The motorcades, private jets and rail debacles of COP26 have firmly highlighted the ongoing role that oil and gas have to play in our world. Equities do not reflect this and our benchmark index made up of ~70 AIM listed oil and gas juniors shows the sector is 20% below the 2016 cyclical low point and up 77% from the April 2020 COVID-19 driven low. Meanwhile, Brent is up 423% over the same period to 7-year highs while gas prices have spiked to record highs. Rising commodity prices evidently no lo
Companies: TXP PMG SQZ EDR SDX CHAR ORC/B
Egdon Resources (EDR LN)# has reported its preliminary results for the 12 month period ended 31st July 2021. Lower YoY production of 90boepd was not unexpected given the delays at Wressle and revenue of £1.1m came in marginally below our £1.4m forecast for the year. As a result, the net loss of £1.8m was lower than our estimate of £1.6m broadly by the difference in top line estimates. Net cash used in operations was £1.12k for the period and net cash at 31st July 2021 was £1.96m.
Companies: Egdon Resources PLC
Egdon Resources' preliminary results for the year ended 31 July 2021 announced today were consistent with our expectations. Production amounted to 90 boe/d (87 boe/d WHIe), revenue amounted to £1.09m (£0.94m WHIe) with a reported loss of £1.80m (-£2.2m WHIe). Cash at the period-end amounted to £1.96m (£1.10m WHIe). The company provided forward looking guidance for the current year of 240 boe/d – for now, we retain our 233 boe/d forecast and will revisit our assumptions based on operational perfo
Egdon Resources announced yesterday at 16:23 that its planning application for side-track drilling at the Biscathorpe site was refused at a meeting of the Lincolnshire County Council Planning Committee, despite the application having been recommended for approval by Lincolnshire County Council's planning officers.
The Wressle-1 well has delivered above management’s expectation, producing at 884bod with a further c 80boed of gas. With a 30% working interest in Wressle, Egdon has achieved a significantly higher 289boed net versus its target of 150bod, with the full potential of the well yet to be tested. Further onshore drilling remains dependent on successful farm-outs, while offshore, the 3D seismic surveys on the Shell operated Resolution and Endeavour discoveries will now be delayed beyond the previousl
Calima Energy (CE1 AU)C; Target of A$0.75 per share: Good production performance – Production in August was 3,493 boe/d, up 200 boe/d compared to July as all the new wells at Brooks now contribute to production, more than offsetting natural decline. Financials for August are broadly in line with our expectations. The three new Thorsby wells drilled in August and September could be on stream for November with an individual IP rate of ~2
Companies: ALV ALV CE1 COP COP EDR IOG RDSA TETY TETY TXP
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Plutus Powergen has left AIM.
What’s cooking in the IPO kitchen?
Eurowag confirms its intention to undertake an initial public offering on the Main Market (Premium). The Offer would be expected to comprise both (i) new Ordinary Shares to be issued by the Company, raising gross proceeds of approximately EUR200m to support Eurowag's growth strategy and (ii) existing Ordinary Shares to be sold by existing Eurowag shareholders. Eurowag is a leading pan-European
Companies: ALS APP BOD DXRX EDR EOG KOO RBBS TRP UOG
Egdon Resources provided a comprehensive operational update pursuant to which we are increasing our fair value estimate to 7.4p from 6.9p. The increase in fair value reflects principally the better than expected production results from the Wressle field. The change in our fair value estimate also reflects i) the inclusion of value for the potential of Waddock Cross for the first time ii) the inclusion of value for the potential of a developmental well at Keddinton for the first time and iii) an
Egdon Resources (EDR LN) has reported impressive initial production figures from the Wressle well despite planned production constraints. Flow rates have exceeded 884bopd with an incremental 80boepd (480,000cbf) of gas under a restricted choke setting owing to high initial well pressure, making it the second largest UK onshore field. EDR has a 30% interest. The company intends to reduce the choke impact which could lead to stronger near term production rates. With no water so far the testing pha
Egdon Resources announced today that test production from the Wressle field has exceeded a rate of 500 barrels per day of oil (gross). The result was achieved under a restricted choke and prior to the well being “cleaned up”. The company indicated that the well has not yet achieved its full potential. Egdon, operator of the Wressle field, recently performed a successful proppant squeeze at the well. The company stated it will provide a further update once the well establishes a stabilised flow r
Egdon Resources (EDR LN) has announced that it has now achieved and exceeded the target of 500bopd following the successful proppant squeeze operation at Wressle. Although 500bopd was always the headline target this has been exceeded and with both restricted settings and the clean up ongoing, the full potential has not yet been reached. This is usual for a new well and we expect to EDR to provide a further update in the coming weeks as to the level that production rates stabilise at.
