Headlines
In Brief:
BowLeven (LON:BLVN – 26p) – Operations Update
Nu-Oil and Gas (LON:NUOG – 0.55p) – Better Focus, But More Needed
Pantheon Resources (LON:PANR – 78p) – Clarity Required
In Brief
BowLeven (LON:BLVN – 26p) – Operations Update: Today’s update from the Company underlines the increasing balance within its portfolio. We still believe that there is a way to go before there’s sufficient balance to be sustainable, but unlike several other companies in the market, BowLeven has everything it needs to achieve sustainability already within its portfolio. In this respect Etinde’s development approval will remain key, and it is the delays that remain a drag on the share price. Given the structure of the NewAge farm in deal, it will be at Etinde’s sanction that the Company will take the most significant step towards sustainability. We believe that is a question of when rather than if.
Nu-Oil and Gas (LON:NUOG – 0.55p) – Better Focus, But More Needed: While the Company was under its old name, Enegi Oil, it amassed an impressive collection of projects, none of which it had suitable funding for. In this respect, we believe that today’s news is in danger of being deemed “plus ça change, plus c’est la même chose,” in that there is still a wide array of projects (albeit fewer than there were before) that are inadequately funded from existing cash resources, which can only mean one thing – a fund raising before any appreciable progress is made. To our mind it is time for management to undertake a further review and sharpen the focus more aggressively, particularly in its marginal business, which it has in common with a number of high-profile and well respected engineering firms. That doesn’t mean to say it should just give t hem away, but it is certainly time for management to start to be realistic about what it can achieve with the resources at its disposal. We believe that it is coming to a point where further cash resources will be required, and there won’t be enough for all the projects that it wants to do.
Pantheon Resources (LON:PANR – 78p) – Clarity Required: To read today’s announcement lead you to believe that the Company have just heralded a major discovery. While we welcome the fact that the tone of this announcement is more in tune with our understanding of the asset, management still need to close the gap between their previous statements, where we are today and, more importantly in our opinion, what will happen in the future and what it means for investors. We believe that there are still significant obstacles that need to be overcome before the Company’s acreage can be declared commercial.