Oil Encountered in Offshore Guyana Well Positive for Adjacent Explorer

Source: Streetwise Reports   01/03/2020

The result and what it means for a neighboring energy firm are provided in a Pareto Securities report.

In a Jan. 2 research note, Pareto Securities analyst Tom Eric Kristiansen reported that an energy company with property adjacent to that of Eco Atlantic Oil & Gas Ltd. (EOG:TSX.V; ECAOF:OTCMKTS; ECO:LSE) in offshore Guyana, Tullow Oil, hit oil in an exploration well.

Kristiansen relayed that Tullow’s Carapa-1 well encountered 4 meters of net pay with high-quality 27-degree API oil. That net pay interval, though smaller than anticipated, demonstrates that “the Cretaceous oil play extends into Tullow’s acreage in the region,” which includes Eco Atlantic’s adjacent Orinduik block, he explained.

Eco Atlantic has not yet announced a drill program for Orinduik, a block with more than 1 billion barrels of oil equivalent of derisked potential, Kristiansen noted. However, when it does pursue drilling there, the Toronto-based oil and gas explorer will likely encompass in its campaign “one or more wells targeting this potential.”

Pareto Securities has a Buy recommendation and a GBp100 per share target price on Eco Atlantic. It is currently trading at around GBp57.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Pareto Securities AS, Eco Atlantic Oil & Gas, January 2, 2020

This publication or report has been prepared solely by Pareto Securities Research.

Opinions or suggestions from Pareto Securities Research may deviate from recommendations or opinions presented by other departments or companies in the Pareto Securities Group. The reason may typically be the result of differing time horizons, methodologies, contexts or other factors.

Analysts Certification
The research analyst(s) whose name(s) appear on research reports prepared by Pareto Securities Research certify that: (i) all of the views expressed in the research report accurately reflect their personal views about the subject security or issuer, and (ii) no part of the research analysts’ compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analysts in research reports that are prepared by Pareto Securities Research.

The research analysts whose names appears on research reports prepared by Pareto Securities Research received compensation that is based upon various factors including Pareto Securities’ total revenues, a portion of which are generated by Pareto Securities’ investment banking activities.

Conflicts of interest

Companies in the Pareto Securities Group, affiliates or staff of companies in the Pareto Securities Group, may perform services for, solicit business from, make a market in, hold long or short positions in, or otherwise be interested in the investments (including derivatives) of any company mentioned in the publication or report.

In addition Pareto Securities Group, or affiliates, may from time to time have a broking, advisory or other relationship with a company which is the subject of or referred to in the relevant Research, including acting as that company’s official or sponsoring broker and providing corporate finance or other financial services. It is the policy of Pareto to seek to act as corporate adviser or broker to some of the companies which are covered by Pareto Securities Research. Accordingly companies covered in any Research may be the subject of marketing initiatives by the Corporate Finance Department.

To limit possible conflicts of interest and counter the abuse of inside knowledge, the analysts of Pareto Securities Research are subject to internal rules on sound ethical conduct, the management of inside information, handling of unpublished research material, contact with other units of the Group Companies and personal account dealing. The internal rules have been prepared in accordance with applicable legislation and relevant industry standards. The object of the internal rules is for example to ensure that no analyst will abuse or cause others to abuse confidential information. It is the policy of Pareto Securities Research that no link exists between revenues from capital markets activities and individual analyst remuneration. The Group Companies are members of national stockbrokers’ associations in each of the countries in which the Group Companies have their head offices. Internal rules have been developed in accordance with recommendations issued by the stockbrokers associations.

This material has been prepared following the Pareto Securities Conflict of Interest Policy. The guidelines in the policy include rules and measures aimed at achieving a sufficient degree of independence between various departments, business areas and sub-business areas within the Pareto Securities Group in order to, as far as possible, avoid conflicts of interest from arising between such departments, business areas and sub-business areas as well as their customers. One purpose of such measures is to restrict the flow of information between certain business areas and sub-business areas within the Pareto Securities Group, where conflicts of interest may arise and to safeguard the impartialness of the employees. For example, the Corporate Finance departments and certain other departments included in the Pareto Securities Group are surrounded by arrangements, so-called Chinese Walls, to restrict the flows of sensitive information from such departments. The internal guidelines also include, without limitation, rules aimed at securing the impartialness of, e.g., analysts working in the Pareto Securities Research departments, restrictions with regard to the remuneration paid to such analysts, requirements with respect to the independence of analysts from other departments within the Pareto Securities Group rules concerning contacts with covered companies and rules concerning personal account trading carried out by analysts.

Pareto Securities AS may have prepared or distributed investment recommendation, where Pareto Securities AS has been lead manager/co-lead manager or have rendered publicly known not immaterial investment banking services over the previous 12 months: Eco Atlantic Oil & Gas.

Pareto Securities AS may hold financial instruments in companies where a recommendation has been produced or distributed by Pareto Securities AS in connection with rendering investment services, including Market Making.

( Companies Mentioned: EOG:TSX.V; ECAOF:OTCMKTS; ECO:LSE,
)

Source: Streetwise Reports   01/03/2020

The result and what it means for a neighboring energy firm are provided in a Pareto Securities report.

In a Jan. 2 research note, Pareto Securities analyst Tom Eric Kristiansen reported that an energy company with property adjacent to that of Eco Atlantic Oil & Gas Ltd. (EOG:TSX.V; ECAOF:OTCMKTS; ECO:LSE) in offshore Guyana, Tullow Oil, hit oil in an exploration well.

Kristiansen relayed that Tullow's Carapa-1 well encountered 4 meters of net pay with high-quality 27-degree API oil. That net pay interval, though smaller than anticipated, demonstrates that "the Cretaceous oil play extends into Tullow's acreage in the region," which includes Eco Atlantic's adjacent Orinduik block, he explained.

Eco Atlantic has not yet announced a drill program for Orinduik, a block with more than 1 billion barrels of oil equivalent of derisked potential, Kristiansen noted. However, when it does pursue drilling there, the Toronto-based oil and gas explorer will likely encompass in its campaign "one or more wells targeting this potential."

Pareto Securities has a Buy recommendation and a GBp100 per share target price on Eco Atlantic. It is currently trading at around GBp57.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Pareto Securities AS, Eco Atlantic Oil & Gas, January 2, 2020

This publication or report has been prepared solely by Pareto Securities Research.

Opinions or suggestions from Pareto Securities Research may deviate from recommendations or opinions presented by other departments or companies in the Pareto Securities Group. The reason may typically be the result of differing time horizons, methodologies, contexts or other factors.

Analysts Certification
The research analyst(s) whose name(s) appear on research reports prepared by Pareto Securities Research certify that: (i) all of the views expressed in the research report accurately reflect their personal views about the subject security or issuer, and (ii) no part of the research analysts’ compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analysts in research reports that are prepared by Pareto Securities Research.

The research analysts whose names appears on research reports prepared by Pareto Securities Research received compensation that is based upon various factors including Pareto Securities’ total revenues, a portion of which are generated by Pareto Securities’ investment banking activities.

Conflicts of interest

Companies in the Pareto Securities Group, affiliates or staff of companies in the Pareto Securities Group, may perform services for, solicit business from, make a market in, hold long or short positions in, or otherwise be interested in the investments (including derivatives) of any company mentioned in the publication or report.

In addition Pareto Securities Group, or affiliates, may from time to time have a broking, advisory or other relationship with a company which is the subject of or referred to in the relevant Research, including acting as that company’s official or sponsoring broker and providing corporate finance or other financial services. It is the policy of Pareto to seek to act as corporate adviser or broker to some of the companies which are covered by Pareto Securities Research. Accordingly companies covered in any Research may be the subject of marketing initiatives by the Corporate Finance Department.

To limit possible conflicts of interest and counter the abuse of inside knowledge, the analysts of Pareto Securities Research are subject to internal rules on sound ethical conduct, the management of inside information, handling of unpublished research material, contact with other units of the Group Companies and personal account dealing. The internal rules have been prepared in accordance with applicable legislation and relevant industry standards. The object of the internal rules is for example to ensure that no analyst will abuse or cause others to abuse confidential information. It is the policy of Pareto Securities Research that no link exists between revenues from capital markets activities and individual analyst remuneration. The Group Companies are members of national stockbrokers’ associations in each of the countries in which the Group Companies have their head offices. Internal rules have been developed in accordance with recommendations issued by the stockbrokers associations.

This material has been prepared following the Pareto Securities Conflict of Interest Policy. The guidelines in the policy include rules and measures aimed at achieving a sufficient degree of independence between various departments, business areas and sub-business areas within the Pareto Securities Group in order to, as far as possible, avoid conflicts of interest from arising between such departments, business areas and sub-business areas as well as their customers. One purpose of such measures is to restrict the flow of information between certain business areas and sub-business areas within the Pareto Securities Group, where conflicts of interest may arise and to safeguard the impartialness of the employees. For example, the Corporate Finance departments and certain other departments included in the Pareto Securities Group are surrounded by arrangements, so-called Chinese Walls, to restrict the flows of sensitive information from such departments. The internal guidelines also include, without limitation, rules aimed at securing the impartialness of, e.g., analysts working in the Pareto Securities Research departments, restrictions with regard to the remuneration paid to such analysts, requirements with respect to the independence of analysts from other departments within the Pareto Securities Group rules concerning contacts with covered companies and rules concerning personal account trading carried out by analysts.

