Oil Monitor 300312

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Oil monitorOil monitorOil monitorOil monitor 30 March 201230 March 201230 March 201230 March 2012

Dr Zac PhillipsDr Zac PhillipsDr Zac PhillipsDr Zac Phillips

+44 203 463 [email protected]

NeerajNeerajNeerajNeeraj PPPPaliwalaliwalaliwalaliwal


Alex OgbechieAlex OgbechieAlex OgbechieAlex Ogbechie


In this editionIN THIS EDITIONIN THIS EDITIONIN THIS EDITIONIN THIS EDITION 1111DATA WATCHDATA WATCHDATA WATCHDATA WATCH 1111PUBLISHED RESEARCHPUBLISHED RESEARCHPUBLISHED RESEARCHPUBLISHED RESEARCH 2222OIL MARKETOIL MARKETOIL MARKETOIL MARKET 2222FROM THE TRADING FLOFROM THE TRADING FLOFROM THE TRADING FLOFROM THE TRADING FLOOROROROR 3333BIGGEST MOVERS 3NEWS ROUNDUPNEWS ROUNDUPNEWS ROUNDUPNEWS ROUNDUP 4444OILEX LTD (OEXLN) 4TOWER RESOURCES (TRPLN) 4MATRA PETROLEUM (MTALN) 4BOWLEVEN (BLVNLN) 5SALAMANDER ENERGY (SMDRLN) 5ITHACA ENERGY IN (IAELN) 6NAUTICAL PETROLEUM (NPELN) 6VOLGA GAS (VGASLN) 6AFREN (AFRLN) 7FAROE PETROLEUM (FPMLN) 7JKXOIL &GAS (JKXLN) 8PARKMEAD GROUP (PMGLN) 8SERICA ENERGY PLC (SQZLN) 9ENEGI OIL PLC (ENEGLN) 9STOCKS UNDER COVERAGSTOCKS UNDER COVERAGSTOCKS UNDER COVERAGSTOCKS UNDER COVERAGEEEE 11111111

Data watch

Indices

Index Close Change

FTSE All share 3,002 -39.6

O&G 8,420 -215.2

Dow 13,146 99.7

S&P 1,403 10.5

O&G 506 -6.5

EuroStoxx 263 -3.0

O&G 343 -8.4

Source:Source:Source:Source: Bloomberg & Fox-Davies

CommoditiesCommodity Close Change Chart

Crude

BFO ($/bbl)

WTI ($/bbl)

123.5

105.4

-1.9 (-1.5%)

-2.2 (-2.1%)

3 Month Performance ($/bbl)3 Month Performance ($/bbl)3 Month Performance ($/bbl)3 Month Performance ($/bbl)

Crude Futures

BFO ($/bbl)

WTI ($/bbl)

116.9

107.1

-1.2 (-1.0%)

-1.7 (-1.6%)

Forward Curve (33Forward Curve (33Forward Curve (33Forward Curve (33rdrdrdrd month)month)month)month)

Gas

Henry ($/mcf)

NBP (p/therm)

2.01

61.6

-0.17 (-7.8%)

8.5 (15.9%)

Gas price ($/mm btu)Gas price ($/mm btu)Gas price ($/mm btu)Gas price ($/mm btu)


CurrencyCurrency Close Change 3 Month Performance

USD/GBP ($/) 1.601 1d 0.014

1m 0.010

3m 0.047

1.52

1.54

1.56

1.58

1.60

1.62

USD/EUR ($/) 1.335 1d 0.008

1m 0.003

3m 0.039

1.25

1.30

1.35

1.40

1.45

YEN/USD (/$) 82.2 1d -0.2

1m 1.0

3m 5.2

76

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84


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WTI BFO

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100110

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WTI BFO

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NBP Henry Hub

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Oil Monitor 30 March 2012

Oil Monitor Page | 2

Published Research

Oil Market

Crude oilUS crude inventories (see below) increased by record 7.1mm

bbl to 353.4mm bbl. This week build was primarily lead by

1.0mm bb/d increase (w-o-w) in crude imports to 9.3mm bbl/d.

