Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Petrotal. We currently have 50 research reports from 3 professional analysts.
Union Jack Oil* (UJO LN), STRONG BUY – 0.70p TP: Wressle Development Granted Planning Consent on Appeal | Gulf Keystone Petroleum (GKP LN): 30% increase in 2020 production guidance | Cairn Energy (CNE LN): Operational update, active 2020 drilling programmes | PetroTal (PTAL LN): Tripling Average Oil Production in 2020 to 13,500bopd, targeting to exit at 20,000bopd
Companies: UJO GKP CNE PTAL
Falcon Oil & Gas (FOG LN): Kyalla 117 - Operational challenges encountered in horizontal section | PetroTal (PTAL LN): 2019 year-end Oil Production of 13,300bopd | Anglo African Oil & Gas (AAOG LN); Zenith Energy (ZEN LN): Put and Call options agreed
Companies: FOG PTAL AAOG
Touchstone Exploration (TXP LN): Significant crude oil discovery with the Cascadura, Trinidad | PetroTal (PTAL LN): Record Production at Bretaña Oil Field, Peru | JKX Oil & Gas* (JKX LN): Well 18 workover and sidetrack has been completed
Companies: TXP PTAL JKX
SulNOx Group - The Group has developed a methodology and process capable of emulsifying hydrocarbon fuels such as diesel and heavy fuel oil . By January 2014, following preliminary laboratory testing, SulNOx was in a position to suggest that its products resulted in up to a 50% reduction of Nitrogen Oxide (NOx) and a 90% reduction in particulate matter Due 17 Dec, mkt cap £42.3m.
Companies: SRES K3C SENS MSYS PTAL RLD TSG FUL BHRD AUTG
GeoPark (GPRK US)1 ; BUY, U$30.00: Material Colombian acquisition | Maha Energy (MAHA-A SS) (not covered): 3Q19 results | PetroTal (PTAL LN/TAL CN)1 ; BUY, £0.50: Increasing YE19 production guidance by 10-13% to 11-13 mbbl/d | Neptune Energy: Reducing production guidance
Companies: Geopark Petrotal
At the 5H horizontal well, 700 m of the planned 870 metres horizontal section have already been drilled, which is inside the main productive oil reservoir. The well is expected to be put in production by the 15th December. The new production facility is expected to be commissioned week of the 22nd December.
Cluff Natural Resources (CLNR LN): Multiple applications submitted in the 32 nd UK Offshore Licence Round | PetroTal (PTAL LN) – Another upgrade to production guidance | Mosman Oil & Gas* (MSMN LN) – 16% increase in production at Stanley
Companies: CLNR PTAL MSMN
2Q19 production was 4,760 bbl/d. At the end of October, PetroTal held US$21.1 mm in cash. Current production at Bretana has averaged 8.5 mbbl/d over the last 30 days. Total production capacity is expected to reach 12.5 mbbl/d by mid-2020 and 20 mbbl/d by YE20.
PetroTal (PTAL LN/TAL CN): 3Q19 results | BP (BP LN) (not covered): Acquiring Indonesia assets | Nostrum Oil & Gas (NOG LN)6 ; REDUCE, £0.10: 3Q19 results | Tethys Oil (TETY SS)1,6; BUY, SEK85: October production in Oman | Wentworth Resources (WEN LN) (not covered): Operating update in Tanzania
Companies: PTAL BP/ NOG WRL TETY
Karoon Energy (KAR AU) (not covered): Equity raise for Brazil | PetroTal (PTAL LN/TAL CN) 1 ; BUY, £0.50: Increasingly gearing towards the 3P case | Maurel & Prom (MAU FP) (not covered): Trading update
Companies: KAR PTAL MAU
We are increasing our target price on PetroTal from £0.45 per share to £0.50 per share following the strong result of the BN 95-4H well. In our view, the initial flow rate of 6.2 mbbl/d combined with lower than expected drilling costs demonstrates the potential of horizontal wells to develop the field with better economics, shorter pay back and potentially more reserves. With current production of already 7.8 mbbl/d constrained by surface facilities, PetroTal is well on track to deliver 10 mbbl/d by YE19. We are incorporating the additional capital recently sanctioned to drill more wells and enhance further surface production capacity and increase our YE20 production forecast from 14 mbbl/d to 18 mbbl/d. This new profile and capital programme look increasingly similar to the 3P reserves case, which recovers c. 80 mmbbl (twice the company’s 2P reserves). A increase of 2P reserves at YE19 looks increasingly possible in our view. We are now incorporating into our Core NAV a risked value for the company’s possible reserves (@60%), resulting in our Core NAV increasing from £0.23 per share to £0.54 per share. The shares trade at c. one third of our new Core NAV and at EV/DACF multiples of 1.0x for 2020 and 0.5x for 2021. PetroTal continues to be a deep value name also offering production, cashflow and reserves growth.