What’s cooking in the IPO kitchen?
SpectrumX Holdings, a leader in proprietary formulations of HOCL (Hypochlorous Acid), is expected to list on the London Stock exchange. This Pre-IPO offering outlines opportunities for commercialisation of novel formulations of HOCL in the healthcare and pharmaceuticals markets. SpectrumX is focused on developing an inhaled respiratory treatment with blockbuster potential and has a sanitiser product that looks set to generate significant near-term revenues.
Companies: ADME EDR EMR EMAN IOG MAB1 ALNOV ORPH SECN VTU
Egdon Resources announced that Gaffney, Cline & Associates determined that the Biscathorpe development would have AA carbon intensity rating of 3.06g of CO2 equivalent per MJ. The rating is lower than the UK average and low compared to other onshore analogues.
Egdon Resources (EDR LN) has announced the results from a carbon intensity study in relation to the planned development at Biscathorpe; one of the company’s key development assets in which it has a 35.8% stake. A planning application was submitted earlier this year and further documentation was submitted in July 2021 to support this; a consultation period has commenced with a Committee review due in September/October 2021.
Egdon Resources (EDR LN) announced a conditional equity fundraising of £1.44m at a price of 1.25p/sh, a 17% discount to the prior close of 1.5p/sh. This will provide the company with funds to finalise ramp up of Wressle where the company’s contractor, Schlumberger has been delayed by two to four weeks due to logistics issues around transporting equipment cross border in the current post-Brexit, COVID-19 environment. The funds will also be deployed at Resolution and Endeavour where EDR is partner
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Jubilee today announce the full year results for FY 2021 ending in June 21. It was a year of continued progress with revenues up 143% to £133m (from FY 2020), adjusted PBT up 324% to £52m and eps up 93% to 1.8p/sh – an extraordinary year – but still only the beginning of the progression in our view. Continued developments in South Africa have led to a fully flexible chrome and chrome tailings solution at Inyoni. Supply from a wide variety of sources (Run-Of-Mine, new tailings from own operati
Companies: Jubilee Metals Group PLC
Friday's market sell off saw some violent downward moves in many stocks with little initial differentiation between sectors or the key drivers of businesses, creating significant share price drops in a number of higher quality or uncorrelated names. We take a look at some stocks we believe have either seen an unwarranted sell-off, have seen weakness go under the radar or where there is now a more attractive opportunity.
Companies: ANX IBPO CYAN SOM EQT AFM
Savannah today announces that it is amicably terminating its JV arrangement with Rio Tinto over the Mutamba Minerals Sands project in Mozambique. Savannah has been paid $9.5m (which translates into 0.4p/sh) in cash to relinquish the 20% it has earned in the project and will cease all activity in country. All staff will transfer to Rio Tinto.
Companies: Savannah Resources Plc
Across a broader market sell off EQTEC have shown resilience and is trading at 1.55p, above its placing in May, up 25% from one month ago.
Companies: EQTEC PLC
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What’s cooking in the IPO kitchen?
