May 22, 2018 - 8:07 AM EDT
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Oil Prices Approach 4-Year High Fueling a Growing Confidence

Palm Beach, FL – (May 22, 2018) — The global oil and gas industry continues its lengthy and strong recovery after posting two consecutive years of annual gains in 2016 and 2017. This is highlighted by crude prices reaching north of $70 per barrel for the first time since 2014. As demand continues to rise, leaders in the industry are focused on building production and extraction resources to maximize access to reserves and supply. Additionally, the US oil market is benefitting from an explosion of oil exports following the lifting of a 40-year ban on oil exports at the end of 2015. With this bolstered momentum, there are several companies making headway in the stock markets.  Active energy stocks in the markets include:  Molori Energy Inc. (OTC:MOLOF) (TSX-V:MOL), Southwestern Energy Company (NYSE:SWN), Denbury Resources Inc. (NYSE:DNR), Whiting Petroleum Corporation (NYSE:WLL), Northern Oil and Gas Inc. (NYSE:NOG).

Molori Energy Inc. (OTCQB:MOLOF) (TSX-V:MOL.V) BREAKING NEWS:  Molori Energy announces today that the Company has signed an LOI (“Letter of Intent”) to purchase a 100% working interest of which Molori will be the operator of record  in approximately 5,100 gross acres (collectively “the leases”) of land in Moore, Potter and Carson Counties, north Texas.

In conjunction with closing, Molori has agreed to pay USD $650,000 for a 100% working interest in the leases, some of which directly adjoin lands where “Adams Affiliates” of Tulsa, Oklahoma is presently developing oil and gas production from the Red Cave.   The approximately 5,100 acres are currently held by production (“HBP”) and contain a 75% NRI (“Net Royalty Interest”).

Of particular interest is an approximately 81 acre parcel of the overall 5,100 acres, which has 18 drill-ready well locations with estimated IP’s (“Initial Production”) of 50 bopd along with 300 mcfd, estimated EUR’s of 40,000 – 50,000 barrels of oil and under 6-month paybacks at oil prices of $50 WTI (“West Texas Intermediate”).

Commented Molori CEO Joel Dumaresq, “When completed, this latest land acquisition when combined with the recently announced Wolf Energy LOI (“Letter of Intent”), will provide Molori with approximately 40,000 gross acres with access to the Red Cave and over 1,000 potential well locations.  Now that we have positioned the Company with a commanding Red Cave presence, we are now turning our attention to the development phase of our operations.”

Molori presently has underway (see press release from “May 7, 2018”) an independent reserve report on the Wolf Energy ‘Baker 39’ lease.  Upon release of the report, the Company soon plans to share additional details of its drilling and development plan.

Closing on the acquisition of the 5,100 acres is conditional upon financing, routine due diligence and all required regulatory approvals.   Read this and more news for Molori Energy at:

Additional industry related developments from around the markets:

Southwestern Energy Company (NYSE:SWN) finished Monday up over 4% at $4.73 with over 14 million shares traded by the market close. Southwestern Energy Company recently reported in late April its operating income was $255 million for the first quarter of 2018.  E&P segment operating income of $238 million was 6% higher than the first quarter of 2017 driven by higher production and improved realized pricing, partially offset by higher operating costs associated with increased volumes.  In the Appalachian Basin, net cash provided by operating activities increased to approximately $294 million for the first quarter of 2018, or 36%, compared to approximately $216 million during the first quarter of 2017.  During the first quarter of 2018, production increased by 11%, including a 37% increase in liquids production, compared to the first quarter of 2017.  In the Appalachian Basin, production increased to 159 Bcfe or 1.77 Bcfe per day, an increase of 29% compared to the first quarter of 2017, despite the impact of winter weather.

Denbury Resources Inc. (NYSE:DNR) closed Monday up over 8% at $4.48 with more than 18.1 million shares traded on the day. The company recently announced  net income of $39.6 million, or $0.09 per diluted share, for the first quarter of 2018.  Adjusted net income(1) (a non-GAAP measure) was $54 million, or $0.12(1)(2) per diluted share, with the difference from GAAP net income primarily due to the exclusion of $15 million ($12 million after tax) of expense from noncash fair value adjustments on commodity derivatives(1) (a non-GAAP measure). Highlights: Production of 60,338 barrels of oil equivalent (“BOE”) per day in Q1 2018. Adjusted cash flow from operations(1) (a non-GAAP measure) of $125 million for Q1 2018 ($500 million annualized). Adjusted EBITDAX(1) (a non-GAAP measure) of $142 million for Q1 2018 ($569 million annualized). Bank credit facility borrowing base reaffirmed at $1.05 billion. Reduced debt principal by $72 million in Q1 2018 and an additional $85 million in April 2018 from the full conversion of 3½% Convertible Senior Notes due 2024 into common stock. Successfully completed 2 additional Mission Canyon wells in April 2018, with aggregate gross production from all three Mission Canyon wells currently averaging 2,500 – 3,000 Bbls/d.

Whiting Petroleum Corporation (NYSE:WLL) came to a close up over 2% on Monday at $53.22 with over 3.4 million shares traded by the market close. Earlier this month, the company announced production in the first quarter 2018 totaled 11.4 million barrels of oil equivalent (MMBOE), comprised of 84% crude oil/natural gas liquids (NGLs). First quarter 2018 production averaged 127,050 barrels of oil equivalent per day (BOE/d) and came in above the midpoint of guidance. Capex for the first quarter 2018 was $187 million. First quarter 2018 net cash provided by operating activities of $233 million exceeded capital expenditures by $46 million and first quarter 2018 discretionary cash flow of $290 million exceeded capital expenditures by $103 million. Whiting’s depreciation, depletion and amortization (DD&A) of $16.43 per BOE, oil differentials of $4.31 per barrel (Bbl) and natural gas differentials of $1.48 per thousand cubic feet (Mcf) all came in below the low end of guidance. Guidance at the midpoint for such metrics called for $17.50 per BOE, $4.50 per Bbl and $1.50 per Mcf, respectively.

Northern Oil and Gas Inc. (NYSE:NOG) closed up over 8% on Monday at $2.62 with a volume north of 8.2 million by the market close. Last week, the company announced it completed its previously announced exchange transaction with certain holders of its 8% senior unsecured notes, including the requirement to raise an additional $140 million of new equity capital. Highlights include: $497 million of existing senior unsecured notes has been exchanged for approximately (i) $344 million of senior secured notes due 2023 and (ii) $155 million of Northern common stock. Northern raised an additional $145 million of gross proceeds from the sale of its common stock, including a $52 million private placement that closed simultaneously with the closing of the exchange transaction As of March 31, 2018, pro forma for the exchange and related transactions, Northern has approximately $265 million of cash on hand and has reduced net debt by approximately $268 million, while also extending the maturity on $344 million of the company’s debt from 2020 to 2023 “Completing this exchange transaction, along with the associated equity raise, is a significant step that improves our balance sheet by reducing debt, increasing liquidity and extending debt maturity,” commented Northern’s Chairman, Bahram Akradi. “The improvements to our balance sheet will allow us to execute on our ground game acquisition strategy and further our position as the natural non-op consolidator in the Williston Basin.”

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Source: MarketNewsUpdates (May 22, 2018 - 8:07 AM EDT)

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