Jadestone Energy (JSE LN): Further acquisition onshore Indonesia | Baron Oil* (BOIL LN): AGM statement, fully funded for work programmes | Echo Energy (ECHO LN): Successful contract extensions agreed in Argentina
Companies: JSE BOIL ECHO
Seplat Petroleum (SEPL LN): 1Q/20 results – production up, revenues down, sufficiently hedged | Baron Oil* (BOIL LN): FY19 results, asset base transformed, potential partner at Licence P2478
Companies: Seplat Petroleum Development Company Baron Oil
Zenith Energy (ZEN LN): Delisting from TSX-V and repayment of largest liability | Baron Oil* (BOIL LN): Baron establishes 33.3% interest in SundaGas TLS, fully funded for FY20 and FY21
Companies: Zenith Energy Baron Oil
Ascent Resources (AST LN): Entering Cuba | Diversified Gas and Oil (DGOC LN): Acquisition in the US | Phoenix Global Resources (PGR LN): Production shutdown and licence termination in Argentina | Premier Oil (PMO LN): Exiting Area A in Alaska following drilling results | Coro Energy (CORO LN) and Empyrean Energy (EME LN): Resources increase in Indonesia | Falcon Oil & Gas (FOG LN/FO CN): Farm out transaction in Australia | Oil Search (OSH AU): US$700 mm equity raise| Discovery in Norway | Baron Oil (BOIL LN)/Upland Resources (UPL LN): Relinquish UK licence | EnQuest (ENQ LN): FY19 results | IGas Energy (IGAS LN): FY results | Ithaca Energy (Delek): Cutting capex for the North Sea | OMV (OMV AG): 1Q20 trading update | Repsol (REP SM): 1Q20 update | Valeura Energy (VLE CN/VLU LN): Constrained gas sales in Turkey | Block Energy (BLOE LN): Shutting production in Georgia | Regal Petroleum (RPT LN): FY19 results | Chariot Oil & Gas (CHAR LN): Corporate update | Energean Oil & Gas (ENOG LN): Resources increase in Israel | SDX Energy (SDX LN): FY19 results and discovery in Egypt | Tethys Oil (TETY SS): Reduction of extraordinary dividend, capex reduction, FY20 production guidance
maintained | Africa Oil (AOI SS/CN): Tax update in Kenya | Giant gas development projects delayed | Kosmos Energy (KOS LN/US): Cost reduction and RBL redetermination | Vaalco Energy (EGY US/LN): Production update in Gabon
Companies: 88E AOI AST BLOE BOIL CHAR CORO DGOC EGY EME ENOG ENQ IGAS KOS OSH OMV PGR PMO REP ENW SDX TETY UPL VLU
Diversified Gas & Oil (DGOC LN): Potential US$110m acquisition to add 9,900boepd | SDX Energy (SDX LN): Another material gas discovery at South Disouq, Egypt | Baron Oil* (BOIL LN): Relinquishment of Inner Moray Firth blocks
Companies: DGOC SDX BOIL
Cairn Energy (CNE LN): Oil discovery offshore Mexico | Tullow Oil (TLW LN): Dry well offshore Peru | Lansdowne Oil & Gas* (LOGP LN): Placing and loan conversion strengthens balance sheet | Baron Oil* (BOIL LN): Fully funded ahead of El Barco-3x well in Peru
Companies: CNE TLW LOGP BOIL
SDX Energy (SDX LN): OYF-2 encounters larger than expected gas resource, Morocco | Nostrum Oil & Gas (NOG LN): Trading update, formal sales process continues | Baron Oil* (BOIL LN): Resumption of share trading, termination of SundaGas RTO
Companies: SDX NOG BOIL
Touchstone Exploration (TXP LN/CN)1 ; BUY, £0.25: 3Q19 results | Baron Oil (BOIL LN) (not covered): Reverse take over with South East Asia business | Premier Oil (PMO LN); BUY, £1.45: Solid 3Q19 update | Serinus Energy (SENX LN)1 ; Speculative Buy, £0.20: 3Q19 results | Condor Petroleum (CPI CN) (not covered): 3Q19 results and entry into Uzbekistan | Africa Oil (AOI CN/SS): BUY, C$2.60; 3Q19 results | Tullow Oil (TLW LN); REDUCE, £1.55: Wait for further visibility on Ghana
