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Auctus on Friday - 30/10/2020

Panoro Energy (PEN NO)C; Target price of NOK23.00: Delivering production growth in Tunisia – Gross production in Tunisia has averaged 4,850 bbl/d in October, up from ~4,000 bbl/d in 1Q20 following the restart of operational activities in 3Q20. The Guebiba-10 sidetrack has encountered net pay in both the Berino and shallower Douleb reservoirs. Initially bringing the Berino onstream will add a few 100s bbl/d from mid November. There are three other work-overs due in the next few months on the field and while gross production of 5,000 bbl/d now represents a new very solid base, there is also potential to quickly take gross production in Tunisia to 6,000 bbl/d. The potentially more important story of Guebiba-10 is the Douleb reservoir. While the net pay in the Douleb is smaller than at the Berino, the reservoir is of better quality and this formation, once opened (after the Berino is depleted), could generate 1.0-1.5 mbbl/d production from Guebiba-10 only. Panoro has already identified new Douleb well locations with an ongoing remapping of the field. The results of the remapping and the associated work programme should be available in 1H 2021 and could offer material opportunities for further production growth. Tethys Oil (TETY SS)C; Target price of SEK75.00: Taking control of Block 56 – Tethys is acquiring a further 45% interest in the exploration and production license covering Block 56 onshore Oman. The consideration consists of US$5 mm in cash and up to US$2 mm by way of a carry of future expenditure. The agreement further includes additional consideration in the case of a declaration of commerciality. The transaction will increase Tethys’ interest in Block 56 from 20% to 65%. Tethys is also assuming operatorship. Given that Tethys had undertaken drilling and testing activities earlier this year, we view this additional commitment as very encouraging. Block 56 has a lot of similarities to Blocks 3 & 4 and Tethys could add value by applying its knowledge of the geology of Blocks 3 & 4 to Block 56. Medco acquired Ophir Energy for >£400 mm in cash last year and, in the context of lower oil prices, we can understand Medco’s need to reduce its capital exposure to its diversified portfolio of assets. With Tethys now in control of operations, there could be more activity taking place on Block 56 in 2021 including seismic and perhaps further drilling. The share price has dropped to its lowest point in 2020, which represents a ~35% discount to our Core NAV. The core dividend represents >5% yield. Our unrisked NAV for the Thameen prospect, assuming 15 mmbbl resources, is SEK17 per year (~50% of the current share price). The current share price represents EV/DACF multiples of only 2.2x for 2020 and 1.9x for 2021. IN OTHER NEWS ________________________________________ AMERICAS BP (BP LN): Exiting Brazilian assets – BP is transferring the operatorship of a deep-water exploration block in the Foz do Amazonas basin off Brazil. Diversified Gas & Oil (DGOC LN): 3Q20 results and dividend increase– 3Q20 production in the USA was 107 mboe/d. Production from the legacy assets has been maintained at 69 mboe/d. Net debt at the end of September was US$730 mm. The company has declared a dividend for 3Q21 of US$0.04 per share up 7% versus 2Q20 dividend (US$0.0375 per share). Hess Corporation (HES US): Resources increase in Guyana – Gross resources encountered in Guyana have been increased from 8 bn boe to 9 bn boe. Maha Energy (MAHA-A SS): Strategy update – Maha plans to grow production to 15 mboe/d in Brazil, Oman and the USA over a five year horizon. President