The company has announced that the Warwick Deep, 205/26b-C well spudded yesterday. This well for which Hurricane is carried by Spirit after last years’s farm-out is the first in a three well programme assessing the Warwick and Lincoln assets. More tomorrow but see interview with Dr Trice which covers it in detail.
Hot on the heels of the results comes a Q1 update but with such detail only recently there is little new news. Production remains in line with guidance, a very impressive y/y rise of 11% and volumes for the remainder of 2019 will obviously depend on success in the drilling programme. This includes 8 new wells including 1 HAW and at least 7 RCP’s and whilst results from the HAW’s are yet to be known the company is exuding confidence of increases in production rates and reserves of over 2X conventional vertical wells.
Trinity remains in a very strong position, it has cash of $12.3m and you can add to that the Petrotrin receivable of $2.6m which is expected imminently. This strength gives the company the opportunity to deliver continued high margin production growth through innovative horizontal drilling at highly cost effective rates. Shareholders should be pleased with how well TRIN is progressing.
A trading statement from Hunting today where the year has started ‘ in line with targets’, as usual the US onshore is very busy and the offshore operations are ‘challenging’. Hunting Titan margins are slightly down as they work through inventories built up in late 2018 but these lower technology conventional perforating guns will not remain a feature as the company turns to new technology and smarter products at higher margins. Hunting is, as they themselves say, well positioned to capture opportunities from this market environment.
Not much to add following my last piece on Serica and if there is a meeting or conference call I haven’t been invited to join! Accordingly I can only repeat the bullish comments from CEO Mitch Flegg who expects continued extension of field life at the BKR assets which should go straight through to the bottom line.
Enteq has announced a very positive statement and says that trading since the last update in February has been stronger than anticipated. Indeed, underlying EBITDA is now expected to be ‘materially ahead of the board’s previously upwards revised expectations ‘. Sales have grown not only in the USA but internationally as well and the board now expects to report revenue of approximately $10m. Upbeat about further opportunities, at long last those of us who stayed the course in believing in Martin Perry and team might just be justified in raising a small thimble to celebrate, it’s a long haul back up but if anyone can do it, he can.
On today's podcast: Live Company Group discuss the licensing and merchandising agreement they've signed. Cadence Minerals talk about the heads of terms agreement to acquire an iron ore mine. Emmerson explain their permitting roadmap for their Khemisset Potash Project.
SP Angel research note on commodities and miners, featuring: Acacia Mining (ACA LN) – Barrick makes progress in discussions with Tanzanian Government Bushveld Minerals* (BMN LN) BUY – Target price 90p – Vametco ore reserve grade rises to 2.02% as reserve more than doubles to 279,100t of V2O5 in magnetite Greatland Gold (GGP LN) – Newcrest Mining starts drilling at Havieron IronRidge Resources* (IRR LN) – Metallurgical results yield premium lithium URU Metals* (URU LN) – Zebediela project update
Five financial stories, trending today in a 60 second podcast, including: Theresa May will give a statement to MPs on her changes to the Withdrawal Agreement Bill later - including her promise to give MPs a vote on holding another referendum. But Labour MPs said too little had changed for them to come on board.