From Auctus Dec 17 updateEven better...
Arrow Exploration (AXL LN/CN) C; Target price of £0.30 per share: Executing on strategy: West Pepper adds ~6 mmcf/d production - The West Pepper well in Canada has been tied-in at initial stabilized natural gas production rates of 6.2 mmcf/d with no water production. This compares favourably with our expectations of 5.5 mmcf/d. With the additional production from the West Pepper Well, net corporate production is ~1,570 boe/d, almost tripling net corporate production prior to the tie-in of the well. While this was expected, this is a first important step in the company’s production growth strategy. At gas prices of C$4/mcf and just 5 mmcf/d production, Canada generates >US$1 mm cash flow per quarter. The next catalyst will be the drilling of the Rio Cravo Este-2 development well in 1Q22 that could add a further 400 bbl/d net to Arrow as part of the overall goal of reaching ~3 mboe/d in 1Q23. We re-iterate our target price of £0.30 per share. We continue to forecast that at US$65/bbl for Brent, the company’s net cash could exceed the current market cap by ~YE23. See website for full report Calima Energy (CE1 AU)C: Target price of A$0.75 per share: Drilling results in line with expectations – The Pisces #2 well encountered reservoir quality as expected and oil and gas shows as prognosed. In early January the two Pisces wells will undergo multi-stage frac stimulation and then be tied-in to existing infrastructure and facilities. Estimated on production date in mid-February 2022. Challenger Energy (CEG LN)C: Drastic reduction in payables in good news – Challenger has successfully restructured its balance sheet payables from US$22 mm to ~US$2.5 mm, subject to US$1.8mm cash settlement during 1Q22. While the company is not completely “out of the woods” yet, this is a very important step in the right direction. See website for full report PetroTal (PTAL LN/TAL CN) C; Target price of £0.55 per share: Reaching >20 mbbl/d production. Communities to return Pump Station 5 - The 8H and 9H wells continue to perform very well with production over the last five days of 6.3 mbbl/d and 8.2 mbbl/d respectively. This has resulted in field production exceeding 20 mbbl/d much earlier than expected (1Q22). Drilling of well 10H has commenced on December 11, 2021 with a targeted completion date in early February 2022. In light of current production and assuming well 10H has a similar performance as well 8H and 9H, our production forecast of 16 mbbl/d in 1Q22 looks very conservative. A joint framework between the rob121962 @