1/11 until the debt is repaid.
UK Oil & Gas (UKOG LN): Consent for UK project refused - Surrey County Council has refused planning consent for the company's 100% owned Loxley-1/1z Portland gas appraisal project.
FORMER SOVIET UNION
Block Energy (BLOE LN): Raising new equity – Block has raised ~£5.3 mm of new equity priced at £0.03 per share (almost a 30% discount to the previous day close).
Caspian Sunrise (CASP LN): Update in Kazakhstan – The MJF field is currently producing at rates between 1,300 and 1,550 bbl/d. A consistent flow of oil has not been established at Deep Well A8 and the company had another stuck pipe at the Deep Well A5. The result of the acid treatments at Deep Well A6 have to date have been inconclusive. The domestic oil prices in Kazakhstan are only US$6/bbl.
MIDDLE EAST AND NORTH AFRICA
Genel Energy (GENL LN): Gulf Keystone Petroleum (GKP LN), ShaMaran Petroleum (SNM CN): Payment in Kurdistan – Genel, ShaMaran and Gulf Keystone have received respectively net payments of US$10.3 mm, US$7.5 mm and US$5.44 mm from the Kurdistan Regional Government for oil sales for the month of October 2020.
TransGlobe Energy (TGL LN/CN): Restructuring of Egypt Licences - The West Gharib, West Bakr, and North West Gharib concessions will be merged into the Merged Concession with a new 15-year development term and a 5-year extension option. Cost recovery terms are being improved and the production sharing terms will be scaled to oil price. The increased cash flows is expected to fund new investments in incremental recovery projects. Near-term operational netbacks are estimated to increase by respectively US$5-7/bbl at US$40/bbl (Brent), US$7-9/bbl at US$50/bbl and US$9-11/bbl at US$60/bbl. The company has estimated that the new terms increase the company’s risked economic contingent resources (best case) by 59.1 mmbbl. In return TransGlobe will make an initial equalization payment of US$15 mm and a bonus payment of US$1 mm on ratification. There will be five further annual equalization payments of US$10 mm each being made over five years.
United Oil & Gas (UOG LN): Operational update in Egypt – WI production from Abu Sennan is on target to exceed previous guidance of 2,300 boe/d for 2H20.
Eco (Atlantic) Oil & Gas: Licence update in Namibia- Four new Petroleum Exploration Licenses have been agreed on the company’s existing offshore blocks, leading to the expansion of its acreage position. The new licences cover approximately 28,593 km2, with over 2.362 Billion BOE of prospective P50 resources.
FAR Limited (FAR AU): Woodside Petroleum pre-empts divestment in Senegal – Woodside is pre-empting the sale by FAR to ONGC of its interest in the Rufisque, Sangomar and Sangomar Deep assets.
Companies: CASP BPC SNM TXP UKOG 88E GENL JSE TGL
Panoro Energy (PEN NO)c; Target price of NOK23.00: Revisiting Gabon - BW Energy provided an update on Dussafu with FY20 production guidance expectation marginally below previous guidance (14.25 mbbl/d versus 15 16 mbbl/d) due to COVID-19 restrictions and OPEC+ quotas. This results in FY20 opex expected to be US$19/bbl which is slightly above the previous guidance of US$17-18/bbl. The drilling of DTM-7H, and the tie-in of DTM-6H and -7H, has been deferred to mid-2021 with first oil expected in 3Q21 and our estimate of the timing of the field production ramp-up has been delayed by one quarter. BWE continues to expect production from the Dussafu area to reach >30 mbbl/d in 2023 and ~40 mbbl/d in 2024. The Hibiscus development is expected to offer 15% IRR at
Companies: TGL 88E FEC JSE LUNE NOG PANR TAL TETY TETY AOI ENOG PEN SDX EGY
Vaalco Energy (EGY LN): Acquisitions confirmed offshore Gabon | Jadestone Energy (JSE LN): Relinquishment of Service Contracts, offshore Philippines | Mosman Oil & Gas* (MSMN LN): Successful testing at Falcon-1, step change in production
Companies: EGY JSE MSMN
Great Eastern Energy* (GEEC LN), STRONG BUY: H1 2021 results underline financial resilience | Jadestone Energy (JSE LN): Teikoku dispute settled | Lekoil* (LEK LN): Shell Trading prepayment facility fully repaid
Companies: GEEC JSE LEK
Wheaton precious Metals (TSE:WPM) - Proposed secondary listing on bringing one of the world’s largest precious metal streaming companies to the London Stock Exchange. Due Q 2020
AB Ignitis grupe—leading utility and renewable energy company in the Baltic region. Admission of its Shares to the Main Trading List of Nasdaq Vilnius and admission of its GDRs to the Official List of the FCA. Offer Price Range corresponds to a market capitalisation of approximately EUR1,691.7 - EUR2,105.2 million. Due 7 Oct.
