IGas Energy (IGAS LN) (not covered): FY17 results in the UK | Serinus Energy (SEN CN): Speculative Buy, C$0.55: YE17 reserves update | Genel Energy (GENL LN); HOLD, £1.60: Receipt of payment for KRI oil exports | Gulfsands Petroleum (GPX LN) (not covered); Financing & delisting | SDX Energy (SDX CN/LN)1,6: BUY, £0.60; SAH-2 test results in Morocco | Eland Oil & Gas (ELA LN) (not covered): Opuama operations update in Nigeria
Companies: IGAS SEN GENL GPX ELA SDX
Baron Oil (BOIL LN) (not covered): Relinquished Peruvian assets | Independent Oil & Gas (IOG LN) (not covered): Independent valuation of North Sea exploration assets | Serinus Energy (SEN CN)1 ; Speculative Buy, C$0.55: 3Q17 results | Petroneft (PTR LN) (not covered): Quarterly production update in Russia | Genel Energy (GENL LN); HOLD, £1.90: Oil Sales payment for August | Gulf Keystone (GKP LN) (not covered): Shaikan payment in Kurdistan | Gulfsands Petroleum (GPX LN) (not covered): Exiting Morocco | ShaMaran Petroleum (SNM CN) (not covered): Payment for export |
Companies: BOIL IOG SEN PTR GENL GKP GPX SNM
Clean Invest Africa—Introduction due around 14 Nov. Vehicle established to identify investment opportunities and acquisitions in renewable and clean energy projects/companies or alternative technologies that are used in a socially and environmentally responsible way that will aid the development of the African continent.
City Pub Group - owner and operator of an estate of 34 premium pubs across Southern England. £30m raise. Consistent track record of strong revenue and EBITDA growth, with a three year CAGR from FY14 to FY16 of 34.9% and 44.8% respectively, and an EBITDA margin of 14.7% in FY16. Due late Nov. Offer TBA.
Boku - Independent direct carrier billing company. Revenues were up 21% to US$10.2 in HYJun17. Q32017, revenues grew to $6.5m, up by 44%. The Company also saw continued growth across all of its key metrics: user numbers, total payment and a positive adjusted EBITDA for the month of September 2017. Due 20 Nov. Offer TBA.
Ten Lifestyle Hldgs. Technology-enabled lifestyle and travel platform providing trusted concierge services to the world's wealthy. Net revenue increased from £20m in the year ended 31 August 2015 to £33m in the year ended 31 August 2017, a compound annual growth rate of 29%. Offer and date TBA.
OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected mid November.
Shefa Yamin minerals company focused on the exploration for precious stones in Northern Israel. Net Proceeds will be used to advance the Company's mining project. Offer TBA.
Bakkavor—After being postponed on 3 November the provider of fresh prepared food has today set its offer price at 180p. Primary raise of £100m plus vendor sale in combination totalling 25% of enlarged capital. Mkt Cap c.£1bn. FY 16 Revenue: £1,763.6 million. FY 16 Adjusted EBITDA2: £146.4 million .
Aviva Investors Secure Income REIT - Targeting £200m raise. Will invest in a diversified portfolio of high quality, long-lease commercial real estate assets located within the UK and leased to predominantly investment grade tenants. Due Dec. Cabot Credit Management -one of the largest credit management services providers in Europe and the market leader in the UK and Ireland with total 120-Month ERC of £2.2bn. Raising c.£195m. Offer TBA. Due November.
M7 Multi-Let REIT—Intends to raise up to £300m at 100p. Aims to acquire and hold a portfolio of UK regional light industrial and regional office assets diversified by geography, asset type and tenants that is expected to generate stable income returns and, where appropriate, offer the potential to leverage and enhance returns through active asset management initiatives. Due 30 Nov.
En+, international vertically integrated aluminium and power producer with core assets located in Russia. Priced at $14 per GDR. $1.5bn offer of which $0.5bn primary to pay down debt. Dual listing in Moscow. Unconditional dealings 8 Nov.
Companies: REAT GPX MCC APPS BOIL CGH MBO IOG IQE BRY
We note that Gulfsands Petroleum (GPX LN) has announced that it has secured a reset of its PUT-14 Licence terms in Putumayo, Colombia. This means that Phase 0 which focuses on stakeholder and community consultation will restart giving GPX the necessary time to carry out this process and will have a full three year period to then carry out the Phase 1 exploration. The PUT-14 license will now run until at least mid-2021 thereby providing a more attractive timescale for potential partners for a seismic and drilling programme.
