Cobalt Company to Release Optimized Feasibility Study Results This Month

Source: Streetwise Reports 09/13/2018

A Canaccord Genuity report provided an update on the Idaho project.

In a Sept. 11 research note, analyst Eric Zaunscherb with Canaccord Genuity reported that eCobalt Solutions Inc. (ECS:TSX; ECSIF:OTCQX; ECO:FSE) successfully finished pilot-scale metallurgical testing for its Idaho cobalt project and intends to release the optimized feasibility study results by the end of this month. “These results could be an important milestone for eCobalt and a catalyst for its share price,” he added.

After eCobalt releases the findings, Zaunscherb explained, it will ship samples from the pilot plant to prospects for potential offtake agreements, finalize terms and agreements with them as part of a project financing package and come to a production decision.

The analyst noted that eCobalt’s stock price has “suffered since the beginning of the year.” He attributed this in part to depressed “sentiment around the battery materials theme” and delays in the feasibility study process. The latter were caused by the decision of eCobalt’s management team during the study to change the type of cobalt to be produced at Idaho, to a low-arsenic cobalt copper concentrate instead of cobalt sulphate heptahydrate.

Zaunscherb purported that the battery materials space should gain favor toward year-end, when “electric vehicle sales penetration ticks up and newly constructed battery manufacturing capacity comes online, complete with start-up restocking.”

Canaccord Genuity maintains its Speculative Buy rating and CA$0.90 per share target price on eCobalt Solutions, whose stock is trading now at around CA$0.81 per share.

Read what other experts are saying about:

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 company mentioned in this article is a billboard sponsor of Streetwise Reports: eCobalt Solutions. 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 one week after the publication of the interview or article.

Disclosures from Canaccord Genuity, eCobalt Solutions Inc., Flash Update, September 11, 2018

Analyst Certification: Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research.

Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons of Canaccord Genuity Inc. and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Required Company-Specific Disclosures (as of date of this publication):

eCobalt Solutions Inc. currently is, or in the past 12 months was, a client of Canaccord Genuity or its affiliated companies. During this period, Canaccord Genuity or its affiliated companies provided investment banking services to eCobalt Solutions Inc.

In the past 12 months, Canaccord Genuity or its affiliated companies have received compensation for Investment Banking services from eCobalt Solutions Inc.

Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Banking services from eCobalt Solutions Inc. in the next three months.

Disclosures are available here.

( Companies Mentioned: ECS:TSX; ECSIF:OTCQX; ECO:FSE,
)

…read more

From:: The Energy Report

Japan’s New Stance on Wind Power Could Mean More Revenue for Turbine Blade Maker

Source: Streetwise Reports 09/13/2018

A Raymond James report explained the country’s turnaround and its potential impact on this Arizona energy company’s bottom line.

In a Sept. 5 research note, Raymond James analyst Pavel Molchanov reported that the Japanese government’s recently announced intention to loosen permitting regulations for wind power generation projects signals a renewed commitment on its part to this type of renewable energy, which could financially benefit TPI Composites Inc. (TPIC:NASDAQ), a wind turbine blade manufacturer with a footprint in the Asia Pacific.

Molchanov described where Japan has stood historically with wind power, why and what is changing. Today, the country has 0.6% of the world’s installed capacity for this kind of power generation, which is unusual for it being the world’s fourth largest economy. “Its 3.4 gigawatts (3.4 GW) of wind as of year-end 2017 are only slightly more than what Romania or Ireland has and well below what Australia has,” Molchanov noted.

A primary reason for Japan lagging in this regard is its mandate for most wind generation enterprises in Japan, those aiming to make more than 10 megawatts of power. To date, all were required, for permitting, to obtain a full environmental impact assessment (EIA), an expensive, four- to five-year process that many developers chose not to pursue.

However, Japan’s Minister of Energy recently announced the system will be revamped to where only the largest projects have to obtain the EIA. The specifics of the new policy are slated to be released by March 2019. “As we await the details, the political commitment to deregulation in this area is already notable; it represents a major policy shift,” wrote Molchanov.

The Asian country’s new goal is to generate 10 gigawatts of wind power by 2030, a threefold increase from today’s number. The analyst purports it would take about 40 GW of wind power and storage to replace the nuclear power generation lost from the shuttered reactors. This equates to about 2.8 GW’s worth being added each year to 2030. “That is needle moving for the industry,” Molchanov remarked, adding 5% to the recent pace of global new builds, 50–60 GW per year.”

What this could mean for TPI Composites, Molchanov offered, is a 5% annual boost in incremental revenue, “all else being equal.” That would equate to about $50 million a year, based on 2018 revenue guidance. “Bearing in mind the operating leverage, uplift to EBITDA would probably exceed 10%, not a game changer but certainly nicely additive.”

Raymond James has an Outperform rating but no price target on the energy firm. Its stock is currently priced at around $28.01 per share.

