Lundin Petroleum (LUPE SS) (not covered): 1Q19 results | Pennine Petroleum Corporation (PNN CN) (not covered): Velca Block licence withdrawn | Royal Dutch Shell (RDSA/B LN) (not covered): 1Q19 results | JKX Oil & Gas (JKX LN) (not covered): WM3 initial test results in Ukraine | MX Oil (MXO LN) (not covered): Reserves update in Nigeria
Companies: LUPE RDSA JKX MXO
Interoil Exploration and Production (IOX NO) (not covered): Acquisition in Argentina | Range Resources (RRL LN/RRS AU) (not covered): Results for the quarter ended 31 March 2019 (3Q FY19) | Angus Energy (ANGS LN) (not covered): Equity raise | BP (BP LN) (not covered): 1Q19 results | Equinor (EQNR NO) (not covered): Dry hole in Norway | Repsol (REP SM) (not covered): 1Q19 results | Nostrum Oil & Gas (NOG LN); Speculative Buy, £2.20: 1Q19 update | Regal Petroleum (RPT LN) (not covered): FY18 results | Genel Energy (GENL LN); Speculative Buy, £3.20: 12 months left to reach an agreement on Bina Bawi? | Aminex (AEX LN) (not covered): Final results | Anglo African Oil & Gas (AAOG LN) (not covered): Tilapia oil field update | Global petroleum (GBP LN)1: Speculative Buy, £0.04; March 2019 quarterly report | MX Oil (MXO LN) (not covered): Updated CPR in Nigeria | Seplat Petroleum (SEPL LN); BUY, £2.80: 1Q19 results
Companies: IOX RRL ANGS BP/ REP NOG ENW GENL AEX AAOG GBP MXO SEPL
Echo Energy (ECHO LN) (not covered): Fraccion D update in Argentina | President Energy (PPC LN) (not covered): Drilling update in Argentina | Aker BP (AKERBP NO) (not covered): Appraisal offshore Norway | MX Oil (MXO LN) (not covered): Equity issue and corporate update in Nigeria | Victoria Oil & Gas (VOG LN)1,6; Speculative Buy, £0.85: 3Q18 operations update
Companies: ECHO PPC MXO VOG
Columbus Energy Resources (CERP LN) (not covered): 1H18 results | Independent Oil & Gas (IOG LN) (not covered): 1H18 results | MX Oil (MXO LN) (not covered): Aje update in Nigeria | World Crude Oil Markets: The tightening of oil markets has arrived and with it, higher prices | World natural gas markets: Overseas gas markets still tightening and still price bullish | Commodity price update: Impact on International Oil & Gas Producers
Companies: CERP IOG MXO
MX Oil has evolved during the last couple of years to become actively involved in the “hot” Nigerian E&P space through the acquisition of a stake in the highly prized Aje field. Prospects in the West African Transform Margin look compelling moving forward and the company is now on the cusp of seeing a material return on its investment in OML 113.
Companies: MX Oil
Gulf Keystone Petroleum (GKP LN) (not covered): Shaikan payment update | Rockhopper Exploration (RKH LN) (not covered): Egypt update | MX Oil (MXO LN) (not covered): Aje update in Nigeria
Companies: GKP RKH MXO
ExxonMobil (XOM US) (not covered): Dry hole in Guyana | Sterling Resources (SLG CN) (not covered): YE17 reserves | BP (BP LN) (not covered): 1Q18 results | TransAtlantic Petroleum (TAT US/TNP CN) (not covered): YE17 reserves | MX Oil (MXO LN): Reserves update at Aje in Nigeria | Wentworth Resources (WRL LN/NO)1,6: BUY, £0.35; Payment & corporate update –
Companies: XOM SLG BP/ TNP MXO WRL
Vannin Capital—Press reports that litigation funder Vannin Capital is working on plans to float on the London Stock Exchange later in 2018 with an expected valuation of well over £500m | Avast, global cybersecurity provider with 435m users worldwide. In 2017, the Group's Adjusted Billings was $811 million, Adjusted Revenue was $780 million, Adjusted Cash EBITDA was $451 million. Seeking to raise $200m. Due in May | Fundamentum Supported Housing REIT. Raising £150m. Focussed on UK Social Housing assets. Due 2 May | Vivo Energy—retailer and marketer of Shell-branded fuels and lubricants in Africa, Due in May. 100% secondary sell-down of existing Shares by Selling Shareholders, No new Money. Pricing TBA | Gore Street Energy Storage Fund—Seeking to raise £100m for the purposes of investment in a diversified portfolio of utility scale energy storage projects. Due 03 May | Odyssean Investment Trust—Raising £100m at £1. Due 1 May. The Company will primarily invest in smaller company equities
quoted on markets operated by the London Stock Exchange | Finablr - press reports in ‘Arabian Business’ that Money transfer firms UAE Exchange, Travelex and others under UAE billionaire Bavaguthu Raghuram Shetty’s newly formed holding company Finablr are preparing for a London IPO
Companies: MORT BION CORA ATQT ICON GRP MXO MIRI SYME
Polarean - The medical drug-device combination companies operating in the high resolution medical imaging market. Offer TBC. Due 22 Feb | Block Energy—a NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC | 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. Offer raising £30m at 165p with mkt cap of £100m . Due 9 Feb.