Calnex, an established provider of test and measurement solutions for the global telecommunications sector, will raise a total of £22.5 million (before expenses), comprising £6.0 million for the Company and £16.5 million for existing shareholders . Due 5 October 2020, under the ticker CLX. Based on the Placing Price, the market capitalisation of the Company will be £42.0 million on Admission.
Various Eateries to float on AIM. Admission is expected to take place end of September/early October 2020. The Company intends to raise up to £25 million by way of a placing . Established platform business operating two core brands, Coppa Club & Tavolino, both positioned to benefit from the post-Covid environment. The Directors believe site availability, acquisition opportunities, reduced competition, availability of talent and changes in consumer behaviour provide opportunities to accelerate the Group's growth .
Mode Global Holdings to join LSE (standard). Mode is a UK-based Fintech Group, building a modern financial services business to support an increasingly digitised economy and financial system, combining the best of banking, payments, investment, loyalty and digital assets. Targeting £7.5m raise.
Guild Esports a UK-based owner and developer of esports teams, has announced its intention to seek a listing of its ordinary shares to the Standard Listing segment of the London Stock Exchange this autumn. its founding shareholders include David Beckham, former football player and captain of England, and now co-owner of new MLS team Inter Miami CF.
HOME REIT intends to float to the Main Market raising up to £250m. The Company will seek to contribute to the alleviation of homelessness in the UK, whilst targeting inflation-protected income and capital returns, by investing in a diversified portfolio of assets across the UK which will be dedicated to providing accommodation to the homeless. Due Mid October
Sativa Wellness Group—(Canadian Securities Exchange: STIL) renamed from Stillcanna Inc following the conditional acquisition of Sativa Group (AQSE:SATI) to list on the AQUIS Exchange. A fully integrated European seed to consumer CBD group with the pricing, products, and stability to meet the CBD market demand in the medium term. With world-class extraction and formulation experts, an agricultural team that has over 20 years’ experience farming hemp, along with laboratory testing capabilities, the group has established itself globally as a trusted source of high-grade, premium wholesale CBD brands and products.
Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List
Kibo Energy PLC, the multi-asset Africa focused energy company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (MED), to the Standard List of the London Stock Exchange plc . Targeted for Q4 2020. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times.
Companies: MRL DBOX GDR CRC KRS BONH JSE ANIC ARK
Jadestone Energy (JSE LN): Maari Project acquisition long stop date extended | Genel Energy (GENL LN): Bond confirmation and oil sales payments received from the KRG | Bahamas Petroleum (BPC LN): BPC secures the Stena IceMAX to spud Perseverance #1
Companies: JSE GENL BPC
Oil posted its first back-to-back weekly loss since April's rout with the end of the summer driving season and concern about OPEC's production compliance weighing on prices.
Futures in New York edged up on Friday, but prices fell 6.1% this week coinciding with a retreat in U.S. equities. Traders are also examining data indicating the United Arab Emirates since July has been regularly exceeding its quota under a deal between the Organization of Petroleum Exporting Countries and its allies.
The uncertainty over how much supply OPEC+ is returning to the market adds another wrench in the recovery for oil prices still reeling from the pandemic-driven blow to consumption. While U.S. supplies had grown tighter in past months and producers were expected to restrain production amid a weak financial backdrop, stockpiles rose again last week for the first time since mid-July.
Companies: XOM HES JSE 88E ADV CAD CHAR ECHO ENOG EME I3E PMG RBD SQZ SOU TLW VGAS WTE PHAR
PetroTal (PTAL LN)C; Target price £0.40: Important development in Peru – On August 28, 2020, the Government of Peru announced a Supreme Decree approving the financial Gap Closure Plan within a number of provinces in northeast Peru, including Loreto, the area where PetroTal operates the Bretana oil field. The decree provides for a six year financial commitment of approximately US$1.7 bn to the communities. This is important as the decree specifically addresses the local community participation criteria, that have been a recurrent key area of contention for years with some communities in Peru. US$46 mm will be designated for economic development of the localities over the next four months by the Peruvian government. Since the announcement of the Decree, government and municipality representatives have been consulting with the community representatives . After meeting with the Bretana community in the coming days, it is expected that PetroTal will restart oil production shortly thereafter.
