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November 22nd, 2019

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Oil Market Update - consequences of Saudi attacks...
Clive Maund  Sep 18  

Oil Market Update
Clive Maund  Jul 30  

Evaluating US Nuclear Competitiveness and its Future as a Carbon–Free Clean Energy Source
Keith W. Rabin  Jul 25  

Should We Rethink Nuclear Power?
OilPrice  Mar 09  

The $32 Trillion Push To Disrupt The Entire Oil Industry
OilPrice  Feb 28  

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expert analysis & newsletter briefs

NexGen Energy Ltd.

"My top pick for 2016 is NexGen Energy Ltd. . . Arrow is an emerging world-class deposit that is still in the early stages of discovery. The state—it being so early in the delineation and development process—means a lot of upside still remains. . .the company just closed a $21M financing, which means the company has enough cash to carry through 2016 and beyond." (12/23/15) - Gwen Preston, Resource Maven

NexGen Energy Ltd.

"My top pick for 2016 is NexGen Energy Ltd. . . Arrow is an emerging world-class deposit that is still in the early stages of discovery. The state—it being so early in the delineation and development process—means a lot of upside still remains. . .the company just closed a $21M financing, which means the company has enough cash to carry through 2016 and beyond." (12/23/15) - Gwen Preston, Resource Maven

Fission Uranium Corp.

"Fission Uranium Corp. announced it entered into a binding letter of intent with China's CGN Mining, a subsidiary of nuclear giant China General Nuclear Power Group, to acquire 19.99% of Fission as part of an CA$82M strategic investment, along with a potential future offtake agreement on production from Patterson Lake South (PLS). . .we urge investors to bolster positions in Fission as the deal derisks development financing, and in the interim, should fund PLS through full feasibility and permitting." (12/22/15) - David Sadowski,

Energy Fuels Inc.

"Energy Fuels Inc. is the only conventional uranium producer in the U.S. and the second-largest producer overall. It has the potential become #1, given the projects and mines it has on standby or that are close to being in development. At full ramp-up we expect the company to be able to produce 5–7 Mlb/year, in a country currently producing 4–5 Mlb/year. The U.S. consumes 55 Mlb/year, but only about 10% is supplied domestically. U.S. utilities seeking security of supply will greatly prefer U.S. producers over those from Kazakhstan, Russia or Africa. This company is well positioned to benefit from higher uranium prices. We have a Buy rating with a target price of $11.85/share." (12/22/15) - The Energy Report Interview with Rob Chang

Fission Uranium Corp.

"Fission Uranium Corp. announced it entered into a binding letter of intent with China's CGN Mining, a subsidiary of nuclear giant China General Nuclear Power Group, to acquire 19.99% of Fission as part of an CA$82M strategic investment, along with a potential future offtake agreement on production from Patterson Lake South (PLS). . .we urge investors to bolster positions in Fission as the deal derisks development financing, and in the interim, should fund PLS through full feasibility and permitting." (12/22/15) - David Sadowski,


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from the publisher
  Robert J. Moriarty

Welcome to 321energy.



Africa is Hot Destination for Oil Companies Despite Concerns for Transparency

by Kumar Amitav Chaliha

Most upstream oil firms these days are looking to Africa for the prospects that will help them offset slowing output and falling reserve replacement rates. But surging investment in the continent underlines the need to address transparency concerns that are growing amongst these firms.

Africa holds an estimated 8-9% of global reserves, but accounted for a third of new reserves discovered worldwide over the last five years. That disproportionately large share of upstream growth reflects the steadily rising investment by majors in the continent over the period. And as access to upstream blocks in Venezuela, Russia and the Middle East becomes even more constrained, their investment in Africa will hit new highs in the coming years. That could see the share of new discoveries climb higher still, especially with the avid interest shown in upstream bidding rounds in Libya and Nigeria this year. Those rounds show how high oil prices, and a lack of upstream access elsewhere, have changed the balance of power upstream in Africa.

Africa is growing in strategic importance for the US as an alternative to the Middle East as a source of crude. The US already imports more crude from the continent — 17% of its total imports — than it does from Saudi Arabia. And it wants that share to rise to 25% of total imports by 2015. It is no coincidence that US majors Chevron and ExxonMobil are the top two operators in Angola, the region’s second-largest crude producer, and are focusing on further growth in its largest producer, Nigeria.

But Africa is also attracting the attention of other strategic investors. US majors are increasingly in head-on competition for new acreage with the state-owned companies of Asia-Pacific’s emerging giants, China and India. This face-off has spurred other investors to step up their bidding for new acreage in the most promising regions, such as Libya, Nigeria and Angola. And rising signature bonuses underline the fact that the issue of transparency is becoming even more significant for Africa as its oil revenues grow. Continued transparency concerns leave other oil companies at a potential disadvantage when competing for African contracts with China’s state-owned firms. Backed by state financing and not beholden to the ethical concerns of the majors’ shareholders, Chinese state-owned firms have stolen a march on private-sector investors in controversial countries such as Sudan. They have also agreed to terms elsewhere that proved unacceptable to the majors. Chinese state-owned oil firms have shown a nominal willingness to take over operations of Nigeria’s loss-making state-owned oil refineries in exchange for securing new upstream stakes.

Pressure from the World Bank, the IMF and the UK-led Extractive Industries Transparency Initiative (EITI) is slowly changing the way business is done. But there is still a long way to go. The governments of Angola and Equatorial Guinea remain resistant to transparency initiatives. The US Securities and Exchange Commission continues to investigate possible corruption by oil firms in Equatorial Guinea and services companies involved in the Nigeria LNG project. Meanwhile, Sao Tome and Principe has called on Nigeria to clarify the award of a number of blocks in the two countries’ joint development zone to Nigerian firms with strong links to some of Abuja’s leading politicians.

Calls for improved oil revenue transparency and sustainable environmental, business and social practices moved to centre stage at the recent World Petroleum Congress in Johannesburg. Industry leaders warned that the fight against corruption is key both to the public image of the oil industry, and its long-term future in Africa.

While the information and opinions contained within have been compiled from sources believed to be reliable, KWR does not represent that it is accurate or complete and it should be relied on as such. Accordingly, nothing in this article shall be construed as offering a guarantee of the accuracy or completeness of the information contained herein, or as an offer or solicitation with respect to the purchase or sale of any security. All opinions and estimates are subject to change without notice. KWR staff, consultants and contributors to the KWR International Advisor may at any time have a long or short position in any security or option mentioned.


Editor: Dr. Scott B. MacDonald, Sr. Consultant

Deputy Editors: Dr. Jonathan Lemco, Director and Sr. Consultant and Robert Windorf, Senior Consultant

Associate Editor: Darin Feldman

Publisher: Keith W. Rabin, President

Web Design:Seth Lopez, Sr. Consultant

Contributing Writers to this Edition: Scott B. MacDonald, Keith W. Rabin, Russell L. Smith, Caroline G. Cooper, Mark Reiner, Jean-Marc F. Blanchard and Kumar Amitav Chaliha



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© 2005 KWR International, Inc.



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November 22nd, 2019

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