Headlines
Eland Oil and Gas (LON:ELA – 36p) – Operational Update Underlines Opportunity and Issues
JKX Oil and Gas (LON:JKX – 17p) – October Production a Filip
Pantheon Resources (LON:PANR – 94p) – New Plan Needs to be Disclosed
In Brief
Eland Oil and Gas (LON:ELA – 36p) – Operational Update Underlines Opportunity and Issues: While today's update doesn't make for spectacular reading, what it does underline is the drive within the management team to continue to drive the Company forwards. Today's well results are a timely reminder of the scale of opportunity available in Nigeria, but again, the operational issues that continue to provide headwind to the Company’s progress, also underline the issues of operating in country. All in all, we believe that the Company outlook remains buoyant, and while production (and cash flow) is patchy currently, we believe that all necessary elements are in place to allow the Company to achieve sustainability.
JKX Oil and Gas (LON:JKX – 17p) – October Production a Filip: The production report for October underlines the fact that the management team are still focused on its task, despite the issues that have plagued it over the last 6 months, both internal and external. While this appears to be once again trending in the right direction, what is really needed is guidance and direction allied with measurable milestones. That way, management can start the process of rebuilding investor confidence and more importantly, value.
Pantheon Resources (LON:PANR – 94p) – New Plan Needs to be Disclosed: Today's results are a reminder of the progress that the Company has made over the last 12 months, albeit punctuated with the horizontal well drilling failure, which is still yet to be fully understood, especially when there is no issue drilling vertically, or indeed horizontally in the same formation elsewhere. With ample cash resources the immediate forward programme is assured, but given the fact that horizontal drilling will not be possible in its acreage, there is still a need to understand the impact that the new vertical development scenario has on its assumed horizontal development plan previously. More specifically, management need to highlight the differences in cash flows, and while costs are likely to be lower, the returns are too, and it’s how this all pivots on the programme's timing that's important.