Headlines
• In Brief:
Angus (LON:ANGS – 11p) – Wrinkle Underlines Wider UK Planning Issues
Ascent (LON:AST – 2.15p) – Starting to Rise
IGas Energy (LON:IGAS – 6p) – Pressure off…And On
In Brief
• Angus (LON:ANGS – 11p) – Wrinkle Underlines Wider UK Planning Issues: Today's response to the allegations from the BBC will be significant for somebody, if it's the Company, the repercussions could be significant, and if it's the BBC, it will demonstrate such a lack of journalistic talent or integrity as to be the final nail in the corporation's credibility as a news outlet. Whatever the outcome, however, what is clear is that the real issue underneath it all is the fact that such confusion could arise at all, and is ample demonstration if any were needed, that the current planning laws need restructuring and streamlining to reflect modern life. If the UK government is keen to understand the issues that face an industry trying to provide its citizens with employment and energy security, it could do no worse than to study the issues that have faced Union Jack Oil and Angus today, Cuadrilla and Ineos previously, and the North Sea operations. It's not that legislation needs to be watered down, just joined up and simplified.
• Ascent (LON:AST – 2.15p) – Starting to Rise: Today is a milestone for the Company in that it demonstrates that the only hurdles that have prevented the Company from generating returns from its investment thus far have been regulatory. The focus on costs and pursuit of pragmatic development options underlines the Management's focus on maximising value creation for the Company's owners, which is now beginning to bear fruit.
• IGas Energy (LON:IGAS – 6p) – Pressure off…And On: In our last comment on the Company (June 2016), we highlighted the quality in the Company's portfolio as well as the headwinds that it faced. Today's news is likely to be the start of a transition period in which although the pressure on the balance sheet will have been alleviated, the pressure on management will have remained. The question will now be whether the Company's partners in its much highlighted $230mm work programme will use recent events as levers to draw better terms in consideration for starting some of the programmes. The potential of this outcome is becoming a greater concern since the Company started to make this programme, which has been in place for some time, its increasing focus. Irrespective of the intangible pressures that may endure post the capital reorganisation and fundraising (the "Transactions"), the manag ement's performance will be under ever increasing scrutiny, which will end in their removal if they don't achieve their milestones. To that end, we believe that while the restructuring will be the start of the transition period, there will still be headwinds to the share price post the Transactions, which we believe will present opportunities for investors to gain exposure to the stock.