Companies: Gulfsands Petroleum
Totally (TLY) - Sch 1 for £11m RTO of Vocare, a provider of integrated urgent care services to the NHS throughout the UK. £76.8 million rev in the year ended 31 March 2017. Totally to address Care Quality Commission concerns. Due 24 Oct.
Central Asia Metals (CAML) -RTO of Lynx Resources. Anticipated market capitalisation at Admission: £404.8m. Raising £113m at 230p. Acquiring the SASA zinc-lead mine in Macedonia from Solway Industries. Due 15 Dec.
Springfield Properties—Scottish housebuilder. “Our turnover exceeded £100 million for the first time this year and now we employ around 500 people. This IPO is the next step in our growth.” Expected Mid October. Offer TBA.
OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.
Orogen plc, to be renamed Sosandar plc on Admission. Sosander is an online womenswear brand specifically targeted at a generation of women who have graduated from younger online and high street brands, and are looking for affordable clothing with a premium, trend-led aesthetic. Offer to raise £5.3m with market cap of £16.1m, expected 2 November 2017
OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural
flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected late october .
Companies: GPX ZOL B90 SLN SCPA TEF AVAP SDX SWG
Premier Oil (PMO LN); Speculative Buy, £1.00: Zama discovery: digging into the detail | ExxonMobil (XOM US) (not covered): Acquires acreage in Guyana-Suriname | Aker BP (AKERBP NO) (not covered): 2Q17 Results | Egdon Resources (EDR LN) (not covered) & Union Jack Oil (UJO LN) (not covered): Exploration well environmental permits issued onshore UK | Independent Oil and Gas (IOG LN) (not covered): New licence award offshore UK North Sea | OMV (OMV AG) (not covered): 2Q17 trading update | Gulfsands Petroleum (GPX LN) (not covered): Tunisia exit | Savannah Petroleum (SAVP LN) (not covered): Potential transaction in Nigeria
Companies: PMO XOM EDR IOG OMV GPX SAVE
SOCO International (SIA LN) (not covered): Updated Te Giac Trang FFDP Approved | OMV (OMV AG) (not covered): FY16 Results | Lansdowne Oil & Gas (LOGP LN) (not covered) | Chariot Oil & Gas (CHAR LN) (not covered): Kenitra Exploration Award & Seismic Commencement, Offshore Morocco | Gulfsands Petroleum (GKP LN) (not covered): Secured Term Financing Facility of up to £4 mm | MX Oil (MXO LN) (not covered): Proposed Placing | Solo Oil (SOLO LN) (not covered): Placement of Equity and TVR
Companies: PHAR OMV LOGP CHAR GPX MXO SOLO
TAG Oil (TAO CN): BUY, C$1.25: 3Q17 results with strong operations and catalysts forthcoming | Cairn Energy (CNE LN): HOLD, £2.60: Rumours of acquisition in the North Sea | JKX Oil & Gas (JKX LN) (not covered): January 2017 Production | Gulfsands Petroleum (GPX LN) (not covered): Moulay Bouchta Extension Confirmed in Morocco | Tlou Energy (TLOU LN) (not covered): Increase in Gas Reserves in Botswana
Companies: TAO CNE JKX GPX TOU
Gulfsands Petroleum (GPX LN) (not covered): Colombia Farmout Agreement Signed | President Energy (PPC LN) (not covered): Operational Update
Companies: Gulfsands Petroleum President Energy Plc
Gulfsands Petroleum is an AIM listed oil & gas exploration and development company whose primary asset is a 50% working interest in a Production Sharing Contract (PSC) on Block 26 in Syria. Other assets are located in Morocco, Tunisia and Colombia.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Gulfsands Petroleum.
We currently have 10 research reports from 4
Technical review and operational update
Companies: Hurricane Energy Plc
For this Monthly, we are delighted that Rooney Nimmo and 24Haymarket have allowed us to reproduce a recent report they jointly published, entitled An analysis of UK exits (2015-2019), which provides a granular analysis by sector of the activity in our dynamic private companies world. We hope you find the insights of interest.