Energy (PPC LN): 1H20 results and update in Argentina – The LB-1001 well has now been tested with net pay 32% ahead of expectations. The company is expected to add ~1,030 boe/d of new gas production by the end of November including ~590 boe/d from the LB-1001 well. Production in 1H20 was 2,747 boe/d. Net debt at the end of June stood at US$11.3 mm. The exploration well EVN-x1 near the Estancia Vieja field encountered net pay of a total of 10 metres (including 7 metres of oil). These results provide support for the pre-drill projections of production of ~350 boe/d of gas and 188 bbl/d of oil. Westmount Energy (WTE LN): Drilling programme update in Guyana – Westmount holds small indirect interests in the ExxonMobil operated Kaieteur and Canje blocks, offshore Guyana. The Exxon Mobil drilling programme on both blocks has commenced, with the Tanager 1 well on the Kaieteur block currently drilling and a further two wells expected on the Canje Block over the next six to nine months. It is anticipated that the first well on the Canje Block, Bulletwood-1, will be spudded in November/December 2020. The Bulletwood-1 prospect is reported to be a 'Liza look-alike' confined channel complex and will target prospective resources of ~500 mmbbl of oil. The second well on the Canje Block will target either Sapote-1 in the east of the block or Jabillo-1, in the northwest of the block, which is reported as a billion-barrel class basin floor turbidite fan. The Tanager-1 well on the Kaieteur block (currently being drilled) targets unrisked gross prospective oil resource of 136 mmbbl to 452 mmbbl, with an aggregate chance of success 72%. EUROPE ADX Energy (ADX AU): 3Q20 update in Austria – 3Q20 production is Austria was 308 boe/d. ADX had A$2.1 mm in cash at the end of September. Aker BP (AKERBP NO): 3Q20 results – 3Q20 production in Norway was 201.6 mboe/d. The company maintains its FY20 production estimate and has narrowed the guidance range to 210-215 mboe/d from 205-220 mboe/d. Net debt at the end of September was US$3.64 bn. BP (BP LN): 3Q20 results – 3Q20 adjusted net profit was US$0.1 bn with overall production of 3,318 mboe/d (including Rosneft). 4Q20 production is expected to be slightly lower due to maintenance activities. ENI (ENI IM): 3Q20 results – 3Q20 production was 1,701 mboe/d. The company reported an adjusted net loss over the period of EUR 153 mm. The FY20 production guidance of 1.72-1.74 mmboe/d has been reiterated. Equinor (EQNR NO): 3Q20 results – 3Q20 adjusted net income was US$0.27 bn with 1,994 mboe/d production. Organic capital expenditures are estimated at ~US$8.5 bn for 2020 and ~US$10 bn for 2021, and ~US$12 bn annual average for 2022-2023. For the period 2019–2026, production is expected to grow by ~3% per year. IGas Energy (IGAS LN): Hydrogen MOU – IGas has signed a heads of terms with BayoTech, a manufacturer of modular hydrogen generation systems, to produce hydrogen IGas' existing gas resources. IGas has initially identified two of its existing sites, in the South East, where the gas resource can be reformed into hydrogen which will then be sold to local or national customers. Lundin Energy (LUNE SS): 3Q20 results – 3Q20 production in Norway was 157.5 mboe/d with free cash flow of US$164 mm. The FY20 production guidance increased from 157 mboe/d to 161-163 mboe/d with 4Q20 production targeting ~175 mboe/d. The company held US$3.7 bn net debt at the end of September. Neptune Energy: Small discovery in Norway – Well 6406/12-G-1 H (Fenja area) did not encounter reservoir rocks in either the primary or secondary exploration target. However, the well did encounter a total oil column of 38 m above the