SP Angel Morning Oil and Gas: Ascent Resources Nighthawk Energy
(MENAFN- ProactiveInvestors - UK) SP Angel 08:27
Headlines
In Brief:
Ascent Resources (LON:AST 1.58p) Long Time Coming
Nighthawk Energy (LON:HAWK 0.96p) More Questions Than Answers
In Brief
Nighthawk Energy (LON:HAWK 0.96p) More Questions Than Answers: we appreciate that today's announcement although disclosing lower reserves numbers than previously comes from a reduced area the issue is we just don't know how much smaller and therefore can't really compare the two. Would have made sense in this announcement is a reconciliation back to the original reserves captured by the project either through restatements reassessment or in areas yet to be covered by agreement. As it is today's announcement leaves us thinking that there are significant details that we are still unaware of. As such we believe that today's announcement in creating this confusion will result in headwinds for the Company's share price.
Ascent Resources (LON:AST 1.58p) Long Time Coming: today's results are not really about the numbers especially as they had been well touted in the past and disclosed as part of loan note drawdowns. What strikes us as important from this announcement is the seachange in attitude and approach from a 'wait-and-see' attitude to one in today's announcement which has significant optimism attached. We believe that despite the delays that there have been to the program the project has actually been strengthened as the lower capital costs will inevitably generate greater returns for the investors once commissioned. At this stage there must now be a question as to whether the Company goes it alone on a 'sole risk' basis or seeks larger funding partners. We can't help believe that due to the risks associated with this project or more specifical ly the relatively low execution risks that a sole risk approach is more attractive than sharing risks.
SP Angel
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