Headlines
• In Brief:
o Mosman Oil And Gas*** (LON:MSMN – 1.52p) – ($9.80mm – 3.20p) – Permian Acquisition
o Providence Resources (LON:PVR – 8p) – Drombeg Dry
o Mayan Energy (LON:MYN – 0.29p) – Update
o Jersey Oil and Gas (LON:JOG – 77p) – Verbier and Partridge Well Results
o Zenith Energy (LON:ZEN/ CVE:ZEE – 7p/C$0.11) – Funding to What?
o Columbus Energy (LON:CERP – 2.95p) – Boost for Trinidad Assets
o Tlou Energy (LON:TLOU/ ASX:TOU – 8p/A$0.14) – Good Progress So Far
In Brief
• Mosman Oil and Gas*** (LON:MSMN – 1.52p) – ($9.80mm – 3.20p) – Permian Acquisition: Today’s announcement of an acquisition in West Texas the and is the next step in the Company’s target at increasing its exposure to producing assets. It is too early to quantify what impact today’s acquisition will have on the overall valuation.
• Providence Resources (LON:PVR – 8p) – Drombeg Dry: Today’s announcement will be disappointing for many people, not least the Company’s technical team. However, what is more important than the if the Company from here on in is what is going to happen next Barryroe.
• Mayan Energy (LON:MYN – 0.29p) – Update: Today’s update detailing yet another strategic partnership, whilst its demonstrates a management team seeking two grow the Company’s the value, it appears from the outside that the approach is chaotic and more “scatter gun” than rifle shot. What if the management team need to do is articulate their strategy, and more importantly, where the application of that strategy will generate shareholder returns.
• Jersey Oil and Gas (LON:JOG – 77p) – Verbier and Partridge Well Results: Today’s announcements that both Wells are dry holes will undoubtedly disappointed not only management, but the Company’s owners too. What the management does next will define the how they’re viewed by the public, and more importantly by their existing shareholders. We believe that the management team need to cut these results in the context of the remainder of their portfolio and highlight any impact, if any, that today’s announcement has on the remaining prospectivity.
• Zenith Energy (LON:ZEN/ CVE:ZEE – 7p/C$0.11) – Funding to What?: While we’re certain that today’s announcement of an equity issue to fund the acquisition of a workover rig, given what we know about the Company’s plans makes sense, it is difficult to put it in the context of what it means for shareholder value. The management team need to articulate their plan, providing us with adequate milestones to measure their performance.
• Columbus Energy (CERP LN – 2.95p) – Boost for Trinidad Assets: Today’s announcement is a vindication of the approach that the Company has taken to date in Trinidad, which begs the question as to what this management team will do to create shareholder value over and above what the past management team had already highlighted.
• Tlou Energy (LON:TLOU/ ASX:TOU – 8p/A$0.14) – Good Progress So Far: Are there is nothing new in today’s announcement, it is a timely reminder of the progress that the Company has made. While the progress that they have made has been significant, and not easy, in many respects the hard yards are about to start. We believe that the Company will soon provide its outline for the intermediary steps to the supply of power generated by the gas from its CBM assets. With this route map, the Company’s owners and potential investors will be able to identify the key risks and milestones. There is no doubt that the Company’s owners should be pleased with the way in which the management team have approached progress so far.