secondary exploration target in the lower part of the Intra-Melke Formation. The preliminary calculation of the 6406/12-3 A (Bue) oil discovery has now been reduced to between ~1.2 and 10 mmboe, while the estimate for the new oil discovery is between 3 and 10 mmboe. OMV (OMV AG): 3Q20 results – 3Q20 Adjusted net income was EUR80 mm with 444 mboe/d production. OMV expects total production to be between 450 mboe/d and 470 mboe/d in 2020 with total organic capex of EUR1.7 bn. Repsol (REP SM): 3Q20 resuts – 3Q20 adjusted net earnings were EUR7 mm with 616 mboe/d production. Royal Dutch Shell {RDSA/B LN): 3Q20 results – 3Q20 adjusted earnings were US$955 mm with 3,081 mboe/d production. 4Q20 production available for sales is forecasted to be 3,130-3,370 boe/d. Shell is increasing the 3Q20 dividend by 4%. Total (FP FP): 3Q20 results – 3Q20 adjusted net earnings were US$0.85 bn with 2,715 mboe/d production. Total is maintaining its quarterly dividend of EUR0/66 per share. FY20 production is expected to be ~2.9 mmboe/d with net investments of less than US$13 bn including US$2 bn in renewables and electricity. FORMER SOVIET UNION Epsilon Development: Discovery in Uzbekistan – Media reported indicated that Epsilon has discovered ~600 bcf of natural gas and 3 mmbbl of condensate at the Alouddin-4 well on the Kultak-Kamashinsky block. Overall, the company has discovered a total of ~1.4 tcf and 7 mmbbl of condensate since January. Nostrum Oil & Gas (NOG LN): 3Q20 update in Kazakhstan - Average sales volumes over the first 9 months of 2020 were 22,269 boe/d. FY20 production forecast has been increased to 21,000 boe/d, corresponding to sales volumes of 20,000 boe/d (19,000 boe/d previously). At the end of September, Nostrum held cash in excess of US$88 mm and net debt is expected not to exceed approximately US$1,074 mm. The upcoming reserves estimate may lead to a material downgrade in the company's Proven and Probable reserves. Petroneft (PTR LN): 1H20 results – 1H20 WI production in Russia was 783 bbl/d. The company held net debt of US$3.8 mm at the end of June. Zoltav Resources (ZOL LN): 1H20 results – 1H20 production in Russia was 24.3 mmcf/d for gas and 215 bbl/d for condensate. Zoltav has US$0.45 mm in cash at the end of June. MIDDLE EAST AND NORTH AFRICA Chariot Oil & Gas (CHAR LN): Potential debt funding for Moroccan offshore project – Chariot received a non-binding Expression of Interest Letter from Africa Finance Corporation for the provision of development debt finance for the Anchois Gas Discovery and the development of future discoveries from the wider prospect portfolio of the Licence. Chariot has also received a non-binding Expression of Interest for the provision of Reserves Base Lending for the development of the Anchois Gas Discovery with a Multinational Investment Bank. Both expressions of interest take into account an estimated capex of US$300-500 mm. Dana Gas: Selling Egyptian assets – Dana Gas is selling its Egypt onshore gas and condensate assets to IPR Energy for US$236 mm. The assets include 100% WI in the El Manzala, West El Manzala, West El Qantara and North El Salhiya onshore concessions and associated development leases. During 1H20, these concessions produced 30,950 boe/d, and contributed US$38 mm to the Company’s EBITDA. The consideration comprises (i) a base cash consideration of US$153 mm and (ii) contingent payments of up to US$83 mm subject to average Brent prices and production performance between 2020-2023 as well as the realization of potential third party business opportunities. DNO ASA (DNO NO): 3Q20 results – 3Q20 WI production was 97,900 boe/d, of which Kurdistan contributed 80,200 bbl/d