Molori Energy Ready to Explode Higher

Source: Bob Moriarty for Streetwise Reports 07/19/2017 A novel use of fracking could ramp up production in the conventional North Texas oil wells that Molori Energy holds in a JV with Ponderosa Energy, says Bob Moriarty of 321 Energy. Energy resource companies are uniquely different than gold and silver resource companies. With energy companies, you either hit and produce oil and gas or you go out of business. With junior resource companies in the gold and silver space, you never want to try to go into production. After all, that’s where you fail. You can never fail as long as you keep drilling. With gold and silver juniors, they want to drill until their projects resemble Swiss cheese, not produce. After all, you might eventually hit something if investors will keep throwing money at you. All the while, management can continue to collect those fat paychecks and issue themselves more options every time their stock hits a new low. With energy you either produce or die. And a lot of time you die even if you do produce. They all die for exactly the same reason. Oil and gas prices go up and down faster than the blink of an eye. Oil first hit $118 in May of 1980 only to plunge to a low of $17 by November of 1998 before soaring to $156 in June of 2008 only to tumble to $48 by January of 2009, a mere seven months later. Oil then rocketed higher to a high … Continue reading

US Uranium Company Advances Its Assets

Source: Heiko Ihle of Rodman & Renshaw 07/18/2017 With core drilling and underground development nearly complete at its Canyon Mine and progress noted in other aspects of this company’s business, Rodman & Renshaw analyst Heiko Ihle provided an update to investors. Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.MKT) “continues to advance its pipeline of assets while maintaining production optionality,” Heiko Ihle wrote in a July 10 research report. Obtaining “a key license amendment for its expansion at Nichols Ranch” is among the milestones the company has achieved in recent months, stated Ihle. With the license, granted by the U.S. Nuclear Regulatory Commission in spring, “Energy Fuels has now received all of the necessary permits, licenses, and approvals needed to extend the Nichols Ranch ISR Project to the Jane Dough wellfields.” In addition, Ihle commented on the company’s uranium production levels, which he expects to improve in the second quarter of 2017. In the first quarter, “uranium production totaled 92,000 pounds. . .while 60,000 pounds of uranium were sold pursuant to a long-term contract at an average realized price of $58.28 per pound.” Finally, with regard to the company’s Canyon Mine, Ihle noted that underground development and core drilling was “substantially completed” in March, “resulting in significant capital development at the mine.” Ihle also cited the Energy Fuels’ report of “positive exploration results from the Canyon Mine, which included drill holes that had strong uranium and copper intercepts. . .we would not be surprised to see significant expansion of resources within the Canyon … Continue reading

Energy Company Announces Sale of Assets and Debt Reduction

Source: John M. White, ROTH Capital Partners 07/12/2017 The Williston Basin assets of this energy company have been sold for $1.4 billion. John M. White, analyst with ROTH Capital Partners, commented in a July 11 company update on Halcón Resources Corp.’s (HK:NASDAQ) sale of its operated Williston Basin assets for $1.4 billion to Bruin E&P Partners and on its plans to reduce its debt by $1.2 billion. White noted that current production associated with the assets being sold is about “29,000 BOE per day. The sale is conditioned upon the receipt of consent from greater than 50.0% of the holders of HK’s 6.75% unsecured notes due 2025 to amend certain provisions of the indenture governing the 6.75% Notes. On July 10, 2017 HK obtained commitments to provide the Consent from greater than 50% of the 6.75% Noteholders.” White also noted that the sale requires shareholder approval and on July 11, “HK received commitments to support the asset sale from holders of greater than 50% of its common stock.” Part of the proceeds will be used to purchase up to 50% of Halcon’s 6.5% notes at 103% of par. White also stated that Halcón will use part of the proceeds to “redeem all outstanding 12.0% Second Lien Notes due 2022.” According to White, Halcón plans to “run two rigs in the Delaware Basin for the remainder of 2017 and currently expects to exit 2017 with production in excess of 13,000 BOE per day.” ROTH’s valuation of Halcón is currently $14/share. The … Continue reading

Trading on TSX Venture Exchange Imminent for New Uranium Miner Helmed by Experienced Team