Pareto Securities AS may have prepared or distributed investment recommendation, where Pareto Securities AS has been lead manager/co-lead manager or have rendered publicly known not immaterial investment banking services over the previous 12 months: Eco Atlantic Oil & Gas.

Pareto Securities AS may hold financial instruments in companies where a recommendation has been produced or distributed by Pareto Securities AS in connection with rendering investment services, including Market Making.

( Companies Mentioned: EOG:TSX.V; ECAOF:OTCMKTS; ECO:LSE, )

Ellomay Capital Shares Get a Spark from 265 MW Italian Photovoltaic Development Projects

Source: Streetwise Reports   12/26/2019

Shares of Israel-based renewable energy firm Ellomay Capital got a jolt today after the firm released details of the development plans for photovoltaic projects in Italy with aggregate capacity of 265 megawatts.

Renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel Ellomay Capital Ltd. (ELLO:NYSE.AMEX) yesterday announced “the execution of a Framework Agreement between its wholly-owned subsidiary, Ellomay Luxembourg Holdings S.àr.l. and an established and experienced European developer.”

The company advised that “pursuant to the Framework Agreement, the Developer will provide Ellomay Luxembourg with development services with respect to photovoltaic greenfield projects in Italy in the scope of 350 MW with the aim of reaching an aggregate ‘ready to build’ authorized capacity of at least 265 MW over a 41-month period.” The firm noted that Ellomay Luxembourg also has the option to purchase approximately 37 MW that are already under development by the developer, of which 30 MW have already been approved to connect to the Italian electricity grid.

Ellomay’s CEO Ran Fridrich commented, “The Framework Agreement executed by the Company is another tier in the Company’s plan to increase its portfolio of photovoltaic facilities that are based on [grid] parity. Today the Company’s projects under development are in an aggregate scope of approximately 550 MW and the Company intends to increase the scope shortly to approximately 1,000 MW that are expected to be built over the coming three years. The Company’s deep knowledge and extensive experience in constructing and operation photovoltaic facilities in Italy and Spain enable it to cooperate with experienced and reputable developers.”

The company indicated that it has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy and Spain, which include 7.9MW of photovoltaic power plants in Spain and a photovoltaic power plant of approximately 9 MW in Israel.

Ellomay Capital is headquartered in Tel Aviv, Israel, and is involved in the business of energy and infrastructure. The bulk of the company’s operations are involved primarily with production of renewable and clean energy. The firm stated in the release that it is controlled by Shlomo Nehama, one of Israel’s prominent businessmen and the former chairman of Israel’s leading bank, Bank Hapohalim, and Hemi Raphael and Ran Fridrich, who both have experience in financial and industrial businesses. The company claims it has extensive experience in managing and recognizing suitable business opportunities worldwide and the ability to take on significant and complex transactions.

Ellomay Capital has a market cap of about $148.1 million with around 10.14 million outstanding shares. ELLO shares opened more than 20% higher today at $17.79 (+$3.19, +21.85%) compared to the prior trading day’s closing price of $14.60. The stock set a new 52-week high price in early trading of $18.28/share. The shares have traded today between $17.02 and $18.28 per share and are presently trading at $17.05 (+$2.45, +16.78%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: ELLO:NYSE.AMEX,
)

Source: Streetwise Reports   12/26/2019

Shares of Israel-based renewable energy firm Ellomay Capital got a jolt today after the firm released details of the development plans for photovoltaic projects in Italy with aggregate capacity of 265 megawatts.

Renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel Ellomay Capital Ltd. (ELLO:NYSE.AMEX) yesterday announced "the execution of a Framework Agreement between its wholly-owned subsidiary, Ellomay Luxembourg Holdings S.àr.l. and an established and experienced European developer."

The company advised that "pursuant to the Framework Agreement, the Developer will provide Ellomay Luxembourg with development services with respect to photovoltaic greenfield projects in Italy in the scope of 350 MW with the aim of reaching an aggregate 'ready to build' authorized capacity of at least 265 MW over a 41-month period." The firm noted that Ellomay Luxembourg also has the option to purchase approximately 37 MW that are already under development by the developer, of which 30 MW have already been approved to connect to the Italian electricity grid.

Ellomay's CEO Ran Fridrich commented, "The Framework Agreement executed by the Company is another tier in the Company's plan to increase its portfolio of photovoltaic facilities that are based on [grid] parity. Today the Company's projects under development are in an aggregate scope of approximately 550 MW and the Company intends to increase the scope shortly to approximately 1,000 MW that are expected to be built over the coming three years. The Company's deep knowledge and extensive experience in constructing and operation photovoltaic facilities in Italy and Spain enable it to cooperate with experienced and reputable developers."

The company indicated that it has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy and Spain, which include 7.9MW of photovoltaic power plants in Spain and a photovoltaic power plant of approximately 9 MW in Israel.

Ellomay Capital is headquartered in Tel Aviv, Israel, and is involved in the business of energy and infrastructure. The bulk of the company's operations are involved primarily with production of renewable and clean energy. The firm stated in the release that it is controlled by Shlomo Nehama, one of Israel's prominent businessmen and the former chairman of Israel's leading bank, Bank Hapohalim, and Hemi Raphael and Ran Fridrich, who both have experience in financial and industrial businesses. The company claims it has extensive experience in managing and recognizing suitable business opportunities worldwide and the ability to take on significant and complex transactions.

Ellomay Capital has a market cap of about $148.1 million with around 10.14 million outstanding shares. ELLO shares opened more than 20% higher today at $17.79 (+$3.19, +21.85%) compared to the prior trading day's closing price of $14.60. The stock set a new 52-week high price in early trading of $18.28/share. The shares have traded today between $17.02 and $18.28 per share and are presently trading at $17.05 (+$2.45, +16.78%).

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: ELLO:NYSE.AMEX, )

Analyst: Acquisition Accretive for Oklahoma Energy Company

Source: Streetwise Reports   12/24/2019

The favorable metrics of the transaction are discussed in a Raymond James report.

In a Dec. 16 research report, Raymond James analyst John Freeman reported that WPX Energy Inc.’s (WPX:NYSE) stock price jumped 9% on news of its acquisition of Felix Energy and with good reason, as the transaction is accretive to the hydrocarbon explorer. As such, Raymond James increased its target price on WPX to $17 per share from $15 and reiterated its Strong Buy rating.

Freeman reviewed the transaction specifics, noting that what WPX paid for Felix was below consensus’ expectation. The total consideration of $2.5 billion consisted of $900 million in cash and $1.6 billion worth of WPX shares. Through the deal, WPX gains “premier acreage,” about 1,500 undeveloped locations over 58,500 net acres in eastern, oilier Winkler, Ward and Loving counties in the Delaware Basin.

“Assuming $30,000 per flowing barrel for the expected production at close [early Q2/20], the transaction price implies a per acreage valuation of about $12,000,” the analyst explained. “On a 2020 enterprise value:EBITDA basis, WPX Energy paid about 3.5x, comparing favorably with consensus pre-deal for WPX at about 5x.”

While WPX will fund part of the acquisition by issuing about $900 million in senior notes, the transaction ultimately should be leverage neutral due to the expected, resulting boost in revenue.

Freeman also highlighted that WPX Energy’s management and Raymond James agree that the transaction immediately increases cash flow per share (CFPS), earnings per share (EPS), free cash flow per share, return on capital employed, and cash margins, assuming a $50 oil price and no operating efficiencies. In reality, ample synergies are expected from the merged companies.

Raymond James expects WPX to generate, in 2020, about $200 million in free cash flow (FCF) assuming a $50 West Texas Intermediate (WTI) oil price, and about $500 million at $60 WTI, on a pro forma basis. “At strip oil pricing, our model has the operator generating about $350 million in FCF!” added Freeman.

With part of the FCF, Freeman pointed out, management plans to initiate a post-closing dividend, aiming for about $0.10 per share on an annual basis to start. It also intends to conduct favorable buybacks and reduce leverage to 1x by year-end 2021.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Raymond James, WPX Energy Inc., December 16, 2019

ANALYST INFORMATION

Analysts Holdings and Compensation: Equity analysts and their staffs at Raymond James are compensated based on a salary and bonus system. Several factors enter into the bonus determination, including quality and performance of research product, the analyst’s success in rating stocks versus an industry index, and support effectiveness to trading and the retail and institutional sales forces. Other factors may include but are not limited to: overall ratings from internal (other than investment banking) or external parties and the general productivity and revenue generated in covered stocks.

The analyst John Freeman, primarily responsible for the preparation of this research report, attests to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers and (2) that no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views in this research report. In addition, said analyst(s) has not received compensation from any subject company in the last 12 months.

RAYMOND JAMES RELATIONSHIP DISCLOSURES
Certain affiliates of the RJ Group expect to receive or intend to seek compensation for investment banking services from all companies under research coverage within the next three months.

Raymond James & Associates, Inc. makes a market in the shares of WPX Energy, Inc.

Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available here.

( Companies Mentioned: WPX:NYSE,
)

Source: Streetwise Reports   12/24/2019

The favorable metrics of the transaction are discussed in a Raymond James report.

In a Dec. 16 research report, Raymond James analyst John Freeman reported that WPX Energy Inc.'s (WPX:NYSE) stock price jumped 9% on news of its acquisition of Felix Energy and with good reason, as the transaction is accretive to the hydrocarbon explorer. As such, Raymond James increased its target price on WPX to $17 per share from $15 and reiterated its Strong Buy rating.