IN OTHER NEWS
88 Energy (88E LN/AU): Update in Alaska – The final petrophysical interpretation from the recently drilled Charlie-1 well provides an increase in net pay from 280’ to 398’, with the largest contribution coming from the Lima discoveries in the Seabee Formation. These improvements are despite using higher cut-offs for both reservoir and net pay.
Alvopetro (ALV CN): Update in Brazil - In August, total sales were 1,867 boe/d. Total aggregate gross prospective resources identified at the B1 prospect (block 183) and the C1 prospect (block 182) are estimated at 59.4 bcf.
Echo Energy (ECHO LN): Operating update in Argentina - Net 2020 production at Santa Cruz Sur over the period 1 January to 7 September was 2,040 boe/d.
Exxon Mobil (XOM US): New discovery in Guyana - ExxonMobil has made its 18th discovery at the Redtail-1 well on the Stabroek Block with 70 meters of high-quality oil bearing sandstone.
Total (FP FP): Dropping operatorship of Brazilian exploration blocks – Total is resigning from its role of operator for five exploration blocks, located in the Foz do Amazonas Basin. These exploration blocks are referenced as FZA-M-57, FZA-M-86, FZA-M-88, FZA-M-125 and FZA-M-127.
Westmount Energy (WTE LN): Increasing stake in JHI Associates - Westmount has purchased 1.55 mm common shares in JHI by way of the issue of 18.3 mm new ordinary shares in Westmount, which will represent approximately 12.7% of Westmount's enlarged issued share capital. JHI holds a 17.5% carried interest in the Canje Block, offshore Guyana, where ExxonMobil is the operator. At the completion of the transaction, Westmount will hold 6.9% in JHI.
Hibiscus Petroleum: Raising ~ US$480 mm to acquire upstream assets – Hibiscus is raising up to US$480 mm from a private placement of convertible redeemable preference shares to acquire oil and gas assets.
Jadestone Energy: 1H20 results – 1H20 WI production in Australia was 12,116 bbl/d. Net cash at the end of June was US$78.3 mm. FY20 production guidance has been reduced to 11.0–12.5 mbbl/d from 12.0-14.0 mbbl/d previously, as a result of a slowdown in well interventions. Jadestone reiterated its FY20 capex guidance of US$30 35 mm. A maiden interim dividend of 0.54 US cents/share has been declared, representing a total distribution of US$2.5 mm, in line with the lower end of the FY guidance of US$7.5–12.5 mm, split approximately one-third/two-thirds between interim/final. The company anticipates to be debt free by the end of 1Q21. Most approvals are now in place with regards to the New Zealand acquisition and Jadestone expects final government approvals in 4Q20 post the upcoming general election. In Vietnam, discussions are continuing with the government on the FDP and a future gas sales agreement.
Hurricane Energy (HUR LN): Reserves downgrade in the UK – 2P reserves have been reduced from 30.7 mmbbl to 9.4 mmbbl (as of 01/09/2020) with 2C contingent resources cut from 486 mmbbl to 58 mmbbl at Lancaster and from 565 mmbbl to 45 mmbbl at Lincoln. Lancaster EPS production for September to December 2020 is expected to average 12,000-14,000 bbl/d. The company held net debt of US$123 mm at the end of June.
Reabold Resources (RBD LN) and ADX Energy (ADX AU): Partner not farming in Romania assets? – Tamaska Oil & Gas has decided not to proceed with the farmin transaction relating to the EX-10 Parta Exploration licence in Western Romania held by Danube Petroleum (49% ADX, 51% Reabold). Tamaska does not intend to proceed with the planned acquisition of 3D exploration seismic.
Serica Energy (SQZ LN): 1H20 results – 1H20 production in the UK North Sea was 21,600 boe/d. First gas at Columbus continues to be expected by the end of 2021. Serica held £101 mm in cash at the end of June.
