Auctus on Friday - 27/10/2023
AUCTUS PUBLICATIONS________________________________________
Panoro Energy (PEN NO)C; target price of NOK50 per share: Production update in Gabon – BW Energy reported 3Q23 gross production of 23.2 mbbl/d at Dussafu. This is below our expectations of ~26 mbbl/d due to the period during which production was constrained at two wells due to ESP issues which have now been resolved. Current total Dussafu gross production, with all the Tortue and Hibiscus wells in operation, is ~35,000 bbl/d.
Tethys Oil (TETYS SS)C; target price of SEK110 per share: Production update in Oman – WI production from Blocks 3&4 was 8,339 boe/d. The production was negatively impacted by some disruptions due to the changeout of pumps.
IN OTHER NEWS
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AMERICAS
Chevron (CVX US): Buying Hess (HES US) – Chevron is acquiring Hess at US$171 per share in an all stock transaction valued at US$53 bn. Hess shareholders will receive 1.0250 shares of Chevron for each Hess share.
Reconnaissance Energy Africa (RECO CN): Selling Mexican assets – ReconAfrica is selling its Mexican assets for US$7.5 mm to Chame Energy.
Seacrest Petroleo (SEAPT NO): 3Q23 update – 3Q23 net production in Brazil was 9,204 boe/d.
Trinity Exploration & Production (TRIN LN): 3Q23 update in Trinidad – 3Q23 production was 2,705 bbl/d. FY23 production was 2.8-2.9 mbbl/d. The Jacobin discovery well flowed 117 bbl/d of oil (387 bbl/d total fluid) during a seven hour period test prior to a sand plug forming in the well. Flowing pressure on 4/32” choke was 1,800 psi that the company views as very high and encouraging. A coiled-tubing unit is being deployed to clean-out the well, The company held US$8.4 mm in cash and US$2.0 mm in debt at the end of September.
ASIA PACIFIC
Upland Resources (UPL LN): Take over approach – Upland has received an unsolicited, very preliminary approach regarding a possible offer for Upland at an indicative price of 14p per share. The approach has been rejected by the company.
EUROPE
Aker BP (AKERBP NO): 3Q23 results – 3Q23 production was 450 mboe/d. The FY23 production guidance is narrowed to 455-465 from 445-470 mboe/d. Net debt at the end of September was US$2.8 bn.
Eni (ENI IM): 3Q23 results – Eni reported 3Q23 adjusted earnings of EUR1.8 bn with production of 1,635 mboe/d.
Equinor (EQNR NO): 3Q23 results and Dry hole in Norway – Equinor reported 3Q23 adjusted net earnings of US$2.73 bn with 2,007 mboe/d production. A US$0.60/sh extraordinary dividend (in addition to the ordinary dividend of US$0.30/sh) has been declared. The company will also launch a further US$1.67 bn tranche of share buyback. The wildcat well 6307/1-2 on production licence 1058 was dry. Equinor now expects FY23 production to be 1.5% above 2022 (+3% previously).
OKEA (OKEA NO): 3Q23 results – Net 3Q23 production in Norway was 23,710 boe/d. Net cash at the end of September was NOK535 mm. Yme technical reserves net to OKEA have been reduced from 7.6 mmbbl to 5.8 mmbbl. Expected plateau production has subsequently been reduced to ~3,500 boepd net to OKEA.
Repsol (REP SM): 3Q23 results – 3Q23 net adjusted income was EUR1,098 mm with 596 mboe/d production.
TotalEnergies (TTE FP): 3Q23 results – 3Q23 adjusted net income was US$6.7 bn with net production of 2,476 mboe/d. The company is increasing its dividend distribution by 7.25% to EUR0.74 per share.
Var Energi (VAR NO): 3Q23 results – 3Q23 production in Norway was 210 mboe/d. The company re-iterated its production guidance of 210-22 mboe/d for 2023 with YE23 production of >230 mboe/d. Var expects to produce ~400 mboe/d by YE25. A US$270 mm dividend has been declared for 3Q23. A dividend of similar amount is expected to be declared for 4Q23.
FORMER SOVIET UNION
Nostrum Oil & Gas (NOG LN): Operational update in Kazakhstan – Production over the first 9 months of 2023 was 10,288 boe/d.
SUB-SAHARAN AFRICA
BW Energy (BWE NO): 3Q23 update in Gabon and Brazil – Gross production in Gabon and Brazil was 27.4 mboe/d including 23.2 mbbl/d in Gabon. Current total Dussafu gross production, with all the Tortue and Hibiscus wells in operation, is ~35,000 bbl/d.
Invictus Energy (IVZ AU): Gas shows in reservoir at well in Zimbabwe – Strong gas shows were encountered in multiple Upper Angwa and Lower reservoirs. The well might be deepened before being logged and tested. Invictus held A$22.4 mm in cash at the end of September (including the proceeds of a placing).
EVENTS TO WATCH NEXT WEEK
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31/10/2023: bp (BP LN) – 3Q23 results
31/10/2023: OMV (OMV AG) – 3Q23 results
31/10/2023: Gran Tierra Energy – 3Q23 results
02/11/2023: Shell (SHEL LN) – 3Q23 results
Aker BP ASA engages in the exploration, development, and production of petroleum resources on the Norwegian Shelf. In addition, Co. has a separate Johan Sverdrup business unit to manage its interest.