Freeman reviewed the transaction specifics, noting that what WPX paid for Felix was below consensus' expectation. The total consideration of $2.5 billion consisted of $900 million in cash and $1.6 billion worth of WPX shares. Through the deal, WPX gains "premier acreage," about 1,500 undeveloped locations over 58,500 net acres in eastern, oilier Winkler, Ward and Loving counties in the Delaware Basin.

"Assuming $30,000 per flowing barrel for the expected production at close [early Q2/20], the transaction price implies a per acreage valuation of about $12,000," the analyst explained. "On a 2020 enterprise value:EBITDA basis, WPX Energy paid about 3.5x, comparing favorably with consensus pre-deal for WPX at about 5x."

While WPX will fund part of the acquisition by issuing about $900 million in senior notes, the transaction ultimately should be leverage neutral due to the expected, resulting boost in revenue.

Freeman also highlighted that WPX Energy's management and Raymond James agree that the transaction immediately increases cash flow per share (CFPS), earnings per share (EPS), free cash flow per share, return on capital employed, and cash margins, assuming a $50 oil price and no operating efficiencies. In reality, ample synergies are expected from the merged companies.

Raymond James expects WPX to generate, in 2020, about $200 million in free cash flow (FCF) assuming a $50 West Texas Intermediate (WTI) oil price, and about $500 million at $60 WTI, on a pro forma basis. "At strip oil pricing, our model has the operator generating about $350 million in FCF!" added Freeman.

With part of the FCF, Freeman pointed out, management plans to initiate a post-closing dividend, aiming for about $0.10 per share on an annual basis to start. It also intends to conduct favorable buybacks and reduce leverage to 1x by year-end 2021.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Raymond James, WPX Energy Inc., December 16, 2019

ANALYST INFORMATION

Analysts Holdings and Compensation: Equity analysts and their staffs at Raymond James are compensated based on a salary and bonus system. Several factors enter into the bonus determination, including quality and performance of research product, the analyst's success in rating stocks versus an industry index, and support effectiveness to trading and the retail and institutional sales forces. Other factors may include but are not limited to: overall ratings from internal (other than investment banking) or external parties and the general productivity and revenue generated in covered stocks.

The analyst John Freeman, primarily responsible for the preparation of this research report, attests to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers and (2) that no part of the research analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations or views in this research report. In addition, said analyst(s) has not received compensation from any subject company in the last 12 months.

RAYMOND JAMES RELATIONSHIP DISCLOSURES
Certain affiliates of the RJ Group expect to receive or intend to seek compensation for investment banking services from all companies under research coverage within the next three months.

Raymond James & Associates, Inc. makes a market in the shares of WPX Energy, Inc.

Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available here.

( Companies Mentioned: WPX:NYSE, )

Apache and Total Form $5 Billion Joint Venture to Drill off Suriname Coast

Source: Streetwise Reports   12/23/2019

Shares of Apache Corp. traded 16% higher today after the company reported that it has formed a joint venture with Total SA of France to explore and develop Block 58 offshore Suriname.

Late yesterday evening, oil and gas exploration and production company Apache Corp. (APA:NYSE) and producer and marketer of fuels, natural gas and low-carbon electricity Total S.A. (TOT:NYSE), announced that they have established a 50-50 joint venture (JV) agreement to explore and develop Block 58 offshore Suriname.

The firms outlined the terms of the agreement indicating that Apache and Total will each own a 50% working interest in Block 58. The report advised that this area is composed of approximately 1,400,000 acres in water depths that range from below 100 meters to over 2,100 meters. “Apache will operate the first three exploration wells in the block, including the Maka Central-1 well, and subsequently transfer operatorship to Total.”

The JV agreement provides that “Apache will receive various forms of consideration, including: $5 billion of cash carry on Apache’s first $7.5 billion of appraisal and development capital; 25% cash carry on all of Apache’s appraisal and development capital beyond the first $7.5 billion; various cash payments in conjunction with closing of the joint venture agreement and future production from joint development projects; and reimbursement of 50% of all costs incurred to date in Block 58.”

Both firms advised that the transaction is expected to close within three days and they have already received all of the necessary approvals from the governmental authorities in Suriname to proceed.

Apache’s CEO and President John J. Christmann commented, “Suriname Block 58 presents a unique, large-scale oil resource opportunity, and we are very pleased to welcome Total to our existing partnership with Staatsolie, the national oil company of Suriname. Total’s extensive offshore operational experience and global footprint make it an ideal partner for a block of this size and potential…Upon meeting certain drilling commitments, the partnership has the rights to explore the entire block through mid-2026 without acreage relinquishments. This provides for a thorough evaluation of the multiple play types we have identified in this emerging oil-prone basin.”

Patrick Pouyanné, chairman and CEO of Total, added, “We are very pleased to team up with Apache and Staatsolie, and to become operator of this promising license where we will bring our deepwater expertise. It is indeed a unique exploration opportunity in a prolific basin.”

Regarding the status of the initial exploration findings Apache CEO Christmann added, “Apache and Total are encouraged by the preliminary information and test results from the two upper Cretaceous play types encountered thus far…Deepening and testing operations continue at Maka Central-1. Following the completion of these activities, the rig will be moving to the next location. When the companies are prepared to fully characterize results of Maka Central-1, additional information will be provided.”

Total SA is an oil and gas company headquartered in Paris, France. The firm has a market cap of over $140 billion, employs over 100,000 people and has active operations in more than 130 countries. Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity.

Apache Corp. is an oil and gas exploration and production company based in Houston, Texas. The company explores for, develops and produces natural gas, crude oil and natural gas liquids. The company currently operates in the U.S., Egypt and the U.K. The company states that its mission is “to grow in an innovative, safe, environmentally responsible and profitable manner for the long-term benefit of our stakeholders.”

Apache has a market capitalization of about $8.5 billion with approximately 376 million shares outstanding and a short interest of around 5.9%. APA shares today at $24.08 (+$1.46, +6.45%) compared to Friday’s closing price of $22.62. The stock has traded today between $23.95 and $26.73/share and currently is trading at $26.59 (+$3.97, +17.55%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: APA:NYSE,
TOT:NYSE,
)

Source: Streetwise Reports   12/23/2019

Shares of Apache Corp. traded 16% higher today after the company reported that it has formed a joint venture with Total SA of France to explore and develop Block 58 offshore Suriname.

Late yesterday evening, oil and gas exploration and production company Apache Corp. (APA:NYSE) and producer and marketer of fuels, natural gas and low-carbon electricity Total S.A. (TOT:NYSE), announced that they have established a 50-50 joint venture (JV) agreement to explore and develop Block 58 offshore Suriname.

The firms outlined the terms of the agreement indicating that Apache and Total will each own a 50% working interest in Block 58. The report advised that this area is composed of approximately 1,400,000 acres in water depths that range from below 100 meters to over 2,100 meters. "Apache will operate the first three exploration wells in the block, including the Maka Central-1 well, and subsequently transfer operatorship to Total."

The JV agreement provides that "Apache will receive various forms of consideration, including: $5 billion of cash carry on Apache's first $7.5 billion of appraisal and development capital; 25% cash carry on all of Apache's appraisal and development capital beyond the first $7.5 billion; various cash payments in conjunction with closing of the joint venture agreement and future production from joint development projects; and reimbursement of 50% of all costs incurred to date in Block 58."

Both firms advised that the transaction is expected to close within three days and they have already received all of the necessary approvals from the governmental authorities in Suriname to proceed.

Apache's CEO and President John J. Christmann commented, "Suriname Block 58 presents a unique, large-scale oil resource opportunity, and we are very pleased to welcome Total to our existing partnership with Staatsolie, the national oil company of Suriname. Total's extensive offshore operational experience and global footprint make it an ideal partner for a block of this size and potential...Upon meeting certain drilling commitments, the partnership has the rights to explore the entire block through mid-2026 without acreage relinquishments. This provides for a thorough evaluation of the multiple play types we have identified in this emerging oil-prone basin."

Patrick Pouyanné, chairman and CEO of Total, added, "We are very pleased to team up with Apache and Staatsolie, and to become operator of this promising license where we will bring our deepwater expertise. It is indeed a unique exploration opportunity in a prolific basin."

Regarding the status of the initial exploration findings Apache CEO Christmann added, "Apache and Total are encouraged by the preliminary information and test results from the two upper Cretaceous play types encountered thus far...Deepening and testing operations continue at Maka Central-1. Following the completion of these activities, the rig will be moving to the next location. When the companies are prepared to fully characterize results of Maka Central-1, additional information will be provided."

Total SA is an oil and gas company headquartered in Paris, France. The firm has a market cap of over $140 billion, employs over 100,000 people and has active operations in more than 130 countries. Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity.

Apache Corp. is an oil and gas exploration and production company based in Houston, Texas. The company explores for, develops and produces natural gas, crude oil and natural gas liquids. The company currently operates in the U.S., Egypt and the U.K. The company states that its mission is "to grow in an innovative, safe, environmentally responsible and profitable manner for the long-term benefit of our stakeholders."

Apache has a market capitalization of about $8.5 billion with approximately 376 million shares outstanding and a short interest of around 5.9%. APA shares today at $24.08 (+$1.46, +6.45%) compared to Friday's closing price of $22.62. The stock has traded today between $23.95 and $26.73/share and currently is trading at $26.59 (+$3.97, +17.55%).

