GMP FirstEnergy ― UK Energy morning research package

Amerisur Resources (AMER LN)6; HOLD, £0.35: consolidates acreage in the Putumayo Basin | Vermilion Energy (VET CN); BUY, C$65.00: Closes acquisition of assets in Germany | Serinus Energy (SEN CN); HOLD, C$0.70: Well in Tunisia temporarily shut-in | Jersey Oil & Gas (JOG LN): Discontinuing coverage | SacOil (SAC LN) (not covered): Discontinuing coverage | Weekly Crude Oil Cut

GMP FirstEnergy ― UK Energy morning research package

Gran Tierra (GTE CN)1, 6; BUY, C$5.50: Equity financing and acquisition of two blocks from Ecopetrol | Northern Petroleum (NOP LN)1; SPECUATIVE BUY, £0.15: Farm out and equity issue | President Energy (PPC LN) (not covered): IFC Equity Subscription | Primeline Energy (PEH CN) (not covered): 2Q16 Results ended 30 September 2016 | Faroe Petroleum (FPM LN)6 ; BUY, £1.20: Oda update in Norway | Jersey Oil & Gas (JOG LN)1 ; Under Review: Placing | SacOil (SAC LN/SCL SJ)1 : SPECULATIVE BUY, £0.016,

GMP FirstEnergy ― UK Energy morning research package

Geopark (GPRK-NYSE) 1,6 ; BUY, US$6.50 | Royal Dutch Shell (RDSA/B LN) (not covered) – To divest malaysian assets | EnQuest (ENQ LN); SPEC. BUY, £0.60 – Capital Restructuring and £82 mm Equity issue. | Rosneft Acquiring 50% of Bashneft in Russia | Genel Energy (GENL LN); SPEC. BUY, £3.50 | SACoil (SAC LN) ; SPEC. BUY, £0.016

GMP FirstEnergy ― UK Energy morning research package

Condor Petroleum (CPI-TSX); BUY, C$4.25 | Genel Energy (GENL-LSE); Speculative Buy, £3.50 | SacOil Holdings (SAC-AIM); Speculative Buy, £0.016

GMP FirstEnergy ― UK Energy morning research package

Chevron (CVX US) (not covered): Looking to divest fields in aengladesh. | IGAS Energy (IGAS LN) (not covered): Bond summons for temporary waiver. | Petroneft Resources (PTR LN) (not covered): 3Q16 production Update in Russia. | Genel Energy (GENL LN); SPECULATIVE BUY: £3.50 - DNO (DNO NO) (not covered) announces an operating update in Kurdistan. | SacOil (SAC LN); SPECULATIVE BUY: £0.016 - Settlement agreement on OPL233 in Nigeria. | Tlou Energy (TLOU LN) (not covered): 2P CBM Reserves in Bostwa

Building up Ahead of Steam

We have updated our model to reflect SacOil’s latest CPR. A more conservative production profile has resulted in a slight reduction of our RENAV to 2.3p but this is still more than double the current share price of 1.1p. After the successful completion of the Company’s Phase II drilling program, which achieved peak production of 1,000 bbl/d, current production is at c.650-800 bbl/d, several orders of magnitude greater than before Phase II.This primarily involved drilling five additional low cos

BLOCK 1 LICENSE EXTENSION, ONSHORE MALAWI

Market Reaction: Neutral.

RESULTS FOR THE FISCAL YEAR ENDING 29/08/2016.

Market Reaction: Slightly positive. The 10% increase in reserves is positive. Net Cash is also slightly ahead of our numbers. Production in Egypt appears to have dropped but at current oil price not much cash was being generated and it is probably a good decision to wait for higher oil prices to boost production.

AWARD OF CRUDE ALLOCATION BY THE NNPC

Market Reaction: Neutral. We understand from management that the Company expect margins of around US$0.25-0.50/bbl with very little upfront cost required to form the agreement. At this stage there is little visibility on the precise volumes involved as this will be dependent on Crude Allocation which in turn will depend on Nigeria's overall production levels.

