PROGRESSIVE: Pharos Energy: Delivering on operations and balance sheet

Pharos Energy reported FY23 results on 27 March. Group net production of 6,508 boepd (FY22: 7,166 boepd) was in line with guidance, assisted by successful development drilling in Vietnam and exploration successes in Egypt. Pharos’s strong cash generation resulted in a stronger balance sheet, with net debt reduced to US$6.6m (from US$28.9m at the end of 2022) and cash balances totalling US$32.6m. This left the group free to return more cash to shareholders, including a 10% increase in dividends,

AUCTUS ON FRIDAY - 28/03/2024

AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; target price of A$1.00 per share: Logging results at Welchau further derisk the discovery – The logging program has confirmed open fracture networks and vuggy porosity (matrix porosity) essential for well productivity coincident with hydrocarbon shows between 1346 m and 1702 m measured depth. This represents 356 m of gross interval across three interpreted lithological sequences. This compares with only 115 m of l

Pharos Energy Plc (LSE: PHAR): Re-iterating guidance. Dividend up by 10%. Environment in Egypt improving

• FY23 production and YE23 net debt had already been reported. Pharos has re-iterated its FY24 guidance of 5.2-6.5 mboe/d (3.9-5.0 mboe/d in Vietnam plus 1.3-1.5 mbbl/d in Egypt) with net capex of US$27.1 mm. • In 2H24, Pharos plans to commence a two well drilling programme at TGT (Vietnam) and to start the development of NBS SW (Egypt). • The environment in Egypt is improving. Pharos has received a payment of ~US$10 mm from EGPC, reducing receivables from ~US$37 mm at YE23 to ~US$30 mm at the e

SP Angel Morning Energiser: 27/03/24

Ithaca considers Eni UK merger

Pharos Energy+ (PHAR, House Stock at 21p) - FY23A preliminary results

Auctus on Friday - 19/01/2024

AUCTUS PUBLICATIONS ________________________________________ GeoPark (GPRK US)C; target price of US$24 per share: Further exploration success in Colombia – The Perico-1 exploration well at CPO-5 encountered hydrocarbons in the Barco (Guadalupe) formation. The well is currently producing 650 bbl/d of 14 deg API oil with 8% water cut. This is an important well that confirms the extension of the Llanos-34 Guadalupe play into CPO-5 and is probably derisking further prospects. This is the fifth disco

PROGRESSIVE: Pharos Energy: FY23 update – production in-line, net debt down

Pharos Energy has released a trading update for FY23, ahead of the release of its final results on 27 March. Production over the last year was 6,508 boe/day, in line with guidance set at the interim results release in September. The balance sheet has strengthened further, with net debt of c.US$6.5m as at 31 December compared with US$16.4m at the half year (30 June). This net debt reduction comes despite the increase in Egyptian receivables, the payment of a final dividend and the share buyback p

Pharos Energy+ (PHAR, House Stock at 23p) - Trading and operations update; joint broker appointment

Pharos Energy Plc (LSE: PHAR): Reducing net debt by a further US$10 mm

• FY23 production was 6,508 boe/d, which is the middle of the production guidance of 6.35-6.75 mboe/d. This includes 5,127 boe/d for Vietnam (guidance of 5.0-5.3 mboe/d) and 1,381 boe/d in Egypt (guidance of 1.35-1.45 mbbl/d). • YE23 net debt is just ~US$6.5 mm, down from US$16.4 mm at the end of June. The US$10 mm net debt reduction has been achieved despite a US$6.4 mm increase in EGPC receivables from US$30.9 mm at the end of June to US$37.3 mm at YE23. This implies an underlying free cash f

SP Angel Morning Energiser: 16/01/24

Tensions rise for marine shippers

Auctus on Friday - 08/12/2023

AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; target price of A$0.80 per share: Adding further exploration prospects in FY24 - ADX has farmed out a 50% interest in an exploration area within the ADX AT I licence to MND in return for a A$0.73 mm back costs payment plus A$7.34 mm funding in exploration drilling. The exploration area farmed-out to MND includes the LICHT and IRR gas prospects. These prospects are close to infrastructure and considered low risk. O

PROGRESSIVE: Pharos Energy: Shareholder returns continue; Net Zero roadmap

Pharos Energy has announced that it is looking to pay an interim dividend and continue its share buyback programme as part of its policy of returning cash to shareholders. This further demonstrates management’s desire to align with shareholder interests. The company has also updated the market on its Net Zero roadmap, which is targeting net zero Scope 1 & Scope 2 GHG (greenhouse gas) emissions by 2050.