BW Energy Ltd. BW Energy Limited is a Bermuda-based oil and gas company engaged in oil and gas exploration and production activities. The Company is involved in the acquisition, development and production of oil and natural gas fields. It has a diversified portfolio of production and development assets offshore West Africa and Brazil, and holds interests in three hydrocarbon licenses in Gabon, Brazil and Namibia. Its Dussafu Marin Permit and the associated Ruche Exclusive Exploitation Area (EEA) production license are located approximately 50 kilometers (km) off the coast of Gabon. The Ruche EEA covers an area of approximately 850 square kilometers. The Maromba discovery is located approximately 100 kilometers offshore in the southern part of the Campos Basin. The Kudu gas field is some 130 km offshore and covers an area approximately 4,500 square kilometers. The Company's subsidiaries include BW Energy Dussafu B.V., BW Energy Gabon Pte Ltd, BW Energy Gabon SA and BW Energy Holdings Pte Ltd.
Chevron is engaged in energy and chemicals operations. Upstream operations consist primarily of, among others, exploring for, developing and producing crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas, storage and marketing of natural gas; and a gas-to-liquids plant. Downstream operations consist primarily of, among others, refining crude oil into petroleum products; marketing of crude oil and refined products; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses and fuel and lubricant additives.
Eni is engaged in the oil and gas exploration and production, gas marketing operations, management of gas infrastructures, power generation, petrochemicals, oil field services and engineering industries. Co.'s operations are divided into three segments; Exploration and Production (oil and natural gas exploration and field development and production, as well as LNG operations), Gas and Power (supply, trading and marketing of gas and electricity, managing gas infrastructures for transport, distribution, storage, re-gasification, and LNG supply and marketing), and Refining and Marketing (supply of crude oil, refining and marketing of refined products). Co. maintains operations in 73 countries.
Equinor is engaged in oil and gas exploration and production activities. Co. is primarily focused on exploration, development and production of oil and gas on the Norwegian continental shelf (NCS). Co.'s operations are organized into four segments. The Development and Production Norway and Development and Production International segments explore, develop, produce and extract crude oil, natural gas and natural gas liquids. The Marketing, Processing and Renewable Energy segment markets, trades, transports and processes oil and natural gas and renewable energy. The Other segment consists of global well and project delivery, research and develpoment, and business development.
Hess is a global exploration and production company engaged in exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquid (NGL), and natural gas with production operations located primarily in the United States, Guyana, the Malaysia/Thailand Joint Development Area, Malaysia and Denmark. The company's Midstream operating segment provides fee-based services, including gathering, compressing and processing natural gas and fractionating NGL; gathering, terminaling, loading and transporting crude oil and NGL; storing and terminaling propane, and water handling services primarily in the Bakken shale play in the Williston Basin area of North Dakota.
Invictus Energy is engaged in the evaluation and exploration of coal bed methane (CBM) and unconventional gas in southern Africa.
Nostrum Oil & Gas is an independent oil and gas company, engaged in the production, development and exploration of oil and gas. Co. operates three exploration concessions and are primarily conducted through its oil and gas producing subsidiary Zhaikmunai LLP located in Kazakhstan. Zhaikmunai LLP carries out its activities in accordance with the Contract for Additional Exploration, Production and Production-Sharing of Crude Hydrocarbons in the Chinarevskoye oil and gas condensate field for the exploration and production of hydrocarbons in Chinarevskoye oil and gas condensate field.
Okea ASA is a Norway-based oil company engaged in the oil and gas exploration and production industry. The Company contributes to the value creation on the Norwegian continental shelf with development and operation systems through the utilization of the result of previous and ongoing exploration activities in order to bring undeveloped oil on stream in strategic cooperation with service companies. Its services do not involve the exploration for petroleum. The Company operates an office in Trondheim, Norway.
Panoro Energy is an international independent oil and gas company engaged in the exploration and production of oil and gas resources in Brazil and West Africa. In Brazil, Co. participates in a number of oil and gas licenses located in the Santos basin outside the south-east coast of Brazil and in the Camamu-Almada basin in the state of Bahia. In West Africa, Co. participates in a number of licences in Nigeria and Gabon. As of Dec 31 2013, Co.'s commercial production is from the Manati field in Brazil.
Repsol is an oil and gas company. Co. is engaged in all the activities relating to the oil and gas industry, including exploration, development and production of crude oil and natural gas, transportation of oil products, liquefied petroleum gas (LPG) and natural gas, refining, the production of a wide range of oil products and the retailing of oil products, oil derivatives, petrochemicals, LPG and natural gas, as well as the generation, transportation, distribution and supply of electricity. Co. operates in more than 40 countries. Co.'s operations are divided into four segments: Upstream, Downstream, LNG and Gas Natural Fenosa.
Tethys Petroleum is an oil and gas exploration and production company focused on projects in Central Asia. Through its subsidiaries, Co. is engaged in the exploration for, and the acquisition, development and production of, oil and natural gas resources in Kazakhstan, Tajikistan and Uzbekistan.
Total is an international integrated oil and gas company also active in solar and biomass energy sources. Co. engages all aspects of the petroleum industry, including Upstream operations (oil and gas exploration, development and production, and LNG (Liquefied Natural Gas)) and Downstream operations (refining, petrochemicals, specialty chemicals, marketing and marketing and trading and shipping of crude oil and petroleum products). In addition, Co. is engaged in the coal mining and power generation sectors. Co.'s worldwide operations are conducted through three business segments: Upstream, Refining & Chemicals, and Marketing & Services.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
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