Canadian Insight

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Updated on Thursday, November 26, 2020

Natural Law Energy investing  a serious stake in Keystone XL November 20, 2020

CEO of Natural Law Energy, Travis Meguinis,  has confirmed that the First Nations Alliance will purchase a 12% stake in Keystone XL pipeline.

Travis Meguinis went on to say that Natural Law Energy may also consider further investments in other projects with TC Energy.

Natural Law energy is the second equity partner for Keystone XL. Earlier this year, the province of Alberta announced a $1.5 billion investment in the pipeline project.

 

First nations investors aid completion of Keystone XL November 18, 2020

President elect Joe Biden will find it more difficult to stop construction of the Keystone XL pipeline. TC Energy believes that it has made it more favorable to gain support of the newly elected administration which has vowed to stop construction in the US.

Calgary based company announced on Tuesday that it is building further partnerships with the First Nations and Indigenous groups in Canada and the US. Company also  has agreements with numerous unions who support the construction of the pipeline.

TC Energy has signed a deal with Natural Law Energy, an alliance of Canadian Indigenous communities, for an investment of up to $1 billion in the pipeline project. It is expected that the new investors and TC Energy will close the deal in 2021.

TC Energy is also pursuing to secure an additional $37 billion in added capital projects. 

 

Cenovus Energy buying out Husky Energy — October 26, 2020

Cenovus Energy announced that it will be taking over Husky Energy to create a new integrated oil and gas company.

The boards of each company have entered to a definitive agreement under which Cenovus and Husky will combine in all stock valued at $23.6 billion.

The transaction has been approved by both boards.  It is expected to approved by both shareholders and finalized in the first quarter of 2021.

Husky shareholders will receive 0.7845 of a Cenovus share. They will also receive 0.0651 share purchase warrant for each Husky common share.

 

Saskatchewan’s Premier Scott Moe concerned with the possible Joe Biden win in US presidential election — October 19, 2020

Premier Scott Moe announced last week that he is very concerned with the possible outcome and consequences in the US presidential reelection.

Premier Moe stated that the Democratic candidate, Joe Biden, has repeatedly stated that he would kill the Keystone XL pipeline when he is elected.

The Keystone XL pipeline was rejected by the former president Barack Obama and vice president Biden. There is reason to believe that this would happen again.

The pipeline project is very important to western Canadian oil industry. It would connect western Canada with Gulf oil markets.

 

Joe Biden’s win in US presidential election will have serious repercussions for the oil industry — October 1, 2020

The election of Joe Biden will not only have many changes for all Americans but even more serious repercussions for the American and Canadian oil and gas industry.

Joe Biden has repeatedly stated during his campaign that his government will re-enter the Paris Climate Agreement and  focus on ‘Green Energy’. Biden government intends to bring US emissions to net zero by 2050.

Biden plans to halt all off shore drilling and exploration on federal lands to stop global climate change. He has openly stated that his government would support all climate  related lawsuits against the oil and gas industry.

The policy which will seriously hurt western Canada is the option lost to export heavy crude into the Gulf states. The Democrats headed by Joe Biden intend to stop further construction of the TC Energy Keystone XL pipeline

 

 

OPEC tangled in a losing scenario — September 29, 2019

OPEC’s control over oil prices may be drawing to an end.  The rising global oil inventory is about to get another shot with Libya returning back to exporting oil. Despite sanctions against Iran, it has managed to increase its oil exports.

Earlier this summer, OPEC thought that it had oil exports and oil prices under control and began relaxing its supply quotas.  Saudi National Oil Corporation had plans to increase its oil exports by 160,000 barrels per day by the summers end.

The corona virus pandemic showed signs of relief in mid-summer. It is  now on the increase and is once again skewing the global oil demand. Infections have skyrocketed in India and on the rise in Europe and North America.

Several reports indicate that tankers are now being booked to store crude oil. Mercuria, a multinational commodity trading group, recently announced that crude oil stocks are expected to build before there are any signs in an increase in demand.

 

Alberta’s Premier Jason Kenny is optimistic that oil industry will survive and flourish —September 17, 2020

Alberta’s Premier Jason Kenny stated that his government has not given up on east-west pipeline system that would carry Alberta oil to Saint John, New Brunswick.

The recent re-election of the Progressive Conservative government in New Brunswick and the new Conservative leadership of the Erin O’Tool has created more hope for the oil industry to revive and flourish .

The Alberta premier believes that the election of the Conservative government in Ottawa will make a significant difference to the state of the oil industry.

 Kenny went onto explain that the only reason why the Energy East Pipeline failed was because of the Notley NDP government in Alberta and the Trudeau Liberals in Ottawa. Both want the pipeline to fail.

 

 

Trans Mountain pipeline on schedule to be operational by end of 2022—September 16, 2020

Trans Mountain CEO Ian Anderson reported that the pipeline expansion is on budget and on schedule to open by the end of 2022.