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: APA:NYSE, TOT:NYSE, )

Azarga Gets Thumbs Up from Analysts After Favorable Ruling on NRC License

Source: Streetwise Reports   12/23/2019

After receiving a favorable ruling on the NRC license, its focus shifts to project economics.

Azarga Uranium Corp. (AZZ:TSX; AZZUF:OTCQB; P8AA:FSE) recently announced that the Atomic Safety and Licensing Board (ASLB) issued its Final Initial Decision, resolving the final remaining contention for the Nuclear Regulatory Commission (NRC) license for the Dewey Burdock In-Situ Recovery Uranium Project in South Dakota in favor of the company.

This decision was lauded by industry analysts. Haywood analyst Colin Healey wrote on December 13, “The positive decision from the ASLB is a huge boost for Azarga and significantly de-risks the Dewey Burdock Project, opening the way for aggressive advancement including pursuing other required permits for future construction and production. . .With a Final Decision rendered, the outlook significantly improves as Azarga can push forward with additional permitting at Dewey Burdock unencumbered.”

Haywood has a Buy rating and a target price of CA$0.50 for Azarga. The stock is currently trading at around CA$0.21.

Eight Capital analyst David A. Talbot wrote on December 13, “In a positive move, the Atomic Safety and Licensing Board issued its final decision, resolving the final contention against 100%-owned Dewey Burdock (DB) project’s NRC License in favour of Azarga and NRC staff. This means its NRC Source & Byproduct Materials License is in good standing, free and clear of any further contentions.”

Eight Capital is maintaining its Buy recommendation for Azarga and a 12-month target price of CA$0.45.

Gerardo Del Real wrote in Junior Mining Trader on December 13 that the decision “is a major milestone for the company. . .The announcement paves the way for the Environmental Protection Agency (“EPA”) to issue the final Class III and Class V underground injection control permits which in turn paves the way for Azarga to become a prime takeout target.”

“The favorable resolution, announced this morning, of the final issue and the pending Nuclear Fuel Working Group recommendations (which are overdue), which should provide a very favorable tailwind to U.S. based uranium companies with high-margin assets like Azarga’s Dewey Burdock project, make Azarga a screaming buy,” Del Real added.

Blake Steele, president and CEO of Azarga, stated, “Resolution of the last remaining contention comes more than four years after the ASLB issued its Partial Initial Decision for the Dewey Burdock Project and marks a monumental achievement for the Company. The ASLB proceeding is now terminated and the Dewey Burdock Project NRC License is contention free for the first time since this proceeding commenced. This decision represents a key risk reduction event and a significant step towards realizing the full value of the Dewey Burdock Project.”

With the conclusion of the license decision, the analysts’ attention turned to Azarga’s Preliminary Economic Assessment (PEA), which the company updated on December 4. The company released highlights of the PEA:

  • Post-income tax IRR of 50% and NPV of US$147.5 million (at US$55 per pound uranium sales price and 8% discount rate)

  • 14.3 million pounds of U3O8 production over 16 years; steady state production of approximately 1 million pounds per year achieved in year 3
  • Low initial capital expenditures estimated at US$31.7 million
  • Direct cash operating costs estimated at US$10.46 per pound of production

Colin Healey of Haywood wrote that the recent PEA impact was “muted based on the overhang of this event; robust economics now in focus. . .With all-in pre-tax cost of production of US$29/lb, Dewey Burdock should be a very resilient project capable of generating positive cash-flow even at currently depressed term market prices.”

David Talbot of Eight Capital noted, “The new PEA does help differentiate this project, in our opinion one of the best ISR projects in the USA, from others so that when the market potentially improves within the next 12-18 months, the seriousness of off-take discussions may heighten.”

Talbot stated that the updated PEA “was an improvement over previous studies given its longer 16-year LOM [life of mine]. The PEA was completed within confines of the 1 MM lb U3O8 pa limitation of the NRC license. DB economics appear highly sensitive to production rate (and timing), and potential production expansion from 1 MM to 1.5 MM lbs pa would be beneficial. Even within the current market, DB remains economic. That said, management has no desire to waste the asset, so we don’t believe construction to be pending until prices reach the $40-$45-$50/lb range.”

CEO Steele stated, “the results of the Preliminary Economic Assessment (“PEA”) for the Dewey Burdock Project cemented it as one of the preeminent undeveloped in-situ recovery uranium projects in the United States. The estimated cost profile and modest initial capital expenditures leave the Dewey Burdock Project well positioned to capitalize on the anticipated recovery in the uranium price. The robust PEA economics along with the ASLB decision continue to pave the way towards construction and further de-risk the Dewey Burdock Project.”

Read what other experts are saying about:

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Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Azarga Uranium. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Azarga Uranium, a company mentioned in this article.

Additional Disclosures
Disclosures from Haywood, Azarga Uranium Corp., December 13, 2019

Analyst Certification: I, Colin Healey, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures

The following Important Disclosures apply:

▪ Haywood Securities, Inc. has reviewed lead projects of Uranium Energy Corp. (UEC-US) and a portion of the expenses for this travel may have been reimbursed by the issuer.

▪ Haywood Securities, Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for Uranium Participation Corp. in the past 12 months.

Other material conflict of interest of the research analyst of which the research analyst or Haywood Securities Inc. knows or has reason to know at the time of publication or at the time of public appearance: n/a.

Disclosures from Eight Capital, Azarga Uranium Corp., Comment, December 13, 2019

Conflicts of Interest: Eight Capital has written procedures designed to identify and manage potential conflicts of interest that arise in connection with its research and other businesses. The compensation of each Research Analyst/Associate involved in the preparation of this research report is based competitively upon several criteria, including performance assessment criteria, the quality of research and the value of the services they provide to clients of Eight Capital. The Research Analyst compensation pool includes revenues from several sources, including sales, trading and investment banking. Research analysts and associates do not receive compensation based upon revenues from specific investment banking transactions.

Eight Capital generally restricts any research analyst/associate and any member of his or her household from executing trades in the securities of a company that such research analyst covers, with limited exception.

Research Analyst Certification
Each Research Analyst and/or Associate who is involved in the preparation of this research report hereby certifies that:
• the views and recommendations expressed herein accurately reflect his/her personal views about any and all of the securities or issuers that are the subject matter of this research report;
• his/her compensation is not and will not be directly related to the specific recommendations or views expressed by the Research Analyst in this research report;
• they have not affected a trade in a security of any class of the issuer whether directly or indirectly through derivatives within the 30-day period prior to the publication of this research report;
• they have not distributed or discussed this Research Report to/with the issuer, investment banking at Eight Capital or any other third party except for the sole purpose of verifying factual information; and
• they are unaware of any other potential conflicts of interest.

The Research Analyst involved in the preparation of this research report does not have any authority whatsoever (actual, implied or apparent) to act on behalf of any issuer mentioned in this research report.

Junior Miner Trader Disclosures
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Outsider Club and Resource Stock Digest Trader does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question.

( Companies Mentioned: AZZ:TSX; AZZUF:OTCQB,
)

Source: Streetwise Reports   12/23/2019

After receiving a favorable ruling on the NRC license, its focus shifts to project economics.

Azarga Uranium Corp. (AZZ:TSX; AZZUF:OTCQB; P8AA:FSE) recently announced that the Atomic Safety and Licensing Board (ASLB) issued its Final Initial Decision, resolving the final remaining contention for the Nuclear Regulatory Commission (NRC) license for the Dewey Burdock In-Situ Recovery Uranium Project in South Dakota in favor of the company.

This decision was lauded by industry analysts. Haywood analyst Colin Healey wrote on December 13, "The positive decision from the ASLB is a huge boost for Azarga and significantly de-risks the Dewey Burdock Project, opening the way for aggressive advancement including pursuing other required permits for future construction and production. . .With a Final Decision rendered, the outlook significantly improves as Azarga can push forward with additional permitting at Dewey Burdock unencumbered."

Haywood has a Buy rating and a target price of CA$0.50 for Azarga. The stock is currently trading at around CA$0.21.

Eight Capital analyst David A. Talbot wrote on December 13, "In a positive move, the Atomic Safety and Licensing Board issued its final decision, resolving the final contention against 100%-owned Dewey Burdock (DB) project's NRC License in favour of Azarga and NRC staff. This means its NRC Source & Byproduct Materials License is in good standing, free and clear of any further contentions."

Eight Capital is maintaining its Buy recommendation for Azarga and a 12-month target price of CA$0.45.

Gerardo Del Real wrote in Junior Mining Trader on December 13 that the decision "is a major milestone for the company. . .The announcement paves the way for the Environmental Protection Agency ("EPA") to issue the final Class III and Class V underground injection control permits which in turn paves the way for Azarga to become a prime takeout target."

"The favorable resolution, announced this morning, of the final issue and the pending Nuclear Fuel Working Group recommendations (which are overdue), which should provide a very favorable tailwind to U.S. based uranium companies with high-margin assets like Azarga's Dewey Burdock project, make Azarga a screaming buy," Del Real added.

Blake Steele, president and CEO of Azarga, stated, "Resolution of the last remaining contention comes more than four years after the ASLB issued its Partial Initial Decision for the Dewey Burdock Project and marks a monumental achievement for the Company. The ASLB proceeding is now terminated and the Dewey Burdock Project NRC License is contention free for the first time since this proceeding commenced. This decision represents a key risk reduction event and a significant step towards realizing the full value of the Dewey Burdock Project."