The Parkmead Group (PMG LN): Licence awards in the UK – Parkmead has been offered 50% WI in Blocks 14/20g & 15/16g situated in the Central North Sea, adjacent to Parkmead's extensive Greater Perth Area. Two further licences have been offered to Parkmead as part of the 32nd Round. Block 14/20c (Parkmead 100%) is located in the Central North Sea and contains extensions to the Lowlander oil field and the Fynn Beauly oil discovery. Block 42/28g (Parkmead 100%) is situated in the Southern North Sea near the Tolmount gas discovery.
FORMER SOVIET UNION
Cadogan Petroleum (CAD LN): 1H20 results – 1H20 production in Ukraine was 230 bbl/d. The company held US$11.6 mm in cash at the end of June.
MIDDLE EAST AND NORTH AFRICA
Chariot Oil & Gas (CHAR LN): Resources update in Morocco – Anchois is now expected to hold 361 bcf of contingent resources (2C) and 690 bcf of prospective resources (P50).
Energean (ENOG LN): 1H20 results – 1H20 pro forma production (including Edison E&P) was 52.1 mboe/d, with FY20 production guidance unchanged at 44.5 - 51.5 mboe/d. The acquisition of Edison E&P is expected to be completed during 4Q20. The FY20 pro forma capex guidance has been reduced by US$75-125 mm to US$635 - 705 mm, primarily due to (i) the rescheduling of expected milestone payments under the Karish EPCIC contract; and (ii) expected timing of capital expenditure on Edison E&P in Egypt. Net debt at the end of June was US$597 mm.
ShaMaran Petroleum (SNM CN): Receives payment from Kurdistan – ShaMaran has received a net payment of US$6.5 mm from the Kurdistan Regional Government for Atrush oil sales invoice entitlements for the month of July 2020.
Tethys Oil (TETY SS): Production update in Oman – WI production in August was 10.8 mbbl/d.
Zenith Energy (ZEN LN): Acquisition in Tunisia – Zenith is acquiring a 26% interest in the North Kairouan permit and the Sidi El Kilani Concession, which contains the Sidi El Kilani oilfield for US$0.3 mm.
Africa Oil (AOI/SS CN): Extension of Kenya licences – The partners on the 10BB and 13T licences have been given the right to extend the second exploration period until 31 December 2020, with a further extension until 31 Dec 2021.
Kosmos Energy (KOS US/ LN): Selling frontier exploration assets for US$100-200 mm – Kosmos is selling interests in blocks offshore São Tomé & Príncipe, Suriname, Namibia, and South Africa to Shell. The consideration consists of an upfront cash payment of ~US$100 mm, plus contingent payments of US$50 mm payable upon each commercial discovery from the first four exploration wells drilled across the assets, capped at US$100 mm in aggregate. Three of the four wells are currently planned for 2021.
Tullow Oil (TLW LN): 1H20 results – 1H20 production was 77 mboe/d. Net debt at the end of June was US$3.0 bn. FY20 production guidance has been narrowed from 71-78 mbbl/d to 73-77 mbbl/d following good well performance in Ghana. During 1H20, Jubilee and TEN produced 84,700 bbl/d and 50,900 bbl/d gross respectively. This strong performance is a result of (1) increased gas offtake nominations, (2) permission to temporarily increase flaring, (3) higher than forecast facility uptime of over 95% at both FPSOs and (3) greater reliability and redundancy in the water injection facilities on the Jubilee FPSO. The Ntomme-09 production well came on stream in August and is adding c.5,000 bbl/d gross to TEN oil production. FY20 free cash flow is forecast to break even at the current Brent forward curve. The semi-annual RBL debt capacity redetermination is expected to complete in early October 2020. The next redetermination will be in January 2021. Drilling of the Goliathberg-Voltzberg North well in Block 47, Suriname, is planned for 1Q21.
