Companies: VAALCO Energy, Inc.
ADX Energy (ADX AU) C; Target price increased from A$0.040 to A$0.045 per share: 2P reserves increased by >150% with further upside possible – 2P reserves at the Zistersdorf and Gaiselberg fields in Austria as at 1 July 2021 have been estimated by the company’s reserves auditor at 1.8 mmboe. This represents a 154% increase versus previous estimates. The reserves increase reflects 32+ recompletions to access behind pipe reserves from d
Companies: GTE PPC ADX ALV ALV BP/ CE1 CNE CEG DNO DNO ENOG FEC GENL PXT SNM TETY TETY TGL EGY VOG ZEN
• 3Q21 production was 8,844 bbl/d, near the top end of the company’s guidance. Operating cash flow over the period of ~US$34 mm was boosted by a very important positive working capital movement.
• Vaalco has completed two previously announced workovers (ESP replacement) at the Etame field offshore Gabon and added a total of ~1,050 bbl/d (gross) of oil production (540 bbl/d net to VAALCO).
• The FY21 production guidance has been narrowed from 7,800 8,500 bbl/d to 8,050-8,300 bbl/d.
• The 2021/202
Imperial Helium (IHC CN)C: Smaller resources but good well test results could suggest a commercial development – At the IHC-Steveville-2 well, a 12 metre zone was tested at a rate of ~2 mmcf/d. This zone is an interval equivalent to the blow-out zone in the offsetting 13-22 well. While the headline flow rate might appear low, it is in reality a good result that suggests that the well can be brought into production at 5-6 mmcf/d at leas
Companies: AKRBP AKERBP CASP GENL GTE HUR IHC KOS LUPE PEN PEN TAL RBD EGY DNO DNO JKX
Arrow Exploration (AXL CN)C: 2Q21 results – 2Q21 production in Canada and Colombia was 331 boe/d including 147 boe/d at Tapir. The Company exited Q2 2021 with corporate production of 535 boe/d. At the end of June, Arrow held positive working capital of US$3.1 mm.
Calima Energy (CE1 CN)C; Target of A$0.75 per share: Key take away from reserves update and July production – Calima’s 2P reserves, net of ~13% royaties, at the end of June w
Companies: SNM AKRBP AKERBP XOP ENQ RBD 88E AXL CE1 CNE ENI ENI HUR IHC LEK PEN PEN EGY
Oil advanced as a brewing hurricane shuts Gulf of Mexico crude production while the Federal Reserve reinforced its support to begin tapering stimulus by the end of the year.
Futures in New York rose 2% on Friday to post the biggest weekly gain in more than a year. Oil producers in the U.S. Gulf of Mexico have begun shutting production ahead of Hurricane Ida, which may make landfall in the New Orleans area in the next few days as a Category 3 hurricane.
Meanwhile, Federal Reserve Chair Jero
Companies: EGY OYL SOU CEG EME HE1 IOG PPC WTE PEN PEN 217270 FALE OSH
Calima Energy (CE1 CN) C: Target of A$0.040 per share: First Thorsby development well in line - Well logs indicate the Leo #1 well is within expected reservoir quality with oil and gas shows as prognosed with type curve production predicted. This is the first of a three well programme that is expected to have a material impact on the company’s production. Each well has an expected IP90 rate of ~274-460 bbl/d.
Challenger Energy (CEG LN) C: Target of 7.50 p per share: Saffron-2: commercial flow r
Companies: SOU CE1 HE1 NOG EGY MAHAA CEG PEN PEN TAL SDX
• Vaalco has signed a binding LOI with World Carrier to provide and operate the Cap Diamant as a Floating Storage and Offloading (FSO) unit at VAALCO’s Etame Marin field offshore Gabon for up to eight years with additional option periods.
• The agreement will become effective upon approval from the Etame joint owners which is expected by early September 2021.
• While the non-binding LOI with Omni has expired, the characteristics of the agreement with World Carrier are very similar to what was be
Arrow Exploration (AXL CN) C: Operation update in Canada - Arrow has begun the process to tie-in the behind-pipe natural gas from the 03-26-52-23W5 exploration well located at West Pepper, The estimated on-stream costs are ~C$1.3 mm. Initial production is estimated at ~5.5. mmcf/d, suggesting a payback of four months.
