Canadian Energy Explorer Asked to Submit Natural Gas Project Development Plan

Source: Streetwise Reports 04/12/2019 Two recent events that could impact this firm significantly are covered in this Pareto Securities report. In an April 8 research note, Pareto Securities analyst Tom Erik Kristiansen reported that Questerre Energy Corp. (QEC:TSX) contracted with the Quebec-based investment firm Industrial Alliance to help secure strategic investors to support development of Questerre’s natural gas resources also located in that province. “If successful,” he added, “this would be an important milestone to progress the project” and help the company gain social acceptability. Regarding Questerre’s goal of developing such a project in Quebec, the provincial government asked the company to take two actions. One is to postpone the hearing on its case questioning the prohibition on fracking. The second is to instead submit to the Ministry of Environment, for potential approval, a detailed development plan in accordance with Quebec’s Clean Gas Initiative. Questerre indicated it will do as asked and deliver the requested documents later this year. Should its application be denied, the company will then consider again pursuing legal recourse. Kristiansen concluded, “While several milestones remain before Questerre potentially can commence a commercial development of its large natural gas resources in Quebec and uncertainty still is high, we view today’s development as an important step in the right direction and expect a significant positive share price reaction.” Sign up for our FREE newsletter at: Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She … Continue reading

Energy Efficiency Solutions Firm Establishes Presence in Germany

Source: Streetwise Reports 04/11/2019 With this achievement, the company completes another part of its growth plan. Smartcool Systems Inc. (SSC:TSX.V; SSCFF:OTC; R3W:FSE) announced in a news release it created Smartcool Systems GmbH, a wholly owned subsidiary in Germany, that will sell the parent company’s products and services directly to the German market. Dr. Georg Hochwimmer, who has helped numerous small technology companies with financing and sales, will manage the subsidiary’s operations and develop a sales team for Germany. “I’ve known Georg for many years and have admired his strong business skills,” CEO Ted Konyi said in the release. “Establishing a presence in Germany is another positive step in the company’s growth plans,” Konyi added. “In addition to Smartcool’s proprietary optimization technology, I anticipate the products developed by our Total Energy Concepts division should also have applicability in this significant industrial market.” Regarding the company’s prospects in Germany, Hochwimmer stated, also in the release, that “the combination of high [electricity] rates and a need to reduce emissions creates a tremendous opportunity for Smartcool and its suite of efficiency technologies.” In other news, the company just finished its first installation in the country, for an international food processing business. Savings resulting from Smartcool’s energy efficiency solution at that enterprise are expected to fall between 25% and 40%. Read what other experts are saying about: Smartcool Systems Inc. Sign up for our FREE newsletter at: Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports … Continue reading

Portofino Resources: Three Shots at Glory

Source: Peter Epstein for Streetwise Reports 04/11/2019 Peter Epstein of Epstein Research interviews CEO David Tafel, who describes his company’s projects in Argentina’s famous “Lithium Triangle.” Green shoots? Anyone see the green shoots of a springtime recovery in lithium stocks? No, me neither . . . However, I do note one positive development, Lithium Americas Corp. (LAC:TSX; LAC:NYSE) is receiving US$160M for 12.5% of its joint venture (JV) brine project in Argentina. That implies a CA$1.7 billion valuation for the entire project, of which Lithium Americas will own half. This is the best news since POSCO paid US$280M to Galaxy Resources Ltd. (GXY:ASX; GALXF:OTCMKTS) for 17,500 hectares (17,500 ha) in Catamarca Province, Argentina. They paid US$16,000/ha for a reported 2.54 million tonnes of high-grade resources. Speaking of Catamarca, that’s where CEO David Tafel’s company Portofino Resources Inc. (POR:TSX.V; POT:FSE) controls three projects totaling >8,600 hectares. One of the projects is very near the projects of POSCO and Galaxy. Another is near Neo Lithium Corp.’s (NLC:TSX.V) very high-grade 3Q project. I recognize I’m name dropping and playing the close-ology game, but Portofino has three shots at glory. Three legitimate chances of finding good, or even high-grade lithium deposits. Yet its market cap is just CA$2 million. This seems like attractive risk/reward to me. Here is my conversation with David Tafel. – Peter Epstein Peter Epstein: Please give readers the latest snapshot of Portofino Resources. David Tafel: Sure. Portofino Resources holds an interest in three lithium property groups in Argentina representing over … Continue reading

Refiner's 'Disciplined Strategy' Drives Strong Q1/19 Performance in Tough Environment

