Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Each and every recession is for different reasons. The one that may (or may not. Look at how many jobs the us added recently) come is as a result of high cost of living I.e the price of oil. I’m no expert but above the trend oil prices are here to stay. With or without a resolution in Ukraine. Simple supply and demand.
Regards
Just my opinion.
If we think that Fridays announcement has any relevance on the outcome of said deal then we are wrong. These potential farm in partners have looked at all angles and all possibilities knowing there WOULD be some some sort of tax due to high profits on high oil price. They thankfully look at the future average prices and profits not on what may or may happen short term. Stop fretting!
Regards all.
You really are a complete idiot.
This is all helpful for JOG, both in terms of time achieving first oil from the GBA, but
also in terms of the company’s ongoing farm out process, where we would expect
potential partners to be further encouraged by the new government strategy,
promises of regulatory support and, potentially, focus on electrification, alongside
the persistently high oil price. The farm out process continues, and we await further
updates here.
Separately, we also note the recently announced acquisition of Siccar Point by Ithaca
Energy. Siccar Point’s portfolio includes the producing Schiehallion and Mariner
fields, but also the significant Rosebank and Cambo development projects, for a total
of 54mmboe of net 2P reserves and 470mmboe of net 2C resources. The US$1.46m
total acquisition price (including US$360m of contingent payments) plus US$391m
end 2021 net debt implies a strong US$34/boe of 2P and then US$3.5/boe of 2P+2C.
From the point of view of JOG, it’s positive to see significant cash being deployed in
an acquisition with a material development resource element.
No change to forecasts or valuation.
Conclusion: JOG’s GBA development project (based on the Buchan oil field and J2
and Verbier oil discoveries, alongside a number of exploration prospects) represents
a significant UK North Sea asset position. It puts JOG in charge of 162mmboe of
estimated gross 2C economic resources, based on the company’s standalone
platform development concept, implementation of which could see the GBA as the
base for a new hub development in the area (potentially also facilitating tie-back
development of any further JOG discoveries, and third-party fields). Other
development options, including tie-back to another regional platform or existing
floating infrastructure, are also being explored. Progression of the GBA
development project would make JOG an increasingly significant UK E&P company,
likely to draw increasing amounts of investor attention.
Going forward, we look for continuation of the important farm out process (on the
main GBA development, but also likely including the surrounding exploration
assets), where a wide variety of counterparties and development options is being
engaged with. Alongside farm out process updates, there is also the ongoing
potential for new production acquisitions as assets continue to change hands in the
UK North Sea. This provides plenty of potential for news flow in the coming months,
and beyond this a route towards first oil from the GBA. The £17.1m end June 2021
cash holding (zero debt) creates a strong funding position for the farm out process
and initial FEED work. In our view, the market is yet to fully appreciate JOG’s current
asset position, but progression through a successful farm out process and
subsequent development work should act as important events in demonstrating the
materiality and significance of this going forward. We have a Buy recommendation
and 700p
The UK government has recently announced a new UK energy strategy.
While this includes plans for significant new nuclear capacity, higher
generation from wind and solar and increased investment in hydrogen,
importantly it also gives oil and gas a key role in forward UK energy
supplies. This focuses on domestic production from the North Sea, both
from a carbon footprint (domestic volumes typically have much lower
emissions than those that are imported) but also a security of supply
point of view.
Alongside expressing the general support of the government for the
domestic oil and gas industry, the government announcement
mentions four particular actions. First is a new North Sea licensing
round for later in 2022. Second is the provision of focused regulatory
support for new oil and gas developments, aimed at reducing the time
taken to obtain required clearances. Third is a greater drive for platform
electrification, and fourth is a re-examination of onshore fracking.
In our view, the new licensing round is, amongst other things, indicative
of broader support for the future of UK North Sea oil and gas activity,
and the expectation of this continuing at scale over the coming years
and decades.
More specifically for JOG and its GBA development project, the
emphasis on new developments is particularly positive, in our view,
indicating strong government support for upcoming projects and, likely,
expedited clearances.
The mention of a drive for platform electrification is also helpful for JOG,
given the company’s plans in this area and the potential for it to also
attract partners looking to do this themselves.
More broadly, we think that the key role oil and gas is emphasised as
having for UK energy supplies over the coming decades will be
welcomed by the industry and inspire confidence for investment in the
UK North Sea. Continued on next page/
Dick
Just filter the bell end.
How does one filter the pratt?
James,
Do us all a favour and **** off you idiot!