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 company mentioned in this article is a billboard sponsor 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 one week after the publication of the interview or article.

Disclosures from Raymond James, TPI Composites Inc., September 5, 2018

ANALYST INFORMATION

Analyst 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 views expressed in this report accurately reflect the personal views of the analyst(s) covering the subject securities. No part of said person’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. In addition, said analyst has not received compensation from any subject company in the last 12 months.

RAYMOND JAMES RELATIONSHIP DISCLOSURES
Raymond James Ltd. or its affiliates expects to receive or intends to seek compensation for investment banking services from all companies under research coverage within the next three months.

Raymond James & Associates makes a market in shares of TPIC.

( Companies Mentioned: TPIC:NASDAQ,
)

…read more

From:: The Energy Report

Mackie Research Updates Exciting New Developments with Two Multi-Bagger Return Top Picks

Source: Bill Newman for Streetwise Reports 09/11/2018

Bill Newman, vice president of international and domestic oil and gas research with Mackie Research Capital, discusses two companies that are Mackie top picks that have recently announced updates that he believes could unlock substantial additional upside for investors.

In April 2018, Mackie Research Capital featured an article on Streetwise Reports that commented on the disconnect between the strong recovery in the price of oil and lack of response by most energy stocks. With valuations near unprecedented lows, Mackie highlighted oil and gas stocks that are fundamentally undervalued and well positioned for when valuations revert to the norm. Two of Mackie top picks that have multi-bagger return potential from the current levels have recently announced exciting updates that could unlock substantial additional upside for investors.

On July 30, 2018, Prairie Provident Resources Inc. (PPR:TSX) announced a very positive drilling update at its Princess core area, with two new wells each producing at ~900 boe/d and a third exploration well testing ~770 boe/d. These are boomer wells which are on track for three-month payouts making them of some of the best performing non-resource oil producing wells in Alberta. In addition, PPR has a potential significant cash windfall coming from a Quebec settlement that positions the stock for a rerate.

Point Loma Resources Ltd. (PLX:TSX) announced on July 25, 2018, two exciting new Banff oil pool opportunities, captured on company lands, that are on trend with other significant Banff oil pools that hold an average of 62 million barrels (mmbbls)of original oil in place (OOIP). PLX expects to drill a horizontal well targeting its Banff opportunities in Q4/18 that could be a game-changer for the company while also having a sizeable stake in the Duvernay Shale oil play that continues to evolve in PLX’s area of operations.

Both PPR and PLX have a large inventory of low cost Mannville drilling locations that form the bases for years of low risk steady growth production, and both companies have upcoming near-term events that could be transformational and game-changers for the stocks.

PRAIRIE PROVIDENT RESOURCES INC. – PPR – TSX

PPR is focused on the development of its conventional oil weighted assets in the Wheatland and Princess properties in Southern Alberta and its Evi area located in the Peace River Arch area of Northern Alberta. PPR also holds ~240,000 net acres in the St. Lawrence Lowland of Quebec that are prospective for the Utica Shale. The company remains highly undervalued on a cash flow, reserves and NAV basis and receives no option value for its Quebec assets. In addition, with the recent drilling success at its Princess core area, production has increased to over 6,000 bbl/d (~75% liquids).

Three Boomer wells at Princess: Year to date, PPR has drilled a total of five wells in the Princess area, all successful. The three most recently drilled wells are boomers, which are on track for three-month payouts. The 100/13-24-20-11W4 well (“13-24”) continues to exceed expectations with an average rate 940 boe/d (75% liquids) in July. The 13-24 well is one of best performing non-resource oil producing wells in Alberta. The 102/13-26-20-11W4 follow-up well was recently placed on production at a constrained rate of 900 boe/d (85% liquids) and we expect this too will be one of the best non-resource oil wells in Alberta. PPR also drilled the 103/14-12-019-11W4 exploration well targeting a new Glauconite channel, which flow tested at an initial rate of 770 boe/d (56% liquids) and was very recently placed on production. PPR has multiple follow up locations to drill, which could build production prior to year-end.

Potential Cash Windfall from Quebec Settlement Could Rerate the Stock: PPR is seeking damages of US$188.9 million related to the termination of the rights to one of the company’s licences in Quebec. The final hearing concluded in November 2017 and a ruling in the dispute and potential damages could be announced in H2/18. Over a five-year period PPR committed a significant amount of time and capital to securing the exploration licences, acquiring and interpreting seismic and drilling wells. We feel damages of between US$25 million to US$60 million would certainly be in the realm of possibility. Damages at the low end of this range would allow the company accelerate growth through drilling or acquisitions, and could re-rate the stock.

