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

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• 10 Jul 20
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After a strong show in Q1, momentum accelerated in Q2 driven by the solid demand for COVID-19 testing solutions, particularly RNA extraction kits, third-party reagents and cartridges for QIAStat-Dx. However, momentum was partly offset by weaker customer demand trends in other product areas due to lower patient traffic in hospitals and the resulting decline in routine testing. Higher sales also led to a higher than expected increase in earnings. Unsurprisingly, rival bioMerieux also witnessed a similar sales trend during the quarter.

QIAGEN NV

• 10 Jul 20
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Hepion continues to make progress with the addition of another dose cohort (375mg) to the ongoing CRV431 Phase I clinical trial since dose-limiting side effects were not yet observed at doses up to 300mg. The company also announced preclinical data stating that CRV431 demonstrated anti-fibrotic effects on kidney fibrosis.

Hepion Pharmaceuticals Inc

• 08 Jul 20
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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.

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• 06 Jul 20
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Bioasis announced on 29 June 2020 that it had entered into an agreement with Chiesi, in which it would license its technology to bypass the blood brain barrier (BBB), the xB3 platform, for the development of drugs targeting lysosomal storage disorders. Chiesi will use the platform to develop drugs for four disorders, and in return Bioasis will receive US$3m upfront, up to US$138m in additional milestones and undisclosed royalties. We see this as a major validation of the platform and for additional future licensing potential.

BIOASIS TECHNOLOGIES

• 02 Jul 20
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Endeavour’s Q1 results were characterised by record revenue, record adjusted EBITDA and record operating cash flow. At least as importantly, all operations were reported to be operating near normal. While Q120 was, to all intents and purposes, unaffected by the effects of COVID-19; however, it is clear there have been some consequences in Q2. In the main, these have arisen as a result of travel restrictions on technical and engineering consultants and have particularly affected maintenance schedules. As a result, we have updated our Q2–Q420 forecasts to reflect changes in mine scheduling. Offsetting this, we have decreased our expectations of unit working costs. We have also refined our forecasts for SEMAFO’s Mana and Boungou mines to reflect operational detail on a quarter by quarter basis provided by management.

Endeavour Mining

• 30 Jun 20
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Sunesis announced on 23 June that it would not be advancing vecabrutinib to the Phase II portion of its Phase Ib/II study following the results from its highest dose (500mg) cohort. The cohort had three stable disease (SD) responses out of six patients enrolled in the cohort, and Sunesis determined that this level of activity was not sufficient to warrant advancing the program. The company will now refocus efforts on developing its PDK1 inhibitor SNS-510, for which it expects to file an IND by the end of 2020.

Sunesis Pharmaceuticals Inc

• 26 Jun 20
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PetroTal (PTAL LN/TAL CN)C; Target: £0.45: Initiating coverage – PetroTal is a production and reserve growth story in Peru with a market cap of ~£90 mm. Management’s experience of operating in the jungle and their deep in country relationships are key. Project execution has been excellent. The Bretaña field (48 mmbbl 2P reserves) was acquired from Gran Tierra in late 2017 with production of 1 mbbl/d achieved in 3Q18. By YE19 that figure had grown to >13 mbbl/d. While COVID-19 forced a shut down of the export infrastructure and Brent prices collapsed to ~US$20/bbl, PetroTal has managed to negotiate with Petroperu a reduction in transport fees and a rephasing of a contingent payment. With the recent US$18 mm equity raise strengthening the balance sheet and production expected to restart in July, PetroTal is returning to growth. Bretaña could produce 20 mbbl/d. PetroTal’s shares trade at ~ one quarter of our Core NAV of £0.46 per share and at one third of the company’s value based on its 2P reserves only (2P NAV of £0.28 per share). On flat production, the share price implies EV/DACF multiples of 1.0x in 2021 turning negative in 2022. Importantly PetroTal’s only material liabilities consist of (1) an oil linked contingent payment over three years to Petroperu on very flexible terms and (2) trade payables of US$49 mm with attractive payment terms. We forecast ~US$45 mm of capex (incl. servicing the payables) in 2H20. This is covered by (1) US$28 mm in cash from a recent equity raise plus collecting pending invoices from oil sales, (2) >US$10 mm of VAT receivables and (3) ~US$25 mm operating cash flow (US$11-12/bbl net backs) in 2H20 at US$38/bbl. At ~US$45/bbl and 12 mbbl/d in 2021, we forecast PetroTal generates ~US$90 mm cash flow with ~US$35 mm cash capex (incl. servicing the payables). Our target price of £0.45 per share (~our Core NAV) represents 4.5x the current share price. i3 Energy (I3E LN): Corporate update | Parex Resources (PXT CN): Trading update in Colombia | Phoenix Global Resources (PGR LN): FY19 results | Royal Dutch Shell (RDSA/B LN): Dry hole in Brazil | IGas Energy (IGAS LN): Trading update | Serinus Energy (SEN LN): Deferred EBRD debt repayment | Union Jack (UJO LN): Additional interest in UK asset | SDX Energy (SDX LN): Update in Egypt and Morocco| ShaMaran Petroleum (SNM CN): Payment from KRG and debt restructuring | United Oil & Gas (UOG LN): Reserves and production update in Egypt | FAR (FAR AU): Not paying cash call in Senegal | Lekoil (LEK LN): Update in Nigeria | San Leon Energy (SLE LN): FY19 results | Savannah Energy (SAVE LN): Trading update | Victoria Oil & Gas (VOG LN): Trading update in Cameroon

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• 26 Jun 20
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Amur Minerals* (AMC LN) – BFS strategy | Bushveld Minerals* (BMN LN) - Strong Buy - (Valuation 58 from 54p) - Vanadium price to recover on strong demand for structural steel for Stimulus projects | Nano One Materials (NNO CN) - Coated single crystal cathode material provides 4x the longevity | Power Metals Resources* (POW LN) – Covid19 delays some gold license applications around Ballarat in Australia | Strategic Minerals* (SML LN) – 2019 financial results | Strogbow Exploration (SBW CN) – Drilling restarted in Cornwall at new discovery site | Sunrise Resources Plc (SRES LN) – Outcome of CS Project environmental consultation | Talga Resources (TLG LN) – Talga shares take off as interest in Li-ion anode exceeds 300% of Vittangi anode project capacity

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• 24 Jun 20
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Canacol Energy is guiding to FY20 realised natural gas sales of 170–197mmscfd (cf 143mmscfd in FY19) as gas demand is picking up in Colombia while quarantine measures are lifted. The low case scenario assumes that spot sales (normally c 20% of the total) are not reactivated in 2020, and the high case scenario assumes they are reactivated in August 2020. We estimate a mid-case scenario of realised natural gas sales of 183mmscfd for the year, with sales in line with the last two weeks of May 2020 as reported by the company. Drilling operations have also resumed and the 2020 programme remains Canacol’s largest ever, despite a slimmed down programme from 12 to nine wells and lower capex for the year of US$108m. The company recently announced that it is maintaining its quarterly dividend of C$0.052/share. Our 2P + risked exploration NAV has decreased by 7% to C$6.55/share, reflecting the impact of lower gas sales demand in Colombia due to the COVID-19 pandemic.

Canacol Energy

• 23 Jun 20
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