Morning Note – 15 April 2024

Oil & Gas - Cavendish sector note

88 Energy, Diversified Energy, Gulf Marine Services, UK Oil & Gas, Deltic Energy, Shell, Criterium Energy, Nostrum Oil & Gas, Angus Energy Source: FactSet, weekly change 02/04/24-05/04/24 Oil held above the $90-a-barrel threshold as escalating tensions in the Middle East prompt a dramatic repricing of geopolitical risks. Fears of a wider region conflict are rising, with Israel increasing preparations for an attack from Iran in retaliation for its strike on the country’s diplomatic compound in Sy

SP Angel Morning Energiser: 02/04/24

Oil up on Middle East tensions

Morning Note – 2 April 2024

Oil & Gas - Cavendish sector note

Falcon Oil & Gas, Parkmead Group, 88 Energy, Westmount Energy, Baron Oil, Molecular Energies, Empyrean Energy, Coro Energy, Tethys Oil, Ithaca Energy, Pharos Energy, EnQuest, Genel Energy, Wood Group, Capricorn Energy, Arrow Exploration, Valeura Energy, Bowleven, i3 Energy. Source: FactSet, weekly change 25/03/24-28/03/24 Oil scored a 16% quarterly gain in the latest sign that export curbs by OPEC and its allies are reining in global supplies. West Texas Intermediate futures closed above $83 a b

Oil & Gas - Cavendish sector note

Chariot, 88 Energy, Afentra, Vaalco Energy, Saudi Aramco, Gran Tierra Energy, Canadian Overseas Petroleum, Genel Energy, Synergia Energy, Galp Energia, Eni SpA, Var Energi, Danagas Source: FactSet, weekly change 11/03/24-15/03/24 Oil held steady near a four-month high as extended production cuts from OPEC and its allies boosted expectations that the crude market is headed toward a deficit. Prices: WTI for April delivery fell 0.3% to settle at $81.04. Brent for May settlement was little changed a

Oil & Gas - Cavendish sector note

Falcon Oil & Gas, Touchstone Exploration, Jersey Oil & Gas, Serica Energy, Reabold Resources, Molecular Energies, 88 Energy, Seplat Energy, Beacon Energy, Hunting, i3 Energy, Gulf Keystone Petroleum, Orcadian Energy, Kosmos Energy, Vaalco Energy, Zephyr Energy, Woodside Energy, Africa Oil, Maurel et Prom, Parex Resources Source: FactSet, weekly change 26/02/24-01/03/24 Oil extended this year’s rally to almost $80 a barrel amid signs of a tightening physical market. West Texas Intermediate earlie

Oil & Gas - Cavendish sector note

88 Energy, Tethys Oil, Empyrean Energy, Coro Energy, Gran Tierra Energy, Panoro Energy, Arrow Exploration, Kistos Holdings, Canadian Overseas Petroleum, Santos, BlueNord ASA, Chord Energy, Enerplus Corporation, Wintershall DEA. Source: FactSet, weekly change 19/02/24-23/02/24 Oil fell as the lack of fresh drivers prompted some investors to exit positions ahead of the weekend and the dip below a key technical indicator accelerated selling. West Texas Intermediate slipped nearly 3% to end the sess

Oil & Gas - Cavendish sector note

Parkmead Group, Chariot, Jersey Oil & Gas, Falcon Oil & Gas, 88 Energy, Hartshead Resources, Empyrean Energy, Coro Energy, Baron Oil, Longboat Energy, Trinity Exploration & Production, Diversified Energy, Savannah Energy, Shell, Gulf Keystone Petroleum, Jadestone Energy, Nostrum Oil & Gas, ExxonMobil, Chevron Corporation, TotalEnergies Source: FactSet, weekly change 29/01/24-02/02/24 Oil slumped as talks to pause the Israel-Hamas war reduced crude’s geopolitical risk premium, with the decline ac

Morning Note – 30 January 2024

Oil & Gas - Cavendish sector note

Trinity Exploration & Production, Molecular Energies, Tethys Oil, Diversified Energy, Reabold Resources, 88 Energy, Impact Oil & Gas, TotalEnergies, Galp Energia, PetroTal, Hunting, SDX Energy, Angus Energy, Ascent Resources, John Wood Group, Chesapeake Energy, Southwestern Energy Source: Factset, weekly change 08.01.24-12.01.24 Oil rose after the US and its allies launched airstrikes against Houthi rebels in Yemen, retaliating for attacks on ships in the Red Sea that have imperilled flows of fu

Morning Note – 12 January 2024

Oil & Gas - Cavendish sector note

88 Energy, Reabold Resources, Savannah Energy, Molecular Energies, Tethys Oil, Getech Group, Occidental, Gulf Keystone, Beacon Energy, Block Energy, Neptune Energy, Zephyr Energy, Tamboran Resources Source: FactSet, weekly change 21/12/23-15/12/23 Oil eked out a small gain for the week, snapping a seven-week losing streak, as signs that the Federal Reserve’s aggressive rate-hiking campaign is over bolstered risk assets. West Texas Intermediate settled little changed above $71 a barrel in the aft

Morning Note – 15 December 2023

88 Energy - Further Texas consolidation

88 Energy has announced the acquisition of additional non-operated conventional oil and gas producing assets within the Permian Basin, Texas. The acquisition further diversifies 88 Energy’s asset portfolio and is in line with the company’s strategy to build a full-cycle E&P company. 88 Energy is acquiring 0.7mmboe at an attractive low-cost entry point of US$0.38/boe. Upside comes from 10 low-risk development drilling opportunities, with potential identified in multiple zones. Including the acrea

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

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 – 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

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

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

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

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.

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,

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.

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.

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