Companies: TXP BOIL PMO SEN CPI AOI TLW
Union Jack Oil* (UJO) and Reabold Resources (RBD) – Updated Volumetrics at West Newton | Baron Oil* (BOIL) – Update on Chuditch PSC, offshore Timor-Leste | Aminex (AEX): Ruvuma Joint Statement with Solo Oil
Companies: UJO BOIL AEX
Genel Energy (GENL) – Positive trading update | President Energy (PPC): President’s gas flows through the Estancia Vieja and Las Bases pipeline | Touchstone Exploration (TXP) – Increase in credit facility, rig moves to the Cascadura location | Mosman Oil and Gas* (MSMN): Investment during and post the financial year is yielding encouraging upside | Baron Oil (BOIL)* – Increase in credit facility, rig moves to the Cascadura location
Companies: GENL PPC TXP MSMN BOIL
Amerisur Resources (AMER) – Positive Reserves Update | Baron Oil* (BOIL): Award of UK 31st Offshore Round Licences
Companies: Amerisur Resources Baron Oil
Baron Oil* (BOIL): Unaudited Interim Results | Lekoil (LEK): OPL 310 Extended for Three Years by Nigerian Government
Companies: Baron Oil Lekoil
Tullow Oil (TLW): Trading Statement | PetroMatad (MATD): Operational Update | SDX Energy (SDX): Egypt Discovery | Lekoil (LEK): CPR Update | Zoltav Resources* (ZOL): Annual Report & Results | Baron Oil* (BOIL): AGM Statement | Lansdowne Oil & Gas* (LOGP): Loan Agreement | 88 Energy (88E): Farmout Update
Companies: TLW MATD SDX LEK ZOL BOIL LOGP 88E
Baron Oil (BOIL LN) (not covered): Placing & subscription | Serinus Energy (SENX LN)1 ; Speculative Buy, £0.20: Appointment of COO | OMV (OMV AG) (not covered): Transaction in Russia
Companies: BOIL SEN OMV
Eco Atlantic (ECO): Rig Mobilisation | Baron Oil (BOIL): Results of Placing and Subscription | Serinus Energy (SENX): Appointment of COO
Companies: Baron Oil SERINUS ENERGY
Research Tree provides access to ongoing research coverage, media content and regulatory news on Baron Oil.
We currently have 24 research reports from 4
A number of REITs have the ability to thrive in current market conditions and thereafter. Not only do they hold assets that will remain in strong demand, but they have focus and transparency. The leases and underlying rents are structured in a manner to provide long visibility, growth and security. Hardman & Co defined an investment universe of REITs that we considered provided security and “safer harbours”. We introduced this universe with our report published in March 2019: “Secure income” REITs – Safe Harbour Available. Here, we take forward the investment case and story. We point to six REITs, in particular, where we believe the risk/reward is the most attractive.
Companies: AGY ARBB ARIX BUR CMH CLIG DNL HAYD NSF PCA PIN PXC PHP RE/ RECI SCE SHED VTA
Central Asia Metals (CAML LN) announced robust Q2 2020 operating statistics which highlight that there were no COVID-19 related interruptions, in part due to stringent measures put in place by the company. Q2 2020 copper output of 3.4kt was down 6% YoY, up 6% QoQ, however, H1 2020 total production was flat at 6.6kt indicating the company is on track for our 13.4kt 2020F target. Q2 Lead and zinc production of 7.5kt and 6.1kt were up 3% and 5% YoY although both were down 1% QoQ respectively. For H1 2020 12.2kt of zinc and 15.1kt of lead were up 5% and 6% which was primarily due to higher throughput.