With the conclusion of the license decision, the analysts' attention turned to Azarga's Preliminary Economic Assessment (PEA), which the company updated on December 4. The company released highlights of the PEA:

  • Post-income tax IRR of 50% and NPV of US$147.5 million (at US$55 per pound uranium sales price and 8% discount rate)

  • 14.3 million pounds of U3O8 production over 16 years; steady state production of approximately 1 million pounds per year achieved in year 3

  • Low initial capital expenditures estimated at US$31.7 million

  • Direct cash operating costs estimated at US$10.46 per pound of production

Colin Healey of Haywood wrote that the recent PEA impact was "muted based on the overhang of this event; robust economics now in focus. . .With all-in pre-tax cost of production of US$29/lb, Dewey Burdock should be a very resilient project capable of generating positive cash-flow even at currently depressed term market prices."

David Talbot of Eight Capital noted, "The new PEA does help differentiate this project, in our opinion one of the best ISR projects in the USA, from others so that when the market potentially improves within the next 12-18 months, the seriousness of off-take discussions may heighten."

Talbot stated that the updated PEA "was an improvement over previous studies given its longer 16-year LOM [life of mine]. The PEA was completed within confines of the 1 MM lb U3O8 pa limitation of the NRC license. DB economics appear highly sensitive to production rate (and timing), and potential production expansion from 1 MM to 1.5 MM lbs pa would be beneficial. Even within the current market, DB remains economic. That said, management has no desire to waste the asset, so we don't believe construction to be pending until prices reach the $40-$45-$50/lb range."

CEO Steele stated, "the results of the Preliminary Economic Assessment ("PEA") for the Dewey Burdock Project cemented it as one of the preeminent undeveloped in-situ recovery uranium projects in the United States. The estimated cost profile and modest initial capital expenditures leave the Dewey Burdock Project well positioned to capitalize on the anticipated recovery in the uranium price. The robust PEA economics along with the ASLB decision continue to pave the way towards construction and further de-risk the Dewey Burdock Project."

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Azarga Uranium. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Azarga Uranium, a company mentioned in this article.

Additional Disclosures
Disclosures from Haywood, Azarga Uranium Corp., December 13, 2019

Analyst Certification: I, Colin Healey, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures
The following Important Disclosures apply:
▪ Haywood Securities, Inc. has reviewed lead projects of Uranium Energy Corp. (UEC-US) and a portion of the expenses for this travel may have been reimbursed by the issuer.
▪ Haywood Securities, Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for Uranium Participation Corp. in the past 12 months.

Other material conflict of interest of the research analyst of which the research analyst or Haywood Securities Inc. knows or has reason to know at the time of publication or at the time of public appearance: n/a.

Disclosures from Eight Capital, Azarga Uranium Corp., Comment, December 13, 2019

Conflicts of Interest: Eight Capital has written procedures designed to identify and manage potential conflicts of interest that arise in connection with its research and other businesses. The compensation of each Research Analyst/Associate involved in the preparation of this research report is based competitively upon several criteria, including performance assessment criteria, the quality of research and the value of the services they provide to clients of Eight Capital. The Research Analyst compensation pool includes revenues from several sources, including sales, trading and investment banking. Research analysts and associates do not receive compensation based upon revenues from specific investment banking transactions.

Eight Capital generally restricts any research analyst/associate and any member of his or her household from executing trades in the securities of a company that such research analyst covers, with limited exception.

Research Analyst Certification
Each Research Analyst and/or Associate who is involved in the preparation of this research report hereby certifies that:
• the views and recommendations expressed herein accurately reflect his/her personal views about any and all of the securities or issuers that are the subject matter of this research report;
• his/her compensation is not and will not be directly related to the specific recommendations or views expressed by the Research Analyst in this research report;
• they have not affected a trade in a security of any class of the issuer whether directly or indirectly through derivatives within the 30-day period prior to the publication of this research report;
• they have not distributed or discussed this Research Report to/with the issuer, investment banking at Eight Capital or any other third party except for the sole purpose of verifying factual information; and
• they are unaware of any other potential conflicts of interest.

The Research Analyst involved in the preparation of this research report does not have any authority whatsoever (actual, implied or apparent) to act on behalf of any issuer mentioned in this research report.

Junior Miner Trader Disclosures
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Outsider Club and Resource Stock Digest Trader does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question.

( Companies Mentioned: AZZ:TSX; AZZUF:OTCQB, )

Tallgrass Energy Shares Rise 20% on Blackstone Partners Acquisition Deal

Source: Streetwise Reports   12/17/2019

Shares of Tallgrass Energy LP traded 20% higher after the firm advised that it entered into a definitive merger agreement with Blackstone Infrastructure Partners to acquire all of the…

Source: Streetwise Reports   12/17/2019

Shares of Tallgrass Energy LP traded 20% higher after the firm advised that it entered into a definitive merger agreement with Blackstone Infrastructure Partners to acquire all of the company's publicly held outstanding class A shares for $22.45 per share in cash.

Midstream energy infrastructure company Tallgrass Energy LP (TGE:NYSE) today announced that it has entered into a definitive merger agreement with Blackstone Infrastructure Partners (BIP) and its investment partners Enagas, GIC, NPS and USS to acquire all of the publicly held outstanding Class A Shares of TGE for $22.45 in cash per share.

Tallgrass Energy stated that its Board of Directors' Conflicts Committee has already unanimously approved the transaction and determined it to be in the best interests of the company and its public shareholders.

The report indicated that the transaction is expected to close in Q2/20 subject to satisfaction of customary conditions, including approval of the merger by holders of a majority of the outstanding Tallgrass Class A and Class B shares. This majority is inclusive of the approximately 44% of the total Class A and Class B shares that are already held by the BIP consortium sponsors. The BIP sponsors stated that they expect to fund the bulk of the purchase of the Class A Shares with approximately $3 billion of equity with the remainder of the transaction funding to be financed by debt.

Tallgrass Energy LP is a growth-oriented midstream energy infrastructure company headquartered in Leawood, Kansas. The firm indicated that "it operates across 11 states with transportation, storage, terminal, water, gathering and processing assets that serve some of the nation's most prolific crude oil and natural gas basins."

Blackstone is one of the world's largest investment firms with its asset management businesses having over $554 billion in assets under management. The firm stated that infrastructure is one of its most active investment areas, and that over the last 15 years, it has invested more than $45 billion globally in infrastructure-related projects.

Tallgrass Energy started off the day with a market capitalization of about $5.1 billion with approximately 281.3 million shares outstanding. TGE shares opened 21% higher today at $22.17 (+$3.88, + 21.21%) compared to yesterday's $18.29 closing price. The stock has traded today between $22.09 and $22.18 per share and at present is trading at $22.10 (+$3.81, +20.86%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: TGE:NYSE, )

STACK Agreement ‘Positive’ for Area Operator

Source: Streetwise Reports   12/12/2019

The deal details are relayed in a ROTH Capital Partners report.In a Dec. 10 research note, ROTH Capital Partners analyst John White purported that a recent development in the industry…

Source: Streetwise Reports   12/12/2019

The deal details are relayed in a ROTH Capital Partners report.

In a Dec. 10 research note, ROTH Capital Partners analyst John White purported that a recent development in the industry is positive for Chaparral Energy Inc. (CHAP:NYSE) as its primary areas of operation are the STACK and MERGE plays in Oklahoma.

The development is an agreement between Devon Energy and Dow to co-develop part of Devon's STACK acreage, with Dow committing about $100 million to drilling over the next four years. The two companies will start year by developing two drill units in Canadian County, where Chaparral "has 23,000 net acres with an average 66% interest" and "98% held by production," White explained.

ROTH has a Buy rating and a $9 target price on Chaparral. The company currently trading at around $0.93 per share.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from ROTH Capital Partners, Chaparral Energy Inc., Flash Note, December 10, 2019

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

ROTH makes a market in shares of Chaparral Energy, Inc. and as such, buys and sells from customers on a principal basis

Shares of Chaparral Energy, Inc. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.

( Companies Mentioned: CHAP:NYSE, )

A.I.S. Resources: A New Gold Prospect + Manganese Trading + Li Extraction Technology

Source: Peter Epstein for Streetwise Reports   12/11/2019

Peter Epstein of Epstein Research profiles a company that is reinventing itself as moderately diversified battery metals company.

In the midst of tax loss selling across many sectors—not just battery metals (lithium, cobalt, manganese, vanadium, etc.) but cannabis/hemp segments as well (and most other metals/mining/mineral sectors)A.I.S. Resources Ltd. (AIS:TSX.V; AISSF:OTSQB) recently announced good news. Is the market ignoring ongoing positive developments at the company?

Management has successfully arranged for the supply of up to 30k tonnes/month of high-grade (48%–52%) Manganese (Mn) to China and is embarking on a trial shipment of 5–10k tonnes. Reaching this significant tonnage (which is not a sure thing) has been a consistent goal since April/May. If A.I.S. achieves 20k–30k tonnes/month, it would be an excellent outcome, assuming it can consistently deliver in that range.

Management has arranged the Mn sourcing with two African suppliers, and is negotiating a supply agreement with giant, multi-billion dollar Erdos Group, one of the world’s largest buyers of Mn. A.I.S. has issued a term sheet for a trial shipment of 5–10k tonnes, expected in January. The fact that Erdos is willing to work with A.I.S. is an impressive vote of confidence in the management team.