Good Things Come in Threes

Egypt: Company hits the 1,000 bbl/d production target at the Lagia field on me and under budget. Egypt: Light oil from Thebes forma on contributes to overall produc on for the rst me. DRC: The Company will reorganise its Block III ownership to simplify the structure and improve control of its investment. DRC: Fully carried 2D seismic program, operated by Total, has commenced. Our Core NAV is c. 3x the current share price. The Company is demonstra ng it can progress its well-diversi ed por ol

LAGIA PHASE 2 COMPLETION IN EGYPT

Market Reaction: positive. Achieving the increase that the Company had been guiding at confirms the potential of this field. With further well locations at Lagia, the Company believes it could continue to increase this production simply by drilling more wells. The shares continues to trade materially below our Core NAV of £0.03 per share. The Company is well capitalized with a very strong shareholder base. SacOil has completed Phase 2 of the development programme and achieved the production targ

BLOCK III REORGANIZATION IN DRC & COOPERATION AGREEMENT FOR MOZAMBIQUE PIPELINE

Market Reaction: Neutral. Though these are encouraging developments they are of limited materiality particularly where the market isn't attaching much value to the Company's exploration assets. SacOil will reorganize its Block III ownership in the DRC where currently it owns 68% of Semliki which owns 18.3% of Block III giving SAC/SCL an effective 12.5% participating interest. As a result of the reorganization, the Company will have 12.5% participating interest directly in the asset rather than t

SACOIL HOLDINGS LIMITED (SAC LN): PHASE 2 LAGIA FIELD DEVELOPMENT UPDATE IN EGYPT

Market Reaction: positive. The drilling at Lagia 15 is the first time that producible oil has been demonstrated from the deeper, lighter oil Thebes formation. The oil will have to undergo further analysis and equipment will have to be brought to the rig before flow testing can commence but the potential is there for a reserves upgrade. With the continued drilling of the Nukhul formation, the Company remains on track to hit its target of 1,000 bbl/d by financial year end.

1H16 RESULTS

Market Reaction: neutral.

PHASE 2 COMMENCED IN EGYPT

Market Reaction: Neutral. Though it is encouraging that the reservoir has not encountered any issues with the steam injection, this is what we would anticipate. We await confirmation of the magnitude of improved flow rates and the performance of the Lagia wells 11 to 15.

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

Trinity Exploration and Production - Reserves Reduction but Solid Core Business

Trinity has announced a c28% reduction to its 2P reserves following a YE23 review. Despite the decrease in the Company’s 2P reserves, Trinity’s core business remains robust, with a reserves/production ratio of >12.5 years at YE23. Whilst there is significant potential for growth within the current portfolio, this will be difficult to unlock from the current balance sheet and we believe further financing will be required. We update our target price to 76p (from 202p), a c85% premium to the curren

Morning Note – 16 April 2024

Valeura Energy (TSX: VLE): Three exploration wells deliver three discoveries

• The Nong Yao-13 exploration well in the new Nong Yao D area that was targeting multiple zones has encountered >30 feet of new oil play across several new shallow intervals which have not been produced elsewhere on the concession. These reservoirs are believed to be recurring across the Nong Yao D area. • The drilling result confirms that oil has successfully migrated into this area of the block (a factor that was seen to be a risk in the Nong Yao D area) and open the opportunity for further a

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

Morning Note – 15 April 2024

DEC FY23 Results Update

DEC reported FY23 results which were in line with expectations and announced the acquisition of joint venture assets from Oaktree along with an updated capital allocation framework.

Oil & Gas - Cavendish sector note

Chariot, Energean, Touchstone Exploration, Longboat Energy, Hartshead Resources, BP, Helix Exploration, PetroTal, Pantheon Resources, Caspian Sunrise, Petrofac, DNO ASA, Valeura Energy, Aker BP, Var Energi Source: FactSet, weekly change 08/04/24-12/04/24 Oil rose as Israel braced for a possible attack from Iran, a development that would threaten major disruptions in a region that accounts for a third of the world’s crude output. An assault is expected to come as soon as the next 48 hours, which

Union Jack Oil (UJO LN) - Wressle update

Union Jack has released an update on its Wressle asset, reporting maturing production from Wressle-1, alongside progress for significant further development activities on the field going forward.

SP Angel . Morning View . Copper prices hold higher as China processing fees fall below $0/t amid low feedstock availability

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,

Union Jack Oil+ (UJO, House Stock at 23p) - Wressle update

Hunting (HTG LN) - Q1 2024 trading update

Hunting has released its Q1 trading statement, reporting a strong period for OCTG and Subsea, steady growth in Advanced Manufacturing, and a softening in Perforating Systems.

Union Jack Oil* (UJO LN) - Wressle update and dividend plans

Union Jack announced an operational update on its onshore UK Wressle field and confirmed plans to announce the payment of a cash dividend to shareholders along with the FY23 results in May. Wressle continues to deliver material revenues to the Company, generating positive cash flow and providing it with sufficient cash resources to fund shareholder returns and invest in new development projects.