Crude inventories are now at a seven month high and are also

in the upper limit of the average range for this time of year

Crude Inventories (m bbl)

Source:Source:Source:Source: EIA, Bloomberg & Fox-Davies

Oil Price ($/bbl)

Source:Source:Source:Source: Bloomberg & Fox-Davies data

Crude prices (above) have been falling entire week reacting to

bearish news flow from across the globe, and the WTI / BFO

spread has again widened.

WTI / BFO Spread ($/bbl)

Source:Source:Source:Source: Bloomberg & Fox-Davies data

In general, the oil markets are highly sensitive to geopolitical

events. Earlier in the week prices fell on the Italys Prime

Minister warning that Spain debt problems could reignite the

European debt crisis.

The prospect of a release of strategic oil reserves from the

United States and some European nations like UK, France alsopressured oil. US government official has confirmed that they

are considering a reserve release but no decisions had been

made. Speculation over strategic oil reserves is likely to keep

crude prices range bound.

Distillates, Gasoline & Refinery

Charge oilDistillate inventories fell by 0.7mm bbl (see below), and

continue to remain in the middle of the 5-year observed range.

Distillates Inventories (m bbl)

Source:Source:Source:Source: EIA, Bloomberg & Fox-Davies data

353,390

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Jul 09 Jan 10 Aug 10 Feb 11 Sep 11 Apr 12 Oct 12

WTI BFO OPEC

-35

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135,866

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Gasoline inventories declined by 3.5mm bbl partially due to

increased seasonal demand and decline in imports. However

the structural demand continues to remain week, as gasoline

supply over the last four weeks is down by 6.1% y-o-y.

Gasoline Inventories (m bbl)

223,370

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215

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Refinery utilization stood at 84.5%, up 230 bps from the

previous week.

Refinery Charge (m bpd)


From the trading Floor

Biggest moversBiggest Movers

Source:

14,635

11

12

13

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17


50.0%

40.2%

32.9%

31.8%

29.5%

28.8%

28.6%

25.1%

25.0%

20.0%

-12.5%

-13.0%

-14.3%

-15.0%

-15.8%

-16.2%

-16.7%

-16.7%

-18.2%

-33.3%

-75% -50% -25% 0% 25% 50% 75%

Odin Energy Ltd

Greenvale Mining Nl

Central Petroleum Ltd

Gujarat Natural Resources

Maverick Drilling &

Meo Australia Ltd

Empire Energy Group Ltd

Ophir Energy Plc

Grand Gulf Energy Ltd

Oil Basins Ltd

Europa Oil & Gas Holdings

Blue Energy Ltd

Capital Oil Ab

Triangle Energy Global Ltd

Oil & Gas Exploration &Roxi Petroleum Plc

Syngas Ltd

Mako Energy Ltd

Globe Exploration Lp

Kairiki Energy Ltd

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News Roundup

Oilex Ltd (OEX LN)

CambayCambayCambayCambay----76H Well Operations Update76H Well Operations Update76H Well Operations Update76H Well Operations Update

3333mmmm PerformancePerformancePerformancePerformance Oilex took another step forward towards

the monetization of the block resources

as it successfully completed a work over

technique at the Cambay-76H horizontal

well in the Cambay field onshore India. In

the news:

Procurement and installation ofequipment capable of managing thehigh reservoir pressure in the Cambayfield completed.

The milling and clean out of fracturestimulation stages 8, 7, 6 and 5 havealso been successfully completed.

What the above means is that four ofthe eight fracture stimulation stageshave now been fully opened and onepartially opened.

Tubing will be installed once theremaining four stages have beencompleted and the well will then beflowed to surface.

Full news story here:http://www.londonstockexchange.com/exchange/news/market-news/market-news-

detail.html?announcementId=11156569

Last CloseLast CloseLast CloseLast Close 18.75pChange (5Change (5Change (5Change (5----day)day)day)day) -6.8%

Source:Source:Source:Source: Bloomberg, Fox-Davies &

Tower Resources (TRP LN)

Moneyed Up!Moneyed Up!Moneyed Up!Moneyed Up!

3m Performance3m Performance3m Performance3m Performance

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The announcement of a ~$32mm

financing for Tower Resources should

help restore investor confidence in a

management team that has suffered the

headwinds that exploration sometimes

brings. With Namibia now the focus, the

monies available should help the

Company to once again gain traction. Inthis news:

~$32mm Equity Financing Facility withDarwin.