The trial shipment will reportedly gross ~US$2 million, subject to a final delivered grade of ~50% Mn. A.I.S. will be responsible for all logistics, including quality control, assays, shipping and related activities.

Additional suppliers from Brazil and Panama, among other places, have approached management about selling ore into A.I.S.’ trading strategy. Negotiations are underway. Importantly, detailed discussions are being held with trade and project financiers from London, Dubai and Canada to facilitate payments for the purchase and shipment of Mn ore to China. Although a risk factor, management believes that obtaining trade financing will not be problem.

This news comes on the heels of another positive development, but one that failed to capture investor’s need for instant gratification. On October 24th, management locked down an option to acquire an initial 51% interest in a gold mine in northern Peru. The mine is currently producing small quantities of gold.

After completing due diligence and determining the extent and concentration of gold mineralization, A.I.S. will contribute US$500k worth of equipment and technical expertise to increase mine productivity. Low-cost due diligence efforts will focus on drilling, soil sampling, mapping and design of a process circuit. The target is 8–10 vein systems with up to 5,000 tonnes of ore in each, grading 10g/t Au or better.

Investors have questions about this new gold project: How long will it take to do proper due diligence? Will A.I.S. need to raise additional equity capital? Company-wide funding is a concern; management needs to come up with trade finance for Mn trading, cash or a gold loan for the new gold project, and US$1 million for a 15% investment in a private lithium extraction technology company.

Readers may recall that on October 8th, A.I.S. signed an option agreement with Ekos Research, requiring an investment of US$1 million, for a 15% stake in a breakthrough lithium solvent extraction process that produces lithium chloride with 99.2% purity, but more importantly can manage high-magnesium bearing brines found in salars in Argentina like Rincón and Salinas Grandes.

Rapid lithium extraction (without solar evaporation ponds), with high recoveries and purity levels, and a strong environmental profile, is the holy grail. There are dozens of technologies in the works, but none (that I’m aware of) are operating at full commercial scale anywhere in the world.

Management gave me an example of a 20,000 tonne per year lithium carbonate plant that could reduce its cap-ex from $560 million to $210 million by using this new technology. With no evaporation ponds, the process can easily be turned on and off, and there’s no ground water issues.

How far will US$1 million take this emerging technology? While I have respect for the A.I.S. technical team being able to expertly evaluate a promising lithium extraction technology, it could take years to reach meaningful cash flow (net to the company’s 15% interest).

Ekosolve is building a semi-commercial scale demonstration plant for under US$1 million, so the cash contributed by A.I.S will go directly into this demonstration plant with a nine-month build. I’m told there is at least one producer having their brines tested now.

Is management spreading themselves too thin? The company is now reportedly pursuing three projects at once; lithium technology, manganese trading and a gold joint venture, spanning several countries (Peru, Australia, Tanzania, China). Management doesn’t think so, and they’re only actively spending on Mn trading at the moment. Gold project due diligence costs are said to be minimal.

CEO Phil Thomas has more than 17 years’ experience in lithium technologies being highly qualified in geochemistry especially lithium, worked for more than 15 years in trading ores and has explored and operated five gold mines, with eight staff in Peru and two in China. Phil is based in Australia.

Yes, the shares of A.I.S. Resources remain highly speculative, but the upside potential is bigger than ever before. Can a company with a $3.8 million market cap (83.4 million shares at $0.045) move its Mn project forward over the next 3, 6, 12 months without massive equity dilution?

I like the diversification here, Mn, Au (gold) + a Li extraction technology. Management saw the decline in lithium prices and prudently dropped their Guayatayoc lithium project. Consider the difference in pricing of lithium (down a lot) and gold (up moderately). A year ago, A.I.S. was solely an Argentina lithium brine play. If management had not branched out into other sectors, the company would be dead in the water like many others in South America’s Lithium Triangle.

If all goes according to plan, which is rarely the case for somewhat complex logistical operations, A.I.S. has the opportunity to become cash flow positive within six months. I think it’s great that cash flow from Mn trading could be deployed into a gold project rather than a lithium brine story in Argentina.

Although the avoidance of further equity dilution is very important to the management team, readers should probably assume some equity issuance as a necessary evil. A.I.S. should be able to get by with a modest raise before reaching cash flow break even next year. There’s reason to expect only minimal equity dilution because management believes it can secure trade/working capital financing. The announcement of non-dilutive financing working cap would be a tremendous de-risking event.

Bottom line, A.I.S. Resources (TSX-V – AIS, OTCQB: AISSF) is worth a lot more than $3.8 million if it can reach 20k–30k tonnes/month of Mn trading. Management has a number of boxes checked in this endeavor, but there are more boxes to tick.

Working with Erdos and sending them a sizable (trial) bulk shipment is great news, but timing is everything. A three-month delay in reaching 20k–30k tonnes/month could make a big difference in the number of shares outstanding.

However, to reiterate, if all goes reasonably as planned, there’s substantial upside from the current $3.8 million valuation.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University’s Stern School of Business.

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Disclosures: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about A.I.S. Resources, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of A.I.S. Resources are highly speculative, not suitable for all investors. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this article was posted, Peter Epstein owned no shares of A.I.S. Resources and the Company was an advertiser on [ER].

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts, financial calculations, etc., or for the completeness of this interview or future content. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company. [ER] is not an expert in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
1) Peter Epstein’s disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: AIS:TSX.V,
)

Source: Peter Epstein for Streetwise Reports   12/11/2019

Peter Epstein of Epstein Research profiles a company that is reinventing itself as moderately diversified battery metals company.

In the midst of tax loss selling across many sectors—not just battery metals (lithium, cobalt, manganese, vanadium, etc.) but cannabis/hemp segments as well (and most other metals/mining/mineral sectors)A.I.S. Resources Ltd. (AIS:TSX.V; AISSF:OTSQB) recently announced good news. Is the market ignoring ongoing positive developments at the company?

Management has successfully arranged for the supply of up to 30k tonnes/month of high-grade (48%–52%) Manganese (Mn) to China and is embarking on a trial shipment of 5–10k tonnes. Reaching this significant tonnage (which is not a sure thing) has been a consistent goal since April/May. If A.I.S. achieves 20k–30k tonnes/month, it would be an excellent outcome, assuming it can consistently deliver in that range.

Management has arranged the Mn sourcing with two African suppliers, and is negotiating a supply agreement with giant, multi-billion dollar Erdos Group, one of the world's largest buyers of Mn. A.I.S. has issued a term sheet for a trial shipment of 5–10k tonnes, expected in January. The fact that Erdos is willing to work with A.I.S. is an impressive vote of confidence in the management team.

The trial shipment will reportedly gross ~US$2 million, subject to a final delivered grade of ~50% Mn. A.I.S. will be responsible for all logistics, including quality control, assays, shipping and related activities.

Additional suppliers from Brazil and Panama, among other places, have approached management about selling ore into A.I.S.' trading strategy. Negotiations are underway. Importantly, detailed discussions are being held with trade and project financiers from London, Dubai and Canada to facilitate payments for the purchase and shipment of Mn ore to China. Although a risk factor, management believes that obtaining trade financing will not be problem.

This news comes on the heels of another positive development, but one that failed to capture investor's need for instant gratification. On October 24th, management locked down an option to acquire an initial 51% interest in a gold mine in northern Peru. The mine is currently producing small quantities of gold.

After completing due diligence and determining the extent and concentration of gold mineralization, A.I.S. will contribute US$500k worth of equipment and technical expertise to increase mine productivity. Low-cost due diligence efforts will focus on drilling, soil sampling, mapping and design of a process circuit. The target is 8–10 vein systems with up to 5,000 tonnes of ore in each, grading 10g/t Au or better.

Investors have questions about this new gold project: How long will it take to do proper due diligence? Will A.I.S. need to raise additional equity capital? Company-wide funding is a concern; management needs to come up with trade finance for Mn trading, cash or a gold loan for the new gold project, and US$1 million for a 15% investment in a private lithium extraction technology company.

Readers may recall that on October 8th, A.I.S. signed an option agreement with Ekos Research, requiring an investment of US$1 million, for a 15% stake in a breakthrough lithium solvent extraction process that produces lithium chloride with 99.2% purity, but more importantly can manage high-magnesium bearing brines found in salars in Argentina like Rincón and Salinas Grandes.

Rapid lithium extraction (without solar evaporation ponds), with high recoveries and purity levels, and a strong environmental profile, is the holy grail. There are dozens of technologies in the works, but none (that I'm aware of) are operating at full commercial scale anywhere in the world.

Management gave me an example of a 20,000 tonne per year lithium carbonate plant that could reduce its cap-ex from $560 million to $210 million by using this new technology. With no evaporation ponds, the process can easily be turned on and off, and there's no ground water issues.

How far will US$1 million take this emerging technology? While I have respect for the A.I.S. technical team being able to expertly evaluate a promising lithium extraction technology, it could take years to reach meaningful cash flow (net to the company's 15% interest).

Ekosolve is building a semi-commercial scale demonstration plant for under US$1 million, so the cash contributed by A.I.S will go directly into this demonstration plant with a nine-month build. I'm told there is at least one producer having their brines tested now.

Is management spreading themselves too thin? The company is now reportedly pursuing three projects at once; lithium technology, manganese trading and a gold joint venture, spanning several countries (Peru, Australia, Tanzania, China). Management doesn't think so, and they're only actively spending on Mn trading at the moment. Gold project due diligence costs are said to be minimal.