News Update

Prairie Provident Resources’ (PPR:TSX) Value Highlighted by Similar Acquisition

On September 6, Surge Energy Inc. (SGY:TSX) announced the acquisition of privately held Mount Bastion Oil and Gas Corp. (MBOG) for total consideration of C$320 million. Bill Newman of Mackie Research provided the following comparison of Mount Bastion to Prairie Provident Resources Inc. (PPR:TSX):
“With ~5,500 boe/d of production and 25 million boe of proven plus probable reserves (2P), MBOG and PPR and have similar sized assets. Based upon the acquisition cost price of $320 million, this infers a value of $2.13 per share for PPR. Given that MBOG’s asserts are 98% weighted to light oil, and generate higher netbacks, we calculate an adjusted value for PPR in the range of $1.31 to $1.96/share.

“Both companies are producing ~5,500 boe/d, and MBOG has slightly large 2P reserves of 25 million versus PPR’s 21 million boe. Surge pays $58,182 per flowing boe, $12.80/boe for 2P reserves and a net operating income multiple of 3.8x. At the current market price PPR is trading at only $22,557 per flowing barrel and an EV/2P reserves value of $5.97/boe. We note that MBOG has a higher percentage of oil production at 98% versus PPR’s 70%. As a result, we have adjusted our valuation based on operating income. A net operating income multiple of 3.8x values PPR at $1.01 per share, which is a 132% premium to the current stock price. PPR’s 2P reserves at $12.80/boe value PPR at $1.66/share or a 282% premium to the stock price. Including a conservative potential …read more

From:: The Energy Report

Single Well Production Rate Accounts for 20% of Argentina Lithium Project Target

Source: Streetwise Reports 09/11/2018

A Canaccord Genuity report provided a progress update on the advancement work underway by this asset’s owner.

In a Sept. 6 research note, Canaccord Genuity analyst Eric Zaunscherb reported that Neo Lithium Corp. (NLC:TSX.V) finished a hydrological model, an initial production well and an environmental baseline study, all part of the feasibility study work on its Tres Quebradas project in Argentina.

Zaunscherb reviewed each of the three developments. As for the hydrological model, it showed that the planned mineral extraction methods would have zero to minimal environment impact for several decades on the Tres Quebradas and Laguna Verde lakes just south of the project. To arrive at this conclusion, data from two drilling seasons and from 11 long-duration pumping tests across the salar were incorporated into the model. It will serve as the foundation of a reserve estimate.

“The completion of the hydrological model is an important step in progressing the production model and assessing any of the project’s potential environmental impacts,” Zaunscherb noted.

Regarding the initial well, its production rate, using a high-grade cutoff, is equal to about 20% of the total production needs of the project, meaning it would likely require few wells. The 12-inch-wide, steel filter well that descended 100 meters yielded 90 liters of high-grade lithium brine. The grade cutoff was 800 milligrams per liter lithium whereas the cutoff for the Measured and Indicated resource was 614 milligrams per liter. Further, these results were consistent with those of the hydrological model.

Zaunscherb wrote that Neo Lithium will keep building production wells in the northern, high-grade zone to “define production capacity, test the aquifer and carry on production level pump tests.”

With respect to the environmental baseline study, it will be forwarded to the provincial authorities. Of note, the study found that no significant nesting grounds are located within the proposed mining and operations area. In other related news, Neo Lithium’s environmental exploration and development permit has been renewed for two years.

The company has sufficient cash, $49 million, to take it through the feasibility stage. To get it from feasibility through development, it is currently considering the various financing options “with the goal of securing a joint venture partner by year-end,” Zaunscherb explained.

He reiterated Canaccord Genuity’s Speculative Buy rating and CA$2 per share target price on Neo Lithium, whose current stock price is around CA$1.04 per share.

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 company mentioned in this article is a billboard sponsor 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 one week after the publication of the interview or article.

Disclosures from Canaccord Genuity, Neo Lithium Corp., Flash Update, September 6, 2018

Analyst Certification: Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research.

Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons of Canaccord Genuity Inc. and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Required Company-Specific Disclosures (as of date of this publication):

Neo Lithium Corp. currently is, or in the past 12 months was, a client of Canaccord Genuity or its affiliated companies. During this period, Canaccord Genuity or its affiliated companies provided investment banking services to Neo Lithium Corp.

In the past 12 months, Canaccord Genuity or its affiliated companies have received compensation for Investment Banking services from Neo Lithium Corp.

Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Banking services from Neo Lithium Corp. in the next three months.

An analyst has visited the material …read more

From:: The Energy Report

Uranium Producer to Boost Ownership of Project in Saskatchewan

Source: Streetwise Reports 09/07/2018

A ROTH Capital Partners report covers the terms of the proposed transaction and the impact on this company.

In a Sept. 6 research note, Joe Reagor, a ROTH Capital Partners analyst, reported Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT) agreed to acquire Cameco’s 24% interest in the Wheeler River uranium project for 24.6 million Denison shares. The shares were valued at $0.65 apiece, for a total of $16 million.