Main purpose to provide fundingflexibility

This agreement is in addition to itsexisting 8mm Standby EquityDistribution Agreement ("SEDA") with

YA Global Master SPV Ltd("Yorkville").

Full news story here:http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11156609

Last CloseLast CloseLast CloseLast Close 3p

Change (5Change (5Change (5Change (5----day)day)day)day) -4.0%


Matra Petroleum (MTA LN)

Momentum BuildingMomentum BuildingMomentum BuildingMomentum Building

3m Performance3m Performance3m Performance3m Performance Matras results this week have continuedto underline the Company's progress

towards unlocking the value within these

difficult reservoirs. Attention will now

shift towards development, and the

expansion of the reserves base. This

news supports our 4p valuation and BUY

recommendation. In this weeks news:

Remedial action on A13 completedand production commenced with oilflowing naturally

A12 underperformance isolated andattributed to poor completion;

successful remedial action takenA14 well planned imminently3D seismic planned over the asset to

delineate the productive horizons

Cash or cash equivalents of 1.8million at year end


Last CloseLast CloseLast CloseLast Close 0.9p

ChangeChangeChangeChange (5(5(5(5----day)day)day)day) 5.9%


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Bowleven (BLVN LN)

A Butterfly Emerges?A Butterfly Emerges?A Butterfly Emerges?A Butterfly Emerges?

3m Performance3m Performance3m Performance3m Performance The results mark the close of a year oftransition for BowLeven as it migrates

towards the development of its

discoveries. Sapele's volumes continue

to improve, and while the all-important

commerciality is yet to be declared the

outlook remains buoyant. With the final

development scenario for Etinde

underway and a full work 2012

programme fully funded, investors are

well set for a year of intense activity.

Following these results we reinstate our

BUY recommendation with a 250p price

target. In this news:

Sapele-2 and Sapele-3 explorationwells encountered significanthydrocarbon intervals at multiplelevels, our fourth and fifth successfulwells in the Douala Bas

Sapele-2 tested high quality light oilfrom Deep Omicron interval with apeak flow rate of 2,738 boepd

Sapele-3 further extended the DeepOmicron and Epsilon fairways, with oilencountered in both intervals, 16kilometres from the original Sapele-1discovery well

Substantial upgrade of Sapele DeepOmicron in place hydrocarbonvolumes following Sapele-3 wellresults. Deep Omicron P50 STOIIP andAssociated GIIP now estimated as615mm bbls and 1.5 tcf respectively.Resource revision on-going.

Significant progress made towardsfinalising the Etinde developmentconcept, with the preferred approachbased on a hub and spokedevelopment

Jack-up rig contracted for two firmplus two optional wells on Etinde

2D seismic data set on the onshoreBomono Permit acquired in 2011 now

fully integrated into existing datasetand first exploration well locationidentified.

4C OBC 3D seismic acquired overparts of block MLHP-7. Interpretationto support appraisal/developmentactivities now ongoing.

Group cash balance $124 million at 31December 2011, no debt.

Fully funded for current explorationand appraisal programme on Etindeand Bomono

Bomono farm-out discussions on-going.

EOV disposal nearing completion.Full news story here:http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11156659


Change (5Change (5Change (5Change (5----day)day)day)day) 11.3%


Salamander Energy (SMDR LN)

Confidence BoosterConfidence BoosterConfidence BoosterConfidence Booster


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While the news underlines how farSalamander has progressed and the

determination of its management in

refining the Company's strategy, further

work needs to be done to fully unlock

the true value of the assets. The

Company has re-aligned its portfolio to

focus on three core areas and an active

drilling campaign this year starting with

the spud of the Tutung Alpha-3 ("TA-3")

appraisal well should enhance the

Company's upward trajectory. In the

news:

2P Reserves increased by 13.6% to75.3 MMboe (2010: 66.3 MMboe), with8MMbo added from Bualuang EastTerrace discovery

Average daily production of 18,600boepd (2010: 20,300 boepd)

Matured prospect inventory in NorthKutei, independent CPR points to676mm boe of gross meanprospective resources in four high-graded prospects

Record pre-tax operating cash flow,before working capital changes,increased by 68% to $293.6 million

