Altus Strategies* (ALS LN) – BUY – 132p (from 115p) – Good Diba metallurgical testwork points to better project economics | Atalaya Mining (ATYM LN) – Feasibility study on new cathode production technology | Chaarat Gold* (CGH LN) – BUY – Robust Q3 results with FY20 guidance reiterated | Empire Metals* (EEE LN) – Gold grades from drilling at Eclipse indicate potential for further discovery | Gem Diamonds (GEMD LN) – Improving diamond prices from Letšeng | KAZ Minerals (KAZ LN) – Nova Resources to buy Kaz Minerals in £3bn deal | Rainbow Rare Earths* (RBW LN) – Results | Savannah Resources* (SAV LN) – Advances on the Mina do Barroso lithium project | Trans-Siberian Gold (TSG LN) – High grade drilling results from V25 to potentially upgrade Asacha resource
Companies: ALS ATYM CGH EEE GEMD KAZ RBW SAVE TSG
Botswana Diamonds (BOD LN) – Raising £300,000 for exploration | Bushveld Minerals* (BMN LN) – Vanadium rental agreement through VERL to fund 5MW flow battery | Gem Diamonds (GEMD LN) – 143 carat diamond recovered from Letšeng | Hochschild Mining (HOC LN) – Revised FY20 guidance | Kodal Minerals* (KOD LN) – BUY – Kodal raises £654,000 from sale of shares by Riverfort investors | Mkango Resources* (MKA LN) – EU Action Plan for critical raw materials. | Panther Metals (PALM LN) – Geophysical encouragement from Annaburroo | Red Rock Resources (RRR LN) – Option over Slovak Gold assets | Rio Tinto (RIO LN) –Simandou controversy may be moving closer to resolution | Vast Resources* (VAST LN) – Baita Plai update
Companies: BOD BMN GEMD HOC KOD PALM RRR RIO VAST
Aura Energy* - (AURA LN) – A$250,000 convertible note | Bluejay Mining* (JAY LN) – Valuation raised to 24.7p (from 20p) – Public consultation closes for Dundas ilmenite mine plan in Greenland | BlueRock Diamonds* (BRD LN) – Diamond grades improve at Kareevlei during August | Dark Horse Resources (DHR AU) - Drilling programme designed at Tampere gold project | Ferro-Alloy Resources (FAR LN) – £500,000 share issue | Gem Diamonds (GEMD LN) – Focus on cost containment and debt reduction in H1 as global diamond output contracts | Orosur Mining* (OMI LN)– $500,000 option payment received from Newmont Columbia | Papillon Holdings (PPHP LN) - AVOID - Heads of Agreement Signed to acquire African Gold Assets | Shanta Gold (SHG LN) – MRE update: NLGM adds new ounces into reserves as West Kenya project acquisition takes Shanta resource base to 3.2moz | Tertiary Minerals* TYM – Drilling to start at Kaaresselkä in Finland
Companies: JAY BRD FAR GEMD PPHP SHG TYM
Adriatic Metals* (ADT1) – Updated mineral resource for Rupice Silver Deposit in Bosnia & Herzegovina | BlueRock Diamonds* (BRD LN) – 12.1 carat diamond from Kareevlei diamond mine valued at over US$100,000 | Gem Diamonds (GEMD LN) – 233 carat diamond recovered from Letšeng | Bluejay Mining* (JAY LN) – Greenland extends licenses and license obligations by a year | Kodal Minerals* (KOD LN) – BUY - MoU with Sinohydro to review engineering, development and financing at Bougouni | Hummingbird Resources (HUM LN) – Kouroussa acquisition completion | Highland Gold (HGM LN) – Annual guidance reiterated pointing to stronger H2/20 | Pan African Resources (PAF LN) – Trading Statement highlights impact of higher gold price Rio Tinto (RIO LN) – Oyu Tolgoi update | Savannah Resources* (SAV LN) – Disposal of Oman copper assets | Strategic Minerals* (SML LN) – Leigh Creek environmental submission
Companies: ADT1 BRD GEMD JAY KOD HUM PAF HGM RIO SAV SML
Adriatic Metals* (ADT1 LN) – Q2 Activities report | Ariana Resources* (AAU LN) – Salinbas resource increase to 1.5moz | Beowulf Mining* (BEM LN) – Results highlight frustration with Swedish government but progress at Vadar and Fennoscandian | Empire Metals (EEE LN) –- Mkt cap £4.5m – Interim results | Gem Diamonds (GEMD LN) – H1 2020 diamond sales | IronRidge Resources (IRR LN) – Further drilling results from Zaranou gold project in Ivory coast | Premier African Minerals* (PREM LN) – Conversion of loan from CEO
