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Oil price, Sound, 32nd round. And finally…

WTI $41.37 -14c, Brent $44.07 -36c, Diff -$2.70 -22c, NG $2.49 n/c

Oil prices

Oil was off a touch yesterday as some people drew on the more bearish signals from the EIA report, viz gasoline demand was down from 9.16m b/d to 8.78m b/d. My comments from yesterday remain as it is b obvious that gasoline, and other products will be weaker when punters couldnt drive due to bad weather…

The job stats were better than expected as were the PMI numbers and today we have the NFP figures, 1.37m jobs were added in August and the unemployment rate down to 8.4% which was much better than expected. This weekend it is the Labor Day Holiday in the US which traditionally signals the end of the driving season but with very hot weather forecast particularly on the west coast it may be a bumper end to the driving summer.

Sound Energy

With apologies, pressure of work and numerous conference calls yesterday meant a late blog, however I have had a chance to look at the announcement in detail and talk to ..

WTI $41.37 -14c, Brent $44.07 -36c, Diff -$2.70 -22c, NG $2.49 n/c

Oil prices

Oil was off a touch yesterday as some people drew on the more bearish signals from the EIA report, viz gasoline demand was down from 9.16m b/d to 8.78m b/d. My comments from yesterday remain as it is b obvious that gasoline, and other products will be weaker when punters couldnt drive due to bad weather…

The job stats were better than expected as were the PMI numbers and today we have the NFP figures, 1.37m jobs were added in August and the unemployment rate down to 8.4% which was much better than expected. This weekend it is the Labor Day Holiday in the US which traditionally signals the end of the driving season but with very hot weather forecast particularly on the west coast it may be a bumper end to the driving summer.

Sound Energy

With apologies, pressure of work and numerous conference calls yesterday meant a late blog, however I have had a chance to look at the announcement in detail and talk to Sound Chairman Graham Lyon.

To sum up, the company has received a notification from the Moroccan Tax Administration (MTA) regarding a tax audit for the period 2016-18 restating the basis of tax due.

The company believes that this arises from a misunderstanding of historical licence changes and that with its advisors will be engaging with the MTA to seek to resolve this misunderstanding. In addition whilst the Company will be engaging constructively with the Moroccan Tax Administration in order to resolve the perceived misunderstanding, it will formally write to the Moroccan Tax Administration to formally refute the assessment and the basis thereof.

It appears that the company are indeed taking a robust approach to this exercise by the MTA and will fight this claim to whatever stage is necessary. The company has excellent relationships within the country, I myself have seen how well they are rated by ONHYM and of course during the recent development funding process have also become close to banks and potential funders of their projects.

I understand it this process will not delay or cease the plan for the company to have FID by the end of this year and the Chairman tells me that it is business as usual in Morocco.

Morocco

I have spent a lot of time writing about a number of UK quoted companies who have been encouraged to engage in Morocco for its hydrocarbon opportunities as well as its fiscally attractive terms of business. This includes a ten year tax holiday which applies when a company comes onto production, I assume that the MTA are trying to nip in before that happens to Sound with upcoming development.

I also have enjoyed a really good personal relationship with ONHYM who I have met on many visits to the country and a little while ago where I was a guest speaker of theirs at a conference in Marrakesh where the opportunities in Morocco were propounded. I can imagine that the UK quoteds I refer to, as well as the likes of super major Conoco who have recently taken a substantial onshore acreage package, will be miffed by this action which can only detract from the image Morocco is trying to show in international energy markets…

32nd Licencing Round

Jersey Oil & Gas

JOG has been awarded a 100% WI and operatorship of block 20/5e which contains an extension to the oil discovery at J2 and significantly helps the companys Greater Buchan Area development plans.

IOG

IOG has been awarded 4 new SNS blocks, all adjacent to existing assets and within range of the Thames pipeline. Two awards are joint with CalEnergy, block 49/21e, containing the Viper gas discovery lying 5km from Elland with initial management estimated mid-case recoverable gas resources of 46 billion cubic feet equivalent and block 49/22b, containing the Sinope South gas discovery with initial management estimated mid-case recoverable gas resources of 35 Bcfe.

IOG has been offered 100% of blocks 48/23d and 48/24c, between the Blythe and Harvey licences, containing the AllerdaRead More – Source

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Australia

Argonaut Resources directors show faith in company by participating in oversubscribed SPP

Argonaut Resources NL (ASX:ARE) directors have demonstrated their faith in the company’s copper-zinc strategy by participating in the recently closed share purchase plan (SPP).

Independent non-executive chairman Patrick Elliot purchased more than 4.465 million shares at 0.55 cents per share in an indirect interest.

He now holds 5,876,159 shares in that interest with another 20,324,574 held in a separate indirect interest.

Independent non-executive chairman Malcolm Richmond acquired more than 5.454 million shares in a direct interest, increasing the number held in this interest to almost 15 million with another 1 million held in an indirect interest.

Overwhelming response to SPP[hhmc]
The company was overwhelmed by the response to its SPP which closed early and more than twice oversubscribed with the target subsequently increased to $2.5 million from $1.2 million.

Subscriptions in excess of $3 million were received and as a result, the SPP was closed with immediate effect.

Money ..

Argonaut Resources NL (ASX:ARE) directors have demonstrated their faith in the company’s copper-zinc strategy by participating in the recently closed share purchase plan (SPP).

Independent non-executive chairman Patrick Elliot purchased more than 4.465 million shares at 0.55 cents per share in an indirect interest.

He now holds 5,876,159 shares in that interest with another 20,324,574 held in a separate indirect interest.