(2010: $174.4 million) and profit beforetax of $112.6 million (2010: loss of$113.7 million)

Year-end cash and funds balance of$85.8 million (2010: $99.2 million) andnet debt of $210.1 million (2010:$190.2 million)

Deepened interest in Kerendandevelopment, Greater Kerendan area,Indonesia, and expanded acreageposition in Greater Bualuang area

2012 average daily production rateforecast to be 12,000-13,000 boepdfollowing disposal of non-core

producing assetsBualuang Bravo Platform on schedule

for installation 3Q 2012

Ensco-53 rig mobilised fordevelopment and exploration drillingin Greater Bualuang area

Tutung Alpha-3 spudded, gasappraisal drilling ahead (the Tutungdiscovery is a gas-condensateaccumulation with a mean resourcevolume estimated at circa 60 Bcf)

Signed 12 month contract for AtwoodMako jack up rig in Greater Bualuangarea from 3Q 2012

Exploration drilling in North Kutei tocommence 4Q 2012


LastLastLastLast CloseCloseCloseClose 219p



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Ithaca Energy In (IAE LN)

Assumes operatorship of Carna discoveryAssumes operatorship of Carna discoveryAssumes operatorship of Carna discoveryAssumes operatorship of Carna discovery

3m Performance3m Performance3m Performance3m Performance Ithacas confidence on the prospectivityof the Carna discovery which lies

adjacent to the producing Garrow and

Kilmar gas fields has risen. Ithaca plans

to accelerate development studies on

the field and the intention to submit

Field Development Plan for approval

before the end of 2012 is real positive

news. In this news:

Increased working interest from 16%to 32%.

Assumes operatorship in the Carnadiscovery. The effective date of the

Acquisition is January 1, 2012.

The Carna discovery was made in early2009 with net pay of 127 feet TVD wasencountered in well 43/21b-5Z.

The well tested gas at a grossstabilised rate of 8.8mmcfpd.

New ownership structure: IthacaEnergy - operator (32%), Dyas Limited(24%), Centrica (40%), EWE EnergieAG (4%).





Nautical Petroleum (NPE LN)

Results of GCA report on the Kraken discoveryResults of GCA report on the Kraken discoveryResults of GCA report on the Kraken discoveryResults of GCA report on the Kraken discovery


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450Following on from the interim results on

the 19th, this week's GCA report for

Nighthawk establishes reserves from the

Kraken discovery following the results of

the recent series of flow tests (commercial

flowrates from 9/02b-5z well drilled in Q3,

2011). This news continues to support the

stock specifically, and with a positive UK

budget for operators in the North Sea, weremain optimistic fopr the continued

growth of the Company. In this news:

Independent Reserves Opinion (IRO)conducted by Gaffney, Cline &Associates Limited (GCA) on the Krakendiscovery.

GCA estimates (net) 1P at 22mm bbl, 2Pat 42mm bbl and 3P at 68mm bbl.


Last CloseLast CloseLast CloseLast Close 320

Change (5Change (5Change (5Change (5----day)day)day)day) -2.4


Volga Gas (VGAS LN)

Looking ForwardLooking ForwardLooking ForwardLooking Forward

3m Performance3m Performance3m Performance3m Performance This weeks results underline what has beena transformational year for Volga Gas, with

2011 seeing the Company enter 2012 with a

better cash flows and a growing core with

which to provide fuel for future growth. The

$10mm debt facility provides much needed

development flexibility, which should see

the Company close 2012 in a better

position than it started. With current

production up a further 16%, and an active

exploration programme, the opportunity

for further growth remains significant. In

this news:

Group average production increased93% to 2,147 barrels of oil equivalent perday (2010: 1,115 bopd) - Currentproduction of approximately 2,500boepd

Revenues increased 118% to $28.6million (2010 $13.1 million).

EBITDA up 256% to $8.9 million (2010$2.6 million).

Net loss of $1.1 million (2010: net loss of$16.9 million).

Operating cash flow before workingcapital of $7.6 million (2010 $5.5 million),after offsetting $3.1 million of gas salesfor loan repayments (2010: nil).

10.1million in cash at 31 December 2011($26.6 million at 31 December 2010).