CEO Phil Thomas has more than 17 years' experience in lithium technologies being highly qualified in geochemistry especially lithium, worked for more than 15 years in trading ores and has explored and operated five gold mines, with eight staff in Peru and two in China. Phil is based in Australia.

Yes, the shares of A.I.S. Resources remain highly speculative, but the upside potential is bigger than ever before. Can a company with a $3.8 million market cap (83.4 million shares at $0.045) move its Mn project forward over the next 3, 6, 12 months without massive equity dilution?

I like the diversification here, Mn, Au (gold) + a Li extraction technology. Management saw the decline in lithium prices and prudently dropped their Guayatayoc lithium project. Consider the difference in pricing of lithium (down a lot) and gold (up moderately). A year ago, A.I.S. was solely an Argentina lithium brine play. If management had not branched out into other sectors, the company would be dead in the water like many others in South America's Lithium Triangle.

If all goes according to plan, which is rarely the case for somewhat complex logistical operations, A.I.S. has the opportunity to become cash flow positive within six months. I think it's great that cash flow from Mn trading could be deployed into a gold project rather than a lithium brine story in Argentina.

Although the avoidance of further equity dilution is very important to the management team, readers should probably assume some equity issuance as a necessary evil. A.I.S. should be able to get by with a modest raise before reaching cash flow break even next year. There's reason to expect only minimal equity dilution because management believes it can secure trade/working capital financing. The announcement of non-dilutive financing working cap would be a tremendous de-risking event.

Bottom line, A.I.S. Resources (TSX-V – AIS, OTCQB: AISSF) is worth a lot more than $3.8 million if it can reach 20k–30k tonnes/month of Mn trading. Management has a number of boxes checked in this endeavor, but there are more boxes to tick.

Working with Erdos and sending them a sizable (trial) bulk shipment is great news, but timing is everything. A three-month delay in reaching 20k–30k tonnes/month could make a big difference in the number of shares outstanding.

However, to reiterate, if all goes reasonably as planned, there's substantial upside from the current $3.8 million valuation.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University's Stern School of Business.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosures: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about A.I.S. Resources, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of A.I.S. Resources are highly speculative, not suitable for all investors. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this article was posted, Peter Epstein owned no shares of A.I.S. Resources and the Company was an advertiser on [ER].

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he's diligent in screening out companies that, for any reasons, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts, financial calculations, etc., or for the completeness of this interview or future content. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company. [ER] is not an expert in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
1) Peter Epstein's disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: AIS:TSX.V, )

Petroleum Firm Sells Assets to Focus on Montney Projects

Source: Streetwise Reports   12/11/2019

The details, finances and impact of the transaction are discussed in a CIBC report.

In a Dec. 6 research note, CIBC analyst Jamie Kubik wrote that Paramount Resources Ltd.’s (POU:TSX) disposing of 8,500 barrels of oil equivalent per day (8,500 boe/d) of production will not materially impact the energy company’s cash flow in the future. “We view the move favorably,” he added.

Paramount sold the assets for a total value of CA$55 million. Metrics of the transaction were “modest,” Kubik noted, at 320,000 net acres of mineral rights (CA$172 per acre), 8,500 boe/d production (CA$6,470/boe/d), 15.9 MMboe of Proven reserves (CA$3.46/boe) and 20.1 MMboe of Proven and Probable reserves (CA$2.74 per barrel).

In addition, Paramount’s capital plans for the assets were “minimal,” Kubik pointed out. Thus, CIBC lowered its estimated 2020 capital spend for the company to CA$550 million from CA$600 million. “With the disposition, Paramount will have less maintenance capital required for assets outside of its Montney acreage moving forward, and management has also pointed to cost savings in its recent drilling efforts,” noted Kubik.

Paramount has focused primarily on developing its Montney assets, Karr and Wapiti. Going forward, “further refinement of the portfolio is likely to be viewed favorably, helping enhance the financial and operational torque to the company’s flagship properties,” Kubik commented.

As for spending in 2020, CIBC expends it to be high to ramp up production at Karr and Wapiti and models the amount at about CA$150 million, Kubik wrote. Proceeds from the asset sale and from the flowthrough financing of CA$37.6 million “provide some added financial cushion” for Paramount as it heads into the new year.

CIBC has a Neutral rating and a CA$7.50 per share target price on Paramount, whose current stock price is about CA$6.63 per share.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from CIBC, Paramount Resources Ltd., Earnings Update, December 6, 2019

Analyst Certification:
Each CIBC World Markets Corp./Inc. research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Potential Conflicts of Interest:
Equity research analysts employed by CIBC World Markets Corp./Inc. are compensated from revenues generated by various CIBC World Markets Corp./Inc. businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets Corp./Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets Corp./Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.

In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets Corp./Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon.

Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

CIBC World Markets Inc. does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that CIBC World Markets Inc. may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

Important Disclosure Footnotes for Paramount Resources Ltd. (POU.TO)

• 2g CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from these companies in the next 3 months: Paramount Resources Ltd.

For important disclosure footnotes for companies mentioned in this report that are covered by CIBC World Markets Inc., click
here: Disclaimers & Disclosures.

( Companies Mentioned: POU:TSX,
)

Source: Streetwise Reports   12/11/2019

The details, finances and impact of the transaction are discussed in a CIBC report.

In a Dec. 6 research note, CIBC analyst Jamie Kubik wrote that Paramount Resources Ltd.'s (POU:TSX) disposing of 8,500 barrels of oil equivalent per day (8,500 boe/d) of production will not materially impact the energy company's cash flow in the future. "We view the move favorably," he added.

Paramount sold the assets for a total value of CA$55 million. Metrics of the transaction were "modest," Kubik noted, at 320,000 net acres of mineral rights (CA$172 per acre), 8,500 boe/d production (CA$6,470/boe/d), 15.9 MMboe of Proven reserves (CA$3.46/boe) and 20.1 MMboe of Proven and Probable reserves (CA$2.74 per barrel).

In addition, Paramount's capital plans for the assets were "minimal," Kubik pointed out. Thus, CIBC lowered its estimated 2020 capital spend for the company to CA$550 million from CA$600 million. "With the disposition, Paramount will have less maintenance capital required for assets outside of its Montney acreage moving forward, and management has also pointed to cost savings in its recent drilling efforts," noted Kubik.

Paramount has focused primarily on developing its Montney assets, Karr and Wapiti. Going forward, "further refinement of the portfolio is likely to be viewed favorably, helping enhance the financial and operational torque to the company's flagship properties," Kubik commented.

As for spending in 2020, CIBC expends it to be high to ramp up production at Karr and Wapiti and models the amount at about CA$150 million, Kubik wrote. Proceeds from the asset sale and from the flowthrough financing of CA$37.6 million "provide some added financial cushion" for Paramount as it heads into the new year.

CIBC has a Neutral rating and a CA$7.50 per share target price on Paramount, whose current stock price is about CA$6.63 per share.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from CIBC, Paramount Resources Ltd., Earnings Update, December 6, 2019

Analyst Certification:
Each CIBC World Markets Corp./Inc. research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst's personal views about the company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Potential Conflicts of Interest:
Equity research analysts employed by CIBC World Markets Corp./Inc. are compensated from revenues generated by various CIBC World Markets Corp./Inc. businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets Corp./Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets Corp./Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.

In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets Corp./Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon.

Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

CIBC World Markets Inc. does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that CIBC World Markets Inc. may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

Important Disclosure Footnotes for Paramount Resources Ltd. (POU.TO)
• 2g CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from these companies in the next 3 months: Paramount Resources Ltd.

For important disclosure footnotes for companies mentioned in this report that are covered by CIBC World Markets Inc., click here: Disclaimers & Disclosures.

( Companies Mentioned: POU:TSX, )

Oil & Gas Producer Doubles Share Buyback Program to $50 Million, Increases Guidance

Source: Streetwise Reports   12/11/2019

Recent company announcements are discussed in a Pareto Securities report.

In a Dec. 10 research note, Pareto Securities analyst Tom Erik Kristiansen reported that Gulf Keystone Petroleum Ltd. (GKP:LSE) announced a $25 million share buyback and increased its 2019 production guidance. “Overall, we view today’s news as significantly positive,” he wrote.

The analyst addressed both developments.

Regarding the share buyback, the Gulf Keystone will increase the total amount of share buybacks it announced this year to US$50 million, the same amount that the company paid in 2019 in dividends. This equates to 20% of its enterprise value and 17% of its market cap. The energy firm not only did this but, also, continued to invest capital in increasing production. “We find this highly impressive,” commented Kristiansen.

As for its current financial status, oil and gas producer has a cash balance of US$206 million. “This also implies that Gulf Keystone will maintain a robust balance sheet,” Kristiansen indicated. In addition, the company is due to receive another export payment soon.

As for full-year 2019 production guidance, Kristiansen relayed that Gulf Keystone reverted back to its initial production estimate for Shaikan, located in Iraq’s Kurdistan region, to 32,000–38,000 barrels per day (32–38 MMbbl/d) gross from 30–33 MMbbl/d (the company had lowered guidance to this range earlier this year). This change back to the higher guidance resulted from strong production from the first well drilled in the Shaikan field, which began on Nov. 13.

During that month, output averaged 40.58 MMbbl/d. Now, Shaikan production is higher, at around 40 MMbbl/d, denoting “stronger than expected production from the well,” Kristiansen highlighted. “This has also been the case for existing wells at the field, implying that the field continues to perform better than expected.”

