Next week investors should join us on Thursday 18th for a stellar line-up of resource companies. LekOil (LON:LEK), Sirius Minerals (LON:SXX), Petroceltic International (LON:PCI) and Minera IRL (LON:MIRL) are here and all four have exciting progress to update us on. To register please click HERE.
LekOil has interests in offshore Nigeria and offshore Namibia, two of the oil world’s current hotspots. A farm out agreement with Afren saw it acquire an overall 30 per cent economic interest in OPL310, an offshore Nigerian asset located in the Dahomey-Benin Basin. In May, meanwhile, LekOil struck a deal to acquire a 40% stake in Otakikpo in the Niger Delta, which could be in production within 12 to 18 months. Otakikpo is located near existing infrastructure and it is estimated to contain 36mln barrels of oil and 12bn cubic feet of gas. It brings access to near term and upside exploration said the company. LekOil is very careful in choosing where it invests and broker Westhouse believes this approach means it is poised to become a significant Nigerian player. Another broker, Oriel, added that LekOil’s potential is just too big to ignore. Here to tell us more is chief executive, Lekan Akinyanmi.
South American gold miner Minera IRL is doing a great job extending the life of its Corihuarmi Mine in Peru. Production and cash flow from the ageing Corihuarmi is crucial to the group until its flagship Ollachea project gets built. Ollachea represents Minera’s future with an optimisation study pointing to a low-cost underground mine containing approximately one million ounces of gold, not including a further 1.3mln of inferred ounces. A number of hurdles have been cleared recently including most importantly the award of a construction permit.
With a clear economic case for development presented in the feasibility study and subsequent optimisation work, Minera IRLhas focused its efforts on the final batch of funding before its starts to break ground on the site. Executive chairman Courtney Chamberlain has said he expects to have the financing arranged by end of this quarter and was confident enough to turn down an offer of US$100mln, more than half of what it needs, from existing lender Macquarie. He will be joining us on Thursday to pad out the opportunity.
Potash group Sirius Minerals has come a long way in a short space of time - a fact that has not gone unnoticed by investors. The firm is bidding to develop the world's largest potash deposit below the North York Moors national park to be used in the fertiliser industry. A major milestone came last year in the shape of a maiden reserve, which indicated the mine would provide, impressively, half a century of production at 5mln tonnes a year. Onward supply shouldn't be a problem as the group already has total polyhalite sales commitments of 4.8mln tonnes a year.
After a successful cash raise of £43mln earlier this year, Sirius hope to submit the application for its mine at the end of September and the overall development schedule to deliver the first production remains targeted at mid-2018. Here to tell us more about this company's story and the year to come will be Chris Fraser, Sirius Minerals' chief executive and managing director.
Petroceltic is now a full cycle and expanding mid-cap producer, developer and explorer with interests spanning Egypt, Kurdistan, Algeria and elsewhere. In Algeria, the company has an 18.75 per cent stake in the world-class Ain Tsila gas-condensate discovery alongside their partners. First gas from this giant field is due in late 2017. Algeria underpins the portfolio but the company has also established a foothold in the Kurdistan Region of Iraq, where it is now drilling the high impact Shakrok well. Production is also substantial. Last year the Dublin-based company pumped 25,200 barrels of oil equivalent per day. Nearly all of this comes from Egypt. Output may be lower this year due to a rescheduling of its work programme but crucially it is still getting paid regularly by the government. Petroceltic doesn't shy away from geopolitical risk if the potential rewards are right and joining us to explain the strategy, opportunity and plans is Tom Hickey the chief financial officer.
Please join us at 5:45pm for each event to allow for a prompt 6pm start. Each company has approximately 30 minutes to give a short presentation and for Q&A. This will be followed by the 'Champagne Raffle' where four guests will win a bottle each.
The evening will end with a drinks reception with canapés.