and the North Sea 17,700 boe/d. DNO expects to exit the year with Kurdistan and North Sea production at 3Q20 levels. DNO held US$652 mm net debt at the end of September. Genel Energy (GENL LN): Update at in Kurdistan – 3Q20 gross production at the Tawke licence increased 12% versus 2Q20 to 113,700 bbl/d (50/50 split between the Tawke and the Peshkabir fields) following a campaign of quick turnaround, low cost well interventions and the startup of the Kurdistan region of Iraq’s first enhanced oil recovery project. Genel has received US$9.4 mm for crude sales in September. Gulf Keystone Petroleum (GKP LN): Payment in Kurdistan - Gulf Keystone has received a net payment of US$7.7 mm from the Kurdistan Regional Government for Shaikan crude oil sales during September 2020. ShaMaran Petroleum (SNM CN): Payment in Kurdistan – ShaMaran received a net payment of US$5.4 mm from the Kurdistan Regional Government for Atrush oil sales invoice entitlements for the month of September 2020. SUB-SAHARAN AFRICA Africa Oil (AOI SS/CN), Africa Energy (AEC SS/ AFE CN), Total (FP FP) and Impact Oil & Gas: Second gas and condensate discovery in South Africa – The Luiperd-1X deepwater exploration well on Block 11B/12B encountered 73 metres of net gas condensate pay over a mid-Cretaceous high-quality reservoir interval and did not encounter the water contact. The well will now be tested. The net pay encountered in the Luiperd target objective is much larger than the main reservoir at the Brulpadda discovery. The joint venture is now proceeding with development studies and will engage with authorities on the commercialization of gas instead of drilling another exploration well in this program. LEKOIL (LEK LN): 1H20 results - Otakikpo (Nigeria) production averaged 5,676 bbl/d over the period (2,271 bbl/d net to LEKOIL). Net debt at the end of June stood at US$15.6 mm. Seplat Petroleum (SEPL LN): 3Q20 results – Production in Nigeria over the first 9 months of 2020 was 50,653 boe/d including 100 mmcf/d for natural gas. There was a 77% uptime for the Trans Forcados Pipeline during the period and the produced liquid volumes from OMLs 4, 38 and 41 were subject to 8.6% reconciliation losses. Seplat was advised of production quota cuts of between 20%-30% across its assets in July and August. The cuts are expected to hold through January 2021. As a result, the FY20 production guidance is narrowed to 48-52 mboe/d (including 31-34 mbbl/d for liquid). The completion of the Amukpe-Escravos pipeline has been delayed again and the company now expects commencement of export of the initial permitted volume of 40 mbbl/d through the Escravos terminal in 2H21. First gas at the NOH project continues to be expected to occur in 4Q21. Seplat has declared an interim dividend of US$0.05 per share. Over the first 9 months of 2020, Seplat received a total of US$147 mm from NPDC towards the settlement of outstanding dollar-denominated cash calls and US$100 mm in Naira to offset Naira cash calls. Net debt at the end of September was US$480 mm. Victoria Oil & Gas (VOG LN): Update in Cameroon – 3Q20 gross sales rate were 4.7 mmcf/d of natural gas. During October 2020 weekday gas sales have occasionally exceeded 5 mmcf/d with a peak at 6.1 mmcf/d. One more thermal and power customer will be tied in shortly. Net debt at the end of June stood at US$12.5 mm. EVENTS TO WATCH NEXT WEEK ________________________________________ 03/11/2020: Tethys Oil (TETY SS) – 3Q20 results 03/11/2020: Genel Energy (GENL LN) – 3Q20 update 03/11/2020: Gran Tierra Energy (GTE LN/CN) – 3Q20 results 04/11/2020: GeoPark (GPRK LN) – 3Q20 results 05/11/2020: Frontera Energy (FEC CN) – 3Q20 results