CCCChange (5hange (5hange (5hange (5----day)day)day)day) 1.7


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Afren (AFR LN)

2011 results underline progress2011 results underline progress2011 results underline progress2011 results underline progress


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2011 has been a transitional year forAfren, and it now has a portfolio which

offers balance between exploration and

production activities spread across

geographies. It has lined up a high

impact exploration programme which

ensures that the potential for the

medium-long term remains very strong.

In 2011, the Company commenced oil

production from Ebok field - a significant

milestone. Further it also expanded its

global presence through a series of asset

acquisitions in Nigeria, East Africa and

the Kurdistan region of Iraq. In this news:

Net working interest 2P reservesincreased by 132% to 185 mmboe.

Net 2P/2C reserves and resourcesincreased by 633% to 995 mmboe

Cash at bank $292 mmRevenues were up 87% y-o-y to

$597mm led by a 34% increase inhydrocarbon production (19.1 mboed)and 37%/54% rise in oil/gas pricerealizations.

Net profit almost doubled to $125mmwith cash flow from operations

recording 62% growth to $338mm.Group firmly on track for 2012

production of 42-46 mboed.

Net debt at $548 mm (Gearing 45%)Currently participating in high impact

wells offshore Ghana and onshoreKurdistan region of Iraq.

First phase of Okoro East to be fasttracked to H2 2012.

Entry into the Kurdistan region of Iraqthrough acquisition of a 60%participating interest in the Barda RashPSC and a 20% participating interest inthe Ain Sifni PSC.





Faroe Petroleum (FPM LN)

Flush with Success, the trick is to continueFlush with Success, the trick is to continueFlush with Success, the trick is to continueFlush with Success, the trick is to continue

3m Performance3m Performance3m Performance3m Performance It seems to be that 2011 has been a yearin which a number of companies have

made the transition to Producer from

Explorer, which is good for the sector;

Faroe is now one of them. This balance

has been brought about by monetisation

of Maria discovery through swap deal, to

discoveries on Butch in Norway and its

first UK operated well - Fulla. We believe

that while 2011 has been a

transformational year, the momentum

needs to be carried into 2012, and with a

capex budget of up to 180mm, we

expect this to be the case. In this news:

Fivefold increase in 2P reserves to23.8mm boe

Capex of up to 180mm - 100mm onexploration and up to 80mm ondevelopments

Average production of approximately2,500boepd (economic productionaveraged approximately 10,100boepd)

Turnover increased more than five-foldto 80.2m (2010: 15.1m)

EBITDA increased significantly to40.9m (2010: 6.0m)

Profit before tax, increased to 14.3m(2010: 26.0m loss)Secured $250m (approximately 156m)

reserve based lending facility.

Cash of 111.6m (31 December 2010:132.2m)

Award of 7 new licences (3 operated)in Norway 2011 APA Round.





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JKX Oil & Gas (JKX LN)

Baseline established, rebuilding starts hereBaseline established, rebuilding starts hereBaseline established, rebuilding starts hereBaseline established, rebuilding starts here

3m Performance3m Performance3m Performance3m Performance There is plenty for the Bulls and theBears to read in JKXs statement as the

higher revenues and drilling successes

mask what is declining cash flows and

lower production, and as always, for us,

cash is king. LPG will make a full

contribution in 2012, Russian gas

should come on stream in 2012 and

the recent decline in operational

performance appears to have been

arrested. Nevertheless, we believe that

the optimistic outlook will take time for

the market to believe and any resultant

weakness in these shares following theresults is an opportunity, we believe, to

pick up the stock as 2012 should be a

year of better performance and

improving outlook. In this news:

Production down 12% to 9,045boepd (2010: 10,324 boepd);

Operating profit down 14% to$82.1mm (2010: $95mm beforeexceptional items)

Revenue up 23% to a record$236.9mm

LPG project in Ukraine completedmid-year;

Completion of the Koshekhablskoyegas field facility in Russia

Phase II Koshekhablskoyedevelopment planned to doubleproduction from booked reserves;

Drilling of two successful Ukrainianexploration wells in theMolchanovskoye "Wedge Zone"andthe Zaplavskoye exploration licence;booked reserves grew to90.7MMboe, with a reservesreplacement of 2.7.