Pharos Energy Plc (LSE: PHAR): More share buybacks and more dividends

• Pharos has declared an interim dividend of 0.33 p per share for 2023 payable in January. The interim dividend represents ~33% of the final dividend of the previous year. This is in line with the dividend policy and our expectations. • The company is also looking to commit a further US$3 mm to share buybacks in 2024 which will provide additional support to the share price. • In Egypt, the carry by IPR is expected to last until 1Q24. Within the current context, the receivables are expected to re

PROGRESSIVE: Pharos Energy: Interim results show balance sheet strength

Pharos Energy reported its interim results on 13 September. Although profits were lower than forecast, this was predominantly due to a non-cash impairment charge. The key message is the strength of the balance sheet, which has seen net debt reduced to US$16.4m at the end of June 2023 from US$28.9m at the end of 2022. This leaves the group free to return more cash to shareholders and to start to increase investment, including commitment exploration, which we believe should be a key driver of shar

Pharos Energy Plc (LSE: PHAR): Net cash positive by YE23 and new growth opportunities

• 1H23 production of 6,915 boe/d and net debt of US$16 mm at the end of June had already been reported. • Being paid in US$ in Egypt remains challenging and the FY23 drilling and capital programme has been curtailed to 5 development wells (9 previously). As a result, Pharos anticipates FY23 WI production in Egypt of 1.35-1.45 mbbl/d, at the lower end of the previous guidance range (1.35-1.80 mbbl/d). • In Vietnam, the work-over programme at TGT is now expected to take place in 1Q24 rather than 4

Alien Metals - Hancock Project, Mining Lease Granted

Alien today reports intraday that the Western Australian Government has granted a mining licence for the Hancock iron ore project for a 21-year term. The granting of the mining licence is the latest milestone delivered by Alien as it advances the project towards development and production.

SP Angel Morning View: Gold resilient as US interest rates climb on long-term inflation concerns

SP Angel Morning View: Copper prices hit $9,700/t as China smelts concentrates for zero charge Tc/Rc

NextSource Materials - Initiation

NextSource is uniquely positioned to build a leading vertically integrated position, ex China, in the supply of Lithium-ion battery anode material which is essential for the Energy Transition. The company is commissioning phase 1 of its world-class Molo graphite mine in Madagascar and is in the final permitting process for its first Battery Anode Facility (BAF) to be located in Mauritius. The company is backed by Vision Blue, established by Sir Mick Davis, former CEO of Xstrata. On our calculat

I3 Energy (I3E LN) - Canada royalty assets sale

I3 has announced the sale of the majority of its royalty interests in Canada, for US$24.8m cash. This allows the company to fully repay amounts drawn on its debt facility and create a working capital surplus, giving I3 significant additional funding flexibility going forward

SP Angel Morning View: Global Li-ion battery demand reaches all-time in Q1 2024

Zeus Top Picks for 2024 - 2023 review and outlook for 2024

On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div

Gulf Marine Services (GMS LN) - Contract award

GMS has announced a new contract award, at improved day rates, adding to order book and overall revenue momentum.

Challenger Energy (CEG LN) - £1.5m strategic investment in Challenger

Challenger has announced a £1.5m investment in the company from investor Charlestown Energy. This now allows Challenger to be fully funded for the foreseeable future as it works towards closure of its significant Uruguay farm out to Chevron, and the US$12.5m cash payment to be received once this is achieved.

Enwell Energy (ENW LN) - Q1 2024 update

Enwell has released its Q1 2024 update, showing ongoing production and limited natural decline versus the previous period, alongside further cash generation.

Jubilee Metals - Operational Update Q3 FY2024

Jubilee today reports its Q3 and third quarter operational results from its expanding operations in Zambia (copper) and South Africa (chrome and PGM). South Africa is on a growth trajectory with record chrome production of 409kt in the quarter (Q2 FY2024 381kt) and a monthly record in March of 145kt and production YTD of 1.13Mt (0.94Mt). Jubilee is well underway to its annual target capacity of 2,1Mt/yr especially with the new 300kt/yr chrome plant at Thutse expected to be operational in August

Tethys Oil AB (SSE: TETY): Increasing further the size of the prize

• The South Lahan area on Block 58 is estimated to hold 55-523 mmbl prospective resources (P90-P10 case) with a mean case of 251.8 mmbbl prospective resources across six prospects in the Ara Carbonate. • Combined with the previously disclosed prospective resources of the Fahd area in the north-eastern part of Block 58, Tethys Oil’s unrisked recoverable prospective resources on the block are estimated to be 435.9 mmbbl (Pmean). • The geological chance of success ranges from 6% to 11% for the six

JEV: Exploring Spin-off for Hydrogen Assets

What you need to know: • JEV announced that it has commenced a strategic process to explore the spin-off of its hydrogen portfolio. We view this as a strong positive for shareholders. • Over the past month, JEV also closed a $2.2M private placement and amended the terms on its debentures, setting up the Company for this transaction. Yesterday after market close, Jericho Energy Ventures Inc. (JEV:TSXV, JROOF:OTC) announced that it has commenced a strategic process to explore the spin-off and s

Clean Power Hydrogen - New customers and licensees circling…

CPH2 has released FY23 results with the company completing the period with a slightly lower cash outflow from operations and a higher cash balance than forecast. Looking ahead, with a new and improved technical and engineering team, the company has committed to completing Factory Acceptance Testing of its first MW scale electrolyser, the 0.5MW MFE110, within the next three months. In our view, this will be a major milestone for the company which will demonstrate that its unique technology can be