That amount compares to $94 million, the difference between the values ROTH attributes to Denison’s shares pre and post acquisition, $392.3 million and $486.4 million, respectively, Reagor pointed out.

Because the Toronto-headquartered producer “paid a below market price,” for the stake, noted Reagor, ROTH increased its target price on the company to US$1.20 per share from US$1.10. Denison is currently trading at around US$0.48 per share.

The deal, which Reagor described as “accretive,” will boost Denison’s ownership in Wheeler River to 90%, assuming the other partner of the joint venture, JCU Exploration, does not exercise its right of first refusal to acquire a prorated portion of Cameco’s interest, which would amount to about 3.16%. Should it do so, Denison’s ownership of the project would be roughly 86.48%.

Reagor concluded the report by adding the transaction should benefit Denison shareholders because they will have a “larger percentage of future resource increases as the company continues to explore the project.”

ROTH maintains its Buy rating on Denison.

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 company mentioned in this article is a billboard sponsor 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 one week after the publication of the interview or article.

Disclosures from ROTH Capital Partners, Denison Mines Corp., Company Note, Sept. 6, 2018

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 Denison Mines Corp. and as such, buys and sells from customers on a principal basis.

Shares of Denison Mines Corp. 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: DML:TSX; DNN:NYSE.MKT,
)

…read more

From:: The Energy Report

Mackie Research Updates Exciting New Developments with Two Multi-Bagger Return Top Picks

Source: Bill Newman for Streetwise Reports 09/04/2018

Bill Newman, vice president of international and domestic oil and gas research with Mackie Research Capital, discusses two companies that are Mackie top picks that have recently announced updates that he believes could unlock substantial additional upside for investors.

In April 2018, Mackie Research Capital featured an article on Streetwise Reports that commented on the disconnect between the strong recovery in the price of oil and lack of response by most energy stocks. With valuations near unprecedented lows, Mackie highlighted oil and gas stocks that are fundamentally undervalued and well positioned for when valuations revert to the norm. Two of Mackie top picks that have multi-bagger return potential from the current levels have recently announced exciting updates that could unlock substantial additional upside for investors.

On July 30, 2018, Prairie Provident Resources Inc. (PPR:TSX) announced a very positive drilling update at its Princess core area, with two new wells each producing at ~900 boe/d and a third exploration well testing ~770 boe/d. These are boomer wells which are on track for three-month payouts making them of some of the best performing non-resource oil producing wells in Alberta. In addition, PPR has a potential significant cash windfall coming from a Quebec settlement that positions the stock for a rerate.

Point Loma Resources Ltd. (PLX:TSX) announced on July 25, 2018,two exciting new Banff oil pool opportunities, captured on company lands, that are on trend with other significant Banff oil pools that hold an average of 62 million barrels (mmbbls)of original oil in place (OOIP). PLX expects to drill a horizontal well targeting its Banff opportunities in Q4/18 that could be a game-changer for the company while also having a sizeable stake in the Duvernay Shale oil play that continues to evolve in PLX’s area of operations.

Both PPR and PLX have a large inventory of low cost Mannville drilling locations that form the bases for years of low risk steady growth production, and both companies have upcoming near-term events that could be transformational and game-changers for the stocks.

PRAIRIE PROVIDENT RESOURCES INC. – PPR – TSX

PPR is focused on the development of its conventional oil weighted assets in the Wheatland and Princess properties in Southern Alberta and its Evi area located in the Peace River Arch area of Northern Alberta. PPR also holds ~240,000 net acres in the St. Lawrence Lowland of Quebec that are prospective for the Utica Shale. The company remains highly undervalued on a cash flow, reserves and NAV basis and receives no option value for its Quebec assets. In addition, with the recent drilling success at its Princess core area, production has increased to over 6,000 bbl/d (~75% liquids).

Three Boomer wells at Princess: Year to date, PPR has drilled a total of five wells in the Princess area, all successful. The three most recently drilled wells are boomers, which are on track for three-month payouts. The 100/13-24-20-11W4 well (“13-24”) continues to exceed expectations with an average rate 940 boe/d (75% liquids) in July. The 13-24 well is one of best performing non-resource oil producing wells in Alberta. The 102/13-26-20-11W4 follow-up well was recently placed on production at a constrained rate of 900 boe/d (85% liquids) and we expect this too will be one of the best non-resource oil wells in Alberta. PPR also drilled the 103/14-12-019-11W4 exploration well targeting a new Glauconite channel, which flow tested at an initial rate of 770 boe/d (56% liquids) and was very recently placed on production. PPR has multiple follow up locations to drill, which could build production prior to year-end.