Vaalco Energy (EGY US/ LN) C: Target of £3.80 per share: Advancing Equatorial Guinea – In our view, the highlight of t
Companies: AKRBP AKERBP JKX KOS SEN SNM SOU TETY TETY TXP CZA AOI ALV ALV AXL BP/ CNE CNE FEC HE1 EGY
• Net 2Q21 production (after royalty) of 8,018 bbl/d was at the higher end of the guidance range of 7.6-8.2 mbbl/d. This is offset by marginally lower expectations in 2H21 (net production guidance of 7.4 mbbl/d versus 7.6 mbbl/d previously) due to additional work-over activity and an unplanned shutdown for a few days. The FY21 production guidance is unchanged.
• A four well drilling programme at Etame is expected to start in 4Q21 with an optional fifth well .
• Further visibility on the selecte
AUCTUS ON FRIDAY: EGY US/LN, PEN NO, PTAL LN/TAL CN, TETY SS, VLU LN/VLE CN, ALV CN, AOI CN/SS, CNE CN, CNE LN, CPI CN, ENQ LN, GKP LN, HRB LN, HUR LN, IGAS LN, KOS US/LN, NOR NO, OKE NO, SENX LN, TXP LN/CN
Vaalco Energy (EGY US/LN)C; Target price of £3.80 per share: Removing oil price risk in 2021 - 1Q21 cashflow was negatively impact by a ~US$12 working capital movement that should be reversed on the upcoming period given that the c
Companies: AOI ALV CNE CNE CNE ENQ HUR KOS PEN PEN TAL SEN TETY TETY TXP EGY VLE
• 1Q21 cashflow was negatively impact by a ~US$12 working capital movement that should be reversed on the upcoming period given that the company carried large receivables and low payables compared to historical levels (even after adjusting for the increased interest in Etame).
• Net production (after royalty) is expected to be 7.6-8.2 mbbl/d in 2Q21 (8.3 mbbl/d previously) due to continued OPEC restrictions. 2H21 net production guidance has been marginally increased from 7.2 mbbl/d to 7.6 mbbl/
Market update - 11/05/21
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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
Phoenix copper today announces an update on its deep drilling program below the proposed Empire oxide open pit resource and into the deeper sulphide zone. Phoenix is roughly 1/4 the way through a 4,500m drilling programme and has once again shown that high-grade zones of copper, zinc and lead sulphide mineralisation exist, nearly always associated with gold and/or silver and often with elevated concentrations of tungsten and molybdenum.
Companies: Phoenix Copper Ltd. (United Kingdom)
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
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
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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
SolGold (“SOLG”) has published the first partial assay results from its drilling programme at the Varela target on the Rio Amarillo concession, 35km from the flagship Cascabel project. Hole 1 has been assayed to a depth of 1,052m, revealing an intercept of 72m @ 2.16 g/t Au from 639.7m, including 24m @ 5.77 g/t Au. More interestingly assay results are pending from 1,052m to 1,708.1m (EOH) where free gold and porphyry mineralisation have been identified. Intersections of porphyry style mineralisa
Companies: SolGold Plc
West Newton planning update
Companies: Union Jack Oil Plc
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
Trinity has received FDP approval from the Ministry of Energy and Energy Industries (MEEI) for the Phase 1 development of the Galeota licence. The submitted development plan has the potential to add additional peak production of c4,000 bopd; however more recent modelling suggests that intra-year peak production could be significantly higher, up to 7,000 bopd. Whilst the current development concept comprises the installation of a low-cost eight well platform (Echo), we note that Trinity is also w
Companies: Trinity Exploration & Production Plc
European gas prices are never far away from the headlines at the moment, although Parkmead’s results to end-June did not capture this surge in prices – that is yet to come. Parkmead is well placed to benefit from the current strength in European gas prices, while the potential for another commodity super-cycle suggests there is further progress to come on its major GPA oil project. A strong net cash position also puts it in the driving seat for potential acquisitions.
Companies: Parkmead Group PLC
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
Atlantic Lithium* (ALL LN) – Shareholders approve demerger of gold assets
Castillo Copper (CCZ LN) – Extension of options to acquire the Litchfield and Picasso lithium projects
Cornish Lithium (Private) – $18m funding package secured from TechMet
Hochschild (HOC LN) – Shares rise as government appears to back away from closure plans
Hummingbird Resources (HUM LN) – Updated mineral reserves extend Yanoflila LOM and delivers maiden estimate at Kouroussa
Phoenix Copper* (PXC LN) – Deep drilli
Companies: HOC HUM PXC PREM CCZ ALL
Q3 2021 results; new Romania drilling planned
Companies: Serinus Energy plc
Companies: Atlantic Lithium Limited.
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.