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Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


John Jeffrey, CEO, Saturn Oil + Gas Inc.

John Jeffrey
CEO | Saturn Oil + Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary (CAN)

info@saturnoil.com

+1-587-392-7900

Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"


20. July 2021 | 10:47 CET

Nel ASA, Saturn Oil & Gas, RWE - It will not work without oil

  • Oil
Photo credits: pixabay.com

The oil price has risen from high to high since the corona shock, in which prices below USD 20 per barrel were marked, and was recently quoted at just under USD 78, significantly higher than before the pandemic. Given the recovery of the world economy, the oil cartel OPEC and its partner countries, united in the group OPEC+, will increase daily production until further notice by 400,000 barrels per month. Climate activist Greta Thunberg criticized the decision, sarcastically calling it "positive news" on Twitter. But the young Swede has to admit one thing - we will not be able to do without oil in the coming decades.

time to read: 3 minutes by Stefan Feulner
ISIN: NEL ASA NK-_20 | NO0010081235 , SATURN OIL+GAS O.N. | CA80412L1076 , RWE AG INH O.N. | DE0007037129


Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Full interview

 

Author

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

About the author


Upheaval takes time

The world's population is growing, as is the demand for raw materials to generate energy. In the next few years, the world will still be powered by oil. Alternative energy sources such as wind and solar energy still have a long way to go before they have the necessary capacity to reliably supply a large part of the global economy with power. In the future, however, the problem will not be on the demand side but the supply side. Thus, governments and courts are forcing fossil fuel companies to radically change their business models to get out of the oil business in the long term. Oil giant Shell was recently ordered to cut its carbon dioxide emissions by 45% by 2030. Continued robust demand and much lower supply will inevitably lead to significantly rising prices on the oil market.

Lucrative deals beckon for producers

With oil giants such as BP and Shell busy transforming themselves into green businesses, Saturn Oil & Gas took the opposite route, rising to become one of North America's most important oil suppliers through a big acquisition. The acquisition of light oil reserves in the Oxbow area of southeastern Saskatchewan, located in one of the most economical oil areas in North America, will increase production tenfold to up to 7,000 barrels per day.

The total cost of the acquisition was CAD 93 million. It was funded through a combination of proceeds from the previously announced senior secured term loan, a brokered private placement and a concurrent non-brokered private placement. At the same time, Saturn Oil & Gas ensured that repayment of the loan and debt service would be completed by the summer of 2023 by selling large portions of its oil production over the next two years. Field development on the Oxbow property is already underway. Two new non-operated wells are scheduled to be drilled over the summer, with the first well to be drilled promptly.

The attractiveness of the deal is reflected in the valuation. Saturn Oil & Gas paid 1.4 times cash flow for the roughly 280,000 net acres, equalling about CAD 14,000 per flowing BOE. Industry peers currently pay an average of about CAD 30,000 per flowing BOE. Despite the excellent prospects and the hedging income secured, the price of Saturn Oil & Gas remains at the level of the capital increase at CAD 0.12. The analyst firm GBC expects net earnings of CAD 65 to 70 million from the optimization of process flows and new wells. Converted to the current market value of EUR 38.3 million - the potential return would grow by 80%. Thus, according to analysts, there is a share price potential of more than 200%.

Under water

The flood disaster in the west of the republic has hit the energy producer RWE hard. The Inden open cast mine and the connected power plant in Weisweiler were extremely affected by the flooding. According to company reports, the situation has been stabilized so that Weisweiler can at least run at reduced capacity. The natural disaster is likely to have caused RWE damage in the mid-double-digit million range.

The horror news caused the share to sell-off on the stock market, falling below the critical support at EUR 30. The next support is at around EUR 28. We advise waiting until the dramatic situation has been resolved.

The Norwegian hydrogen specialist Nel ASA suffered similarly high price losses. The paper sank more than 7% without news and sits on the critical support line around EUR 1.57. The next target in the markedly negative chart picture is the support area around EUR 1.34. Here, too, we currently advise against buying.


The future is to be green. The energy industry is facing the biggest transformation in its history. Both politicians and industry are pushing for a switch from fossil fuels to renewable energies. However, this is likely to take some time. Demand for fossil fuels remains high, while supply is falling. Oil suppliers such as Saturn Oil & Gas should benefit from the supply shortage in the coming years. In contrast, papers from the hydrogen sector such as Nel ASA remain in correction mode. In the case of RWE, investors should wait for the impact of the flood disaster.


Author

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

28. September 2021 | 13:31 CET | by Fabian Lorenz

Nel, JinkoSolar, Saturn Oil + Gas: It looks good!

  • Oil

Shares from the solar, hydrogen and oil sectors are in demand again. And the chances are good that it will continue. The federal elections are creating a good mood for solar and hydrogen; whether it is a traffic light or Jamaica, the new government will be greener. So good news for Nel and JinkoSolar. Both have also reported positive news. But oil stocks could also be in for a hot fall. That is because little work is being done on new projects, and demand will remain high for decades to come. So oil could become scarce despite the trend toward clean energy, according to one expert. Saturn Oil & Gas should benefit from this. The Canadians just bought huge oil reserves at a bargain price.

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22. September 2021 | 10:28 CET | by Nico Popp

BP, Saturn Oil + Gas, Gazprom: Where growth meets low valuations

  • Oil

The climate turnaround is coming, but it will not happen overnight. One raw material that will be needed for a long time to come is oil. OPEC recently increased its demand forecast for 2022 by 4.2 million barrels - every day. The oil companies, which are currently valued low on the stock market, will therefore continue to earn good money for a long time to come. But here, too, the companies with the edge are those that are flexible and have a sustainable focus. We present three stocks.

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16. September 2021 | 13:17 CET | by Stefan Feulner

FuelCell Energy, Saturn Oil + Gas, Gazprom - The Renaissance of fossil fuels

  • Oil

There is no question that Germany has already achieved a great deal in terms of climate protection. In 2020, about 45% of its electricity came from renewable sources. However, the goal of becoming greenhouse gas neutral by 2045 is still a long way off. For this plan to become a reality, wind power still needs to be expanded significantly. The first half of the current year shows that it will not be possible to do without fossil fuels in the coming years. According to calculations by the Federal Statistical Office, over 56% of the total 258.9 billion kWh of electricity generated in Germany came from conventional sources such as coal, natural gas and nuclear energy.

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