Companies: NMRP ZOE FDEV HGM AAZ REDX MXO CTG WPHO
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
Madalena Energy (MVN CN) (not covered): Lower oil price in Argentina | Pan Orient Energy (POE CN) (not covered): 3Q16 results | Atlantic Petroleum (ATLA DK/NO) (not covered): no deal at Orlando | The Parkmead Group (PMG LN) (not covered): 1H16 results | Urals Energy (UEN LN) (not covered): operational update in Russia | MX Oil (MXO LN) (not covered): Update in Nigeria
Companies: MVN POE ATLA PMG MXO UEN
Randall & Quilter Investment Holdings (RQIH.L) | Netscientific (NSCI.L) | Haydale Graphene Industries (HAYD.L) | MX Oil (MXO.L) | Cogenpower (CGP.L) | Fiske (FKE.L) | Obtala (OBT.L) | BMR Group (BMR.L) | Baron Oil (BOIL.L) | Solo Oil (SOLO.L)
Companies: RQIH NSCI HAYD MORE WBI BMR BOIL FKE MXO SOLO
The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.
Companies: 7DIG ABDP BGO COG GFIN LID MDZ MXO WBI OPTI PEG YGEN PLI ORPH AVCT BIDS
7DIG Half Yearly Reports, AVG Final Results, BMR Potential, COS Agreement, IKA Patent grant, MGR Half Yearly Report, MXO* Half Yearly Report and Update, OBT Half Yearly Report, OPTI* Completion of Study, ORM Half Yearly Report, PLI* Meeting with US FDA, SVR Interim Results, VLG Interim Results, UNG New Contract Win .
Companies: 7DIG AVG BMR COS IKA MXO WBI OPTI PLI SVR VLG UNG ORM PMI
AFPO Memorandum of Understanding, AAU Quarterly Newsletter, ATQT Directorate Change, COS Participation, FITB* Board Changes and Appointment of CEO, G4M Trading Update, MARL* Exercise of Warrants, Termination and CPR, MDZ* Final Results, MXO* Nigerian Update, OPTI* Half Yearly Report, PEG* Directorate Change and Half yearly Report, PLI* Expansion of Phase II, SVR Award and Patents, STEL Licence Application, ZEG Intention to Move to Official List
Companies: AFPO AAU ATQT COS G4M MDZ MXO OPTI SVR ZEG STEL MARL BIDS
Research Tree provides access to ongoing research coverage, media content and regulatory news on MX Oil.
We currently have 24 research reports from 3
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
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
Considering the environment, this sale is positive and marks the completion of the $15bn divestment programme started after the acquisition of the shale assets from BHP in 2018. Overall, BP’s strategy in downstream is to bring stable earnings, to offset volatility in upstream. In this regard, expanding renewables activities would seem appropriate to BP. While, BP has no competitive advantage in this field, exposure to renewables will allow the oil majors to keep their oil & gas activities.
Companies: BP Plc
Acquisitions and creditors update
Companies: Premier Oil
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
Petropavlovsk PLC (LSE: POG) have released their FY2019 results and Q1 trading update this morning. The company had already released production numbers for last year. Overall the numbers reflected a strong operational performance although various financial/other parameters thwarted positive changes below the EBITDA line. Conversely net cash from operations reduced by 43% due to lower cash from prepayment as part of the group’s forward sale facility with the banks, yet net debt came down to $561m. . We show the key figures in Table 1.
Implications of the gold-silver metallurgy at Empire, Idaho
Yesterday, Phoenix Copper published a metallurgical report on the leaching of its gold-bearing mineralisation from the Empire resource area in Idaho. This showed high recoveries for gold and silver using standard cyanide and non-standard Ammonium Thiosulphate leaching (comparable leach times, reagent consumption and recovery). The implications of these tests may be far ranging for Phoenix as it enables it to consider bringing forward precious metals production from the area, with the following benefits: 1) quicker permitting for a non-cyanide process; 2) cheaper reagents; 3) earlier establishment of mine site infrastructure to assist ongoing economic studies and; 4) cash flow in a robust gold price environment. More test work on the gold recovery process remains to be completed to establish the optimum leaching and recovery parameters. We still see fair value at 34p/sh (see research from 12/05/2020 for full details) but note that Phoenix management is actively seeking to bring forward value in its projects. In the meantime, we have drilling results and a (potential) resource upgrade to look forward to shortly from the Red Star lead-silver project as well as a funded resource drilling program to establish a whole resource for Empire – and not just the base metal-rich zones.