DETNOR AKERBP DETNOR DETNF ARC BP/ LUPE LUNE LNDNF LYV 7M7 0GEA MAHAA RDSB TETY TETY AOI DGOC NK1A DNO DTNOF DNO DNO ENI EQNR GENL HES NOG GB_NTRM NSTRY 3NO OMV PEN PTR REP RDSA RDS RDSA RDSA34 R6C RDSA RDSA R6C3 RYDBF RDSA RDSB RYDAF RDSB RDS/A RDS/A RDS/A RDSB RDS/B RDS/B R6C2 R6C1 RDSA 134 SEPL SEPLAT 0VH4 SNM 3B8 SNM SHASF FP VOG

  • 30 Oct 20
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Auctus on Friday - 09/10/2020

SDX Energy (SDX LN)C; Target price £0.45 per share: Growing the prize, accelerating drilling - Sales in Morocco are now almost back to pre COVID 19 levels (90%). This is important for cash flow. SDX has now mapped additional prospects on the South Disouq license, resulting in gross prospective resources increasing by 139 bcf to 233 bcf. Drilling in Egypt is being accelerated to start in 2Q21 with two initial wells targeting 165 bcf, including the new Hanut prospect with 139 bcf gross prospective resources and a 33% Chance of Success. The volumes targeted by the first part of the programme are 5x larger than what we were previously anticipating (34 bcf). At the end of September, SDX held US$9.2 mm in cash with the majority of the 2020 capex programme having already been incurred. With no debt and expected FY21 cashflow of ~US$30 mm (largely unaffected by oil price movements), this leaves the company with ample liquidity to fund the upcoming drilling programme. Overall, we estimate the prospects the company will target with the drill bit over the next twelve months at £0.38 per share, which represents 2.4x the current share price. The main items are the LMS-2 well test in Morocco (£0.14 per share) and the Hanut well in Egypt (£0.16 per share). This does not include the potential for additional look-alike prospects to LMS-2 to be drilled in 2021. While the company continues to deliver positive updates and the materiality of the upcoming drilling is growing, the shares continue to trade at EV/DACF multiples of only 1.3x in 2020 and 0.5x in 2021. IN OTHER NEWS ________________________________________ AMERICAS Diversified Gas & Oil (DGOC LN): Partnership agreement with Oaktree Capital – Diversified and Oaktree are partnering to jointly pursue US PDP acquisitions with individual transaction valuations over US$250 mm. Oaktree and Diversified will fund equal portions of any acquisitions, however Oaktree will provide Diversified a 5.0% upfront promote of its funded working interest (2.5% incremental) at the time of an acquisition. In addition, upon achieving a 10.0% unlevered IRR on its investment, Oaktree will convey to Diversified 15.0% of its working interest (7.125% incremental). Maha Energy (MAHA-A SS): Production update in Brazil – Sales production for the month of September totalled ~ 3,255 boe/d, During the month of September the dual GTE-4 oil producing well was shut down for 14 days, due to workover operations. Fishing operations to date have been unsuccessful and a more rigorous workover operation is now scheduled during the fourth quarter to restore production from the AG zone. Production from the GTE-4 well (Sergi zone) resumed on the 28th of September. Tartaruga had issues during the month with unreliable power from the local grid – back up generation has been is installed and production is stabilizing. Parex Resources (PXT CN): Buy back and operation update in Colombia – Parex plans to buy back up to a further 10% of its share capital by YE20. 