Companies: AVO AGY ARBB ARIX CLIG ICGT NSF PCA PIN PXC PHP RECI SCE TRX SHED VTA
In the midst of another attempted takeover by stealth, Petropavlovsk PLC (LSE: POG) announced their trading results for H1 2020 which leaves them on track to deliver one of their best years ever, operationally and financially, with more to come in 2021. This is down to the perseverance, skillset and hard work of the workforce out in the Amur Region and their CEO Dr Pavel Maslovskiy, who has staked his reputation on the successful build out of the POX plant. Any corporate raider (and shareholder alike) should realise, whether it be Vekselberg or UGC, that without the support of Dr Maslovskiy you won’t win the hearts and minds of the workforce essential for the smooth running of the organisation. Meanwhile, the gold price has run through $1,900/oz; clearly a positive for this leveraged business. Incorporating this and the results into our modelling delivers a new Target Price of 50p and the set of financials shown in the right-hand column.
Companies: Petropavlovsk Plc
Companies: JSE HUR RDSA
Jubilee Metals successfully processes chrome tailings in South Africa to produce chrome concentrate and PGMS. It also owns the commissioned Sable copper refinery at Kabwe in Zambia and is looking to build a zinc-lead treatment plant at Kabwe next to the Sable refinery to process old tailings from the Kabwe mine. Today Jubilee announces that it has secured access rights to process 2Mt of Run-Of-Mine material grading in excess of 2% copper in Zambia with the potential to add a further 2.5Mt of tailings – Project “Roan”; an as yet an undisclosed project location in Zambia. This material will be upgraded at the “Roan” site with the concentrate shipped off to Jubilee's Sable Refinery to produce copper cathode. Initial target is set at 10kt contained copper/yr from Roan, and Jubilee hopes to begin production in 4 months' time with full production reached in 8 months – advanced preparations have been made, plans drawn up and discussion with equipment manufacturers already accomplished – Jubilee is ready to hit the ground running.
Companies: Jubilee Metals Group 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
Centamin (CEY LN) – H2 profits rise 280% as company maintains 2020 production guidance | Chaarat Gold* (CGH LN) - BUY– H1/20 production in at 27koz with FY20 guidance reiterated at 55koz, Tulkubash
funding closure on course for YE20 | Edenville Energy* (EDL LN) – Rukwa coal operations restart | Pensana Rare Earths (PRE LN) – Final drilling results from Longonjo | Serabi Gold* (SRB LN) – Extension to drawdown period for the convertible loan | Versarien (VRS LN) - Launch of graphene enhanced protective face mask
Companies: CEY CGH EDL PRE SRB VRS
United has announced that it has successfully negotiated an 18 month extension to its Walton Morant licence, offshore Jamaica, in what could be a pivotal moment for the Company. United will assume a 100% working interest, and will complete a work programme to further de-risk the high-graded Colibri prospect ahead of a drill-or-drop decision in 2022. We view the award of the Walton Morant licence as a huge endorsement of the United team and its capabilities to operate a frontier, deepwater licence. We increase our risked valuation of the Colibri prospect to US$68.3m or 7.1p per share and our Company valuation to US$162.2m or 17p per share. Unrisked, our valuation of the Colibri prospect increases to US$752.7m or 78.7p, underlining its potential. We set our price target in line with our risked NAV at 17p, a 507% premium to the current share price, and reiterate our BUY recommendation.
Companies: United Oil
The stock is up 6% at pixel time, which shows rather good prowess from management, as it also cut (for good) the dividend in half. As investors swallow the bitter pill, the low-carbon shift (and promises of higher valuations) make it easier to digest. Also helping was a decent cash generation in this quarter, thanks to BP’s trading unit.
Companies: BP Plc
Civil works have started at Europa’s Wressle oil field, keeping the project on track for start-up in H2 2020 when it will more than double production and materially boost cash flow. This project is not only economically attractive, but it will also underpin Europa’s pursuit of additional exploration and development opportunities.
Companies: Europa Oil
Caspian Sunrise announced a capital raise of £1.0M at 2.75p to accelerate the repayment of its trade creditor positions. We note the company had previously announced its relatively tight working capital position following the switch to export status at the MJF structure in 2019, the impact of the measures taken to combat the Covid-19 virus and weakness in crude oil prices. The company indicated that the capital raised allows its trade creditor position to be brought into balance and that another capital raise is not expected in the current financial year and probably not all.
Companies: Caspian Sunrise Plc
Although acute market volatility translated into an H1 bonanza for trading, Glencore’s COVID-19 vulnerability came to the fore as industrial reported losses, and sizeable impairments were recognised. Moreover, the 2020 dividends were suspended to expedite deleveraging.
As market uncertainties are expected to persist, trading’s performance cushion should be maintained, and provide valuable time for industrial to revert to normalcy. Remember, as most commodity prices have recovered back to / beyond pre-COVID-19 levels, and production restrictions are easing, industrial should witness gradual improvements.