Source: Streetwise Reports 07/06/2017 A uranium exploration and development company focused on projects in the Western U.S., led by a team that has done it before, begins trading on the TSX Venture exchange July 7. URZ Energy Corp. (URZ:TSX.V) completed its IPO on July 5 and will debut trading on the TSX Venture exchange on July 7 under the ticker symbol URZ. Focused on uranium properties in Wyoming and the Western U.S., the company was created by Todd Hilditch. Hilditch, who has previously had strong ties to the lithium/energy sector through Salares Lithium before being acquired by Talison Lithium (which grew to another $840 million takeover), is being joined by four very experienced uranium/energy executives formerly of Uranerz Energy Corp. Uranerz was acquired by Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.MKT) in June 2015 for $180 million based on Uranerz’s operations focused on the Powder River Basin area of Wyoming, where it developed the in-situ Nichols Ranch project. Prior to the takeover, Uranerz was led by Dennis Higgs, Uranerz’s executive chairman; Glenn Catchpole, who served as Uranerz’s CEO; Ben Leboe, Uranerz’s CFO; and Sandra MacKay, the company’s senior vice president. The new company (URZ) utilizes the combined energy and market expertise of its core team: Todd Hilditch is serving as executive chairman, Glenn Catchpole as CEO, Ben Leboe and Sandra MacKay are directors and Dennis Higgs is a consultant and advisor. The board also includes Bryan McKenzie, CFO of URZ. URZ’s initial focus is the Gas Hills project and the Juniper Ridge … Continue reading

The Coming Battery Bonanza

Source: James Dines of The Dines Letter for Streetwise Reports 06/26/2017 James Dines, author of The Dines Letter, discusses the importance of graphite in the manufacture of lithium-ion batteries and highlights one graphite company he expects to have an edge. Lithium Batteries for Autos and Home Storage Someday, as sneaky years whisper past, batteries will be seen to have been a crucial wave of the investing future. Uses for lithium ion batteries (LIB) are expanding and will be the main technology for mobility and stationary storage for many years to come. LIB’s have been improved over the last 25 years, but it might take that long for any new battery design to pass through the development process to ensure they are safe for consumer use. Electrification of vehicles and the storage of green energy is driving massive growth in LIB cell manufacturing, forecast to increase 170% from today’s current capacity of 103 GwH to 278 GwH by 2021 to meet the demands of electrification of automotive vehicles. Also, lithium batteries will be used for stationary storage in houses; they would charge with wind or sunlight present, to be consumed later. Many will buy rooftop solar along with batteries. The 2015 world market value of lithium ion batteries was $18 billion and is forecast to double to $36 billion by 2025—which we personally believe will be much larger. Auto sales in the US and Europe exceed 30 million and forecasts are that 20% of cars sold will be electric vehicles by … Continue reading

New Areas of High-Grade Uranium Mineralization Drilled in Athabasca Basin

Source: The Energy Report 06/20/2017 A winter drilling program at Patterson Lake South in Canada’s uranium-rich Athabasca Basin has confirmed high grades of mineralization on one company’s property, and suggests the mineralized trend may be extendable. In a June 6 research report, Rodman & Renshaw analyst Heiko Ihle commented on results released June 5 by Fission Uranium Corp. (FCU:TSX; FCUUF:OTCQX; 2FU:FSE), stating that “results from the final assays of its winter program [confirmed] high-grade mineralization at the new R1515W zone at its PLS property. Six of eight holes were mineralized, with four returning multiple high-grade intervals.” In its press release, Fission Uranium, which is developing the Triple R deposit on its Patterson Lake South (PLS) property, stated assays from four holes returned “multiple high-grade intervals, including hole PLS17-557 (line 1530W), which returned 3.12% U3O8 over 8.5m in 1.24% U3O8 over 27.5m and 5.15% U3O8 over 2.0m in 1.71% U3O8 over 9.0m.” “We are impressed with the assay results, and believe that the R1515W zone could be a source of significant potential moving forward,” Ihle wrote. “In addition, we highlight that only 2 of the 5 zones at PLS (R00E and R780E) are included within the current Triple R deposit resource estimate, suggesting that the upcoming resource estimate has the potential to impact current resources meaningfully.” Ihle also noted that mineralization on the trend “was extended 120 meters west of the R1515W zone,” and stated that the company “views the corridor as a prospective area that hosts high- grade uranium further … Continue reading

Stepout Drilling Reveals Uranium Expansion Opportunity in Athabasca Basin Deposit

Source: The Energy Report 06/15/2017 Winter drilling in the Athasbasca Basin has revealed significant mineralization and off-scale radioactivity, as well as the opportunity for mineral resource expansion, and analysts now await the preliminary economic assessment that is expected shortly. NexGen Energy Ltd. (NXE:TSX; NXE:NYSE.MKT) released on June 7 the radioactivity results for the final 16 holes of its winter drill program at the Arrow deposit at its Rook I property in the Athabasca Basin in Canada. David Talbot, an analyst with Eight Capital, in a June 7 report, wrote, “winter 2017 drilling has ended on a high note as Arrow Deposit is expanded upon scintillometer results from the final 16 holes of the winter 2017 drilling program at Arrow Deposit, Rook I property. While not as spectacular as the potentially new zone of massive to semi-massive pitchblende intercept on A3 Shear announced in late April, systematic drilling of broad and high grade U3O8 mineralization on each of the A1 to A5 Shears should continue to help further expand resources. Furthermore, another zone located 300m to the SW of Arrow presents additional upside potential.” “Winter drilling in the SW and NW gaps was highly successful, returning both high grades and broad intervals of mineralization, both inside and beyond current resource areas. They will be [the] focus of summer drilling. Growth of Arrow should continue, particularly in the SW gap between the main Arrow deposit and the 180m SW deposit,” Talbot stated. The Eight Capital analyst also noted that the preliminary economic … Continue reading