Potential Cash Windfall from Quebec Settlement Could Rerate the Stock: PPR is seeking damages of US$188.9 million related to the termination of the rights to one of the company’s licences in Quebec. The final hearing concluded in November 2017 and a ruling in the dispute and potential damages could be announced in H2/18. Over a five-year period PPR committed a significant amount of time and capital to securing the exploration licences, acquiring and interpreting seismic and drilling wells. We feel damages of between US$25 million to US$60 million would certainly be in the realm of possibility. Damages at the low end of this range would allow the company accelerate growth through drilling or acquisitions, and could re-rate the stock.

POINT LOMA RESOURCES LTD – PLX – TSX-V

PLX is highly undervalued (trades well below its 1P reserves value with the value of the company backstopped by its Mannville producing assets alone) and has a large concentrated land base (over 250 net sections) and deep multi-zoned drilling inventory to fuel growth. Production has recently increased to over 1,000 boe/d with an additional ~200 boe/d expected in Q4/18, from low risk well reactivations. In addition, during the second half of 2018, PLX plans to drill two to three high impact horizontal wells, including an exciting new Banff Oil play that has significant multi-bagger upside for the company as a standalone new play.

Two Potentially Large Banff Oil Opportunities with Big Upside: Based upon the new 3D seismic data and combined with bypassed pay and oil shows in company owned wells, PLX identified two well-defined, Banff oil pools that are on trend with other significant Banff oil pools in the area. Five offsetting Banff pools have large OOIP ranging from 22 to 91 mmbbls of oil, with an average in place resource of 62 mmbbls. Most of the offsetting Banff pools were discovered many years ago and have been exploited primarily with vertical wells, utilizing outdated technology.

Based upon OOIP resource of between 25 to 75 mmbbls, we calculated a mean potential net value of $40.0 million ($0.66/sh) per Banff oil poolwith an upside case of $135 million ($2.24/sh) per Banff oil pool. In Q4/18, PLX plans to utilize the latest proven technology to drill a horizontal well targeting its Banff oil opportunities. The …read more

From:: The Energy Report

Oil & Gas MLP Poised for Growth as It Transitions to C Corp.

Source: Streetwise Reports 08/31/2018

A Raymond James report highlighted the rationale for a positive view on this Texas-based entity.

In an Aug. 16 research note, John Freeman, a Raymond James analyst, offered reasons to remain bullish on Kimbell Royalty Partners LP (KRP:NYSE). The master limited partnership (MLP) owns and acquires royalty interests of oil and gas properties throughout the United States, primarily in the Permian Basin. “We remain highly confident in Kimbell’s long-term outlook,” Freeman added.

Based on its revised long-term oil deck, Raymond James increased its target price to $30 per share from $29 and reiterated its Strong Buy rating on Kimbell. The current stock price is about $22.36 per share.

Freeman offered several key points about Kimbell. One, its acquisition of Haymaker, which closed in mid-July for $445 million, “dramatically increased the scale of the company.” For the combined entity, Raymond James expects annual organic growth of 3–5%, excluding future mergers and acquisitions (M&A).

Two, becoming a C Corp should give Kimbell access to a significantly wider investor base that should result in a “stronger environment to support future equity-financed acquisitions,” Freeman noted. The tax status change should go into effect in Q3/18.

Three, Kimbell will most likely continue pursuing M&A, as such activity is a primary value creation strategy for the MLP and opportunities abound. “The minerals market remains fragmented,” Freeman pointed out. “There are a number of private equity-backed minerals companies looking for exit opportunities, and a significant amount of assets remain at the sponsorship level available for dropdown.”

Along with its acquisition strategy, Raymond James finds the following aspects of the MLP favorable: its mineral interest business model; its low (less than 11%) base decline rates of oil and gas reserves; its lack of true capex and opex requirements; and its significant, or 52%, Permian Basin and Mid-Continent focus.

Also in the research report, Freeman summarized Kimbell’s Q2/18 performance, which he described as “relatively in line.” Adjusted EBITDA was $7.7 million, which surpassed Raymond James and consensus’ estimates of $7.4 million and $7.3 million, respectively. Cash distribution during the quarter was as expected, at $0.43 per share.

Average production in Q2/18 was 3,630 barrels of oil equivalent per day (3,630 Boe/d), which was slightly below Raymond James’ projection of about 3,680 Boe/d and unchanged from Q1/18.

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 company mentioned in this article is a billboard sponsor 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 one week after the publication of the interview or article.

Disclosures from Raymond James, Kimbell Royalty Partners LP, August 16, 2018

ANALYST INFORMATION

Analyst Compensation: Equity research analysts and associates at Raymond James are compensated on a salary and bonus system. Several factors enter into the compensation determination for an analyst, including i) research quality and overall productivity, including success in rating stocks on an absolute basis and relative to the local exchange composite Index and/or a sector index, ii) recognition from institutional investors, iii) support effectiveness to the institutional and retail sales forces and traders, iv) commissions generated in stocks under coverage that are attributable to the analyst’s efforts, v) net revenues of the overall Equity Capital Markets Group, and vi) compensation levels for analysts at competing investment dealers.