Companies: Central Asia Metals
Robust, cash-generative production from mining waste
Jubilee operates several chrome-Platinum Group Metal (PGM) operations in South Africa and is constructing a zinc-lead (vanadium) plant at Kabwe in Zambia after already commissioning the copper and cobalt circuits (the ‘Sable' refinery). The company has a growth pipeline identified and significant opportunities to find new projects in Africa (or globally); more specifically, Jubilee announced that it is looking to increase its copper (cobalt) production in Zambia aggressively to make full use of the Sable Refinery. Jubilee also owns the Tjate PGM project in South Africa, which is currently on hold. The company model is to treat its own waste materials and to supplement these with third party ores and wastes where possible. This year has been nothing if not eventful for Jubilee, but further progress and material catalysts are expected over the course of 2020. Jubilee has a high-margin business with cash on hand, and we see plenty of opportunities for Jubilee to capitalise on its robust business model through the global Covid-19 crisis and beyond. We initiate with a fair value of 11.2p/sh
Companies: Jubilee Platinum
Companies: Hurricane Energy
U.S. futures and European stocks dropped on Friday as investors mulled a reported conflict among policy makers over a stimulus package for the single-currency region, as well as political upheaval in France.
The Stoxx 600 Index fell after Bloomberg News reported the European Central Bank is facing a potential rift over how much their emergency bond-purchase program should stay weighted toward weaker countries such as Italy. The euro fluctuated following French President Emmanuel Macron's decision to name a new prime minister after asking his government to resign. Rolls-Royce Holdings Plc slumped after the British jet-engine maker said its exploring options to raise funds to strengthen its balance sheet.
The dollar was slightly down, posting its first weekly drop in a month, while American cash equity and bond markets were shut for Independence Day. President Donald Trump will attend an early July 4 celebration at Mount Rushmore with thousands of guests who won't be required to wear masks, while his U.K. counterpart Boris Johnson urged Britons to act responsibly as pubs prepare to re-open and the government lifts quarantine rules on travel for 60 countries.
The friction at the ECB highlights the risk to markets should promised stimulus measures fall short. Investors continue to weigh policy support and upbeat economic data against relentless new outbreaks of the virus. U.S payrolls figures Thursday fuelled optimism of a V-shaped recovery in the world's biggest economy, even as Florida reported that infections and hospitalizations jumped the most yet, and Houston had a surge in intensive-care patients. Emerging-market stocks posted the biggest weekly gain in a month.
Elsewhere, crude oil dipped but remained on track for a weekly gain.
Companies: TGL JSE IAE ADME BP/ DGOC ENOG NTQ NTOG PMO RBD ROSE RDSA UKOG TRIN
Caledonia's Q2 2020 production from its 64% owned Blanket mine in Zimbabwe was 13.5koz gold. This was an increase over the same period last year of 6.2%, leaving Caledonia with a first half production of 27.7koz – well ahead of this time last year (24.7koz) and on track to meet its 2020 full year guidance of 53-56koz (WHI etc. 55.5koz).
Spectra Systems Corporation is a provider of machine-readable high-speed banknote authentication, brand protection technologies and gaming security software. The company has announced that it has executed a new contract with a major world central bank to ‘enhance existing authentication sensors to detect a unique type of counterfeit notes'.
Companies: Spectra Systems Caledonia Mining Corporation Plc Com Shs Npv
Stable platform agreement approved by creditors
Companies: Premier Oil
Jubilee today takes us through its H1 2020 numbers, which, importantly, cover the critical COVID-19 initial lockdown period in South Africa. The numbers continue to show growth and progress, with headline H1 2020 operational earnings up 54% to GBP 12.8 million – the sixth consecutive, six-monthly period of double-digit growth. The cash position increased to £10.8m despite settling the final payment of £1.4m for the acquisition of additional PGM and chrome rights as well as settling historical debt of £2.5m, all while commissioning the Zambian Sable Refinery.
