Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
last time AEN raised cash for small amount at 47p with warrants and 60p for the Colombian progress. That is something. Also recently closed out their $10million debt by paying the lender in advance last quarter. AEN have made some impressive achievements and milestones last year.
The Vaca Muerta (literally, 'dead cow') is the only oil-producing shale outside the US, and - depending on who you ask - the second or third largest shale resource anywhere. The US Department of Energy estimates that the shale contains as much as 27bn barrels of oil and 800 trillion cubic feet of gas, and a recent Goldman Sachs report compared the resource potential with the Bakken formation either side of the US-Canada border. Past oil production has left a solid infrastructure legacy, and land currently fetches up to $10,000 an acre. As you might expect, this has led to a gold rush in the past two years, and explains the presence of Shell (RSDA), Total (Fr: FP), Petrobras (Bra: PETR4), ExxonMobil (US: XOM) and Chevron (US: CVX) in the region. Last month, Russian behemoth Gazprom (Ru: GAZP) signed a deal to develop shale and oil and gas assets in the region with state-owned YPF (US: YPF), which by default has the largest acreage of any major. One of the lesser-known names in Vaca Muerta is Andes Energia (AEN), a company jointly listed on Aim and the Buenos Aires stock exchange and headed by Repsol's former business development director, Alejandro Jotayan. It is touted as London's only 'pure-play' on the shale, and although it has a market capitalisation of £172m, it boasts more than 500m barrels of certified resources, and 6.2m net acres in Argentina - including 250,000 in the Vaca Muerta, over 90 per cent of which is in the proven oil window. This, management says, gives Andes the largest acreage position in the shale of any independent company, although four of its six licences are still shared with YPF. That sounds impressive.
when you look at the recent buyers of acreage here that would be good news. Petronas, ExxonMobil, Chevron, Shell and Wintershall are amongst buyers at high costs per acre. Shell has recently stated they are looking to buy developments in Argentina.
they are cash rich and when major buys. this is going out of the universe. probably in h the pounds.
AEN provided their Group production update for April this morning which showed 3,532 b/d in line with previous months. They also announced that with figures due shortly that gross profits and EBITDA where ‘in line with management expectations’. With CEO Alejandro Jotayan in town I took the opportunity to meet with him yesterday to see how things were, particularly as I have long been optimistic about Argentina. He was able to say that indeed, things were going very well in the country, and the new Government has already done everything promised such as currency restrictions and reducing energy subsidies. In country the oil price remains at $60-67 and is likely to stay that high to encourage production. The main production at present is the conventional Chachahuen operated by YPF where the bulk of the number reported above comes from and expansion here is under way. 90 wells are targeted this year and as many as 300 scheduled for the next three years after which the field is expected to reach its potential production rate of 25,000 b/d at very favourable economics. AEN has a strong position in the Vaca Muerta, the world’s third largest shale resource, indeed the only oil producing shale play outside the US. The only disappointment in this is that whilst YPF changes its management AEN has to wait for further progress as four out of its six licences are with them the other two are 100% AEN. It is possible that YPF will farm-out some of these positions as they have done recently but when you look at the recent buyers of acreage here that would be good news. Petronas, ExxonMobil, Chevron, Shell and Wintershall are amongst buyers at high costs per acre. In Colombia AEN has a presence in country following the Interoil acquisition and whilst the oil price is linked to Brent economics here are sound too. The exploration permits in the Colombian portfolio are generally shared with Ecopetrol, Canacol through the Interoil deal or Integra Oil & Gas and are generally well located near existing prolific fields. Overall with a strong position in the conventional and a developing, if slowly, world class one in the Vaca Muerta, Andes Energia is well placed in both Argentina and Colombia for the future. - See more at: http://www.malcysblog.com/2016/05/oil-price-hunting-petroceltic-circleandes-energia-finally/#sthash.NNlzm00l.dpuf
not the correct spread. after having looked at this for sometime i have decided to buy in. looks very strong from fundamental stand point. buy when nobody;s looking, although it doesnt how my buy on lse.