The views expressed in this report accurately reflect the personal views of the analyst(s) covering the subject securities. No part of said person’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. In addition, said analyst has not received compensation from any subject company in the last 12 months.

RAYMOND JAMES RELATIONSHIP DISCLOSURES
Raymond James Ltd. or its affiliates expects to receive or intends to seek compensation for investment banking services from all companies under research coverage within the next three months.

Raymond James & Associates makes a market in shares of KRP.

( Companies Mentioned: KRP:NYSE,
)

…read more

From:: The Energy Report

Western Uranium and Vanadium Corp.: Undervaluation Woes Are Ending

https://stockcharts.com/c-sc/sc?s=WUC.CA&p=D&yr=3&mn=0&dy=0&i=p85322689234&a=612202418&r=1535584096299&r=1535584214651

Source: Michael Ballanger for Streetwise Reports 08/30/2018

Sector expert Michael Ballanger offers his investment thesis for this Colorado-based energy metals miner.

In June, I talked about a pending private placement being offered by Colorado-based Western Uranium Corp. (WUC:CSE; WSTRF:OTCQX) at $0.68 per unit (half-warrant at $1.15) and suggested that the deeply discounted market capitalization/pound of uranium/vanadium was being addressed by way of a joint venture with Australia-based Battery Metals Resources Ltd. (BMR).

I followed up with an e-mail two days later introducing BMR, which had just announced a $25 million initial public offering (IPO) with a concurrent $50 million secondary as a tagalong, with BMO Capital Markets as lead underwriter. These two e-mails were intended to provide a chance to either average down on the 2016 $1.70 funding or at the very least initiate new positions in the deal by way of the $0.68 unit, which was being raised as the share price cruised along in the $0.85-1.05 range during most of the marketing period.

Since then, the company has closed over $3.6 million and has completed a name change to Western Uranium and Vanadium Corp., and has released news regarding developments surrounding the 5 Mlb vanadium resource contained in the Sage Mine located in Colorado. WUC entered into a joint venture agreement with BMR pertaining to the exploitation of the Sage deposit, which was announced on June 6; it was this announcement that triggered my immediate interest in revisiting the opportunity after experiencing such dire disappointment in early 2017. The arrival of an Aussie group that knows mining and appears eager to advance and exploit the vanadium assets is a welcome development for WUC, and one that has resulted in my adding an additional chunk of stock to my portfolio. After participating in 2016 with a purchase of $1.70 unit deal, I have added triple the dollar amount in the most recent placement and now have an adjusted cost base of CA$0.80. With the stock at CA$1.55, a problematic situation has been rectified, with further developments on the very near horizon enhancing the near-term upside potential.

Technically, WUC has clawed its way back above the downtrend line from the $5.00 peak in 2015 and the $2.75 peak in 2017. RSI and MACD are in recovery mode and volumes are respectable.

Investing in uranium deals has been a nightmare since the late 2010 top, north of $75/lb, with all rallies being sold unmercifully and dips rarely advantaged. Rarely, if ever, treated as “green” energy, the U2O3 stocks have been treated like Japanese whaling ships at a Greenpeace convention. They are seen as “weaponry” by the masses, as opposed to the cleanest form of energy on the planet and one which has an extremely long shelf life. Vanadium stocks, by contrast, are beloved by the electric vehicle (EV) tribe, with many exploration issues having participated in the recent price advance.

Vanadium has been the superstar of the battery metals group, having outperformed lithium, cobalt and graphite since 2015. To understand the history of industrial applications for the metal, this link will take you to an excellent article from BBC World News.

Valuation
The company has four main properties, which are estimated to contain a total estimated resource of 75 million pounds of uranium. In addition, three of the four properties contain 35 million aggregate pounds of vanadium, with an implied value of US$647 million. At the current price of $1.55 per WUC share, the company carries a market capitalization of US$31.6 million, which represents 4.88% of the in situ metal value (ISMV) of the vanadium alone. Combining the in situ metal value of the 75 million pounds of uranium (@ US$26/lb) worth US$1.95 billion, you arrive at a combined (uranium and vanadium) in situ metal value of US$2.475 billion, such that Western Uranium is trading at 1.27% of the value of all historic resources.

The Opportunity
Most developers in the mining space will carry market caps in the 5-15% range depending on location (geopolitical and geographic).

Valuation Chart

Conclusion
When you view Western Uranium and Vanadium Corp. and attempt to conduct the normal-course due diligence so greatly required in today’s world, you are taken aback by the numbers I have provided above. How can a company with assets this good be completely ignored by investors? How can an investment story so compelling be so completely dismissed, from 2015 at CA$5.00 all the way to CA$0.66 in 2018? The answer lies in management. George Glasier is a friend of mine and one of the senior statesmen of the North American uranium industry. He can tell you more about the uranium space than any person I have met in all of my years in the resource business. However, George operates his business from a technical perspective, and that includes language the vast majority of investors do not exactly comprehend. In my discussions with George, I committed to assist him in the marketing of the WUC story so as to ensure the maximization of shareholder value by way of the clarification of exactly how what George does will, in due course, result in a higher share price. And that is what I am trying to do today. Pretty simple math.