Kristiansen noted that Gulf Keystone’s planned Shaikan production ramp-up to 50 MMbbl/d will be pushed back another quarter, now until Q3/20, because the company had to revise the drilling schedule. “While negative,” he added, “we continue to argue that the main risk is timing related (further delays cannot be ruled out given the track record) with recent production results further supporting that the field will get to 55 MMbbl/day as soon as more wells comes onstream.”

Once Shaikan reaches 55 MMbbl/day of production, Pareto expects the energy company will generate US$160 million per year of free cash flow. The firm has a Buy rating and a GBp350 per share target price on Gulf Keystone.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Pareto Securities AS, Gulf Keystone, December 10, 2019

This publication or report has been prepared solely by Pareto Securities Research.

Opinions or suggestions from Pareto Securities Research may deviate from recommendations or opinions presented by other departments or companies in the Pareto Securities Group. The reason may typically be the result of differing time horizons, methodologies, contexts or other factors.

Analysts Certification
The research analyst(s) whose name(s) appear on research reports prepared by Pareto Securities Research certify that: (i) all of the views expressed in the research report accurately reflect their personal views about the subject security or issuer, and (ii) no part of the research analysts’ compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analysts in research reports that are prepared by Pareto Securities Research.

The research analysts whose names appears on research reports prepared by Pareto Securities Research received compensation that is based upon various factors including Pareto Securities’ total revenues, a portion of which are generated by Pareto Securities’ investment banking activities.

Conflicts of interest

Companies in the Pareto Securities Group, affiliates or staff of companies in the Pareto Securities Group, may perform services for, solicit business from, make a market in, hold long or short positions in, or otherwise be interested in the investments (including derivatives) of any company mentioned in the publication or report.

In addition Pareto Securities Group, or affiliates, may from time to time have a broking, advisory or other relationship with a company which is the subject of or referred to in the relevant Research, including acting as that company’s official or sponsoring broker and providing corporate finance or other financial services. It is the policy of Pareto to seek to act as corporate adviser or broker to some of the companies which are covered by Pareto Securities Research. Accordingly companies covered in any Research may be the subject of marketing initiatives by the Corporate Finance Department.

To limit possible conflicts of interest and counter the abuse of inside knowledge, the analysts of Pareto Securities Research are subject to internal rules on sound ethical conduct, the management of inside information, handling of unpublished research material, contact with other units of the Group Companies and personal account dealing. The internal rules have been prepared in accordance with applicable legislation and relevant industry standards. The object of the internal rules is for example to ensure that no analyst will abuse or cause others to abuse confidential information. It is the policy of Pareto Securities Research that no link exists between revenues from capital markets activities and individual analyst remuneration. The Group Companies are members of national stockbrokers’ associations in each of the countries in which the Group Companies have their head offices. Internal rules have been developed in accordance with recommendations issued by the stockbrokers associations.

This material has been prepared following the Pareto Securities Conflict of Interest Policy. The guidelines in the policy include rules and measures aimed at achieving a sufficient degree of independence between various departments, business areas and sub-business areas within the Pareto Securities Group in order to, as far as possible, avoid conflicts of interest from arising between such departments, business areas and sub-business areas as well as their customers. One purpose of such measures is to restrict the flow of information between certain business areas and sub-business areas within the Pareto Securities Group, where conflicts of interest may arise and to safeguard the impartialness of the employees. For example, the Corporate Finance departments and certain other departments included in the Pareto Securities Group are surrounded by arrangements, so-called Chinese Walls, to restrict the flows of sensitive information from such departments. The internal guidelines also include, without limitation, rules aimed at securing the impartialness of, e.g., analysts working in the Pareto Securities Research departments, restrictions with regard to the remuneration paid to such analysts, requirements with respect to the independence of analysts from other departments within the Pareto Securities Group rules concerning contacts with covered companies and rules concerning personal account trading carried out by analysts.

( Companies Mentioned: GKP:LSE,
)

Source: Streetwise Reports   12/11/2019

Recent company announcements are discussed in a Pareto Securities report.

In a Dec. 10 research note, Pareto Securities analyst Tom Erik Kristiansen reported that Gulf Keystone Petroleum Ltd. (GKP:LSE) announced a $25 million share buyback and increased its 2019 production guidance. "Overall, we view today's news as significantly positive," he wrote.

The analyst addressed both developments.

Regarding the share buyback, the Gulf Keystone will increase the total amount of share buybacks it announced this year to US$50 million, the same amount that the company paid in 2019 in dividends. This equates to 20% of its enterprise value and 17% of its market cap. The energy firm not only did this but, also, continued to invest capital in increasing production. "We find this highly impressive," commented Kristiansen.

As for its current financial status, oil and gas producer has a cash balance of US$206 million. "This also implies that Gulf Keystone will maintain a robust balance sheet," Kristiansen indicated. In addition, the company is due to receive another export payment soon.

As for full-year 2019 production guidance, Kristiansen relayed that Gulf Keystone reverted back to its initial production estimate for Shaikan, located in Iraq's Kurdistan region, to 32,000–38,000 barrels per day (32–38 MMbbl/d) gross from 30–33 MMbbl/d (the company had lowered guidance to this range earlier this year). This change back to the higher guidance resulted from strong production from the first well drilled in the Shaikan field, which began on Nov. 13.

During that month, output averaged 40.58 MMbbl/d. Now, Shaikan production is higher, at around 40 MMbbl/d, denoting "stronger than expected production from the well," Kristiansen highlighted. "This has also been the case for existing wells at the field, implying that the field continues to perform better than expected."

Kristiansen noted that Gulf Keystone's planned Shaikan production ramp-up to 50 MMbbl/d will be pushed back another quarter, now until Q3/20, because the company had to revise the drilling schedule. "While negative," he added, "we continue to argue that the main risk is timing related (further delays cannot be ruled out given the track record) with recent production results further supporting that the field will get to 55 MMbbl/day as soon as more wells comes onstream."

Once Shaikan reaches 55 MMbbl/day of production, Pareto expects the energy company will generate US$160 million per year of free cash flow. The firm has a Buy rating and a GBp350 per share target price on Gulf Keystone.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Pareto Securities AS, Gulf Keystone, December 10, 2019

This publication or report has been prepared solely by Pareto Securities Research.

Opinions or suggestions from Pareto Securities Research may deviate from recommendations or opinions presented by other departments or companies in the Pareto Securities Group. The reason may typically be the result of differing time horizons, methodologies, contexts or other factors.

Analysts Certification
The research analyst(s) whose name(s) appear on research reports prepared by Pareto Securities Research certify that: (i) all of the views expressed in the research report accurately reflect their personal views about the subject security or issuer, and (ii) no part of the research analysts’ compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analysts in research reports that are prepared by Pareto Securities Research.

The research analysts whose names appears on research reports prepared by Pareto Securities Research received compensation that is based upon various factors including Pareto Securities’ total revenues, a portion of which are generated by Pareto Securities’ investment banking activities.

Conflicts of interest

Companies in the Pareto Securities Group, affiliates or staff of companies in the Pareto Securities Group, may perform services for, solicit business from, make a market in, hold long or short positions in, or otherwise be interested in the investments (including derivatives) of any company mentioned in the publication or report.

In addition Pareto Securities Group, or affiliates, may from time to time have a broking, advisory or other relationship with a company which is the subject of or referred to in the relevant Research, including acting as that company’s official or sponsoring broker and providing corporate finance or other financial services. It is the policy of Pareto to seek to act as corporate adviser or broker to some of the companies which are covered by Pareto Securities Research. Accordingly companies covered in any Research may be the subject of marketing initiatives by the Corporate Finance Department.

To limit possible conflicts of interest and counter the abuse of inside knowledge, the analysts of Pareto Securities Research are subject to internal rules on sound ethical conduct, the management of inside information, handling of unpublished research material, contact with other units of the Group Companies and personal account dealing. The internal rules have been prepared in accordance with applicable legislation and relevant industry standards. The object of the internal rules is for example to ensure that no analyst will abuse or cause others to abuse confidential information. It is the policy of Pareto Securities Research that no link exists between revenues from capital markets activities and individual analyst remuneration. The Group Companies are members of national stockbrokers’ associations in each of the countries in which the Group Companies have their head offices. Internal rules have been developed in accordance with recommendations issued by the stockbrokers associations.

This material has been prepared following the Pareto Securities Conflict of Interest Policy. The guidelines in the policy include rules and measures aimed at achieving a sufficient degree of independence between various departments, business areas and sub-business areas within the Pareto Securities Group in order to, as far as possible, avoid conflicts of interest from arising between such departments, business areas and sub-business areas as well as their customers. One purpose of such measures is to restrict the flow of information between certain business areas and sub-business areas within the Pareto Securities Group, where conflicts of interest may arise and to safeguard the impartialness of the employees. For example, the Corporate Finance departments and certain other departments included in the Pareto Securities Group are surrounded by arrangements, so-called Chinese Walls, to restrict the flows of sensitive information from such departments. The internal guidelines also include, without limitation, rules aimed at securing the impartialness of, e.g., analysts working in the Pareto Securities Research departments, restrictions with regard to the remuneration paid to such analysts, requirements with respect to the independence of analysts from other departments within the Pareto Securities Group rules concerning contacts with covered companies and rules concerning personal account trading carried out by analysts.

( Companies Mentioned: GKP:LSE, )