3Q20 production was 44.2 mboe/d and 4Q20 production is expected to be 44-48 mboe/d with US$40-50 mm capex. The company plans to drill the Cayena horizontal exploration well on the Fortuna block and one appraisal well at the Boranda Block. At Block LLA-94, the Grulla well will be re-entered. The company held US$350 mm in cash at the end of September. Phoenix Global Resources (PGR LN): 1H20 results – 1H20 production in Argentina was 4,369 boe/d. At 30 June 2020 the group had cash of US$1.4 mm and total borrowing US$317.7 mm. Proposed changes in Trinidad’s fiscal regime - The government of Trinidad is proposing to lift the threshold for the imposition of the very punitive Supplemental Petroleum Tax (SPT) from US$50/bbl to U$75/bbl. EUROPE Getech (GTC LN): 1H20 results – 1H20 revenue totalled £2.1 mm. The orderbook was £2.9 mm at the end of June. The company held £2.8 in cash at the end of June. Getech is currently negotiating with two potential Energy Transition acquisition targets. Key sectors of focus are mining, geothermal energy and the hydrogen economy. Hurricane Energy (HUR LN): Update in the UK – 3Q20 production averaged 13,600 bbl/d with current production of 14,500 bbl/d. Independent Oil & Gas (IOG LN): No offer to buy Deltic Energy (DELT LN) – Independent will not make an offer to acquire Deltic with two approaches rejected by Deltic. Lundin Energy (LUNE SS): Acquisition of exploration licences in Norway – Lundin is acquiring from Idemitsu interests in a portfolio of licences in the Barents Sea, including a 10% WI in the Wisting oil discovery and a further 15% WI in the Alta oil discovery with an overall 70 mmboe net contingent resources. The proceeds consist of US$125 mm in cash. OMV (OMV AG): 3Q20 update – 3Q20 production was 444 mboe/d. Premier Oil (PMO LN): Merger with Chrysaor – Premier Oil is merging with Chrysaor. The Transaction is expected to result in Premier’s stakeholders owning up to 23% (including 5.45% by Premier’s shareholders) of the combined group. A cash payment of US$1.23 bn will be made to financial creditors of Premier. The transaction provides ~US$0.61 on the dollar cash recovery for existing creditors plus US$0.14 in shares for an overall recovery of 75%. The combined entity had >250 mboe/d at the end of June and 2P reserves of 717 mmboe as YE19. The acquisition of the BP assets by Premier will not go ahead. Repsol (REP SM): 3Q update – 3Q20 production was 615 mboe/d. UK Oil & Gas (UKOG LN): Raising £2.2 mm of new equity – UK Oil & Gas has raised £2.2 mm of new equity priced at 0.16 p per share to fund its share of initial drilling and seismic costs in Turkey. FORMER SOVIET UNION JKX Oil & Gas (JKX LN): Operating update in Russia and Ukraine – 3Q20 WI production was 10,245 boe/d including 4,727 boe/d in Ukraine and 5,519 boe/d. The company held US$18.8 mm net cash at the end of September. SUB-SAHARAN AFRICA Tullow Oil (TLW LN): RBL Redetermination – Tullow’s RBL credit facility has been redetermined with US$1.8 bn of debt capacity. As a result, the Group retains ~US$500 mm liquidity headroom of undrawn facilities. The next redetermination will commence at the end of November and is expected to be completed in January 2020.

