President Energy (PPC LN) (not covered): Update in Argentina | Jadestone Energy (JSE LN); HOLD, £0.60: Update in Australia | Ophir Energy (OPHR LN): Discontinuing Coverage | Soco International (SIA LN) (not covered): Operation update | EnQuest (ENQ LN); HOLD, £0.25: 1Q19 update | Panoro Energy (PEN NO) (not covered): 1Q19 results | Tethys Oil (TETY SS)1,6; BUY, SEK85: To repurchase shares | BW Offshore to spin off E&P business | Tullow Oil (TLW LN); REDUCE, £2.00: Acquisition in Nambia
Companies: PPC JSE OPHR PHAR ENQ PEN BWO TLW TETY
Sound Energy (SOU): Well Result and Strategic Update | Ophir Energy (OPHR): Completion of Acquisition
Companies: Sound Energy Plc Ophir Energy
We are discontinuing coverage on Ophir Energy as the company has been acquired by Medco.
Companies: Ophir Energy
Ophir Energy (OPHR LN): HOLD, £0.55; Completion of Medco acquisition | Sound Energy (SOU LN) (not covered): Operational update, Eastern Morocco
Companies: Ophir Energy Sound Energy Plc
Block Energy (BLOE): Result of £12 million Placing | Cairn Energy (CNE): AGM Statement | Falcon Oil & Gas (FOG): Proposed $10 million Placing | Lekoil (LEK): Resignation of CFO | Ophir Energy (OPHR): Sale of Mexico licence | SDX Energy (SDX): Q1 Results | UK Oil & Gas (UKOG): Production Test Update
Companies: BLOE CNE FO LEK OPHR UKOG SDX
Ophir Energy (OPHR LN); HOLD, £0.55: Medco offer accepted | Exillon Energy (EXI LN) (not covered): February production in Russia | Nostrum Oil & Gas (NOG LN)6; Speculative Buy, £2.20: 4Q18 results | SDX Energy (SDX LN/CN)1,6: BUY, £0.65; Transferring coverage
Companies: OPHR EXI NOG SDX
Ophir Energy (OPHR LN); HOLD, £0.55: Increased final offer from Medco | Energean Oil & Gas (ENOG LN) (not covered): FY18 results | EnQuest (ENQ LN); HOLD, £0.25: FY18 results | Serinus Energy (SENX LN)1 ; Speculative Buy, £0.25: 4Q18 results | Aminex (AEX LN)1 (not covered): Farm-out update in Tanzania | Nigeria to sell down stake in JV to 40% | Maurel & Prom (MAU FP): FY18 results
Companies: OPHR ENOG ENQ SEN AEX MAU
Medco has made a final offer of 57.5p/sh (previously 55p/sh) to which the Ophir board has agreed. The offer would only be increased if another offer comes in from a third party. Coro Energy has decided not to make a formal offer. It had considered offering £0.40 per share in cash plus shares in Coro.
Ophir Energy (OPHR LN); HOLD, £0.55: 4Q18 results | Cairn Energy (CNE LN); BUY, £2.80: 4Q18 results | Nostrum Oil & Gas (NOG LN)1,6; Speculative Buy, £2.20: Valuation update | TransGlobe Energy (TGL LN/CN); BUY, £2.40: Dividend | ENI (ENI IM) (not covered): Farm out in Mozambique
Companies: OPHR CNE NOG TGL ENI
FY18 production of 29.7 mboe/d (proforma including Santos assets) had already been reported. YE18 net debt was US$35 mm (GMP FEe: US$35 mm). YE18 2P Reserves were 70.1 mmboe (+42%), principally driven by +23.3 mmboe through the Santos acquisition.