The expansion will triple the capacity of the pipeline connecting Alberta’s central oil collection point at Hardisty with the west coast loading terminal in Greater Vancouver.

Last February it was announced that construction costs had risen from the original estimate of $5.2 million to $12.6 billion. This was mainly due to cost overruns from delays by protestors and legal challenges.

There are thirteen committed  oil producers who will be using the pipeline once it is completed.

 

 

Crude oil markets are expected to be stable for remainder of this year and improve in  2021 —August 10, 2020

According to HIS Markit Energy Advisory Service, global crude oil markets have stabilized and are expected to trade between $40 to $45 per barrel for the remainder of this year.

The renown advisory agency predicts that crude oil prices will begin to improve in the second half of 2021. It predicts that oil prices will rise by $5 to $7 next May and pass the $50 mark by mid-summer. 

Improved and more stable oil prices are expected to alleviate the pains in oil industry. Investment capital should once again return to the oil and natural gas sector by this time next year.

 

Keystone XL pipeline project faces more hurdles  — July 9, 2020

US Supreme Court has upheld a lower court ruling which temporarily blocks the continued construction of the Keystone XL pipeline project.

The setback underscores the continued legal delays in construction. Since the beginning of the announced project over a decade ago, environmental groups have thrown legal challenges.

TC Energy is still optimistic that the pipeline will be completed. The project on the Canadian side of the border is unaffected.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Our most recent ‘Shouts & Toots’  from the Oil Patch  — November 26, 2020

ARROW Exploration Corp. (AXL:TSX) announced the filing of its unaudited Financial Statements and MD&A for the quarter-ended September 30th , 2020. Sales revenue totaled $207,934 and funds flow $(1,095,338) during the third quarter. Company experienced a loss of $(1,390,746 during the third quarter.

Arrow Exploration Corporation is a Calgary based international oil and gas company with operations in Colombia's most active basins, including the Llanos, Middle Magdalena Valley and Putumayo Basin. Company has a market cap of $24 million and approximately 59 million shares outstanding.

Bengal Energy Ltd. (BNG:TSX) announced its financial results for the second quarter of fiscal 2021 ended September 30, 2020. Crude oil sales revenue was $1.3 million in the second quarter of fiscal 2021. Bengal generated net cash used in operating activities ($0.2) million during Q2 fiscal 2021 compared to $0.5 million of cash from operations in Q2 fiscal 2020. Bengal reported a net loss of $0.2 million for the current quarter compared to a net income of $0.2 million in the second quarter of fiscal 2020.

Company's share of total production in the current quarter was 21,247 bbls, which is a 30% decrease from the 30,667 bbls produced in the second quarter of fiscal 2020.

Bengal Energy Ltd is engaged in the exploration of oil and natural resource business activities. It involved in development and production of crude oil and natural gas. It derives its revenues from the sale of the exploration business and has operations spread across Canada. Company has a market cap of $7.7 million and approximately 102 million shares outstanding.

Birchcliff Energy Ltd. (BIR:TSX) announced that its board of directors has declared a quarterly cash dividends for the quarter ending December 31, 2020. The dividends are payable on December 31, 2020 to shareholders of record at the close of business on December 15, 2020. The ex-dividend date is December 14, 2020.

Birchcliff has a market cap of $593 million and approximately 266 million shares outstanding Birchcliff Energy Ltd. Is a Calgary based natural gas company. Company conducts its drilling program in resource plays located in the Peace River Arch region of Alberta.

Cuda Oil and Gas Inc. (CUDA:TSXV) announced its third quarter results. Company reported $2.14 million in sales revenue and an operating netback of $14.09 per barrel. Production in Wyoming continues to respond positively to the gas flood project. With the 15 new wells in operation in 2020, third quarter production increased to 360 bbls/d from 307 bbls/d in the second quarter of 2020, an increase of 17%.

Cuda Oil And Gas Inc is a Calgary based company. The main activity of the company is oil and natural gas exploration, development and production in Alberta and Quebec in Canada; and in the State of Wyoming in the United States. Company has a market cap of $11 million and approximately 22 million shares outstanding.

New Zealand Energy Corp. (NZ:TSXV) announced the results of its Annual General Meeting of shareholders held in Wellington, New Zealand on Thursday 26 November 2020.Each of the current directors, James Willis, Mark Dunphy and Dr David Llewellyn were re-elected as Directors of the Company to hold office until the next annual general meeting, or until successors are elected or appointed.

Shareholders voted in favour of all other items of business put forward at the meeting.

New Zealand Energy Corporation is an oil and gas company based in Wellington, New Zealand. Company has market cap of $2.3 million and approximately 232 million shares outstanding.

