"Madalena Energy Inc. acquired Gran Tierra Energy Inc.'s Argentina business unit, which was very accretive for shareholders, as it provides Madalena with a solid foundation and sizeable footprint in arguably one of the biggest shale plays in the world. Post-acquisition, the company has a large portfolio of opportunities across 14 concessions, with multiple horizontal development plays, an extensive exploration portfolio on high-impact conventional exploration assets and a multibillion-barrel asset base for unconventional shale and tight sand plays.
If we look at the acquisition based on fundamentals, Madalena got the asset at a huge discount. The company paid just $9.67 per boe for 2P reserves, or just $19K per flowing barrel of production, which is extremely cheap compared to transactions with similar production levels. With this acquisition Madalena triples its production, and could dramatically increase its cash flow in 2014 and 2015 respectively."
(7/29/14)
-
The Mining Report Interview with Etienne Moshevich
"My favorite North American phosphate project is Arianne Phosphate Inc. and its Lac à Paul project in Quebec. We like its management, and we've been impressed with how far it has moved this project along. This is a large, igneous project. There are two types of phosphate deposits: sedimentary and igneous. Igneous is rarer but results in higher phosphate content, up to 40% or more. Sedimentary deposits typically result in phosphate content in the 25–35% range. Higher content means higher purity and value. [Arianne announced July 16 a TraMan Inferred mineral resource estimate of 146 Mt at 5.3% P205.] It's good news, but the deposit was pretty big already. In other words, Arianne has firmed up its resources. North America has two or three existing phosphate rock mines expected to come to an end of their mine lives in the next 5–10 years. This gives confidence to potential phosphate fertilizer producers that they can source phosphate rock from a company like Arianne. The project probably will go into production by H2/18. The major hurdle is, once again, securing funding. With a capex of over $1B, the question is whether Arianne can raise this money by itself or whether it will seek a partner. . .Arianne will have rail access to a port. Quebec has always been helpful in this respect, so I don't expect infrastructure to be a problem. There are several potential partners. One is Agrium, whose Kapuskasing mine in Ontario closed earlier this year, forcing it to source its phosphate rock from Morocco. Mosaic would be another candidate, as some of its phosphate rock mines in Florida are expected to be shuttered in five years or so."
(7/29/14)
-
The Mining Report Interview with John Chu
"Madalena Energy Inc. acquired Gran Tierra Energy Inc.'s Argentina business unit, which was very accretive for shareholders, as it provides Madalena with a solid foundation and sizeable footprint in arguably one of the biggest shale plays in the world. Post-acquisition, the company has a large portfolio of opportunities across 14 concessions, with multiple horizontal development plays, an extensive exploration portfolio on high-impact conventional exploration assets and a multibillion-barrel asset base for unconventional shale and tight sand plays.
If we look at the acquisition based on fundamentals, Madalena got the asset at a huge discount. The company paid just $9.67 per boe for 2P reserves, or just $19K per flowing barrel of production, which is extremely cheap compared to transactions with similar production levels. With this acquisition Madalena triples its production, and could dramatically increase its cash flow in 2014 and 2015 respectively."
(7/29/14)
-
The Mining Report Interview with Etienne Moshevich
"My favorite North American phosphate project is Arianne Phosphate Inc. and its Lac à Paul project in Quebec. We like its management, and we've been impressed with how far it has moved this project along. This is a large, igneous project. There are two types of phosphate deposits: sedimentary and igneous. Igneous is rarer but results in higher phosphate content, up to 40% or more. Sedimentary deposits typically result in phosphate content in the 25–35% range. Higher content means higher purity and value. [Arianne announced July 16 a TraMan Inferred mineral resource estimate of 146 Mt at 5.3% P205.] It's good news, but the deposit was pretty big already. In other words, Arianne has firmed up its resources. North America has two or three existing phosphate rock mines expected to come to an end of their mine lives in the next 5–10 years. This gives confidence to potential phosphate fertilizer producers that they can source phosphate rock from a company like Arianne. The project probably will go into production by H2/18. The major hurdle is, once again, securing funding. With a capex of over $1B, the question is whether Arianne can raise this money by itself or whether it will seek a partner. . .Arianne will have rail access to a port. Quebec has always been helpful in this respect, so I don't expect infrastructure to be a problem. There are several potential partners. One is Agrium, whose Kapuskasing mine in Ontario closed earlier this year, forcing it to source its phosphate rock from Morocco. Mosaic would be another candidate, as some of its phosphate rock mines in Florida are expected to be shuttered in five years or so."
(7/29/14)
-
The Mining Report Interview with John Chu
"Madalena Energy Inc. acquired Gran Tierra Energy Inc.'s Argentina business unit, which was very accretive for shareholders, as it provides Madalena with a solid foundation and sizeable footprint in arguably one of the biggest shale plays in the world. Post-acquisition, the company has a large portfolio of opportunities across 14 concessions, with multiple horizontal development plays, an extensive exploration portfolio on high-impact conventional exploration assets and a multibillion-barrel asset base for unconventional shale and tight sand plays.
If we look at the acquisition based on fundamentals, Madalena got the asset at a huge discount. The company paid just $9.67 per boe for 2P reserves, or just $19K per flowing barrel of production, which is extremely cheap compared to transactions with similar production levels. With this acquisition Madalena triples its production, and could dramatically increase its cash flow in 2014 and 2015 respectively."
(7/29/14)
-
The Mining Report Interview with Etienne Moshevich
Pan Orient Energy (TSX-V:CAN)
Canadian junior oil and natural gas company based in Calgary, Alberta.
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Quantum Energy (QEGY.PK:OTC)
Development stage publicly traded diversified holding company with an emphasis in oil field development trading
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Super Nova Minerals Corp. (SNP:CNSX, OTC:SNOVF)
Oil & gas exploration company focused on developing the Millford Bakken property
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Robert J. Moriarty