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ADX Energy (ADX AU)C; Target price of A$0.060 per share: Anshof production to start early October – Production from Anshof-3 is expected to start in mid-October. A sustained rate of approximately 100 bbl/d is expected during long term production testing. The processing, storage and transportation charge for Anshof crude will be ~US$11/bbl.
Arrow Exploration (AXL LN/CN)C; Target price of £0.45 per share: Well test result at East Pepper
Companies: REP REP ADX ALV ALV AXL BP/ CNE CNE CE1 CHAR ECHO ENOG ENI ENI ENQ GPRK GPRK MAHAA
ADX Energy (ADX AU)C; Target price of A$0.06 per share: Raising new equity to accelerate high impact drilling – ADX has raised A$ 2.55 mm of new equity priced at A$ 0.006 per share. New investors will also receive one option for every two placement shares at a strike price of A$ 0.013 per share with an expiry date of 2 years. The proceeds of the raise will fund (1) the planning and purchase of long lead items for the high impact 800+ b
Companies: KOS TGL SNM SU SQZ HUR JSE TXP FEC GTE DEC CNE ALV EGY VLE 88E AOI DNO AKRBP ZPHR TETY ADX GPRK ALV MAHAA
• 2Q22 operating cash flow of US$123 mm was ~US$10 mm higher than our forecast due to higher revenue and lower cash taxes than we anticipated. The lower tax might be due to FX effect and potentially reflects timing of payments.
• The FY22 production guidance of 38.5-40.5 mboe/d with US$200 220 mm capex has been re-iterated. Current production is ~39-40 mboe/d.
• GeoPark has Initiated production tests in the Cante Flamenco exploration well, where preliminary logging information indicated ~40 ft
Companies: GeoPark Ltd
Challenger Energy (CEG LN); Under review : Operating update in Trinidad – Total gross oil production for 2Q22 was ~375 bbl/d, representing an approximately 6% increase over 1Q22. The quarter was adversely impacted by especially severe torrential rains in the last two weeks of June, which caused several days of downtime.
GeoPark (GPRK US)C; Target price of US$39 per share: Strong 2Q22. Guidances reiterated – 2Q22 WI production was 38,9
Companies: VOG AKRBP CEG CHAR DNO GPRK HHR HUR PHAR SQZ TRIN EGY ZPHR
• 2Q22 WI production was 38,940 boe/d, marginally above the production reported over April and May (38,726 boe/d) and our expectations (38,665 boe/d).
• WI production at CPO-5 of 6,090 bbl/d continues to be very high (we expected 5,500 bbl/d).
• While production in Chile was in line with our forecasts, production in at Platanillo (2,345 bbl/d including a two week shut down compared to our expectations of ~2,000 bbl/d), Brazil (1,695 boe/d versus our expectations of 1,192 boe/d) and Ecuador (634
Arrow Exploration (AXL LN)C; Target price of £0.45 per share: Another well delivers flow rate above expectations – The RCS-1 well was flow tested at oil rates of up 1,872 bbl/d (936 bbl/d net to Arrow) of 30 API crude from the C7B sands. The zone was tested for 33 hours at an average oil rate of 1,076 bbl/d (538 bbl/d net to Arrow) with no formation water. Production will start next week at ~1,000 bbl/d (500 bbl/d net) in order to mini
Companies: UKOG TXP SQZ BLOK AOI 88E ZPHR GPRK CEG AXL
• Production from April to May was 38,726 boe/d in line with expectations. Gross production at CPO-5 continues to be >20 mbbl/d. For the first time, GeoPark is providing a production target for 2026 of 55-60 mboe/d through risked exploration.