Full news story here:

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11159290




Parkmead Group (PMG LN)

The End of the BeginningThe End of the BeginningThe End of the BeginningThe End of the Beginning

3m Performance3m Performance3m Performance3m Performance These results mark the end of theCompany's journey from investment

vehicle to junior E&P. these results are

not about the reserve base, which is

small, or the income, which is negligible

(this year), but about the fact that the

with ~$13mm in the bank, and the 2012

appraisal and development programme

funded, all the ingredients for near-term

growth are now in place.

Fully funded for its 2012 programme ofappraisal and drilling

First UK North Sea acquisitioncompleted in November 2011(Platypus and Possum)

Near term appraisal drillingSecond North Sea deal agreed in

December 2011 (Pharos) gas prospect

In addition to 4 UKCS gas basin blocksThird oil and gas deal agreed in March

2012 - acquisition of a portfolio ofNetherlands onshore assets

Four producing gas fields and two oilfields

First production for ParkmeadThe full news story here:

http://images.headland.co.uk/mmct2url.asp?ml=foxda

vies&ea=fox-davies@fox-

davies.com&cc=FOXDAVIES2826&url=http://www.lon

donstockexchange.com/exchange/news/market-

news/market-news-

detail.html?announcementId=11162042




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Serica Energy Pl (SQZ LN)

On to the next phaseOn to the next phaseOn to the next phaseOn to the next phase. Equity Funding on the. Equity Funding on the. Equity Funding on the. Equity Funding on the

Agenda?Agenda?Agenda?Agenda?3m Performance3m Performance3m Performance3m Performance 2011 has seen Serica complete its

migration away from Asia, towards the UCS

and Atlantic margin, and the near-term

development of Columbus will herald the

start of the new phase of growth. While

past costs will be refunded by BP's farm in

to its Namibian acreage, we believe that

the scope for dramatic improvements in

free cash flow are limited (cost cutting will

have an impact at the margins), its yearend

cash balance of $20mm in the context of its

and its indicated programme of

exploration, appraisal and development,means that the likelihood of an equity

financing is likely as a means to supplement

debt and other contractual financing

arrangements in meeting the funding gap.

Promising 2011 fiscal performance:o Revenue of $27.1mmo Cash from operations $7.5mmo Cash position of US$20 milliono No debt

Columbus field development in 2012:o Negotiations concluded with BG for

export via Lomond platform,

subject to final documentation,partner and Board approvals

o All engineering and design studiescompleted

o NSAI estimate 11.2mm boe grossreserves in Block 23/16f

Wells planned for Doyle and South Ottersubject to farm out

Two further UK licences awarded at yearend

85% Namibia's interest in central LuderitzBasin blocks (offshore)

o Large structures identifiedo Secured farm-out with BP.o BP will carry full cost of 3D seismicsurvey and past costs (earns 30%)

Six new blocks awarded in Irish RockallBasin, Serica operator

o Three large prospects mapped:Muckish, Midleton, West Midleton

o Farm-out campaigns commencedfor licences in the Slyne and RockallBasins

Farm-out underway prior to drilling firstwell in Morocco



Change (5Change (5Change (5Change (5----day)day)day)day) -2.0


Enegi Oil Plc (ENEG LN)

2011 results shows steady expansion2011 results shows steady expansion2011 results shows steady expansion2011 results shows steady expansion


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2011 has been a good year for theCompany, as it now has a portfolio which

offers balance between near term and long

term drilling activities spread across its

operating regions (Tanzania and Canada).

In addition to these areas, and in keeping

with the Company's desire for a diverse

portfolio of direct and indirect interests a

range of assets at throughout the spectrum

of the development cycle, the Company is

also looking at further investment in East

Africa as well as North and South America.

With this approach, and the existing asset

base, we believe that the Company is wellplaced to grow in 2012. While there is no

doubting the portfolio's potential, we

believe that further resources will be

required for the Company to unlock and

test this potential. In this news:

Solo strategically increased its holdingsin the Ruvuma PSA in Tanzania from12.5% to 18.75% in the period and to25% subsequently

The Ntorya-1 well (Mtwara block Tanzania), spudded 22 December 2011,currently at 2,600m.

Loan with Reef Resources converted to aworking interest in Reef's Ontarioproperties,.