Companies: 88E AOI ALV ENOG XOM HUR JSE KOS PMG TAL RBD SQZ SNM TPL FP TLW
Serica Energy (SQZ LN): Production shutdowns and commodity price correction hits 1H 20 financials | Jadestone Energy (JSE LN): Cash balance doubles, maiden dividend confirmed
Companies: Serica Energy PLC (SQZ:LON)Jadestone Energy, Inc. (JSE:LON)
Wentworth Resources (WEN LN)C; Target price £0.40: 20% dividend increase is a testament to Wentworth’s strength – Without much surprise, given the slow pick-up in gas demand in the aftermath of COVID-19, FY20 production guidance has been marginally reduced from 65-75 mmc/f to 60-70 mmcf/d. Production has already increased to ~68 mmcf/d over July and August, including ~72 mmcf/d for August. Importantly, with US$16.7 mm in cash at the beginning of September and no debt, the company is increasing its interim dividend by 20% to US$1.2 mm with an overall expected total dividend distribution of ~US$3.6 mm (1.43p per share) for FY2020. The resulting ~9% dividend yield is one of the highest offered by the very small number of UK listed E&Ps that are still paying a dividend. Importantly Wentworth is able to pay this distribution while maintaining a healthy cash balance and even though gas sales are relatively low (60 70 mmcf/d gross). With TPDC now settling its invoices and gas realizations being effectively fixed, this level of distribution looks to be sustainable. We also note that the progressive recovery of gas demand and the near-term extension of the Kinyerezi-1 power station with 20 30 mmcf/d additional gross demand imply an increase in sales, revenue and cashflow. Wentworth’s Mnazi Bay field can already deliver 100 mmcf/d production without any additional capex.
IN OTHER NEWS
Maha Energy (MAHA-A SS): Production in August in Brazil – Average production in August was ~3,568 boe/d. A 3 day planned shutdown of the Tie Production Facilities affected production of oil and gas from the Tie field. The Tie field also suffered a string of electrical power failures and shortages during the month. Well testing and flow-back work on the GTE-4 short string (Agua Grande) necessitated the long string (Sergi) to be temporarily closed in.
President Energy (PPC LN): Well test results in Argentina – Following workover activities, well EV-x1 on the Estancia Vieja Field flowed 6.3 mmcf/d on test.
Jadestone Energy: New offtake agreements in Australia – Jadestone has developed a new operating strategy for the Stag field, utilising offtake tankers to directly offload Stag crude oil, in place of the existing long term leased FSO. This new operating model has significant environmental risk mitigants over the existing model, by eliminating the need for ship to ship oil transfers in field. These arrangements are expected to realise annual savings of approximately 20% over the current FSO operation.
EnQuest (ENQ LN): 1H20 results – 1H20 production was 66,055 boe/d. FY20 production is expected to be towards the upper part of the guidance range of 57,000-63,000 boe/d with FY20 capex of ~US$120 mm (unchanged). 1H20 gross production at Kraken was 38,967 bbl/d. Net debt at the end of June was US$1.35 bn, down from US$1.41 bn at YE19.
Ithaca Energy: Merging with third party ahead of a listing? – Media reports indicated that Delek, the owner of Ithaca Energy, is in discussions with a third party about a potential merger of its North Sea operations.
Results of UK 32nd Licensing Round - Premier Oil (PMO LN) was awarded a 50% interest in blocks 42/28e and 42/29b in the licence directly to the east of Tolmount and a 50% stake in blocks 42/27, 47/2b and 47/3g in the licence immediately to the west of Tolmount. Premier, Cairn Energy, MOL and Dyas, were also awarded block 28/9f adjacent to the Catcher Area fields. Block 28/9f contains the Cougar and Rapide prospects. Independent Oil & Gas (IOG LN) was awarded a 50% interest in a licence covering blocks 49/21e and 49/22b. Block 49/21e contains the Viper gas discovery (45 bcfe) and is located 5 km from Elland. Block 49/22b contains the Sinope South gas discovery (35 bcfe). Independent was also offered 100% WI in blocks 48/23d and 48/24c, between the Blythe and Harvey licences, containing the Allerdale, Driftwood and Bradfield prospects and a possible northwest extension of the Redwell field. Jersey Oil & Gas (JOG LN) has been awarded a 100% interest in part-block 20/5e. Part-block 20/5e is located within the Greater Buchan Area development acreage and contains an extension of the J2 oil discovery. Deltic Energy (DELT LN) has been awarded interests in blocks 41/05b (part) & 42/01b (part) (joint with Shell), 43/11 & 43/12b (part), 42/13b (part), 42/17, 42/18, 42/19, 42/20b and 42/22, 42/23 in the Southern North Sea and interests in block 22/17a (part) in the Central North Sea. Corallian Energy, in which Reabold Resources (RBD LN) holds a 34.9% interest, has been offered a 100% interest in the Victory gas discovery in block 207/1a, the Laxford gas discovery and Scourie prospects in blocks 214/29c and 214/30c, and the Oulton oil discovery in block 3/11a. Union Oil & Gas (UOG LN) has been offered a 100% interest in blocks 15/18e and 15/19c. Serica Energy (SQZ LN) has been offered a 100% interest in blocks 3/25b, 3/30, 4/26 and 9/5a. These blocks are in the vicinity of the Bruce area.