Pan Orient Corporation (POE:TSXV) announced on November 26th its annual meeting to be held on Tuesday, December 1, 2020 at 2:30 p.m. (Calgary time) will be conducted exclusively by telephone. COVID-19 restrictions announced by the Government of Alberta on November 24 prevent an in-person meeting from being held. The meeting will be conducted exclusively by telephone, rather than in person.

Pan Orient is a Calgary based oil and gas exploration and production company with operations currently located onshore Thailand, Indonesia and in Western Canada. Company has a market cap of $135 million and approximately 55 million shares outstanding.

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Bengal Energy Ltd. (BNG:TSX) announced its financial results for the second quarter of fiscal 2021 ended September 30, 2020. Crude oil sales revenue was $1.3 million in the second quarter of fiscal 2021, which is 47% lower than the $2.4 million recorded in Q2 fiscal 2020. Bengal generated net cash used in operating activities ($0.2) million during Q2 fiscal 2021 compared to $0.5 million of cash from operations in Q2 fiscal 2020. Bengal reported a net loss of $0.2 million for the current quarter compared to a net income of $0.2 million in the second quarter of fiscal 2020.

Company's share of total production in the current quarter was 21,247 bbls, which is a 30% decrease from the 30,667 bbls produced in the second quarter of fiscal 2020. The current quarter production averaged 231 bbls/day compared to 333 bbls /day produced in the second quarter of fiscal 2020. The decrease in production is a result of natural reservoir decline and a lack of drilling activity.

Bengal Energy Ltd is engaged in the exploration of oil and natural resource business activities. It involved in development and production of crude oil and natural gas. It derives its revenues from the sale of the exploration business and has operations spread across Canada. Company has a market cap of $7.7 million and approximately 102 million shares outstanding.

Falcon Oil & Gas Ltd. (FOG:TSXV) announced on November 25th an update on exploration activity in the Beetaloo Sub-basin, Northern Territory, Australia following the successful hydraulic stimulation of the Kyalla 117 N2-1H ST2 well.

The well continues to flow back fracture stimulation fluid, with some gas shows; however, a measurable gas breakthrough that would allow the commencement of extended production testing to assess the extent of the resource that may be present has yet to occur.

Operations are now being planned to re-enter the Well with coiled tubing and apply nitrogen lift techniques to lower pressures in the Well and assist with achieving and sustaining gas breakthrough that, if successful, will allow extended production testing to commence. This technique is not uncommon and was applied to the successful Amungee NW1-1H well in 2016.

Falcon Oil & Gas Ltd is an international oil & gas company based in Dublin Ireland. Company is engaged in the exploration and development of unconventional oil and gas assets, with the current portfolio focused in Australia, South Africa and Hungary. Falcon Oil & Gas Ltd has a market cap of $113 million and approximately 69 million shares outstanding.

PetroShale Inc. (PSH:TSX) announced on November 25th its financial and operating results for the three and nine month periods ended September 30, 2020. Revenue totaled $32.9 million in Q3 2020, a 36% increase from the preceding quarter as realized crude oil and natural gas prices significantly improved through the period. Operating netback prior to hedging was $14.45 per Boe in Q3 2020 compared to $29.41 per Boe in the same period of 2019. Net loss totaled $9.1 million ($0.05 per fully diluted share) in the third quarter, reflecting lower realized crude oil prices year-over-year due to the impact of COVID-19.

PetroShale is maintaining our previously stated guidance for 2020 production, which is anticipated to average between 11,000 and 12,000 Boe/d (comprised of 7,800 – 8,500 bbls/d of oil, 1,550 – 1,700 bbls/d of NGLs and 9,900 – 10,800 mcf/d of natural gas).

PetroShale is a Calgary based oil company engaged in acquisition, development and consolidation of interests in the North Dakota Bakken and Three Forks region. Company has a market cap of $203 million and approximately 192 million shares outstanding.

More news on Oilpatch Review

 Quote of the day

Sam Ewing, “Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”

Did you know?

The Irwing refinery in St. John, New Brunswick is Canada’s largest refinery. In peak production it produces 300,000 barrels per day of refined petroleum products. It makes high octane gasoline, low sulphur diesel, jet fuel, heating oil, motor gasoline, a variety of motor oils, asphalt, and propane. The Irwing refinery accounts from 40% of Canada’s petroleum exports.

 

 

prices compiled and updated on a regular basis by Canadian Insight

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Victoria

Vancouver

Calgary

Edmonton

Saskatoon

Regina

Brandon

Winnipeg

Hamilton

Ottawa

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Montreal

Halifax

Moncton

St. John’s

 

 

$ / liter

 

1.199

1.209

1.049

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1.019

0.959

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0.989

0.999

1.049

0.989

0.989

1.089

 

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     WCS  / WTI

 Price Spread -$11.78

  November 26, 2020

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