Companies: ADT1 AAU BEM EEE GEMD IRR PREM
Bluejay Mining* (JAY LN) – US aid and consulate to help Greenland develop mineral resources | Gem Diamonds (GEMD LN) – Resumption of operations at Letseng | KEFI Minerals (KEFI LN) – Tulu Kapi project update Serabi Gold* (SRB LN) – Amended terms for Coringa acquisition confirmed
Companies: JAY GEMD KEFI SRB
Aura Energy* - (AURA LN) - EGM schedule | BHP (BHP LN) – Quarterly production report leaves guidance largely unchanged | Gem Diamonds (GEMD LN) – Q1 trading update | Power Metals* (POW LN) - Alamo gold project expansion and extension | Tertiary Minerals* TYM – Pyramid Gold project
Companies: AURA BHP GEMD POW TYM
Altus Strategies* (ALS LN) 25.0p, Mkt Cap £17.5m – CEO of La Mancha joins the Board | Atalaya Mining (ATYM LN) 94.5p, Mkt Cap £123.6m –Operations resume at Proyecto Riotinto| Chesterfield Resources (CHF LN) – Cyprus lock-down forces suspension of drilling | Gem Diamonds (GEMD LN) 29.4p, Mkt Cap £39.6m – Further diamond sales | Kore Potash (KP2 LN) 0.62p, mkt cap £9.5m – EIA approval for 25 years | SolGold* (SOLG LN) 17.7p, Mkt cap £334m – SolGold honey
Companies: ATYM CHF GEMD KP2 SOLG
Ariana Resources* (AAU LN) – Due diligence completed | Botswana Diamonds (BOD LN)* – New exploration licences in Botswana | Caledonia Mining* (CMCL LN) – Deferral of dividend | Central Asia Metals (CAML LN) – 2019 results and decision to forego a dividend distribution | Gem Diamonds (GEMD LN) – Diamond sale | Glencore (GLEN LN) defers $2.6bn dividend decision.| Greatland Gold (GGP LN) –Newcrest exploration achieves 40% interest in the Havieron project | Strategic Minerals* (SML LN) – Experiencing little impact from Covid19 | Scotgold Resources* (SGZ LN) – Interims | Vast Resources* (VAST LN) – Chiadzwa Community Diamond Project update
Companies: AAU BOD CMCL CAML GEMD GLEN GGP SML SGZ VAST
Anglo Asian Mining* (AAZ LN) – Production maintained amid escalating state COVID-19 containment measures | Adriatic Metals* (ADT1 LN) – Gravity data reveals additional targets | Ariana Resources* (AAU LN) – Subsidiary pays Ariana £1.6m dividend | Aura Energy* (AURA LN) – Postponement of EGM | Caledonia Mining (CMCL LN) – Virus mitigation measures in place | Gem Diamonds (GEMD LN) – Letseng placed on care and maintenance | Polymet Mining* (PLM N) - Minnesota Supreme Court will hear appeal on three PolyMet permits | Sunstone Metals Limited (STM AU) – Identification of high-grade gold-copper porphyry targets at Bramaderos | Serabi Gold* (SRB LN) –– Higher gold prices and falling Brazalian real
Companies: AAZ ADT1 AAU AURA CMCL GEMD SRB
Anglo American (AAL LN) – Green Hydrogen Consortium with BHP, Fortescue and Hatch | Arc Minerals (ARCM LN) –– Sale of CASA Mining asset for US$5m loan note plus royalty agreement worth up to $45m | Ariana Resources (AAU LN) – 2020 Production guidance | Bushveld Minerals* (BMN LN) – Appointment of Eskom trouble-shooter Ms Mokgatle as an Independent Non-Executive Director | Capital Drilling (CAPD LN) – After-tax profit rises 34% in 2019 | Cora Gold* (CORA LN) – £2.9m equity raise | Gem Diamonds (GEMD LN) – Letseng small diamond tender succumbs to anti-virus precautions | Highland Gold (HGM LN) – Capital projects update
Companies: AAL ARCM AAU BMN CAPD CORA GEMD HGM
Danakali (DNK LN) – Completion of Phase 1 mobilisation at Danakali | Gem Diamonds (GEMD LN) – Letseng recovers 114 carat diamond | Serabi Gold (SRB LN) – Step out drilling further extends mineralised envelope at Sao Chico | Talga Resources* (TLG AU) – Environmental approval for Stage 1 trial mine of 25,000t graphite | Renascor Resources Ltd* (RNU AU) – Support from Australian government Export Finance Agency
Companies: DNK GEMD SRB TLG
Altus Strategies* (ALS LN) – Start of JV funded ground magnetic survey at Tabakorole, Mali | Amur Minerals* (AMC LN) – Appointment of an Advisor to the Board | Beowulf Mining* (BEM LN) – Beowulf considers options with lawyers over licensing of its Kallak project in Sweden | Gem Diamonds (GEMD LN) – Further evidence of recovering diamond prices | SolGold* (SOLG LN) – Rio Amarillo exploration results
