Headlines
In Brief:
Eland Oil and Gas (LON:ELA – 47p) – Relief at Restart of Production
Nu-Oil and Gas (LON:NUOG – 0.54p) – Production Sharing Agreement
Petroneft Resources (LON:PTR – 2.50p) – Quarterly Production Update
Tlou Energy (LON:TLOU / ASX:TOU – 6.25p/A$0.10) – Solid Foundation
Zenith Energy (LON:ZEN / TSX:ZEE – 10p/C$0.16) – Update on Redevelopment More Pressing
In Brief
Eland Oil and Gas (LON:ELA – 47p) – Relief at Restart of Production: Today's news will come as a relief to investors and Management alike, as it starts to draw the last 12 months to a close. While this is also good for the cash flow, it is good for the operational team, who has overseen the installation of the new facilities in what has been a difficult period and, more importantly, the addition of this export route also increases the prospect for enhanced operational availability, and having choice in Nigeria is no mean feat.
Nu-Oil and Gas (LON:NUOG – 0.54p) – Production Sharing Agreement: Today's news is a welcome step forwards for the Company as a whole, as to our mind it provides an indication at least, that the policy of asset hoarding may be over, and that the focus has switched, rightly, to cash generation. While a clear strategy for the wider portfolio needs to better articulated that it has been to date, this must be accompanied by a cash estimates, so that we can understand the pinch points. Once that happens, the Management would well and truly be able to say that the focus has switched.
Petroneft Resources (LON:PTR – 2.50p) – Quarterly Production Update: Today's update is dry and devoid of commentary, probably deliberately so. However, what these numbers continue to do is remind the market of the position that the Company finds itself in, zero debt, growing production, an increasingly buoyant outlook and, more importantly, able to set its own objectives and priorities. We believe that the next corporate update must now start to see Management lifting its horizons and looking longer term, outlining the wider strategic aims of the Company.
Tlou Energy (LON:TLOU/ASX:TOU – 6.25p/A$0.10) – Solid Foundation: While there is nothing significant in this announcement that has not been disclosed or flagged previously, today's announcement reminds the market of the significant potential within both its acreage and country. What is needed from Management next is a forward plan, integrating the asset wide appraisal programme, to enable the migration of contingent resources in to reserves, and a better appreciation of the sequence involved in monetising the gas. All in all, we believe that the Company's owners should be pleased with the progress the Company has made to date.
Zenith Energy (LON:ZEN / TSX:ZEE – 10p/C$0.16) – Update on Redevelopment More Pressing: Today's announcement comes as somewhat of a surprise, especially as investors at the time of the IPO have barely received their share certificates. Still, what it will enable the Management to do is focus on the key issue at hand, which is completing the redevelopment programme. Given this somewhat surprising announcement, what the market needs to know as a matter of priority, is that there is more foresight and planning being put in to the work programme, especially the development of milestones and deliverables from the Company. This ranges from a disclosure of the anticipated performance from the workovers and new wells in the Azeri field, to, more importantly, the cost of the work programme that it has agreed with SOCAR. While the former can be delivered at a later date and will be part of the wider devel opment package, the latter is, to our mind, essential and an immediate priority, as cash management seems to be an issue for the Company.