Companies: Sirius Real Estate
Enteq Upstream PLC (LON:NTQ) has released full-year (FY) results for the year-end March 2020 with commentary on the ongoing trading environment. The company reported revenues of around US$10.9mln, underlying adjusted EBITDA (earnings before tax interest depreciation and amortisation) of US$3.1mln,
Companies: Enteq Upstream
Rockfire Resources, the gold and copper exploration junior with projects in northern Queensland has recently commenced a major £0.8m drilling programme on Plateau, its most advanced project. Drilling is likely to be followed by a resource update in late 2020 and a scoping study in Q1 2021. We believe that the updated resource estimate could be commercially significant. This reflects the promising drilling results post July 2019’s resource assessment and the potential for the drilling programme to expand the resource base given the analogous Mt Wright mine geology 47 km to the NE. The new drilling programme will include diamond drilling for the first time which will enable deeper higher-grade targets to be targeted. The drilling programme has been underpinned by the recently announced £1m raise. We believe the scope for positive news flow in the coming months is excellent while the gold market backdrop should be supportive for gold exploration as well as production plays over the balance of 2020.
Companies: Rockfire Resources
Warren Buffett once said that as an investor, it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. Fear is not in short supply right now.
Companies: OPM ALU ANCR BLV CONN CRC STU GATC HAT LEK MMH MCB MWE NXR NTBR NOG PAF PEG RFX SRC TEF TEG TPT VTU WYN XLM
Shearwater sells resilience and today's trading update shows us how resilient demand has been for its products and services. The Group has swung to EBITDA profitability and cash flow is well ahead of expectations. The macro themes of cyber security and remote working are supportive of robust demand levels going forward. We are maintaining our forecasts. Buy.
Companies: Shearwater Group
In this note, we analyze the indebtedness of 35 international E&Ps publicly listed in the UK, Canada, Norway, Sweden and the USA. For each company, we look at (1) cash position, (2) level and nature of debt (including covenants), (3) debt service and principal repayment framework and (4) Brent price required from April to YE20 to meet all the obligations and keep cash positions intact. We also estimate YE20 cash if Brent were to average US$20/bbl from April to YE20. While the oil demand and oil price collapse are of unprecedented historical proportions and the opportunities to cut costs much more limited than in 2014, most companies (with a few exceptions) entered the crisis in much better position than six years ago, with stronger balance sheets and often already extended debt maturities. In addition, this time around, many E&Ps have already been deleveraging for 1-2 years and are not caught in the middle of large developments that cannot be halted. The previous crisis also showed that debt providers could relax debt covenants for a certain period as long as interest and principal repayment obligations were met. This implies that as long as operations are not interrupted and counterparties keep paying their bills (Kurdistan), the storm can be weathered by most for a few quarters.
With (1) Brent price of about US$50/bbl in 1Q20, (2) reduced capex programmes, (3) material hedging programmes covering a large proportion of FY20 production at higher prices and (4) limited principal repayments in 2020, we find that most companies can meet all their costs and obligations in 2020 at Brent prices below US$40/bbl and often below US$35/bbl) from April until YE20 and keep their cash intact, allowing them to remain solvent at much lower prices for some time. In particular, Maha Energy and SDX Energy are cash neutral at about US$20/bbl. When factoring the divestment of Uganda, Tullow needs only US$9/bbl to maintain its YE20 cash equal to YE19. Canacol Energy, Diversified Gas and Oil, Independent Oil & Gas, Orca Exploration, Serica Energy and Wentworth Resources are gas stories not really exposed to oil prices and Africa Oil has hedged 95% of its FY20 production at over US$65/bbl.
Companies: AKERBP AOI CNE CNE DGOC EGY ENOG ENQ GENL GKP GPRK GTE HUR IOG JSE KOS LUPE MAHAA OKEA ORC.B PEN PHAR PMO PTAL PXT RRE SDX SEPL TETY TGL TLW TXP WRL
InfraStrata's acquisition of the iconic Harland & Wolff (H&W) shipyards in Northern Ireland has been transformational for the group, and with a carefully planned growth strategy, there is a clear route to cash breakeven in the short term. Over the medium to long term, these facilities could support a c£400m revenue business. With the company trading at a c30% discount to its H1/20A book value and c65% to its Adj NAV, we initiate with a Buy recommendation.
Park and ride – initiating coverage
Empire Metals* (EEE LN) - Munni Munni platinum group metals project acquisition work program | Erris Resources (ERIS LN) – Resumption of Loch Tay exploration | Goldstone Resources (GRL LN) – Reduced loss in 2019 | KEFI Minerals * (KEFI LN) – Tulu Kapi project finance on track for Oct/20 closure and full construction start in Q1/21 | Power Metals Resources* (POW LN) – Interim results | Vast Resources* (VAST LN) – Carlibaba licence granted
Companies: EEE ERIS GRL KEFI POW VAST