The BN95-4H horizontal well delivered an initial flow rate of 6.2 mbbl/d, exceeding management’s expectations. The well was c. US$3 mm (20% of well cost) under budget. Current production at Bretana is c. 7.8mbbl/d following interim upgrades to the production facilities. At the end of September the company held US$40 mm of working capital. PetroTal produces 4.8 mbbl/d in 3Q19, in line with our expectations of 5.0 mbbl/d.
Jadestone Energy (JSE): Southwest Vietnam Field Development Plan | Echo Energy (ECHO) – Acquisition agreement withPhoenix Global Resources | Block Energy (BLOE): Successful Cementing of Casing at Well WR-38Z | PetroTal (PTAL) – PetroTal achieves record production at Bretaña, Peru | Serinus Energy (SENX) - Moftinu gas production has resumed | Lekoil (LEK) - Phase Two Development Project Sanctioned
Companies: JSE ECHO BLOE PTAL SEN LEK
PetroTal (PTAL LN/TAL CN)1 ; BUY, £0.45: Another very good operating update | Phoenix Global Resources (PGR LN) (not covered): Divestment of Argentinian assets to Echo Energy (ECHO LN) (not covered) | President Energy (PPR LN) (not covered): Acquisition in Argentina | Valeura Energy (VLU LN/VLE CN)1,7; BUY, £6.00: Final well test results at Inanli-1 and decision by Equinor to start testing Devepinar-1
Companies: PTAL PGR PPC VLU
Research Tree provides access to ongoing research coverage, media content and regulatory news on Petrotal. We currently have 50 research reports from 3 professional analysts.
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Sylvania's share price has fallen 53% since its peaked on the 21st Feb, as the global economy hit the brakes. The short term demand outlook for PGMs is miserable, with supply chains breaking down as both luxury goods and car sales sales collapse.
Companies: Sylvania Platinum
Oil declined for a fifth straight week amid a one-two punch from collapsing demand due to the coronavirus crisis and ballooning supply from producers vying for market share. Futures in New York slumped 4.8% on Friday and are poised for the biggest quarterly drop on record as weak demand and an onslaught of supply roil markets. Refineries across the globe are curbing consumption as fuel use declines with people staying home. Meanwhile, major trader Trafigura Group expects as much as 1 billion barrels to be sent into storage tanks. More oil is headed into stockpiles as the Russia-Saudi war for market share that exacerbated crude's crash this month shows no sign of abating. The kingdom held firm on Friday, saying it hasn't had any contacts with Moscow about output cuts or on enlarging the OPEC+ alliance of producers. Russia also doubled down, with Deputy Energy Minister Pavel Sorokin saying oil at $25 a barrel is unpleasant, but not a catastrophe for Moscow. US crude has tumbled about 65% so far this quarter. The crash has crippled domestic producers who are forced to cut production for the first time in 35 years. The International Energy Agency this week warned that global demand was in “free fall” amid coronavirus lockdowns. Meanwhile, Iraq -- OPEC's second-biggest producer -- will allow national oil companies to boost their output and export without imposing any ceiling. Algeria has asked for an emergency OPEC board meeting to discuss the cuts. It comes as one of the world's largest supertanker owners said that ships are being filled with crude at a record pace, as land storage rapidly diminishes. Prices: West Texas Intermediate fell $1.09 to settle at $21.51 a barrel in New York on Friday. Prices dropped 4.1% this week. Brent crude lost $1.41 to settle at $24.93 a barrel. Swaps markets show that physical crude is selling several dollars below benchmark prices. The signs of storage starting to fill are growing, too. Inland tanks for heating oil in Germany are now full, while Pakistan banned oil imports on Thursday because its stockpiles are now sufficiently built up. Rigzone.