UKOG TLW SDX REP PXT PMO PGR OMV 0GEA LYV JKX HUR GTC DGOC

  • 09 Oct 20
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Auctus on Friday - 31/07/2020

PetroTal (PTAL LN)C; Target price £0.45: Production at Bretana restarts – In anticipation of the re-opening of the ONP, Bretana oil production recommenced on July 15, 2020 and achieved over 12,000 bbl/d when all seven wells were online. Oil deliveries have also already commenced to the Iquitos refinery and approximately 40,000 bbl are expected be delivered during July 2020. Oil is being barged to the Saramuro Pump Station and will be delivered into the ONP immediately after it reopens , now expected in early August 2020. To manage the company’s inventory and barge storage capacity, Bretana production has been reduced to approximately 8,000 bbl/d pending the restart of the pipeline. While the share price has already increased 30% over the last three weeks, we continue to see PetroTal as a value and growth stock. The company’s value based on its 2P reserves only (2P NAV of £0.28 per share) represents 2x the current share price and our Core NAV is 3x current levels. Assuming production of ~12 mbbl/d in 2021 (i.e. the level achieved when the field was restarted) PetroTal’s share price implies EV/DACF multiples of 1.7x in 2021 and 0.2x in 2022. On a production/capex low case, we estimate that PetroTal generates aggregate Free Cash Flow over 2021-2022 equal to the company’s market cap. IN OTHER NEWS ________________________________________ AMERICAS ExxonMobil (XOM US): Further volumes discovered in Guayana | Karoon Energy: Softening terms for acquisition of Brazilian asset | President Energy (PPC LN): Operational update in Argentina | Total (FP FP): Significant discovery in Suriname ASIA PACIFIC Jadestone Energy (JSE LN): 2Q20 update | Repsol (REP SM): Compensation in Vietnam | ENI (ENI IM): Large volume confirmed in Vietnam EUROPE ADX Energy (ADX AU): Operational update in Austria and Romania | ENI (ENI IM): 2Q20 results, lower capex | EnQuest (ENQ LN): UK Acquisition | Equinor (EQNR NO): Dry hole in Norway | Hurricane Energy (HUR LN): Operational update in the UK | Lundin Energy (LUNE SS): 2Q20 results | OMV (OMV AG): 2Q20 results/dividend reduction/Volumes discovered at Hades (Norway) reduced | Royal Dutch Shell (RDSA/B LN): 2Q20 results | Total (FP FP): 2Q20 results, Dividend distributions maintained | Zenith Energy (ZEN LN): Acquisition of Italian assets terminated FORMER SOVIET UNION Enwell Energy (ENW LN): Negative licence update | Nostrum Oil & Gas (NOG LN): 1H20 trading update in Kazakhstan MIDDLE EAST AND NORTH AFRICA BP (BP LN), ENI (ENI IM), Total (FP FP): Discovery in Egypt | DNO (DNO NO): 2Q20 results | ShaMaran Petroleum (SNM CN), Gulf Keystone Petroleum (GKP LN) and Genel Energy (GENL LN): Payment in Kurdistan | Sound Energy (SOU LN)C: Raising up to £4.5 mm of new equity SUB-SAHARAN AFRICA Angola lowering tax | Cairn Energy (CNE LN): Divesting Senegal and returning cash to shareholders | Total (FP FP): Divesting mature assets in Gabon | Savannah Energy (SAVE LN): FY20 results and update in Nigeria | Seplat Petroleum (SEPL LN): 1H20 results | Tullow Oil (TLW LN): 1H20 update | Victoria Oil & Gas (VOG LN): 2Q20 update in Cameroon EVENTS TO WATCH NEXT WEEK ________________________________________ 04/08/2020: BP (BP LN) – 2Q20 results 04/08/2020: GeoPark (GPRK US) – 2Q20 results 04/08/2020: Gran Tierra Energy (GTE LN/CN) – 2Q20 results 05/08/2020: Parex Resources (PXT CN) – 2Q20 results 07/08/2020: Frontera Energy (FEC CN) – 2Q20 results

0R1M KAR BP/ CNE NK1A ENI ENQ DNQ GENL HUR JSE LYV NOG OMV PTAL REP RDSA SAVE SEPL SOU TTA TLW VOG

  • 31 Jul 20
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Auctus on Friday - 24/07/2020