RockRose Energy (RRE LN): Acquisition by Viaro Energy completed – The transaction to acquire RockRose has now completed. The shares have ceased trading on the London stock exchange.
MIDDLE EAST AND NORTH AFRICA
Genel Energy (GENL LN): Receives payment from Kurdistan – Genel received a net payment for oil sales during July 2020 of US$11.3 mm.
Gulf Keystone Petroleum (GKP LN): 1H20 results – The Shaikan reservoir continues to perform in line with the company’s expectations, with current gross production of ~36,000 bbl/d and average 2020 gross production to 1 September 2020 of 36,272 bbl/d. Gulf Keystone has also received a net payment of US$7.8 mm for Shaikan crude oil sales during July 2020. FY20 production guidance for the Shaikan field (gross) has been set at 35-36 mbbl/d with net capex of US$40-48 mm (US$38.5 mm spent in 1H20). The company has identified a number of quick payback projects, which are expected to increase gross production by ~5,000 bbl/d for an aggregate gross cost of ~US$3 mm. Gulf Keystone held US$140 mm in cash on the 2 September.
Africa Oil (AOI/SS CN): Received dividend from Nigeria – Africa Oil has received a net payment of US$25 mm related to its 50% interest in Prime. The Company has applied US$17.7 mm of this dividend to pay down the BTG term loan, reducing the outstanding balance to US$176.9 mm. The company has received total dividends of US$137.5 mm since the closing of the Prime acquisition on 14 January 2020.
San Leon Energy (SLE LN): Investment in new Nigerian asset – San Leon is making a US$7.5 mm loan to Decklar Petroleum. Decklar is the holder of a Risk Service Agreement (RSA) with Millenium Oil and Gas Company on the Oza field in Nigeria. Until the loan and its interest are repaid, 100% of the available funds that can be distributed from Decklar’s RSA proceeds will be paid to San Leon. San Leon will also subscribe for a 15% equity interest in Decklar. The Oza Oil Field was formerly operated by Shell. The field was never tied into an export facility. The field has three wells and one side track drilled by Shell between 1959 and 1974.
EVENTS TO WATCH NEXT WEEK
09/09/2020: Tullow Oil (TLW LN) – 1H20 results
10/09/2020: Serica Energy (SQZ LN) – 1H20 results
10/09/2020: Jadestone Energy (JSE LN) – 1H20 results
11/09/2020: Hurricane Energy (HUR LN) – 1H20 results
07/09-11/09/2020: PetroTal (PTAL LN) – Potential operating update?
Companies: ENQ GKP JSE RBD WRL MAHAA PMO AOI GENL
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UK railway privatisation, which was launched in the mid-1990s, has finally turned full circle: the Department of Transport has recently confirmed that its controversial railway franchise system will be scrapped.
In this month's feature article, Nigel Hawkins, the Infrastructure analyst at Hardman & Co, examines the 25-year history of railway privatisation and chronicles its ups and its downs. The successes of railway privatisation, such as new rolling stock, are addressed, along with the many shortcomings, which included minimal vertical integration.
With the winding up of the franchise system, the UK railway sector is effectively reverting to its former status as a nationalised industry, a shift started with the renationalisation of the collapsed Railtrack – later re-badged as Network Rail – in 2001.
Companies: ARBB BBGI CLIG DNL FLTA ICGT OCI PCA PIN PXC RECI SCE TRX SHED VTA YEW
Shanta Gold (AIM: SHG), the East Africa-focused gold producer has, this morning, released its full year results for 2020. The company previously announced production and operational figures for 2020 alongside group-wide reserves and resources update. As such the figures reported today are in line with our forecasts down to EBITDA level, but generally better than expected elsewhere– see Fig 1. Overall it has clearly been a strong year financially with revenue, EBITDA and EPS up by 31%, 34% and 270% respectively from the previous year. The company has also kept to its promise of a maiden dividend with 0.10p per share payable in April as part of a semi-annual programme.