In my 41 years in the investment industry, I learned by way of pain and suffering that many great investment opportunities arise from the ashes of the “resistance to promote” by the managers of projects that are technically sound but either “early” or “late,” and WUC is just one of those opportunities.

If, by chance, the vanadium story is a “late-to-the-party” facet of the WUC attraction, then the majorasset, uranium, will be the fallback position because of its unenviable role as a major bear market disaster story. If the uranium space suddenly ignites, then the aggregate package is going to be revalued in short order, and it is important that both assets are strategic assets in …read more

From:: The Energy Report

Company Completes Plans for Uranium Exploration Program

Source: Streetwise Reports 08/29/2018

The company also announced the exercise of around 1.16 million warrants.

Skyharbour Resources Ltd. (SYH:TSX.V;SYHBF:OTCQB) plans for its upcoming 2018 diamond drill program to commence shortly and it has now completed the 100% earn-in of its flagship, high-grade Moore uranium project well ahead of schedule, the company reported in a news release.

In addition, 1,159,175 warrants have been exercised recently, raising an additional $449,884 in net proceeds for the company, according to the company.

Upcoming 2018 drill program:

Skyharbour reported that it has received all of the required permits for its upcoming diamond drill program.

“We will be commencing our planned summer drill program very shortly to test more extensively new targets in the underlying basement rock at the Maverick corridor on the company’s flagship, high-grade Moore uranium project,” stated Jordan Trimble, president and chief executive officer of Skyharbour Resources. “The known high-grade, unconformity-hosted uranium mineralization at the Maverick corridor was deposited there through feeder zones in the basement rock, the discovery of which will be a top priority in this upcoming program given other recent basement-hosted discoveries including NexGen’s Arrow deposit, Fission’s Triple R deposit and Denison’s Gryphon deposit. Furthermore, warrants that were set to expire have been exercised bringing in additional funds which have been used to complete the 100% earn-in of the company’s Moore project well ahead of schedule.”

Skyharbour’s technical team recently reinterpreted historical drill information and has identified high-priority drill targets within the basement rocks of the Maverick corridor below the drill-defined, high-grade, unconformity-style uranium mineralization at the Main Maverick zone.

“Prior drilling within the basement rocks, although of minimal extent, has intersected significant structural disruption and favorable alteration along with anomalous pathfinder elements and low-grade uranium mineralization,” Skyharbour reported. “These characteristics bode well for the discovery of basement-hosted feeder zones to the overlying high-grade, unconformity-hosted uranium mineralization within the Maverick corridor.”

The company announced that 1,159,175 warrants were exercised recently, raising an additional $449,884 in net proceeds.

“The majority of these warrants were set to expire last week and had an exercise price of 40 cents,” the company noted, adding that Skyharbour is fully financed for this upcoming 3,000-meter diamond drill program at its Moore uranium project, which has a budget of approximately $1 million. The company is well financed with over $3.2 million in the treasury after making the $300,000 payment to complete the earn-in at Moore.

Skyharbour also announced its option partner, Azincourt Energy (TSX.V: AAZ, OTC: AZURF), updated its upcoming winter work program at the East Preston uranium project, located in the southwestern Athabasca Basin, Saskatchewan, Canada, planning to begin after mid-November and include approximately 2,000–2,500 meters of diamond drilling designed to test several previously identified high-priority targets.

Azincourt announced earlier this year that it entered year two of its option agreement with Skyharbour and Clean Commodities Corp., in which Azincourt can earn a 70% interest in the 25,329 hectare project.

At the East Preston property, ground-truthing work confirmed the airborne conductive trends and more accurately located the conductor axes for future drill testing. The gravity survey identified areas along the conductors with a gravity low signature, which is often associated with alteration, fault/structural disruption and potentially, uranium mineralization. The combination/stacking of positive features will assist prioritizing targets for testing first.

The Main Grid shows multiple long linear conductors with flexural changes in orientation and offset breaks in the vicinity of interpreted fault lineaments which are classic targets for basement-hosted unconformity uranium deposits. These are not just simple basement conductors, they are prospective and upgraded/enhanced targets because of the structural complexity.

Read what other experts are saying about:

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

Disclosure:
1) John McPhaul compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. 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: Skyharbour Resources. 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 one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyharbour Resources, a company mentioned in this article.