Companies: FOG PVR 88E DGOC EME POS TRIN UOG
Oil posted a record weekly jump on hopes that global producers will decide to make historic output cuts next week, though optimism was tempered by concern that the curbs will not avert a glut. The OPEC+ coalition including Saudi Arabia will hold a meeting of its members by video conference on Monday, with the gathering open to even producers outside the group. While it's unclear who will attend, market watchers are predicting that stockpiles are likely to swell even if global supplies are cut by 10 million barrels a day. Investors will be closely watching the guest list of the meeting -- especially names outside the Organisation of Petroleum Exporting Countries and its allies -- after Saudi Arabia made clear it will only cut production if others, including the US, shoulder some of the burden. US West Texas Intermediate futures ended the week up 32%, while Brent crude jumped 37%. Still, prices are less than half the levels at the start of the year, with the coronavirus crisis crushing demand. One delegate from the producer group said a global cut of 10 million barrels a day is a realistic goal. Russian President Vladimir Putin told the country's top oil executives that producing countries should join together to slash output to reverse the collapse in prices, adding that worldwide curbs of a little above or below 10 million barrels a day are possible. Meanwhile, US President Donald Trump is convening an extraordinary gathering of the nation's biggest refiners and producers at the White House on Friday. They are expected to discuss possible relief efforts from the administration, including potential American output cuts. Prices: West Texas Intermediate for May delivery rose $3.02 to settle at $28.34 a barrel Friday. Global benchmark Brent crude for June settlement jumped 14% to $34.11 a barrel. Gasoline futures rose 2.88 cents to 69.16 cents a gallon Friday. Getting countries from all over the world to agree would be a tough task. Even if that's successful, an output reduction of the size that's being discussed will be just a fraction of the 35 million barrels of daily demand destruction some traders now see
Companies: FOG PVR 88E DGOC EME UKOG TRIN UOG
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
Strategic Production Acquisition and TSX Listing i3 Energy announced today that is has entered an option agreement to acquire all of the outstanding shares of TSX listed Toscana Energy Income Corporation. Toscana produced on average 1,065 boe/d in 2019 and has 2P reserves of 4.65 mmboe of which 55% consists of oil (and natural gas liquids) and 45% consists of natural gas. Toscana's low-decline production is located in Western Canada. Toscana's lands include a very large holding over one of Western Canada's leading new oil plays targeting the Clearwater formation. i3 Energy has acquired the entirety of Toscana's $C28.2M of senior and junior secured debt for $C3.4M representing a price of $C0.12 per dollar of outstanding debt. i3 is now Toscana's secured lender. The debt purchase was funded with i3 Energy's existing cash resources. i3 Energy has agreed to issue up to 4,399,224 of its shares, representing circa 4% of i3 Energy's existing share capital to acquire the entirety of Toscana's shares, representing a market value of circa $C0.55M based on the market values of 27 March 2020. We believe the announcement represents a positive and transformational change for i3 Energy.
Companies: I3 Energy
Caledonia today announces that it has taken the prudent decision to defer its approval for the payment of the second quarterly dividend (7.5c/sh - $0.9m - 7% of declared Caledonia cash). The Blanket mine in Zimbabwe remains in operation (at a slightly reduced capacity to secure Covid-19 social distancing) and the mine site remains well-stocked with supplies, so despite the current difficulties getting supplies from South Africa production at the mine can continue for some time to come; 2-3 months in our opinion, if the supply chain from South Africa ceased altogether. Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning, the group has released an update in light of COVID-19. The Board reports that it has taken swift action to re-engineer processes to adhere to government guidelines, whilst maintaining client service levels. Q1 2020 trading is reported to have been ‘broadly' in line, with revenue growth of 40% from continuing operations and outstanding orders to ship to customers in the coming months. Q1 was cash neutral, which follows on from the RNS on 5 February, of a net cash position of £849k as at 31 December 2019.