Companies: Shanta Gold Limited
Proposed move to AIM from the main market (standard) by Emmerson (EML.L) to provide Emmerson with access to a market and environment which is more suited, in the Board's view, to the Company's current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development work. Subject to EGM on 21st March. Rogue Baron plc have announced its application for admission to the AQSE growth market. Rogue Baron owns five subsidiaries, namely: Shinju Spirits, Inc., Shinju Whiskey LLC, Mazeray Corporation, STI Signature Spirits Group LLC and Legacy Retail Group LLC. The Company’s goal is to build each of its brands that makes them a buyout target. Deal size TBC an expected admission date 12th March 2021. Global review platform, Trustpilot has announced its intention to float on the premium list of the LSE. Trustpilot provides an open platform, which creates a place where businesses and consumers can gain actionable insights and collaborate. Consumers are able to share feedback, at any time, about any business with a website and review feedback left by other consumers. Total revenues were US$64.3 million, US$81.9 million and US$102.0 million for the years ended 31 December 2018, 2019 and 2020, respectively. The Offer would comprise new Shares to be issued by the Company (raising gross proceeds of approximately US$50 million to support Trustpilot's growth plans and repay indebtedness) and an offer of existing Shares to be sold by certain existing shareholders, directors and employees. Timing TBC. In The Style, the e-commerce womenswear fashion brand with an influencer collaboration model, announces their intention to float on AIM. In The Style is a pure-play e-commerce fashion brand with a l customer base of women predominantly aged between 16 and 35. Founded in 2013, the group has delivered £35.4 million net sales and £3.6 million Adjusted EBITDA in the nine months to 31 December 2020, with sales up 159% from £13.7 million for the nine months to 31 December 2019. Admission is expected to take place on or around 17 March 2021. Deal size TBC. Media reports video game firm, Catalis is mulling a London IPO, just over a year after being bought by a private equity firm. Catalis’s accounts are reportedly expected to show revenues increasing to £60m in 2020, up from £43m, with adjusted earnings of £15m. Deal details and timing TBC. tinyBuild— a leading video games publisher and developer with global operations. tinyBuild's strategic focus is in creating longlasting IP by partnering with video games developers, establishing a stable platform on which to build multi-game and multimedia franchises is to join AIM. Offer details TBC. Due mid-March. AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC. Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world's largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021. NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company's target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021. Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021. Team PLC announced their plans for an AIM IPO. Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 . The Company is seeking to raise no less than £5m. The Placing will be priced on a pre-money valuation for the Company of £7m. Targeting March Admission. Fix Price announces its intention to float on the Main Market of the London Stock Exchange. Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company. Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA. Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT's investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance. According to media reports, Deliveroo is expecting to release its IPO plans on 8th March. The company raised more than $180m in January with a valuation of more than $7bn.
Companies: LND GDR GAMA SOLI SHED RLE CRU WRES SBI MNO
Today's news & views, plus announcements from MRW, BNZL, HICL, AGK, SEPL, SEIT, SDY, BGO, SHED
Companies: BGO SEIT SEPL
Lancaster activity update
Companies: Hurricane Energy Plc
Pantheon Resources has this morning announced that the better than expected well-logs from the Kuparuk formation warranted a change in plan for the testing of that formation, namely, from an open hole test to a more rigorous cased hole test (with a 4 ½ inch liner). However, due to equipment failures and technical issues, the formation started to become damaged in its current location and as such it was not possible to set the casing string (4 ½ inch liner). Accordingly, the company has made the decision to drill a new modestly angled sidetrack in the Kuparuk formation. It is estimated that the sidetrack will take 2-3 days to drill, some 650 feet through the Kuparuk formation, which should then allow a better testing operation. As a result of the cold weather in Alaska, the drilling season may be extended into early April.
Companies: Pantheon Resources plc
Anglo Asian Mining* (AAZ LN) BUY – H2/20 exploration work returns exciting results at Gedabek CA
Bushveld Minerals* (BMN LN) - Strong Buy 31p – Vanadium prices rise as new demand meets tight supply
Gemfields (GEM LN) – Resumption of operations at Kagem and Montepuez after a year of disrupted production and sales
GoldStone Resources* (GRL LN) – Exercise of warrants raises £1.2m
Power Metal Resources* (POW LN) – Portfolio update
Strategic Minerals* (SML LN) – Continued access to Cobre confirmed while current copper prices boost Leigh Creek economic returns
Companies: GML AAZ BMN GRL POW SML
tinyBuild— a leading video games publisher and developer with global operations. tinyBuild's strategic focus is in creating longlasting IP by partnering with video games developers, establishing a stable platform on which to build multi-game and multimedia franchises is to join AIM. Offer details TBC. Due mid-March. AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC. Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world's largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021. NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company's target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021. Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021. Team PLC announced their plans for an AIM IPO. Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 . The Company is seeking to raise no less than £5m. The Placing will be priced on a pre-money valuation for the Company of £7m. Targeting March Admission. Fix Price announces its intention to float on the Main Market of the London Stock Exchange. Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company. Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA. Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT's investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance. According to media reports, Deliveroo, are expecting to release their IPO plans on 8th March. The company raised more than $180m in January with a valuation of more than $7bn.