Companies: Glencore Plc
GeoPark (GRPK US)C; Target price US$20: Cash tax reduction and high impact drilling– The only item of interest in the 2Q20 financials was the fact that GeoPark did not pay any cash tax in 2Q20 (we were carrying a payment of US$40 mm). This explains why the cash balance at the end of June was so much higher than we expected at the time of the 2Q20 operating update in July). This also reflects important positive changes in Colombia. First, US$20-25 mm cash taxes in 2020 have been deferred to 2021 leaving only US$15-20 mm due in 2H20. In addition, Colombia is accelerating the reimbursement of income tax credits. GeoPark has already collected US$15 mm in July that will offset the remaining 2H20 cash tax. Overall in 2020, the company could potentially obtain a total refund of US$25 mm of income tax (out of which US$15 mm is firm and collected in July) plus US$15-20 mm of VAT. The key wells to focus on in 2H20 will be the 1-2 wells to be drilled at CPO-5 (GeoPark WI: 30%). While these wells are expected to increase production, they will also allow the company to start derisking the exploration upside associated with the block. The first well will be a development/appraisal well in Indico where the oil water contact has not been encountered yet. The second well is an exploration well at Aguila targeting the same play concept. The share price continues to trade at ~45% discount to our Core NAV of ~US$19 per share. Overall there could be 350-700 mmboe gross prospective resources across its Llanos blocks (including CPO-5). Our target price of US$20 per share reflects our ReNAV and attributes only ~US$1 per share to exploration. It represents over 100% upside to the current levels.
IN OTHER NEWS
Frontera Energy (FEC CN): 2Q20 results | Gran Tierra (GTE LN/US/CN): 2Q20 results | i3 Energy (I3E LN): Acquisition of Canadian assets and £30 mm funding | Maha Energy (MAHA-A SS): Production update in Brazil | Parex Resources (PXT CN): 2Q20 results
Pharos Energy (PHAR LN): Licence extension in Vietnam and RBL confirmation
bp (BP LN): 2Q20 results and change of strategy | Hurricane Energy (HUR LN): Technical update in the UK | Neptune Energy: Discovery in Norway | Spirit Energy: Dry hole in Norway
MIDDLE EAST AND NORTH AFRICA
Genel Energy (GENL LN): 1H20 results
Kosmos Energy (KOS US/LN): 2Q20 results | San Leon Energy (SLE LN): Acquires 10% Interest In new Nigerian oil export system | Vaalco Energy (EGY LN/US): 2Q20 results
EVENTS TO WATCH NEXT WEEK
10/08/2020: Diversified Gas & Oil (DGOC LN) – 2Q20 results
11/08/2020: JKX Oil & Gas (JKX LN) – 2Q20 results
13/08/2020: Africa oil (AOI CN/SS) – 2Q20 results
Companies: BP/ FEC GENL GPRK I3E PXT PHAR HUR KOS MAHAA EGY
Salt Lake Potash has received commitments to raise A$15m through the placement of unsecured zero-coupon Convertible Notes to Equatorial Resources (ASX:EQX) and institutional investors. The Convertible Notes have been structured as deferred equity with zero coupon and mandatory conversion into equity at the lower of 45c/share or a 5% discount to any future equity raising of at least A$10m. These funds will enable Salt Lake Potash to continue to develop Lake Way to the project schedule through July as they finalise debt financing. Plant practical completion and first SOP sales remain on schedule for the March 2021 quarter. The debt financing process in its final stages and with an agreement expected to be executed within weeks.
Companies: Salt Lake Potash Ltd.
HSP has announced positive results this morning, with a 30% increase in underlying EPS (continuing) for the year to May ‘20. Underlying PBT declined; however the prior year included land sales which did not recur in FY2020A. Stripping these out, profits were ahead YoY. Net debt rose marginally to £28.1m (prior year: £24.5m), largely on the back of accelerated mining activities (positive weather conditions) and delays to the sale of Blindwells, where the company had invested £8m; and is expected to remain steady during the coming year as the group continues to invest in Specialist Earthworks (with a switch to mainly leasing debt on HS2 plant funding). Having deferred the interim dividend on the back of Covid-19, the Board is now reinstating the dividend with a 4.5p payment in respect of the final DPS, reflecting the forward visibility it now feels it has. Given this forward visibility, we would also expect forecasts to be restored to the market in the near future, these having previously been withdrawn.