( Companies Mentioned: …read more

From:: The Energy Report

Oil & Gas Firm Acquiring Eagle Ford Acreage Resumes Trading

Oracle Energy chart

Source: Andrew O’Donnell for Streetwise Reports 08/29/2018

Andrew O’Donnell of Supercharged Stocks delves into an oil and gas company that is in the midst of acquiring land in the Eagle Ford formation in South Texas.

Oracle Energy Corporation: “Effective at the open…. the company’s shares will resume.”

The incredible advantage of being a newsletter writer for equities is that you build relationships and networks with dedicated and brilliant people, research-oriented analysts that are covering a wide range of companies. These networks are great sounding boards and resources. This network spreads out, reaches throughout regions, countries and continents focusing on various sectors, commodities and companies.

I learned a valuable lesson early in my career: always listen to people smarter than you, or have more experience and more success than you. It seems to work! So, when a successful and smarter person called me and mentioned Oracle Energy Corp. (OEC:TSX.V; OECCF:OTC), I was going to listen and take notes.

Oracle Energy was handed to me with a beautiful bow on it. Presumably as a belated birthday present. This person said, “Andrew, I believe this company checks a lot of boxes in your model; however, it is not in mining but oil and gas.”

He told me the basic story and I went digging. I sifted through the news releases and saw the opportunity. I called him up and said: “It is a resource in the ground that you drill for…same thing!”

With that silly comment and a heartfelt thank you, I pulled up the chart.

Now, I am not a technician. Analyzing charts is not my specialty, but I did show this chart (without the stock symbol) to a technical analyst; greedily enthusiastic would be the best description of his reaction. Even with my rudimentary understanding of charts, it was clear. This stock is posed to climb. It wants to. It is primed to. My hope is that a technician will see this article and chart above and will follow up with a full analysis of Oracle, but even I can see the resistance lines, the two cups and other markers that scream opportunity.

Let’s jump into the fundamentals.

Geopolitically, accessing and shipping oil and gas assets is becoming onerous. We hear President Trump speaking out against the EU purchasing oil and gas from Russia. We read that issues are still developing in Iran and the Middle East with sanctions, escalations of rhetoric tensions at a tipping point. Venezuela is in complete disarray and getting hammered economically as it continues down its socialist disaster. We know all the problems with mining in most of Africa and the news out of places like South Africa is dismal. Money coming back home is attractive and having access to production in the U.S. is going to be key. In the end, Oracles is coming out of the gate spending $5 million and getting strong production with enormous potential fracking and upside potential. Money is coming home, and assets are being developed back in safe zones.

Back at the end of last year, December 27 to be exact, Oracle announced a share consolidation. That decision can be upsetting for existing shareholders, but as new shareholders this is good news. In doing so it was looking at an acquisition back in the U.S. Money coming back home, a story I love, and a termination of assets in Africa, which is perfect. The risk in most of that continent is beyond consideration right now.

There were three step rounds of financing: the first was $2.5 million at $0.075 and $1.5 million at $0.11 a couple of months later, and one final financing on June 5 for $1,.5 million. The total was $5.5 million. Press releases from Oracle mentioned that it had some obligations and debts of a couple hundred thousand dollars, but more importantly it started hinting at a major purchase in Texas. The company was restructuring, selling the “exotic risk” in Africa and it announced an evaluation of an acquisition in the prolific Eagle Ford Shale Formation in Eagle Ford district of South Texas.

Quickly a new vision was taking shape. The announcement from this past Monday, August 27, announcing the purchase of this property was the actualization of an incredible plan with potential. It began back at the start of the year with this evaluation leading to a partnership with Petrie Partners as financial advisors. If you do not know this boutique investment bank, you should research them. It is a specialist bank and its advisors with Oracle Energy management achieved an excellent result. Petrie Partners is an alliance of astute bankers from Bank of America Merrill Lynch and Petrie Parkman & Co. The senior members of the Petrie team bring more than 25 years of energy investment banking experience, including over 300 energy M&A and capital raising transactions representing over $350 billion of aggregate consideration. This is the team that Oracle partnered with to aid in the transaction.

Oracle and Petrie negotiated for a 10% down payment on a $5 million land package with a producing asset, more land and the following highlights:

  1. 2,547 net acres of mineral lease rights of which 613 acres are to the base of the Buda, 640 acres are to the base of the Eagle Ford and 1,294 acres are to the base of the Austin Chalk.
  2. Six producing wells, seven shut in wells and the production infrastructure situated on the properties.
  3. The asset is producing approximately 70 boepd and has the opportunity for well workovers to significantly increase production.
  4. The July production was 1,273 barrels of oil and 5,020 thousand cubic feet of gas.
  5. Pursuant to the terms of the purchase agreement the company will acquire a 100% working interest and a
  6. 74% net revenue interest.
  7. An option on a second asset done with four arm’s length private entities, which own acreages adjoining the assets. This option adds 6,310 net acres of which 4,923 acres are for all depths, 613 acres are to the …read more

    From:: The Energy Report