• The Urraca-1 exploration well on CPO-5 encountered heavy oil in the Mirador with no reservoir in the Guadalupe. The well was drilled at the edge of Guadalupe potential structure and the result has a negligible impact on prospective resources. The Mirador
ADX Energy (ADX AU)C; Target price of A$0.060 per share: Better reservoir performance than expected at Anshof - The Anshof-3 well has flowed at a maximum rate of 132 bbl/d (light oil and no water) from the Eocene reservoir. This is well above the flow rate of ~75 bbl/d announced two weeks ago and initial expectations of 40 80 bbl/d. Downhole pressure data recorded during the test also indicates better than expected reservoir flow perfo
Companies: TXP PXT TGL SENX KOS CZA AOI CNE EQNR I3E TETY VLE GENL FEC ENOG EME DNO CNE AKRBP ALV PEN GPRK ADX LBE ALV PEN
• 1Q22 production and net cash at the end of March had already been reported.
• CPO-5 continues to perform very well with >20 mbbl/d gross production, (+1 mbbl/d versus previous indications).
• In light of the high oil price, GeoPark is increasing its FY22 activity programme with the FY22 capex guidance now standing at US$200 220 mm (US$160-180 mm previously) to drill 50-55 wells (+8-9 wells versus previous guidance).
• The company is also increasing its FY22 production guidance from 35.5-37.5 m
VAALCO Energy (EGY LN/US)C; Target price of £8.00 per share: Encouraging development well results - The Avouma 3H-ST development well encountered 268 metres of high-quality Gamba sands at the top of the structure with 28% porosity and one Darcy of permeability. This confirms the extension of the Avouma reservoir and is forecasted to increase the overall recovery from the field, potentially allowing for additional wells at Avouma. This could allow the firm to convert some 2P reserves into 1P rese
Companies: NOG EOG AKRBP SYN 88E HUR I3E EGY GPRK
• 1Q22 production was 38,022 boe/d, slightly above our expectations of ~37,200 boe/d on strong production at CPO-5 and in Brazil.
• The Indico-5 well is currently testing ~4,000 bbl/d of light oil in line with the flow rate of the Indico-4 well.
• Overall, CPO-5 is now producing ~19,000 bbl/d (gross). It is ranking as one of the top 10 highest oil-producing fields in Colombia. In addition, the reservoir continues to perform very well. The Indico-1 well drilled in 2018 is still producing 5,200 b
Looking at E&P Free Cash Flow - While companies still carry hedges contracted at lower prices, we estimate our producer universe will generate ~25% FCF yield (defined as FCF/EV) in 2022 at ~US$100/bbl. At just US$70/bbl, the overall FCF yield is estimated at 15% for 2023 and >20% for 2024. Assuming US$110/bbl, this increases further to ~40% for each of 2023 and 2024. At YE24, balance sheet net cash, after paying shareholder distributio
Companies: SOU OMV VOG TGL SNM CASP BLOK SHEL REP IGAS ENI ECHO I3E CNE ALV SDX GPRK LBE ADX AXL CE1 PEN TAL PHAR TETY EGY WEN ALV PEN
The outlook for the Oil and Gas sector in early 2022 could not be more different than two years ago. At that time, oil prices had turned negative for the first time and many companies were focused on cutting costs and negotiating with their lenders to ensure survival. The very limited support from investors on the back of an exodus from the sector towards green energy complicated further the situation. Fast forward two years and the situation could not be more different. With the current Brent p
Companies: GPRK AXL ADX CE1 PEN PHAR TAL SDX EGY WEN TETY PEN
• We are increasing our target price from US$27 per share to US$38 per share on our newer higher oil price assumptions.