Companies: AMC BEM GEMD SOLG
Altus Strategies* (ALS LN) – La Mancha strategic investment and an equity raise | Arc Minerals* (ARCM LN) STRONG BUY – More high-grade copper mineralisation discovered close to surface at Cheyeza East target in Zambia | Gem Diamonds (GEMD LN) – Letšeng production and cost guidance adjustments and quarterly update | Lucara Diamonds (LUC CN) – Positive underground feasibility study for Karowe | Shefa Gems (SEFA LN) – Convertible facility
Companies: ARCM GEMD 0QUI SEFA
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GeoPark (GPRK US)C; Target price of US$20.00: Divesting non-core asset in Brazil - GeoPark is selling its 10% non-operated working interest in the Manati gas field in Brazil to Gas Bridge for US$27 mm. We do not see much upside to the Brazilian asset (in terms of growing reserves or through exploration opportunities) and this divestment may allow GeoPark to reallocate resources to its core operations. We would rather see management remaining focused on deploying capital on higher return assets such as Colombia and Ecuador. Even after this week’s share price appreciation, our Core NAV continues to be 60% above the current share price. Our unrisked NAV for the 2021 drilling programme is ~US$9.00 per share, which represents ~90% of the current share price.
Panoro Energy (PEN NO)c; Target price of NOK23.00: 2021 will be a transformational year - 2020 has been a difficult year for the oil and gas industry and 2021 is a turning point for Panoro. In Gabon, development activities at Ruche are expected to return to normal with gross production set to grow to 20 mbbl/d. The company will also appraise Hibiscus to test the 155 mmbbl upside case (=2x existing 2P reserves). The development of Hibiscus is expected to be sanctioned. Importantly, while the existing FPSO has a nominal oil processing capacity of 45-45 mbbl/d, processing expansion is possible which allows for a potential oil production plateau of 70 mbbl/d. We estimate the value of Panoro’s reserves in Dussafu at NOK10.40 per share. Derisking the contingent resources in Gabon could add ~NOK3 per share. We estimate that the upside at Hibiscus has a further unrisked NAV of ~NOK10 per share for a total unrisked NAV of NOK23 per share for the discovered and “to be appraised” volumes in Gabon. Overall, including Nigeria, South Africa and Tunisia, we estimate the unrisked value of the 2021 activities at NOK30 per share; which represents 2.3x the share price. Our target price of NOK23 per share has been set close to our ReNAV.
Pharos Energy (PHAR LN)c; Target price of £0.35: Low cost. Quickly scalable. High impact, quality exploration – Pharos is a £ mm market cap, ~12 mboe/d oil producer that acquired the Egyptian assets of Merlon in 2019. Under the stewardship of a blue-chip management team that turned Cairn Energy from a micro-cap into a successful E&P that returned US$4.5 bn to shareholders, Pharos has undergone a multi-faceted transformation, enhancing governance and rebalancing its asset portfolio. Given the recent macro challenges, this process appears to have gone unnoticed by many investors. Pharos now holds ~50 mmboe 2P reserves in Egypt and Vietnam. Vietnam provides stable cash flows even at low oil prices. Egypt production can be increased rapidly (up to x2.5 to 13 mbbl/d) with additional investment. Pharos also holds world class exploration assets in Israel, Egypt and Vietnam. With a healthy balance sheet (cash: ~US$38 mm, net debt:~US$36 mm), Pharos’ shares trade at EV/DACF multiples of 5,000 bbl/d, increasing production from the Shaikan field by~15%. FY20 gross production is expected to be at the upper end of the 35,000 – 36,000 bbl/d production guidance, with the field currently producing at ~39,000 bbl/d.