This Cobalt Junior Could Have the Winning Formula

Source: The Energy Report 06/07/2017 With a global shortage of cobalt predicted, Global Energy Metals has agreements in place that both secure supply and secure access to end-users. Global Energy Metals Corp. (GEMC:TSX.V) is striving to become a niche supplier of cobalt. In March, the company signed a long-term strategic cooperation agreement with Beijing Easpring Material Technology Co., a major battery component supplier, to build an efficient and reliable cobalt supply chain. Global Energy Metals reported that as part of the cooperation agreement, the two companies “have agreed to a joint venture that will allow for the identification, acquisition, development, funding and commercialization of cobalt projects. GEMC will acquire the expertise and relationships that Easpring offers, including low-cost capital from Chinese institutions, leading Chinese engineering and construction skills, and Chinese machinery, equipment and other critical suppliers that meet world-class standards of quality at competitive costs in exchange for access to GEMC’s project development opportunities.” Global Energy Metals has noted that it has granted Easpring “Right of First Refusal to acquire an interest of each project by committing to pay for the pro-rata project acquisition and ongoing development costs.” The cobalt concentrate could be shipped to Easpring, which would refine it to the exact specifications of the end-user. In May, Global Energy Metals announced that it had entered into an agreement with Hammer Metals Ltd. to earn up to a 75% interest in the Millennium Cobalt Project in the Mount Isa mining region of Australia. Mitchell Smith, president and CEO of … Continue reading

Trump's No. 1 Energy Source Maximum Momentum Trade

Source: Lior Gantz for The Gold Report 05/31/2017 With fundamentals in place for uranium to take off, Lior Gantz, editor of Wealth Research Group, profiles a company with a recent significant uranium deal. The news on the most significant uranium deal of 2017 was out at the beginning of this month. I didn’t hesitate for a second regarding calling the CEO 30 minutes after the news hit, and it didn’t surprise me at all that at 04:46 AM, he took my call—that’s what you get when the CEO has a major stake in his own company and is on the same boat as his shareholders. While fund managers and analysts had to wait for business hours to begin tearing up the pages of the news release to wrap their heads around how this CEO scored big again, I was already familiar with the company, its projects, and the CEO’s incredible ability in pulling off the impossible. The market is beginning to realize that if they want maximum leverage to uranium prices, they must partner with the highest-quality company in the industry and the management team that gets things done. During our Q&A session early that morning, he told me plain and simple: “Lior, this deal we just announced puts us on a whole new playing field. Texas and Wyoming are the two best regions on U.S. soil for ISR-Situ uranium projects, and we now have a foothold in both. Not only that, Lior, but what will really turn heads here … Continue reading

Simplification: A Positive Change for MLP Industry, Investors

Source: Adam Karpf for The Energy Report 05/30/2017 The master limited partnership (MLP) industry, focused on energy infrastructure, is in the process of a major transformation known as “simplification,” where limited partners have merged with or acquired the interests of the general partner. Adam Karpf, portfolio manager for MLP strategies at CIBC Atlantic Trust Private Wealth Management, discusses the trend toward simplification and the benefits for management teams and investors. Two factors are driving the trend toward simplification. First, management teams are strategically adjusting to a more competitive landscape in the energy infrastructure industry, and second, investors are demanding a better alignment of interest and more shareholder-friendly terms. The trend for simplification, which results in only one class of investors, has and will continue to have a profound impact on the MLP sector and the broader energy infrastructure industry. We believe the simplification trend is a significant positive for the industry. General Partners and Limited Partners: How It All Changed MLPs generally have two classes of owners: general partner and limited partner. The general partner controls the operations and typically owns incentive distribution rights (IDRs). The incentive distribution rights enable the general partner to collect an increasing percentage of cash flow as the limited partner grows the distribution payment by exceeding target levels. For example, when the limited partner distribution increases to a higher tier (maximum tier capped at 50%), the general partner increasingly benefits from receiving a higher percentage of cash flow with successive distribution increases. Over the last … Continue reading