Following the appointment two months ago of new CEO Rob Richards, VDTK's newsflow has been encouraging in recent weeks, and we view this morning's announcement as a further affirmation of the company's renewable energy solution. Today's RNS highlighting a contract to supply ultra lightweight, flexible solar panels to Black Tulip Minerals SA, of Peru, is, at over €200,000, the latest in a string of recent positive announcements, while also taking the company into a completely new sector which it had announced as a target area.
Image Scan is a specialist in the field of X-ray imaging for the security and industrial inspection markets. The company has announced, as part of its organic growth strategy, a new partnership agreement with a major security technology company that will lead to the launch of a new range of security X-ray screening systems for the international market. Competitively priced, and leveraging Image Scan's IP and direct and indirect international channel partners, the new system will be a high performance, competitive conveyor X-ray machine, suitable for security checkpoints in government and commercial buildings around the world. Importantly, these systems will also allow the company to increase its recurring service and support revenue.
Companies: IGE JLP VDTK
Over the last 18 months, Powerhouse has cemented its relationship with Peel Environmental, which is targeting the development of at least 30 distributed modular generation (DMG) plants across the UK. Each of these will potentially generate £0.5m in annual licence fees for Powerhouse. This roll-out is conditional on shareholders approving the proposed acquisition of former development partner Waste2Tricity (W2T) at the general meeting on 14 July
Companies: Powerhouse Energy Group
PetroTal (PTAL LN/TAL CN)C; Target price £0.45: 1Q20 results/Bretaña expected to restart in July – 1Q20 financials are in line with expectations and 1Q20 production had been reported previously. At the end of 1Q20, current trade and other payables had been reduced to ~US$45 mm compared to ~US$55 mm at YE19. Most importantly. PetroTal continues to expect the Bretaña field to be re-opened this month. The contingent liability with Petroperu is estimated at US$25 mm at the current oil price and the company has entered into a financial swap for 0.46 mmbbl of oil with an ICE Brent reference price of US $40.58/bbl to cover the upcoming sale by Petroperu at the Bayovar port. This is a recovery story that we continue to like. It offers a combination of value, production and cash flow growth and reserves upside. We anticipate that the imminent reopening of the field with be an important catalyst to the share price.
i3 Energy (I3E LN): Reveals takeover target in Canada | Maha Energy (MAHA-A SS): Production update | Aker BB (AKERBP NO): 2Q20 update in Norway | Energy (RRE LN): Recommended offer by Viaro Energy | Spirit Energy: Dry hole in Norway | Enwell Energy (ENW LN): Ukraine update | JKX Oil & Gas (JKX LN): 2Q20 update in Ukraine and Russia | Pharos Energy (PHAR LN): Operating update in Egypt and Vietnam | Sound Energy (SOU LN)C: Terms of Moroccan licence renegotiated | Tethys Oil (TETY SS): June production in Oman | Victoria Oil & Gas (VOG LN): Gas sales contract with ENEO in Cameroon terminated
EVENTS TO WATCH NEXT WEEK
14/07/2020: Aker BP (AKERBP NO) – 2Q20 results
15/07/2020: Premier Oil (PMO LN) – 1H20 update
13-17/07/2020: GeoPark (GPRK US) – 2Q20 update
Companies: I3E MAHAA JKX PHAR EQNR AKERBP ENI HUR PTAL REP RRE SOU TPL VOG OMV
InfraStrata has raised £9m in gross proceeds via a share placing (subject to the approval of shareholders), which will be used to provide growth capital to execute on the company's pipeline. The proceeds will also be used to repay high-cost short-term debt (leaving the group with a c£4.5m net cash position). Given the significant earnings potential of H&W, along with that of the group's other infrastructure assets as they mature, we consider the company to be significantly undervalued and reaffirm our Buy recommendation.
• 1Q20 financials are in line with expectations and 1Q20 production had been reported previously.