LEKOIL (LEK LN): Requisition from large shareholder to change the board of the company - LEKOIL has received a letter from Metallon, holding 15.4% of the company, requisitioning an extraordinary general meeting to vote on the replacement of the Chairman and the appointment of Michael Ajukwu, Thomas Richardson and George Maxwell as directors of the company.
Orca Exploration (ORC.A/B CN): 3Q20 results - 3Q20 WI production in Tanzania was 60.9 mmcf/d. At the end of September, Orca held US$79.2 mmm in working capital including US$98.5 mm in cash and long-term debt
of US$54.2 mm.
Tullow Oil (TLW LN): Capital Market Day – 2020 production to date averages 75 mbbl/d with FY20 production guidance of 73-77 mbbl/d. Assuming an oil price of US$45/bbl in 2021 and US$55/bbl flat nominal from 2022 onwards, Tullow expects to generate US$7 bn of operating cashflow over the next 10 years with capex of US$2.7 bn. The first phase of investment will start in 2Q21 with the commencement of a multi-well drilling programme in Ghana. In Suriname, the prospective Goliathberg-Voltzberg North-1 well will spud in 1Q21.
Victoria Oil & Gas (VOG LN): Positive licence update in Cameroon – The duration of the onshore Matanda licence has been extended by one year to December 2021. The gross unrisked prospective resources are now estimated at 1,196 bcf, up from 903 bcf previously. 19 gas prospects haven identified in shallower Tertiary-aged reservoirs, plus 7 prospects in deeper, Cretaceous-aged prospects. The Company believes the largest of these prospects has mean unrisked Prospective Resources of >65 bcf, with geological Chance of Success estimated at >40%.
Companies: VOG BPC ENQ GPRK JOG JYOGF TPC1 7M7 0GEA MAHAA PEN PHAR RBD REP SENX TLW
We are replacing our preliminary valuation of i3 Energy, which had been premised on the valuations of GLJ and Sproule, with our own valuation model and our own commodity price assumptions. The resource estimates assumed in our valuation remain aligned with those of i3 Energy's resource evaluators, namely, GLJ, Sproule and AGR Tracs. Our fair value amounts to 15.0p/share, which compares to our prior and preliminary valuation of 17.7p/share. Our valuation is premised on the proven and probable reserves of the company's Canadian assets; therefore, we believe that the company's current share price provides an opportunity to acquire a compelling investment at a steeply discounted entry price.
Companies: i3 Energy Plc
Pantheon announced that is has contracted a rig to drill the Talitha well and that drilling operations are expected to commence in January 2021. The well will target four independent reservoirs, in three separate trapping sequences, which the company estimates has the potential to contain in the region of a billion barrels of recoverable oil, although ongoing work is required to formally delineate the full potential of the targets.
Companies: Pantheon Resources plc
The Prime Minister vowed last week to “restore Britain's position as the foremost naval power in Europe” and promised an extra £16.5bn in defence spending over the next four years. Mr Johnson expects this investment to “spur a renaissance of British shipbuilding across the UK”, and specifically mentioned five locations where this would occur, including Belfast and Appledore – the location of InfraStrata's shipyards. Other supportive policy initiatives emanating from the government include Mr Johnson's pledge in October that offshore wind will power every home in the country by 2030. We believe this demonstrable support from the highest level of government vindicates InfraStrata's strategy, and demonstrates the significant opportunities available to the company as it bids on numerous shipbuilding and fabrication contracts. We reaffirm our Buy rating.
Companies: InfraStrata plc
• In an Important development, PetroTal has signed a contract with an international oil trader for a pilot shipment to export 0.12 mmbbl into the Atlantic region using the Amazon river through Brazil. The shipment will be sold FOB Bretana, priced at the forward month Brent ICE price, and paid within two weeks of loading at Bretana. There are no subsequent oil price adjustments.
• At November 19, 2020, PetroTal had cash resources of US$9.8 mm, with accounts payable and accrued liabilities of ~US$39 mm, a reduction of ~US$11 mm from the end of 2Q20. The company has been paid US$5.5 mm for delivery of 0.192 mm bbl of oil to Petroperu in October. Production is constrained to ~5,000 bbl/d pending the reopening of the export pipeline.
• We understand that the pilot should start in December. This would not only provide ~US$5 mm in cash to PetroTal but also allow production to return to recent levels (11.5 mbbl/d), effectively unlocking the fundamental value of the asset.
Balance sheet considerations
The potential financial derivative liability has been reduced from US$22.5 mm at the end of June to US$17 mm at the end of September. Of the US$39 mm current payables 46% are not due before 2021 and we note that the company still holds US$13 mm in account receivables and US$4.7 mm in inventory.