Independent non-executive chairman Malcolm Richmond acquired more than 5.454 million shares in a direct interest, increasing the number held in this interest to almost 15 million with another 1 million held in an indirect interest.

Overwhelming response to SPP


The company was overwhelmed by the response to its SPP which closed early and more than twice oversubscribed with the target subsequently increased to $2.5 million from $1.2 million.

Subscriptions in excess of $3 million were received and as a result, the SPP was closed with immediate effect.

Money raised under this SPP and from the recently completed $2.7 million share placeRead More – Source

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Australia

Strickland Metals shares jump 39% ahead of drilling base metal target near DeGrussa

Strickland Metals Ltd (ASX:STK) shares surged 39% today ahead of its maiden drilling program at the Doolgunna Project, which will include a diamond drilling program that is likely to begin by the end of this month.

As a part of the program, a minimum of four diamond holes will be drilled to a depth of 500 metres to test a VMS target similar to the nearby DeGrussa deposit of Sandfire Resources (ASX:SFR).

Heritage survey[hhmc]
Exploration activity has recommenced on the Doolgunna Project following completion of heritage surveys to allow land access to areas where the company wishes to complete exploration drilling.

The target for drilling is a compelling base metal prospect that exhibits geological characteristics that are interpreted to be similar to Sandfire Resources’ DeGrussa deposit about 30 kilometres to the east of the project.

The prospect has a 3-kilometre-long electromagnetic conductor that lies below an outcropping copper-zinc gossan that has been mapped over a 1.2-kilomet..

Strickland Metals Ltd (ASX:STK) shares surged 39% today ahead of its maiden drilling program at the Doolgunna Project, which will include a diamond drilling program that is likely to begin by the end of this month.

As a part of the program, a minimum of four diamond holes will be drilled to a depth of 500 metres to test a VMS target similar to the nearby DeGrussa deposit of Sandfire Resources (ASX:SFR).

Heritage survey


Exploration activity has recommenced on the Doolgunna Project following completion of heritage surveys to allow land access to areas where the company wishes to complete exploration drilling.

The target for drilling is a compelling base metal prospect that exhibits geological characteristics that are interpreted to be similar to Sandfire Resources’ DeGrussa deposit about 30 kilometres to the east of the project.

The prospect has a 3-kilometre-long electromagnetic conductor that lies below an outcropping copper-zinc gossan that has been mapped over a 1.2-kilometre strike.

Diamond core drilling


The company plans to start the diamond core drilling by the end of this month.

A multi-purpose drill rig has been contracted to enable the minimum planned program wRead More – Source

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Australia

Pan Asia Metals has positive discussions on plans for Thai lithium project

Pan Asia Metals Ltd (ASX:PAM) has had positive discussions with authorities in Phang Nga Province, Thailand, including the provincial government, for its Reung Kiet Lithium Project.

PAM has submitted a presentation covering all aspects of the project including methods of ongoing exploration, conceptual mining and concentrate production, and the potential for downstream value-adding industries in Phang Nga and Thailand.

The presentation and subsequent discussions were aimed at assisting Phang Nga Provincial Government in their considerations for the proposed mining and industrial development areas.

Provincial Government discussions[hhmc]
Pan Asia was recently invited by the chief executive officer of the Phang Nga Provincial Administrative Organisation (PAO), a Phang Nga Provincial Government coordinating body, to represent PAM and the Reung Kiet Lithium Project.

The meeting was also attended by the head of Phang Nga Provincial Industry along with the representatives of the Phang Ng..

Pan Asia Metals Ltd (ASX:PAM) has had positive discussions with authorities in Phang Nga Province, Thailand, including the provincial government, for its Reung Kiet Lithium Project.

PAM has submitted a presentation covering all aspects of the project including methods of ongoing exploration, conceptual mining and concentrate production, and the potential for downstream value-adding industries in Phang Nga and Thailand.

The presentation and subsequent discussions were aimed at assisting Phang Nga Provincial Government in their considerations for the proposed mining and industrial development areas.

Provincial Government discussions


Pan Asia was recently invited by the chief executive officer of the Phang Nga Provincial Administrative Organisation (PAO), a Phang Nga Provincial Government coordinating body, to represent PAM and the Reung Kiet Lithium Project.

The meeting was also attended by the head of Phang Nga Provincial Industry along with the representatives of the Phang Nga Provincial Public Works and Town Planning Office.

Phang Nga Provincial Industry head has been appointed by the Phang Nga governor as chairman of the Phang Nga New Town Planning Committee.

During the meeting, the chairman of the committee conveyed its support for the Reung Kiet Lithium Project.

PAO wants to ensure that the requirements of the Reung Kiet project are incorporated into the town planning committee’s zoning plans to ensure that the project can progress once exploration and feasibility results prove positive.

“Can bring opportunities”


PAM managing director Paul Lock said: “We have been working hard in Phang Nga province and we are very happy with the positive reception that the Reung Kiet Lithium Project is receiving from the Phang Nga Provincial Government and surrounding communities.

“Reung Kiet is strategically located and based on peer feasibility work the project is positioned to potentially be one of the lowest-cost suppliers of lithium chemicals in the global peer group.

“This is a project that can bring substantial opportunities and value to Phang Nga and Thailand.”

Pan Asia is planning its second Reung Kiet drilling program with expectations that this will begin in the coming months following the conclusion of the current Khao Soon drilling program.

Potential cost curve leader


Reung Kiet is a hard rock project with lepidolite rich pegmatites chiefly composed of quartz, albite and lepidolite with minor cassiterite and tantalite as well as other accessory minerals including some rare earth.

Lepidolite does not require roasting and has a suite of by-products which are recoverable at the concentrator and processing stages of the flow sheet.

Peer feasibility work has Read More – Source

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