• At the end of 1Q20, current trade and other payables had been reduced to ~US$45 mm compared to ~US$55 mm at YE19.
• Most importantly, PetroTal continues to expect the Bretaña field to be re-opened this month.
• The contingent liability with Petroperu is estimated at US$25 mm at the current oil price and the company has entered into a financial swap for 0.46 mmbbl of oil with an ICE Brent reference price of US $40.58/bbl to cover the upcoming sale by Petroperu at the Bayovar port.
Recovery, value and cashflow
PetroTal is a recovery story that we continue to like. It offers a combination of value, production and cash flow growth and reserves upside. PetroTal’s shares continue to trade at around one quarter of our Core NAV of £0.47 per share and at less than half of the company’s value based on its 2P reserves only (2P NAV of £0.28 per share). This reflects Brent price assumptions in line with what BP, Shell and ENI are using. This is important because the commodity prices assumptions of the Majors have often been more conservative than those used by smaller companies that could see PetroTal as an acquisition target. On flat production, PetroTal’s share price implies EV/DACF multiples of 1.0x in 2021 turning negative in 2022. In 2021, we forecast PetroTal generates ~US$90 mm cash flow with ~US$35 mm cash capex (incl. servicing the payables). Our target price of £0.45 per share (~our Core NAV) represents 4.5x the current share price.
Looking beyond the restart of the field
We anticipate that the imminent reopening of the field will be an important catalyst to the share price with 4Q20 production expected to be over 12 mbbl/d. This is however just a first step and there are multiple areas of additional value creation. (1) The story would strongly benefit from a further increase in oil prices. At US$50/bbl for Brent, the Petroperu US$25 mm contingent liability would be reduced to
The market should be in no doubt that Pure Gold will deliver first gold before the end of the year before ramping up to 66koz in 2021 through to 125koz in 2025 (the company is already looking at ways it can accelerate the ramp up). All critical path items are on track with long lead equipment on order, all license applications expected to be approved by Q2, and mine sequencing being planned. Management are already planning on how they might ramp up quicker, improving flexibility in the system with a new decline and tweaking metallurgical recoveries. Perhaps most importantly they are growing their knowledge of the geology with the team putting together a drill programme to start next year once in production. This will target extensions to the 1Moz, 9g/t reserve (will be the 17th highest grade mine in the world when in production) down dip, at satellite deposits and, most excitingly, at Zone 8 where there is already a 0.5Mt resource grading 21g/t.
Companies: Pure Gold Mining
Jubilee Metals (JLP) – Corporate – Large copper tailings project in Zambia – staged expansion for Sable
Market Cap £82m Share Price 3.8p
Jubilee announced yesterday that it had secured a JV with a private company - Star Tanganika – for the rights over a copper project at Ndola in Zambia. The purchase price was $5m ($0.6m in cash the rest in shares in Jubilee) which will be used to advance a further potential copper tailings project held by the owners of Tanganika. Jubilee will provide all of the operating and capital funding for the first phase project and will receive 75% of the project earnings until all capital is recovered dropping to 60% after that – Jubilee will also have first right of refusal over the copper-bearing concentrates produced on 3rd party offtake terms.
Despite the ongoing economic headwinds, 2020 has already been a significant year for United, with the 2019-20 infill-drilling campaign at Abu Sennan exceeding expectations and delivering significant reserve and production additions. Since the Abu Sennan acquisition was announced in July 2019, net production has nearly tripled from 1,100boepd to 3,100boepd, following successful wells at ASH-2 and El Salmiya-5 and the onset of gas production from the Al Jahraa field. We value United's portfolio (minus Jamaica) at US$91.3m, c4.5x its current market cap. Unrisked, we value United's entire portfolio at US$321.7m (including Jamaica) or 34.9p per share, >16x United's current market cap. We set our target price in line with our risked valuation (minus Jamaica) at 9.5p, a 280% premium to the current share price and reiterate our BUY recommendation.
Companies: United Oil & Gas