• We are now assuming GeoPark will retain its interests in the Manati field in Brazil. With gas realizations now ~US$10/mcf, this has a positive impact on NAV and cashflow. We now expect GeoPark will produce ~39 mboe/d in 2022 (+1 mboe/d compared to our previous expectations), increasing to ~41 mboe/d in 2023 with a long plateau around that level. Excluding Brazil, oil represen
Arrow Exploration (AXL LN)C; Target price of £0.30 per share: The Independent NPV estimate of the YE21 2P reserves represents ~2x the current EV – The YE21 1P, 2P and 3P reserves have increased (compared to YE20) by respectively 4.1% to 3 mmboe, 5.5% to 7.4 mmboe and 10.1% to 11.5 mmboe. The after tax NPV10 of the 1P reserves stands at ~US$25 mm in line with the current EV of the company. The after tax NPV10 of the 2P reserves has been
Companies: XOM IOG TETY TXP TCF SAVE AXL CE1 XOP CHAR ENI VLE 88E GPRK
Research Tree provides access to ongoing research coverage, media content and regulatory news on GeoPark Ltd.
We currently have 137 research reports from 3
Companies: Sylvania Platinum Ltd.
West Newton update
Companies: Union Jack Oil Plc
H1 2022 Results
Companies: IOG PLC
Companies: Savannah Energy Plc
A typically strong operational performance at Kounrad and materially higher realised zinc prices at Sasa versus the year-ago period helped CAML overcome industry-common cost inflation pressure to post a 16% increase in EBITDA and widen its margin to an impressive 63%. This in turn has given the group confidence to declare a record interim dividend of 10p, which annualised puts CAML on a compelling yield of 9%. Despite increasing metals markets volatility and the potential for further inflationar
Companies: Central Asia Metals Plc
Alternative Resource Capital
West Newton CPR assessment
Wressle update; Egdon Resources stake
H1 2022 results and farm out update
Companies: Jersey Oil & Gas PLC
Central Asia Metals (CAML LN) reported record H1 results on the back of robust production and higher commodity prices. H1 2022 net revenue of US$114m was up 13% YoY, EBITDA of US$75m was up 16% YoY and the EBITDA margin increased 2pp to 63%. An FX gain of US$7m, combined with the reductions in interest payments from debt reduction and higher profits meant net income was up 72% YoY to US$53m. With capex this year weighted to H2, the company’s free cash flow metric was up 7% YoY to US$52m enabling
Chariot has announced a partnership with Total Eren to jointly develop the Nour Project, a large-scale green hydrogen project to be located in Mauritania. The consortium will benefit from the dedicated expertise of Total Eren's team, holding a wide range of experience and knowledge in solar, wind, hybrid and green hydrogen projects globally. The involvement of Total Eren adds balance sheet strength and credibility to the project, whilst strengthening the existing relationship between Total Eren
Companies: Chariot Limited
Challenger Energy (CEG LN): Discontinuing coverage - We are discontinuing coverage on Challenger Energy Group.
Longboat Energy (LBE LN)C; Target price of £1.50 per share: 3-5 well programme in 2023. Increased resources estimate at Kveikje – There were no surprises in the 1H22 financials. The gross contingent resources estimates at Kveikje have been increased from 28-48 mmboe to 35-60 mmboe (2C-3C) based on a new CPR following post wel
Companies: HUR CNE CNE I3E CZA CASP DEC IOG PPC SQZ TRIN RBD SAVE SLE ECHO BLOK CEG LBE PTR
Falcon's Beetaloo JV partner, Origin Energy has announced its intention to exit all of its upstream exploration permits as part of a strategic decision to focus on cleaner energy and customer solutions. As part of this strategy, Origin has agreed to divest 100% of its interest in the Beetaloo Basin to a JV of Tamboran Resources and Bryan Sheffield for an upfront consideration of A$60m and a 5.5% royalty on future production from Origin's 77.5% working interest. At US$60m the upfront consideratio
Companies: Falcon Oil & Gas Ltd.
H1 was a mixed half for Bushveld, the continuing strong performance of Vametco offset by unexpected challenges associated with the commissioning and subsequent ramp up of Kiln 3 at Vanchem. The latter has prompted the group to reduce full-year group production guidance (with unit cost expectations increased somewhat), though we still expect positive EBITDA for the full-year and H2 capex and debt repayment obligations look adequately covered. The year-exit production rate target of 5,000-5,400t p
Companies: Bushveld Minerals Limited