AMERICAS Chevron (CVX US) buying Noble Energy (NBL US) – Chevron is buying Noble for US$5 bn in shares. Chevron is also assuming Noble’s US$8 bn debt. The premium paid by Chevron on Noble’s share price is only 7% compares to the last trading day before the acquisition was announced. Touchstone Exploration (TXP LN/CN): Material reserves estimates in Trinidad – Touchstone’s WI 2P reserves at Cascadura are estimated at 45 mmboe (including 234 bcf) with 3P reserves of 73 mmboe (including 381 bcf). Net peak production from Cascadura is forecasted at 15.1 mboe/d in the 2P case (22.6 mboe/d in the 3P case). 2P NPV10 in the 1P, 2P and 3P cases are respectively US$288 mm, US$519 mm and US$803 mm with net development costs of US$11.6-15.8 mm. EUROPE Equinor (EQNR NO): 2Q20 results – Adjusted net earnings were US$0.65 bn with 2,011 mbooe/d production over the period. The company has declared a quarterly dividend of US$0.09 per share in line with guidance. Repsol (REP SM): 1H20 results – 1H20 production was 675 mboe/d with adjusted net income over the period of EUR0.2 bn and net debt at the end of June of EUR4.0 bn (down EUR0.5 bn compared to the end of March). UK Oil & Gas (UKOG LN): Entry into Turkey – UK Oil & Gas is looking to acquire 50% non-operated working interest in the 305 km² Resan Licence in Eastern Turkey from Aladdin Middle East. Two geological targets have been identified within the Licence's Cretaceous Mardin limestones. The undeveloped Basur oil discovery and the Resan missed oil pay opportunity contain an aggregate unrisked gross mean oil in place of ~253 mmbbl with an upside case at 495 mmbbl. An undrilled exploration target in the shallower Garzan limestones adds further unrisked upside Oil in Place potential of 68-112 mmbbl. To earn its 50% interest in the Licence, UK Oil & Gas will fund 100% of the first of 5 commitment wells in the Licence's 5-year exploration term, together with a small 2D seismic survey with an expected cost of US$1.0-$1.5 mm. UKOG's net expenditure for the one well plus seismic programme is capped at US$5 mm maximum expenditure. SUB-SAHARAN AFRICA Global Petroleum (GBP LN/AU): Resources estimates in Namibia – A total of 881 mmbbl of unrisked gross Prospective Resources (Best Estimate) has been estimated in PEL0094 in two prospects, of which 687 mmbbl barrels are net to Global. The associated geological chance of success is 17-19%. Maurel & Prom (MAU FP): 2Q20 update in Africa – 2Q WI production was 24,919 boe/d including 4,003 bbl/d in Angola, 16,675 bbl/d in Gabon and 24.4 mmcf/d in Tanzania. EVENTS TO WATCH NEXT WEEK ________________________________________ 29/07/2020: Seplat Petroleum (SEPL LN) – 2Q20 results 29/07/2020: Lundin Energy (LUNE SS) – 2Q20 results 29/07/2020: Tullow Oil (TLW LN) – 1H20 update 30/07/2020: Royal Dutch Shell (RDSA/B LN) – 2Q20 results 30/07/2020: DNO ASA (DNO NO) – 2Q20 results 30/07/2020: ENI (ENI IM) – 2Q20 results

0F6L UKOG REP DNQ NBL TXP 0R2Q

  • 24 Jul 20
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Auctus on Friday - 10/07/2020

PetroTal (PTAL LN/TAL CN)C; Target price £0.45: 1Q20 results/Bretaña expected to restart in July – 1Q20 financials are in line with expectations and 1Q20 production had been reported previously. At the end of 1Q20, current trade and other payables had been reduced to ~US$45 mm compared to ~US$55 mm at YE19. Most importantly. PetroTal continues to expect the Bretaña field to be re-opened this month. The contingent liability with Petroperu is estimated at US$25 mm at the current oil price and the company has entered into a financial swap for 0.46 mmbbl of oil with an ICE Brent reference price of US $40.58/bbl to cover the upcoming sale by Petroperu at the Bayovar port. This is a recovery story that we continue to like. It offers a combination of value, production and cash flow growth and reserves upside. We anticipate that the imminent reopening of the field with be an important catalyst to the share price. i3 Energy (I3E LN): Reveals takeover target in Canada | Maha Energy (MAHA-A SS): Production update | Aker BB (AKERBP NO): 2Q20 update in Norway | Energy (RRE LN): Recommended offer by Viaro Energy | Spirit Energy: Dry hole in Norway | Enwell Energy (ENW LN): Ukraine update | JKX Oil & Gas (JKX LN): 2Q20 update in Ukraine and Russia | Pharos Energy (PHAR LN): Operating update in Egypt and Vietnam | Sound Energy (SOU LN)C: Terms of Moroccan licence renegotiated | Tethys Oil (TETY SS): June production in Oman | Victoria Oil & Gas (VOG LN): Gas sales contract with ENEO in Cameroon terminated EVENTS TO WATCH NEXT WEEK ________________________________________ 14/07/2020: Aker BP (AKERBP NO) – 2Q20 results 15/07/2020: Premier Oil (PMO LN) – 1H20 update 13-17/07/2020: GeoPark (GPRK US) – 2Q20 update

I3E 0GEA JKX PHAR DNQ ARC ENI HUR PTAL REP RRE SOU TPL VOG OMV

  • 10 Jul 20
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