Headlines
• In Brief:
TomCo Energy (LON:TOM – 0.12p) – (BUY – 0.49p) – Board Changes
Aminex (LON:AEX – 1.22p) – Its Arrived! What’s Next?
Ascent Resources (LON:AST – 1.52p) – IPPC Permit Review Underway
Northern Petroleum (LON:NOP – 2.25p) – Normal Service Resumed
Petroceltic International (LON:PCI - SUSP) – A Steal
In Brief
• TomCo Energy (LON:TOM – 0.12p) – (BUY – 0.49p) – Board Changes: Today’s news that Miikka Haromo is departing the Company, and being replaced by Chris Brown, is to us the event that signifies the start of the next phase of growth for the Company. Chris Brown brings significant earth moving experience, which is a plus given that the Company’s project is effectively the surface mining of the shale and insitu retorting to produce the oil. The Company still needs commercialisation information from the Redleaf/Total test capsule to progress as planned, but we believe that this is a solid step in preparation of that. We are reiterating our BUY Recommendation and 0.49p Target Price.
• Aminex (LON:AEX – 1.22p) – Its Arrived! What’s Next?: Today’s news that the Company has started to deliver first gas is a welcome boon for the management team, and one that finally puts the disasters of the past, which did not happen on the incumbent management’s watch, firmly to bed. Given the success that the management can now rightly claim, it is now time for the Company to start to look towards the future, and tell us where the next phase of growth is going to come.
• Ascent Resources (LON:AST – 1.52p) – IPPC Permit Review Underway: Today’s news that the Judicial review of the Company’s application to develop its Petišovci field is underway is a significant step forwards. While the outcome is unknown, and a positive outcome will be required for the Company start the work the access the economic benefits of the field, we believe that given the need for energy in country and the relatively small footprint of the development, that approvals should be forthcoming.
• Northern Petroleum (LON:NOP – 2.25p) – Normal Service Resumed: Today’s production update is watershed for the Company in that it heralds the resumption of the Company’s plans. While there is still a way to go before the cash flow generated supports the Company’s ambitions, after the headwinds that all companies have faced, not just Northern, that it has been able to put its plans back in to place so quickly is a significant positive.
• Petroceltic International (LON:PCI - SUSP) – A Steal: Today’s news that the Board have recommended Worldview (“WV’s”) offer of 3p is in partial response to the shareholder apathy surrounding the Company. While there have been many occasions where the management teams have led the companies they manage in to the abyss, we believe that in this instance Petroceltic’s management team have been caught out by the precipitous decline in the oil prices, but have not over-leveraged the Company or left it imperilled. With the development drilling of the Ain Tsila progressing, and the prospect of cash generation not too far away, we believe that the WV team have played an absolute blinder with respect to getting a world class asset for not very much money.