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Northland Capital Partners View on the City - Global Energy Development, Magnolia Petroleum, Pendragon Group

Northland Capital Partners View on the City - Global Energy Development, Magnolia Petroleum, Pendragon Group

Global Energy Development (LON:GED) – BUY*: Termination of farm-out   

Market Cap: £17.5m; Current Price: 48.5p; Target Price: Under Review


Everest informs Global of decision to terminate farm in due to oil price

The company has been informed that Everest Hill Energy Group's wholly owned subsidiary has exercised its option to terminate the farm out agreement relating to the Bolivar and Bocachico Association Contracts. The decision is owing to the significant decline in the oil price.

Everest is released of all future obligations relating to the contracts and its 50% share in the licences revert to Global.

Magnolia Petroleum (LON:MAGP) – CORP: Q4 Update


Market Cap: £7.2m; Current Price: 0.8p


Q4 Update: Continued strong activity in Oklahoma

Total producing wells at the end of Q414 rose to 176 with 14 added in the fourth quarter and a further 48 wells at various stages of development.

The period saw strong IPR rates from six Devon Energy in-fill wells that added 96 bopd IPR.

Production from the 100%-owned Roger Swartz-1 well more than doubled to 12.2 bopd following a low cost (£79k) stimulation programme and is expected to pay back in less than a year.

Secured permits to drill two vertical well in Oklahoma; Roger Swartz 2 and the Shimanek 2 targeting conventional payzones. Cost of the new wells is estimated at $700k each and Magnolia will have a 94% working interest, 76% net revenue interest.


Sunrise Resources (SRES.L) – CORP: Bay State Silver project update

Market Cap: £2m; Current Price: 0.3p


Initial samples demonstrating high silver grades and presence of zinc

Sample results received from the second round of sampling focused on the Chihuahua Splay Buckeye and Lincoln vein systems.

Two samples that represented an aggregate 3.5m width from the stockwork zone between the two veins averaged 403g/t Ag.

Base metal analysis indicates high zinc contents.

Best chip sample result is 1.5m at 6.3% Zn, 6.6% Pb, 0.3% Cu, 0.16% W and 579g/t Ag


Eland Oil & Gas (LON:ELAL) – BUY: $75m facility 

Market Cap: £99m; Current Price: 68p; Target Price: Under Review


Secures $75m RBL facility

Eland has executed a reserves based lending facility for $75m with Standard Chartered Bank (SCB). The facility has a rate of 7.75% over LIBOR (currently 0.63%) and will be secured against OML40 and has a maturity of 4.5 years and is repayable quarterly from September 2016.

SCB has committed $35m and will lead the syndication arranged of an additional $40m expected to be completed in Q115. The facility will be accessible to Elcrest to continue to develop OML40 and for Eland’s general working capital.

Further reserves growth is expected to be reflected in the increased size of the RBL.

Draw down is subject to a number of conditions that the company expects to satisfy in the next few weeks.


Pendragon PLC (LON:PDG): Trading statement

Market Cap: £473m; Current Price: 33p


FY14 results ahead of expectations

On the back of a strong 3Q trading statement in October, the business this morning released another trading update which shows further progress in the 4Q. The Motor Division is ahead of prior year, used car performance is ahead of expectations, visits to, and is +19% YoY. Furthermore post-Christmas period web visits have increased by 36% with a 65% increase in tablet and mobile activity in the period. 

Management expects the year end debt to EBITDA ratio to be below the target range of 1.0x to 1.5x, which is highly encouraging news from a balance sheet perspective and this provides headroom to further expand the UK footprint.

1. Northland Capital Partners Limited (“Northland”) acts as Nominated Advisor and/or Broker to the company.

2. Northland) and/or its affiliates companies do beneficially own 1% or more of any class of the issuer’s equity securities, as of the end of the month immediately preceding the date of issuance of the research report or the end of the second most recent month if the issue date is less than 10 calendar days after the end of the most recent month. 

3. The authoring analyst or any associate of the authoring analyst does maintain a long or short position in any of the issuer’s securities directly or through derivatives, including options or futures positions.

4. Northland, its affiliated companies, partners, officers, directors or any authoring analyst of Northland has provided services to the issuer for remuneration during the preceding 12 months other than investment advisory or trading services.

5. Northland or any of its affiliated companies has performed investment banking services for the issuer during the 12 months preceding the date of issuance of the report.  

6. A partner, director, officer, employee or agent of Northland or any of its affiliated companies is an officer, director, employee or advisor of the issuer.  Disclosures are applicable for all companies

7. The authoring analyst, or any associate of the authoring analyst, has viewed the material operations of the issuer. 

8. The authoring analyst, or any associate of the authoring analyst, received reimbursement for travel expenses.

9. Northland makes a market in the securities of this company.




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The past is not necessarily a guide to future performance. The value of shares and the income arising from them can fall as well as rise and investors may get back less than they originally invested. The information contained in this document has been obtained from sources which Northland Capital Partners Limited believes to be re¬li¬able. The Com¬pany does not warrant that such information is accurate or complete. All estimates and prospective figures quoted in this report are forecasts and not guaranteed. Opinions included in this report reflect the Company’s judgement at the date of publication and are subject to change without notice. If the investment(s) mentioned in this report are denominated in a currency different from the currency of the country in which the recipient is a resident, the recipient should be aware that fluctuations in exchange rates may have an adverse effect on the value of the investment(s). The listing requirements for securities listed on AIM or PLUS markets are less demanding, also trading in them may be less liquid than main markets.

Northland Capital Partners Limited and/or its officers, as¬sociated entities or clients may have a position, or other material interest, in any securities men¬tioned in this report. Northland Capital Partners Limited does not provide recommendations on securities of firms with which it has a corporate relationship. More information about our management of Conflicts of Interest, Investment Research Methodology & Definition of Recommendations can be found at 

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