Source: Streetwise Reports 04/11/2019 How this company was impacted in Q/19 by softness in industry fundamentals is covered in a Raymond James note. In an April 4 research note, Raymond James analyst Justin Jenkins reported that Valero Energy Corp. (VLO:NYSE) “performed strongly” in Q1/19 despite the difficult operating environment that drove down margins and that “the set-up for refiners should improve through 2019.” Jenkins highlighted that “the company is executing on its plan to improve returns in refining while growing in the higher-value midstream segment that also supports refining ops. . .Also, Valero continues to return substantial cash to shareholders and maintain a strong balance sheet.” The analyst noted that due to weakening macroenvironmental factors throughout Q1/19, Raymond James lowered some of its estimates on Valero for that quarter. For one, it reduced its Q1/19 earnings per share (EPS) forecast to $0.20 from $0.50. “Valero’s low-cost operations should keep the company in the black, but a difficult macro clearly will weigh on refining margins,” he added. The financial services firm also dropped its 2019-2020 EPS projections on Valero to $6.50 and $10.75, respectively, from $7 and $11. It estimated companywide margins of $7.74 a barrel in Q1/19 versus $11 a barrel in Q4/18. Thus, it modeled the refining segment’s operating income at $449 million compared to about $1.5 billion in Q4/18. Looking forward, Jenkins indicated the gasoline market, heavy differentials and IMO 2020 will be the “biggest needle movers.” Raymond James has an Outperform rating and a $100 per share … Continue reading

Why These Lithium and Cobalt Companies May Be the Ultimate Contrarian Play

Source: Jason Hamlin for Streetwise Reports 04/08/2019 Jason Hamlin of Gold Stock Bull explains why he believes lithium and cobalt companies are overlooked and discusses two companies on his list. Lithium and cobalt companies are a hidden gem in the mining sector. Lithium and cobalt, along with nickel, are the primary metals used in most modern batteries. 42% of the world’s cobalt production goes toward the creation of lithium-ion cell batteries. According to the Cobalt Institute, lithium-ion batteries have higher energy density than other battery types and are used in laptops, smartphones, medical devices and electric vehicles, in addition to having a number of other industrial applications. Needless to say, the need for lithium and cobalt won’t be diminishing anytime soon. While an initial spike in prices led to investor euphoria in 2017, that euphoria quickly faded as prices corrected sharply in 2018 and into 2019. But there is evidence to suggest that a huge boom in the battery metals may still be just around the corner. If so, this could be an excellent opportunity for contrarian investors to start accumulating shares on the cheap. Before getting into two of the best lithium and cobalt stocks in 2019, let’s briefly examine the case for an imminent increase in demand for lithium and cobalt. Lithium and Cobalt Demand Set to Surge With the proliferation of smartphones and electric vehicles, demand for lithium and cobalt has become entrenched in the global economy. And over the next five years, it seems almost certain … Continue reading

Houston-Based Oil & Gas Producer Sets Goal to Become Wholly Carbon Neutral

Source: Streetwise Reports 04/06/2019 A Raymond James report considers both what it would take to achieve this and how doing so could uplift profitability in relation to the company’s use of enhanced oil recovery. In an April 2 research note, analyst Pavel Molchanov guesstimated the potential profitability from Occidental Petroleum Corp. (OXY:NYSE) going carbon neutral with respect to its enhanced oil recovery (EOR) practice. Molchanov’s self-described “thought experiment” follows the announcement by CEO Vicki Hollub that Occidental has set the goal of eventually becoming entirely carbon neutral, a first for a U.S. oil and gas producer. The analyst explained that an oil and gas producer emits carbon dioxide directly and indirectly. For Occidental, direct emissions result from its operations, specifically CO2 injections at mature oilfields, rigs, trucks and pipelines to enhance oil recovery. Indirect emissions result from the use of petroleum as fuel in cars and trucks. “Occidental’s stated target of achieving full carbon neutrality notionally encompasses both of these elements, albeit with no formal timetable,” Molchanov wrote. “We doubt that the company could get there until 2030+, but in the meantime, offsetting the direct emissions represents the ‘low-hanging fruit.’” Regarding CO2 injections for EOR, the practice is only done in conventional drilling today, and is more common in the mature basins. The Permian, for instance, is a “massive user,” Molchanov described. Because most of the CO2 used in the Permian is naturally occurring (extracted and transported via pipeline) versus man-made (derived from carbon capture and sequestration), “EOR’s carbon intensity … Continue reading

Azarga Uranium, a Winner With or Without a Section 232 Windfall

Source: Peter Epstein for Streetwise Reports 04/05/2019 Peter Epstein of Epstein Research explains why he sees this company as an attractive way to play uranium in 2019. Azarga Uranium Corp. (AZZ:TSX; AZZUF:OTCQB) is an integrated uranium exploration and development company that controls 11 uranium properties / projects / prospects in the U.S. (South Dakota, Wyoming, Utah and Colorado) and in the Kyrgyz Republic, with a primary focus on in-situ recovery (ISR) projects in the U.S. The Dewey Burdock ISR uranium project in South Dakota is the flagship project. Azarga Uranium’s main asset, the Dewey Burdock ISR uranium project, possesses a sector-leading combination of grade and scale for an ISR project in the U.S. and has been obtaining key regulatory approvals over several years. However, during most of this time, uranium prices were very weak, only recently rebounding to ~US$29/lb, before pulling back a bit to ~US$26/lb currently. The spot price was as low as ~US$17.50/lb in the 4th quarter of 2016. I caught up with the CEO of Azarga Uranium, Blake Steele, in New York and had the opportunity to discuss Azarga Uranium and the broader uranium sector. In short, he noted that interest in uranium and uranium juniors was high, especially for U.S. juniors due to the Section 232 Petition sitting with the Department of Commerce. Azarga Uranium’s recently completed financing would seem to validate this. Azarga Uranium easily raised C$3.0 million, the bulk of which was taken up by institutions, further validating the quality of the company’s assets. … Continue reading