A General Conveyance and AssignmentAgreement was completed in July 2011and Solo obtained a 23.8% workinginterest for the conversion of its existingloan and additional payments.

Solo also obtained the option to acquirea further 14.3% for a further paymentonce Reef had raised at least that level ofindependent third party finance.

In December 2011 Reef completed aCDN$1.96 million financing.Subsequently, Solo is currentlycompleting arrangements to take up theadditional percentage interest andexpects to complete that transaction inthe 2nd quarter 2012.

The Company also commencedevaluation of a new explorationopportunity in Argentina under a Headsof Agreement with Obtala Resources Ltd

Post period, a new exploration well;Airport North #1 was spudded inCanada. The well should be completedin early April.

Full news story here:http://www.londonstockexchange.com/exchange/news/m

arket-news/market-news-detail.html?announcementId=11162084


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Enegi Oil Plc (ENEG LN)

Building on opportunitiesBuilding on opportunitiesBuilding on opportunitiesBuilding on opportunities


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Today's results mark the close of a yearof transition for Enegi, and progress can

finally be made on unlocking the value

within its assets. In addition to building a

portfolio of opportunities which offer

potential for the Company to grow from

alternate revenue streams number of

sources, most notably the strategic

partnership with Advanced Buoy

Technology, there is also the Company'sLast CloseLast CloseLast CloseLast Close 16p

Change (5Change (5Change (5Change (5----day)day)day)day) 10.2% more conventional development

portfolio. We believe that with ~$550m

in cash, an ambitious future

development programme and limited

revenue generation, in the near-term,there will need to be either a scaling

back of the development programme, or

a combination of farmouts and / or

disposals, or as is more likely, a financing

to accelerate the opening up of the asset

base. In the news:

Nearing completion of the workoveron the PAP#1 well

o Data suggests well could beflowed continuously

Potential for Shale play across assets(Green Point)

Agreement with Advanced BuoyTechnology

o Applying for licenses in the UKNorth Sea under the 27thSeaward Licensing round

o Targeting marginal / strandedgas reserves

Executing early stage prospectingprogramme (County Clare, Ireland)

Strengthened management team andBoard

o Technical and financialcredentials bolstered



8/2/2019 Oil Monitor 300312

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Stocks under coverage

Company Ticker Recommendation DatePrice

Latest Target Difference

Aminex AEX LN UR Nov'11 5p 13p 160%

Borders & Southern BOR LN BUY Nov'10 67p 150p 124%

Bowleven BLVN LN Buy Nov'11 98p 250p 155%

Circle Oil COP LN BUY Feb'12 21p 95p 352%

Desire Petroleum DES LN UR Mar'11 29p 40p 38%

Enegi Oil ENEG LN UR Nov'10 16p 25p 56%

Falklands Oil & Gas FOGL LN BUY Apr'11 63p 250p 297%

Great Eastern Energy GEEC LN BUY Mar'12 328p 440p 34%

GulfKeystone GKP LN BUY Mar'12 262p 320p 22%

Gulfsands GPX LN UR Jan'11 150p 350p 133%Hardy Oil & Gas HDY LN BUY Aug'11 158p 250p 58%

Heritage Oil HOIL LN BUY Mar'11 143p 310p 117%

Jubilant Energy JUB LN Buy Mar'12 31p 55p 77%

Matra Petroleum MTA LN BUY Jan'12 1p 4p 290%

Max Petroleum MXP LN BUY Mar'11 13p 50p 285%

MEO Australia MEO AU BUY Feb'12 A$0.34 A$0.60 76%

Range Resources RRL LN BUY Mar'12 13p 27p 108%

Red Emperor RMP LN BUY Mar'12 42p 65p 55%

Rockhopper RKH LN BUY Nov'11 328p 600p 83%

San Leon Energy SLE LN BUY Feb'12 10p 60p 500%

Sterling Energy SEY LN HOLD Jul'11 39p 30p (23%)

Tower Resources TRP LN HOLD Jul'10 3p 4p 33%Victoria Oil & Gas VOG LN BUY Feb'12 4p 13p 225%


NOTE:NOTE:NOTE:NOTE: Bold indicates Research this week

8/2/2019 Oil Monitor 300312

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