Companies: Caledonia Mining Corporation Plc Com Shs Npv Touchstar
We are reinstating coverage with a Buy rating and price target of 50p following the recent £15m share placing to fund production scale-up for micro-batteries. Our TP reflects a DCF of the micro-battery business which has sufficient customer interest to achieve over £12m annual sales by FY23 and £25m later this decade we believe, generating EBITDA of £1.7m and £7m respectively.
Despite the severe effect of Covid-19 in the United States, normal operations continue for Diversified Gas & Oil (DGO), with little or no impact as a result of the virus. DGO's low decline production, low operating costs and proactive hedging programme, mitigate the impact of the low commodity prices, locking in cash flows and protecting the dividend. With rigs, capital and companies abandoning US oil shale, production is expected to plateau in May 2020 before declining. The decline in US oil shale production will also translate into lower associated gas production. Whilst existing stockpiles may be large enough to prevent a rally in gas prices this year, it sets the stage for a tighter market in 2021 as gas production continues to fall as demand rebounds. Whilst many of its North American and London listed peers have reduced, suspended or cancelled their dividend, DGO remains committed to maintaining its dividend to its shareholders. We reiterate our BUY recommendation and our 148p/share price target.
Companies: Diversified Gas & Oil
Much of the UK’s privatisation programme took place between the early 1980s and the mid-1990s: subsequent sales have been few. Undoubtedly, privatisation attracted many private investors to the market, many for the first time.
Companies: AVO AGY ARBB ARIX BUR CLIG DNL FLTA GDR NSF PCA PIN PXC PHP RE/ RECI RMDL STX SCE SIXH TRX SHED VTA
Caledonia today provides an update on its Blanket mine in Zimbabwe in the light of the full lockdown other than “for essential services” from today as ordered by President Mnangagwa. The mine is still operating as the authorities will grant exemptions for businesses which demonstrate they can operate in a manner that contributes to the management of the spread of Covid-19 infections. Caledonia has applied for this exemption.
Companies: Caledonia Mining Corporation Plc Com Shs Npv
PowerHouse has signed an option for an exclusivity agreement for the UK with Peel Environmental. This potentially makes Peel the lead developer of DMG waste-to-energy projects, both on its own extensive land bank and on sites belonging to councils and waste management companies and other industrial partners across the UK. The agreement provides a mechanism for PowerHouse to monetise its IP through licensing and means PowerHouse will not need to raise finance for individual projects.
Companies: Powerhouse Energy Group
Quadrise’s business development activity has intensified in the last nine months, with progress on opportunities in Morocco, South America, Saudi Arabia (KSA) and the marine sector. COVID-19 will potentially extend the length of time taken to complete trials. However, management notes that the current low oil prices are not likely to have a material impact on interest in using its innovative MSAR fuel as a heavy fuel oil substitute.
Companies: Quadrise Fuels International
Ironveld has signed a range of conditional financing agreements with Inclusive Investment Group (IIG) that mark a step change in its ability to advance its iron, vanadium and titanium project in the prolific Bushveld Complex of South Africa. The agreements will see IIG provide Ironveld with $3.2m in both debt and equity with IIG to take a stake of up to 46.8% in the company subject to certain shareholder approvals. This locks IIG in as a meaningful strategic partner and should allow Ironveld to progress Phase I of its project while it seeks the broader financing required to bring it in to development
Oil posted the biggest weekly plunge since 2008, capping its most dramatic week in recent memory as major producers prepare to drench the market with supply just as the coronavirus crushes demand. But prices jumped following the close, after President Donald Trump said the U.S. would fill the nation's strategic reserve. Losses for the week totalled 23% after the collapse of talks between members of the OPEC+ group triggered the biggest crash in a generation. Instead of reaching a deal to cut output to mitigate the fallout from the virus, producers led by Saudi Arabia and Russia embarked on a war for market share and pledged to pump more.
Companies: TGL TXP VLU EGY GTE CNE DGOC ENQ SQZ UKOG TRIN TLW PHAR