President Energy (PPC LN) (not covered): Independent reserves report in Argentina | Ophir Energy (OPHR LN): HOLD, £0.55; Sinphuhorm update | Pan Orient Energy (POE LN) (not covered): Drilling program update | Angus Energy (ANGS LN) (not covered): Equity placing | Eni (ENI IM) (not covered): FY18 results | Dana Gas: FY18 prelim results
Companies: PPC OPHR POE ANGS ENI
G3 Exploration (G3E LN) (not covered): Operational update in China | Ophir Energy (OPHR LN): HOLD, £0.55; Recommended cash offer for Ophir | Lundin Petroleum (LUPE SS) (not covered): FY18 results | Anglo African Oil & Gas (AAOG LN) (not covered): Congo well encounters oil at deeper horizon
Companies: G3E OPHR LUNE AAOG
The boards of Ophir and Medco have agreed a recommended acquisition of Ophir by Medco at £0.55/sh, valuing Ophir at c. £361 mm. The acquisition is conditional on amongst other things, a courtsanctioned scheme of arrangement which needs 75% shareholder approval. The Ophir board intends to recommend unanimously the transaction to Ophir Shareholders. The company expects the scheme will become effective in 1H19.
At the request of Ophir, the Takeover Panel has extended the deadline for Medco to either announce a firm intention offer for Ophir or announce that it does not intend to make an offer, until 5.00 pm, 31 January 2019.
FY18 production was 29,700 boe/d (GMP FEe: 25 mboe/d), 8% ahead of guidance with Madura, Sampang and Block 12W contributing 18,000 boe/d (GMP FEe: 15 mboe/d).
Research Tree provides access to ongoing research coverage, media content and regulatory news on Ophir Energy. We currently have 114 research reports from 3 professional analysts.
Central Asia Metals (CAML LN) reported robust interim results in the context of the H1 2020 backdrop; solid production and the company’s fundamentally low cost base meant that CAML remained profitable despite the sharp pullback in commodity prices during the period which led to a 17% YoY decline in revenue to US$70.8m. Consequently, EBITDA was down 25% YoY to US$42.5m despite a decline in unit costs of 6% YoY at Kounrad and 9% YoY at Sasa to US$0.48/lb and US$0.43/lb respectively which cushioned the impact of the weaker the top line. With no significant one offs in the period, EPS of US$0.10/sh. was 33% lower YoY.
Companies: Central Asia Metals Plc
EQTEC announced (last Friday afternoon) an extension of the exclusivity period of the Billingham MOU until 22 November 2020. The extension of the MOU exclusivity period is with the aim of finishing the preparation of a legally binding option agreement with Scot Bros. which, if agreed, will grant EQTEC and its partners the right, but not the obligation, to purchase the entire issued share capital of Billingham EFW Limited (the project SPV) from Scott Bros. subject to an agreement on consideration and other terms.
Companies: EQTEC Plc
Talitha Shelf Margin Deltaic LKA resource report
Companies: Pantheon Resources Plc
West Newton B-1 drilling update
Companies: Union Jack Oil Plc
Three day CMD to detail how BP will redeploy hydrocarbons’ capital into renewables. The latter are expected to grow by 12% CAGR by 2030, which surely is more exciting than oil. Returns do not compare though, but BP intends to make good use of its trading division to bridge part of the gap. Lowering the dividend took care of the rest. Overall, BP diversifies its risks early, which might prove right if oil stays under $50.
Companies: BP Plc
Trinity has announced a strong set of interim results during a highly volatile period, with production increasing by 9% year-on-year to 3,282bopd (H1/19 3,007bopd). Operating break-even's post hedging in H1/20 reduced to US$22.3/bbl, a 15% year-on-year reduction and a 65% reduction since 2014. Similarly, a relentless drive to improve efficiencies and reduce costs has seen G&A and opex fall by 67% and 65% respectively since 2014. Despite the dramatic fall in oil prices, Trinity's strong production performance combined with its receipt of VAT receivables via a VAT Bond sale and the drawdown of a small working capital facility facilitated cash balances increasing by 43% to US$19.7m from YE2019. Trinity is well positioned to grow both organically and inorganically, with Trinity signing MoU's and submitting EOI's (in consortium with Cairn Energy Plc) to pursue new opportunities of scale. We set our price target a 31p/share, a 248% premium to the current share price and reiterate our BUY recommendation.