Texas Oil & Gas Company in Orogrande Basin Looks to Sell or Partner

Source: Streetwise Reports 04/04/2019 A ROTH Capital Partners note found the timing of the strategy “propitious.” In an April 2 research note, analyst John White reported that ROTH Capital Partners raised its target price on Torchlight Energy Resources Inc. (TRCH:NASDAQ) to $2.70 per share from $1.75 after the company announced its intention to seek a strategic transaction. In comparison, Torchlight is trading now at around $1.46 per share. ROTH rates the company a Buy. Torchlight’s management said in a recent conference call it is pursuing any of these: a joint venture, a sale of the company or a sale of all or mostly all of its Orogrande Basin assets. The reason they cited is that “positive drilling and testing results to date warrant this move,” White noted. In fact, all of the company’s exploration wells drilled in H2/19 and 2019 tested positive for the presence of oil and gas and/or showed direct signs of them. “Torchlight prudently executed a wide array of electric logs and core samples to further evaluate the petroleum systems encountered and further reduce risk,” noted White. To generate some potential acquirers or joint venture partners, Torchlight will market itself, initially circulate an initial document to major oil entities and large exploration and production (E&P) companies. White described the timing of this endeavor of Torchlight as “propitious,” particularly since ExxonMobil and Chevron both recently announced they intend to significantly bolster their onshore U.S. activity, particularly in the Permian Basin, which is near the Orogrande. Further, high-potential exploration … Continue reading

Energy Major's Domestic Revenue Likely Lower Q1/19; Will Turn Around in Q2/19

Source: Streetwise Reports 04/04/2019 Raymond James detailed what it expects for two of the company’s business segments, domestically and internationally, in these two quarters and beyond. In an April 1 research note, analyst Praveen Narra reported that Raymond James lowered its Q1/19 domestic estimates for Halliburton Co. (HAL:NYSE), primarily reflecting weather and seasonal influences, and raised its international forecasts due to expected increased activity. In the United States, “Halliburton’s Q1/19 likely represents the trough of this cycle” and the “bottom for earnings per share and EBITDA,” Narra noted. Accordingly, Raymond James adjusted its U.S. expectations “slightly,” but those were offset by revised depreciation, depletion and amortization estimates. Narra reviewed Raymond James’ revisions to its U.S. forecasts for Halliburton. For its Completion and Production (C&P) segment in Q1/19, Raymond James lowered revenue projections by 1.3% for an 8.8% drop and a 350 basis point decrease from Q4/18. The changes were necessary due to significant snowfall in the Rocky Mountains, the Arctic freeze in the Midwest and anticipated additional price pressure. “C&P margins have likely seen the bottom if activity holds,” Narra commented. As for Halliburton’s Drilling and Evaluation (D&E) business, it will likely see U.S. declines in Q1/19 revenue and margins by an estimated 9.3% and about 122 basis points, respectively. This is because decreasing the number of rig counts, which has been going on for some time, is expected to continue into Q2/19. Looking further out, Raymond James expects a more positive scenario for Halliburton’s domestic operations in Q2/19 and … Continue reading

Energy Tech Company Partners with Mobile Energy Storage Solutions Firm

Source: Streetwise Reports 04/04/2019 The two entities plan to merge one’s technology with the other’s product. Exro Technologies Inc. (XRO:CSE; EXROF:OTCQB) announced in a news release it signed a joint venture development agreement with Exarge AS to integrate Exro’s Intelligent Energy Management System (IEMS) into mobile energy storage batteries that Exarge will use in its battery containers for sale or lease. Exro provides products and services to manufacturers to increase the efficiency and reliability of power systems, including batteries, electric motors and generators. Norway-based Exarge specializes in mobile energy storage solutions. Exarge intends to supply containers full of batteries for permanent or temporary storage for use in any place in the world, which can be replaced when necessary or recharged when and where feasible. Such containers could be used for replacing generators at construction sites, energy storage of solar and wind power and grid balancing. Connecting Exarge’s service with Exro’s modular IEMS technology should enhance battery efficiency and extend longevity. Per the agreement, Exro will receive a fee per unit sold that “will be based upon the economics of each opportunity,” the release noted. Sign up for our FREE newsletter at: Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. 2) The following … Continue reading