Financials on “a back to normal” scenario with flat production
We are now assuming production remains constrained at 5 mbbl/d over 4Q20 with minimum capex with cashflow and receivables being used to repay the due payables over the period.
On production of just ~11.5 mbbl/d during 2021, we estimate operating cashflow of US$85 mm at US$48/bbl Brent. This would result in free cashflow of >US$40 mm assuming capex of US$20 mm to maintain production and US$20 mm to repay the remaining payables. This compares with a current market cap of just US$75 mm, suggesting FY21 free cashflow would represent over 50% of the current market cap in a no growth scenario assuming production can be exported.
Our target price of £0.45 per share represents 6x the current share price.
Companies: PetroTal Corp.
EQTEC has announced today that the Company and Scott Bros. Enterprises Limited have agreed to extend the exclusivity period of the Billingham MOU until 18 December 2020. The Billingham MOU has been subject to previous extensions, as announced on 23 October 2019, 23 June 2020 and 18 September 2020.
Companies: EQTEC PLC (KEU1:FRA)EQTEC PLC (EQT:LON)
Parkmead’s portfolio has evolved to the point where it is now a full-cycle E&P company with a low-cost Dutch production base and a broad spectrum of high-quality UK growth opportunities, encompassing material development projects and an attractive range of risk/reward exploration. Recently, it has diversified into renewables, future proofing its equity story and opening up a new ‘investor-friendly’ avenue of growth. A core strength of this management team is its commercial acumen and portfolio-driven approach to optimising value. Parkmead has been in portfolio construction mode to date but is now well positioned to start crystallising its intrinsic value. We initiate with a risked-NAV based price target of 155p/sh. Investors would do well to get on-board with a management team that has a strong track record of delivering shareholder value.
Companies: Parkmead Group PLC
Salt Lake Potash's AGM update reported that the Lake Way project is now 74% complete. Construction of the process plant is on-schedule with practical completion and first SOP production planned for Q1/21. Drawdown of the Senior Facility Agreement funds and repayment of the Taurus bridge loan is expected soon.
Companies: Salt Lake Potash Limited
Oil rose to the highest in nearly three months with positive Covid-19 vaccine developments paving the way for a more sustained recovery in oil demand.
Futures rose 5% in New York this week for a third straight weekly gain as Pfizer Inc and BioNTech SE requested emergency authorisation of their Covid vaccine Friday. Moderna Inc also released positive interim results from a final-stage trial and said it is close to seeking emergency authorisation. Still, further gains were limited by broader market declines amid a dispute between the White House and the Federal Reserve over emergency lending programmes.
Even with vaccines on the horizon, a recovery in oil demand faces obstacles with governments under pressure to tighten restrictions and curb the spread of the virus. UK Prime Minister, Boris Johnson's officials are considering tougher pandemic rules placed on broader regions of England next month after a national lockdown is set to end and the country returns to its tiered system. Meanwhile, the shift toward working from home may have a lasting chill on gasoline demand, according to Federal Reserve Bank of Kansas City President Esther George.
The recent climb in headline prices has been accompanied by significant moves in timespreads, where traders bet on the price of oil in different months. The spread between West Texas Intermediate for December 2021 delivery and the following month moved to backwardation, while the closely watched gap between December 2021 and 2022 WTI contracts is close to also flipping.
West Texas Intermediate for December delivery, which expired Friday, rose 41 cents to settle at $42.15 a barrel.
The January contract rose 52 cents to end the session at $42.42 a barrel.
Brent for January settlement gained 76 cents to $44.96 a barrel. The contract rose 5.1% this week.
Pfizer and BioNTech's vaccine could be the first to be cleared for use, but first it must undergo a thorough vetting. The filing could enable its use by the middle to the end of December, the companies said in a statement. Yet, it could take at least three weeks for a US Food and Drug Administration decision.
Companies: FOG PVR 88E DGOC EME TRIN UOG
Jersey Oil & Gas announced today that is has entered into an agreement to acquire the entire share capital of CIECO V&C (UK) Limited, which is currently owned by two international entities headquartered in Japan. The acquisition secures an additional 12% working interest in Licence P2170 (Blocks 20/5b & 21/1d), which provides Jersey Oil & Gas with 100% of the licence. The licence contains the majority of the Verbier oil discovery in addition to three drill ready prospects: Verbier Deep, Wengen and Cortina. The acquired entity has approximately £15M of tax losses which will provide value to Jersey Oil & Gas. Consideration will consist of £150k in cash and contingent payments of i) £1.5M upon field development plan approval of Verbier within P2170 (as already discovered) by the OGA ii) £1.0M upon the 1st anniversary of attainment of first oil. The acquisition is conditional on OGA approval amongst other technicalities, which we do not anticipate will be problematic. The acquired entity will be free of debts.