Companies: ADME NFC CHAR WHR MKA IXI MOS D4T4 ALS TERN
Oil fell the most since November with a stronger dollar and concerns surrounding inflation weighing on crude's best start to the year on record.
Futures in New York declined 3.2% on Friday, with a rising dollar reducing the appeal of commodities priced in the currency. Yet, the US crude benchmark still managed to post a nearly 18% gain this month as inventories worldwide tighten and pockets of demand return. Domestic crude production dropped in 2020 for the first time in four years, according to the US government.
Crude prices have notched the largest year-to-date gain than in any year prior for the same time period, in part due to OPEC+ production curbs helping to deplete global stockpiles. Plus, the unprecedented cold blast that recently halted millions of barrels of US output means oil markets are about 100,000 barrels a day tighter than previously thought, according to JPMorgan Chase & Co. Supply scarcity may worsen in the coming months as North Sea fields undergo major maintenance.
The Organisation of Petroleum Exporting Countries and its allies will meet next week to decide on output levels. While Russia has signalled it favours a further easing of production cuts, the country's oil output dipped below its OPEC+ target this month, meaning it failed to take full advantage of the more generous quota it was afforded after January's OPEC+ meeting.
West Texas Intermediate for April delivery fell $2.03 to settle at $61.50 a barrel.
The US crude benchmark rose 3.8% this week.
Brent for April settlement, which expires on Friday, declined 75 cents to end the session at $66.13 a barrel.
The contract gained 5.1% this week.
The more actively traded May contract declined $1.69 to settle at $64.42 a barrel.
Soaring bond yields on Thursday were the latest sign that accelerating inflation could trigger a pullback in monetary policy support that has helped fuel gains in risky assets during the pandemic. While global bonds have since stabilised, a less accommodative approach to monetary policy could have ripple effects across commodity markets.
Companies: FO 88E DGOC EME TRIN UOG
Today's news & views, plus announcements from SMDS, PSN, POLY, RIO, BIFF, SONG, HSX, PAGE, RLE, SHED
Companies: PSN RLE RIO
Concept select update
Companies: Jersey Oil & Gas PLC
Today's news & views, plus announcements from RIO, TW, CRDA, TPK, PHP, MGGT, SHI, WHR
Companies: PHP RIO SHI TPK
Arc Minerals* (ARCM LN) – Immediate appointment of Rothschild & Co as financial adviser
Chaarat Gold* (CGH LN) – Fatal incident at Kapan in Armenia
Kodal Minerals* (KOD LN) – Progress report on West African gold exploration
Phoenix Copper* (PXC LN) – Raising £16.45m to develop the Empire mine open pit development project
Trans-Siberian Gold (TSG LN) – High grade Vein 25 mining operations resume after accident investigation is completed
Companies: ARCM CGH KOD PXC TSG
Central Asia Metals (CAML LN) has reported Q4 2020 production with 3,365t of copper taking full year output to 13,855 in line with our forecast of 13.9kt and at the top end of guidance. Q4 lead output was 7,442t meaning 29,741t over the full year, up 2% YoY and in line with our forecast of 30kt while zinc output of 5,848t took full year output to 23,815t again in line with our forecast of 24kt and up 2% YoY despite the disruption at Sasa which CAML has overcome rapidly as we expected.
Companies: Central Asia Metals Plc
BlueRock Diamonds (BRD LN) – BlueRock reports $423/ct tenders, raises £1.5m in oversubscribed placing
Cornish Metals* (CUSN LN) – Warrants exercised
Metal Tiger (MTR LN) – Progress at Kitlanya East
Pure Gold Mining (PUR LN) – Further drilling results from Red Lake
Savannah Resources* (SAV LN) – Processing circuit optimization points to capital and operating costs savings at MdB
Nornickel to Stabilize Water Inflows at Arctic Mine by Next Week
Companies: CUSN PGM BRD SAV MTR