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Summary
- Hurricane Energy appointed Antony Maris as the new CEO of the Company.
- Hurricane Energy produced 17,000 bopd of oil from two wells in Lancaster field.
- Hurricane Energy has put Aoka Mizu FPSO on maintenance.
- Cadence Minerals raised £1.25 million through the placement of new shares.
- Cadence Minerals announced the start of the drilling programme at the Cinovec Lithium.
- Cadence Minerals announced a decline in capital expenditure estimate at the Yangibana Rare Earth Project.
Hurricane Energy PLC (LON:HUR) & Cadence Minerals PLC (LON:KDNC) are FTSE AIM All-Share stocks. Based on 1-year performance, shares of HUR were down by around 88.50 percent, whereas shares of KDNC were up by around 30.43 percent. The market capitalization of HUR and KDNC were close to £94.51 million and £17.52 million, respectively.
Hurricane Energy PLC (LON:HUR) - Appointed technical committee for re-assessment at Lancaster field
Hurricane Energy PLC is a UK based oil and gas company that is engaged in the development of the hydrocarbon projects. Lancaster field, a producing basement field is wholly owned by Hurricane where it is performing a phased development of the project. Lancaster field is in an early production stage, and it has two wells connected to a FPSO. Hurricane Energy is included in the FTSE AIM All-Share index.
Recent events
- On 21 August 2020, Hurricane Energy appointed Antony Maris as an executive director and CEO of the Company. Mr Maris was previously COO of Pharos Energy PLC.
Technical and Operational update of Lancaster EPS
On 6 August 2020, the Company reported the formation of a technical committee to re-assess the geological and reservoir models for Lancaster field. As per the undergoing technological review, it is examined that there is a probability that oil-water is shallower than previously determined in 2017 at the Lancaster field. The Company expects material downgrade to the reserves. On 2 August 2020, the floating production storage and offloading (FPSO) Aoka Mizu was shut down for maintenance that was producing oil at a rate of close to 17,000 barrels of oil per day (bopd). On 27 July 2020, Hurricane Energy completed the installation of electric submersible pumps (ESP) at two wells at Lancaster EPS (Early Production System). Both wells are producing about 17,000 bopd of which 205/21a-6 well produces close to 12,000 bopd, and 205/21a-7z produces close to 5,000 bopd.
Share Price Performance Analysis
1-Year Chart as on August-21-2020, after the market closed (Source: Refinitiv, Thomson Reuters)
Hurricane Energy PLC's shares last traded at GBX 4.70 (as on 21 August 2020). HUR's 52-week High and Low were GBX 50.90 and GBX 3.84, respectively. Hurricane Energy had a market capitalization of around £94.51 million.
Business Outlook
The Company is currently undergoing technological review at the Lancaster field and expects to complete it before 11 September 2020. Once the survey is completed, it would be able to inform about the estimate of resource at the field. Aoka Mizu FPSO that is currently undergoing maintenance is also expected to resume operations soon. The Company is also looking at options to improve production from the West of Shetland asset base.
Cadence Minerals PLC (LON:KDNC) – Debt to be repaid from new funds raised
Cadence Minerals PLC is a UK based metal & mining company mainly focused on metals such as iron ore and lithium. The Company has an investment in projects that includes Cinovec lithium, Macarthur Minerals Project and Sonora lithium Yangibana Rare Earth Project. The Company is listed in the FTSE AIM All-Share index.
Placement of new shares
On 21 August 2020, Cadence Minerals reported the placement of 10,416,662 new shares at 12 pence per share. The Company raised close to £1.25 million that would be used to repay loans and for working capital needs. The outstanding balance of the borrowing is close to £1.7 million.
Recent Events
- On 12 August 2020, Cadence Minerals stated that Macarthur Minerals reported upgrade in resource estimate at the Lake Giles iron ore project in Australia. Cadence owns 2.2 percent equity stake in Macarthur Minerals that is focused on the mining of iron ore, nickel, gold and lithium in Australia. As per the recent update, 53.9 Mt measured mineral resource and 218.7 Mt indicated mineral resource was reported. The available resource data is encouraging to start the feasibility study of the site. CSA Global Pty Ltd performed the resource upgrade study at the Lake Giles site.
- On 11 August 2020, Cadence Minerals stated that it is actively discussing the final investment in the Amapa iron ore project in Brazil. The investment is subject to a few pre-conditions after which Cadence would own 20 percent interest in the project through JV.
- On 10 August 2020, Cadence Minerals announced that European Metals Holdings Limited started drilling programme at the Cinovec Lithium-Tin Project. Cadence Minerals owns 15 percent equity in European Metals. Cinovec is situated in the Czech Republic. As part of the programme, nineteen drills will be completed with a total depth of 5,550 metres along with two hydro-geological hole drilling and four geotechnical hole drilling. Hydro-geological and geotechnical hole drilling will be done after resource drilling is completed.
- On 28 July 2020, Cadence Minerals reported that the estimated capital expenditure requirement at the Yangibana Rare Earth Project in Australia has declined by 13 percent to AUD 449 million from the previous estimate of AUD 517 million. Cadence owns 30 percent interest in Yangibana Rare Earth Deposit that includes six mining leases and six exploration licenses.
FY2019 results (ended 31 December 2019) as reported on 26 June 2020
In FY19, the Company reported an operating loss of £1.5 million that was lower than £10.7 million incurred in FY18. The loss per share was 2.54 pence per share in FY19. As on 31 December 2019, Cadence Minerals had total assets of £18.7 million and cash of £2.4 million.
Share Price Performance Analysis
1-Year Chart as on August-21-2020, after the market closed (Source: Refinitiv, Thomson Reuters)
Cadence Minerals PLC's shares last traded at GBX 13.50 (as on 21 August 2020). KDNC's 52-week High and Low were GBX 16.66 and GBX 2.80, respectively. Cadence Minerals had a market capitalization of around £17.52 million.
Business Outlook
The Company highlighted that the performance of its investment is on track, and it would continue to review the investments. Cadence Minerals would focus on developing the Amapa project once the investment in the project is completed. It is confident that adding Amapa to the portfolio would be value accretive. The Company's strategy is to look for projects that are into a more advanced stage of development and can generate a return for the Company.