Trinistar Liverpool S.a r.L announces its potential listing of a newly formed single asset company which will own the Capital Building in Liverpool on the IPSX. Upon admission the Company would become a real estate investment trust (REIT). The Capital Building occupies close to a 3.5 acre freehold site in the centre of Liverpool’s business district; the building comprises c425,000 square feet of predominantly of
Companies: ADBE ADBE SYM ARC AVCT CMCL CLIN DCTA FRAN OSI
We initiate coverage of Tungsten West Ltd (“TUN” or “the company”) with a GBp144/sh price target. TUN is focussed on the re-opening of the Hemerdon Tungsten Mine in Devon, UK, which was previously owned and operated by Wolf Minerals (UK) Ltd (“Wolf”). Since acquiring the project in Nov’19, TUN has resolved issues encountered by Wolf and optimised the project further with new revenue streams and technology. In March 2021 TUN produced a Bankable Feasibility Study (“BFS”) for Hemerdon, validated by
Companies: Tungsten West Plc
Cornish Metals has now released the results of 10 drillholes at its continuing exploration programme at United Downs near Camborne. Including two holes drilled on the property by Cornish Lithium the drilling shows up to 5 mineralised structures with a total of twenty-two individual mineralised intercepts.
Even though the area has been mined intermittently between the early 1700s and the late 20th century, the drilling evidence bodes well for the delineation of additional mineral resources wh
Companies: Cornish Metals Inc.
Initiating Coverage: Price Target 20p
Potential Beyond Tin
AfriTin Mining Limited (ATM) is one of only three listed tin producers in Western markets. It has a large (820km2) land package in Namibia comprising 5 prospective licenses of which the Uis mine is the most advanced and already in production. Near term growth is being delivered with an 80% increase in tin production between 2022 and 2024. However, this is only scratching the surface and there are more than conceptual plans being fo
Companies: AfriTin Mining Ltd.
Savannah Resources has sold its interest in the Mozambique mineral sands project (Mutamba) to JV partner Rio Tinto for $9.5m in cash. The payment has already been made to one of Savannah’s UK subsidiaries.
Given Barroso’s importance and capital requirements over the coming months, we view this as very good news. It allows management to dedicate all its time to Barroso and reduces future SAV equity dilution. Despite the strong lithium price and exceptional performance of ASX and TSX lithium sto
Savannah Resources is a hardrock lithium exploration and development company with a 100% interest in the Barroso Lithium Project in the Northern Portugal hosting 27mt at 1.06% Li2O for ~700kt LCE, the largest spodumene lithium resource in Western Europe. Project environmental permitting is currently in progress paving the way for the completion of the Feasibility Study and eventual project financing. The project benefits from the strategic location as Europe rapidly expands it Li-ion batteries a
i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM. Following Admission, the Company intends to use the net proceeds of the proposed Fundraising to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide work
Companies: TGN AFC COIN COIN HL/ OMI
Deeside project update
Shanta Gold (AIM: SHG), the East Africa-focused gold producer has today announced a drilling update on its West Kenya Project (WKP) based on its Phase 2 drilling program which aims to infill 17 modelled zones across both Isulu and Bushiangala deposits up to 450-500m below surface. The Company has also reported drilling results from a regional exploration target, Ramula, where assays have been received from the first of 12 holes drilled, as part of the resource drill-out programme, totalling 451m
Companies: Shanta Gold Limited
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What’s cooking in the IPO kitchen?
Public Policy Holding Company, to join AIM. PPHC, through its wholly-owned companies, operates a portfolio of independent firms that offer public affairs, crisis management, lobbying and advocacy services on behalf of corporate, trade association and non-profit client organisations. Mkt Cap and Capital to be raised TBC. Expected admission date Mid Dec.
Libertine to join AIM. Libertine has developed a technolog
Companies: TRAK GAMA AAZ FNTL DPP
Companies: Atlantic Lithium Limited.