Companies: Trinity Exploration & Production Plc
Saudi Arabia's warning to OPEC+ cheaters and short-sellers alike helped oil prices stage their biggest weekly rally since June, despite a grim start to the week as industry heavyweights painted a troubling demand picture for the petroleum complex. Futures in New York rose 10% this week following a show of determination by Saudi Arabia, the most influential nation in the Organisation of Petroleum Exporting Countries, to defend the market on Thursday. The Saudis hinted they are prepared for new production cuts, and lambasted OPEC+ members that have cheated on production quotas. Prices briefly fell as much as 1.6% on Friday following an announcement from Libyan military commander Khalifa Haftar that he will allow crude production and exports to resume. But while Haftar reached the agreement with the country's deputy premier, it was unclear whether the deal that excluded the National Oil Co would actually restart exports. Haftar controls most of eastern Libya and has halted operations and shipments from his territory as part of a campaign against the internationally recognised Tripoli government. The OPEC member is pumping just 80,000 barrels a day, but produced 1.2 million a day last year. Oil reversed last week's losses, which pushed West Texas Intermediate futures toward $37 a barrel amid a slew of downbeat demand forecasts from the International Energy Agency to Trafigura Group and BP Plc. Helping support prices this week, US government data showed crude and gasoline stockpiles declining. American oil stockpiles are now at their lowest since April. But crude may not be out of the woods just yet, with distillate supplies at record highs and refining margins for the fuel deteriorating in the US and Europe. Meanwhile, rising coronavirus infections in Europe raise the spectre of a return to tighter restrictions that have crippled consumption. Prices West Texas Intermediate for October delivery rose 14 cents to settle at $41.11 a barrel. Brent for November settlement lost 15 cents to end the session at $43.15 a barrel. The contract rose 8.3% this week, its largest weekly gain since June.
Companies: FO PRP 88E DGOC EME TRIN UOG
Falcon has announced the resumption of activities at Kyalla 117 with the fracture stimulation of the well, and extended production test to follow. Initial results from the production test are expected in Q4/20, with final results expected by the end of Q1/21. Following the farm-down of a 7.5% participating interest to JV partner Origin Energy in April, Falcon is fully funded through the upcoming drilling campaign. We believe success at the Kyalla well will result in the JV further evaluating the potential of the Kyalla liquids rich gas play, thereby fast-tracking the potential commercialisation and monetisation of Falcon's 22.5% working interest. We reiterate our 39p price target (a 406% premium to the current share price) and our BUY recommendation.
Companies: Falcon Oil & Gas Ltd.
UKOG has this morning announced that the Xodus Group has estimated that the Loxley gas field has a best estimate recoverable resource of 44bcf gross and 34 bcf net to UKOG within its 100% held PEDL234 licence. The company has indicated the resource estimate must be proven by future production results and that the development of Loxley is subject to planning consent.
Companies: UK Oil & Gas Plc
Ready to steppe it up – initiating coverage
Companies: Enwell Energy Plc
Hargreaves’ FY20 results are very solid indeed. As previously reported, the only noticeable impact from COVID was in the slippage of Blindwells’ land sales, which were due to conclude during the lockdown period. Site activity has resumed and sales remain on track to conclude in the current year. A final dividend of 4.5p has been declared and the outlook statement is measured but confident. We reintroduce forecasts today, effectively reinstating our pre-COVID expectations. Hargreaves is well positioned to deliver a period of significant, renewed growth with the prospect of a double digit dividend yield from FY22 as HRMS profits are distributed.
Companies: Hargreaves Services Plc
There was less tension this quarter, as Shell had already cut its dividend in Q1. The trading units rose to the occasion, bringing a positive surprise in this horrendous quarter. The company has recorded a very large impairment, and is poised to announce a strategic shift once 2020 is in the books.
Companies: Royal Dutch Shell Plc
The COVID-19 pandemic has had a significant impact globally in many areas. While primarily a health issue, it has had wide-ranging implications for stock markets, which have now rallied after the plunge in share prices in mid-March when the full severity of the emerging pandemic became more widely appreciated. Nonetheless, the FTSE 100 Index remains almost 20% off its late February 2020 figure.
Companies: AVO ARBB ARIX CLIG DNL GDR ICGT NSF PCA PIN PXC PHP RECI STX SCE TRX SHED VTA YEW
Production Unit licence for Talitha progressed