Companies: Jersey Oil & Gas PLC
Acquisition of CIECO P2170 interest
Companies: JOG JYOGF TPC1
Panoro Energy (PEN NO)c; Target price of NOK23.00: Revisiting Gabon - BW Energy provided an update on Dussafu with FY20 production guidance expectation marginally below previous guidance (14.25 mbbl/d versus 15 16 mbbl/d) due to COVID-19 restrictions and OPEC+ quotas. This results in FY20 opex expected to be US$19/bbl which is slightly above the previous guidance of US$17-18/bbl. The drilling of DTM-7H, and the tie-in of DTM-6H and -7H, has been deferred to mid-2021 with first oil expected in 3Q21 and our estimate of the timing of the field production ramp-up has been delayed by one quarter. BWE continues to expect production from the Dussafu area to reach >30 mbbl/d in 2023 and ~40 mbbl/d in 2024. The Hibiscus development is expected to offer 15% IRR at
Companies: TGL TGA 88E FEC JSE LUPE LUNE LNDNF LYV NOG GB_NTRM NSTRY 3NO PANR P3K PTHRF PTAL TETY TETY AOI ENOG PEN SDX EGY
Low cost. Quickly scalable. High impact, quality exploration
Pharos is a £55 mm market cap ~12 mboe/d oil producer that acquired the Egyptian assets of Merlon in 2019. Under the stewardship of a blue-chip management team that turned Cairn Energy from a micro cap into a successful E&P that returned US$4.5 bn to shareholders, Pharos has undergone a multi-faceted transformation, enhancing governance and rebalancing its asset portfolio. Given the recent macro challenges, this process appears to have gone unnoticed by many investors. Pharos now holds ~50 mmboe 2P reserves in Egypt and Vietnam. Vietnam provides stable cash flows even at low oil prices. Egypt production can be increased rapidly (up to x2.5 to 13 mbbl/d) with additional investment. Pharos also holds world class exploration assets in Israel, Egypt and Vietnam.
Cash engine in Vietnam
Pharos produces ~6 mboe/d from two offshore assets with ~21 mmboe 2P reserves and 13 mmboe 2C resources (WI). The key asset is the TGT field (29.7% WI) with 24 mmboe 2P reserves plus 2C resources implying just 25% recovery factor. At US$22/bbl for Brent, production can be maintained flat. At US$40/bbl, the assets generate Free Cash Flow of US$20-25 mm per year. 6 new wells will be drilled from 4Q21 to grow production to 8 mboe/d. Obtaining approval to drill 9 more wells would add 9 mmboe WI 2P.
Scalable growth in Egypt
Pharos produces ~5.5 mbbl/d from the El Fayum licence (Western Desert) with 29 mmbbl 2P and 23 mmbbl 2C. A 3D campaign and >120 wells have improved the understanding of the geology where production growth is driven by waterflood and drilling. The pace of growth is proportional to the number of rigs directly reflecting the available funding. Without further investment, the assets break even at current oil prices but production declines fast. Four rigs and early investment maximizes value but requires additional funding or a partner.
High quality exploration
At El Fayum, there are 108 mmbbl prospective resources across the shallow horizons and the deeper Pre-Khatira play. North Beni Suef is also a promising licence. Israel is about chasing giant structures (Zhor/Tamar plays). In Vietnam, Pharos holds interests in the Phu Khanh frontier basin.
With a healthy balance sheet (cash: ~US$38 mm, net debt:~US$36 mm), Pharos’ shares trade at EV/DACF multiples of
Companies: Pharos Energy PLC
Trifast has reported FY21 interim results that highlight the tough operating conditions with material falls in revenue, and operating leverage driving sharp reductions in profitability. The c.£16m equity raise helped to cushion the financial impact and the ongoing recovery exiting the first half provides some optimism for the Group heading in to FY22. We reinstate our buy recommendation.
Companies: Trifast plc (TRI:LON)Trifast plc (25D:BER)
Today's news & views, plus announcements from KGF, MRO, UU, BAB, BRW, FUTR, GNS, HICL, LIO, AEXG, FUL, KWS
Companies: AEX GNS HICL