Liquefied Natural Gas Ltd

Strong June Quarter Performance: Liquefied Natural Gas Ltd.’s (ASX: LNG) stock surged 14.89% on August 8, 2018 after a corporate presentation at New York Roadshow was released. During the June quarter, there was strong pricing in the LNG market across the globe, which was different from recent years. The buyers are looking to lockup long term LNG supply, and the projections reflect demand growth coming from Asia and Europe, and price movements across the globe are making U.S. Gulf Coast LNG very attractive. Further, the offtakers have become more aggressive and looking for long-term volumes, with many expected to take buying decisions in the second half of the year. The company has pushed the final investment decision (FID) by the end of the year, however this could be pushed further to 2019. Moreover, the company raised gross proceeds of A$28.2 million through the Share Placement to IDG Energy Investment Group Limited, which is an investment holding company listed on the Stock Exchange of Hong Kong and affiliated with IDG Capital. The funds raised will be used as operating funds till mid-2020. Further, during the quarter, the Magnolia LNG, LLC extended the validity period of its binding engineering, procurement, and construction (EPC) contract with KSJV (a KBR – SKE&C joint venture led by KBR) through December 31, 2018 and has extended the financial close date of the legally binding offtake agreement with Meridian LNG Holdings Corporation to September 30, 2018. Additionally, at the end of June 2018, the company’s total cash position was at A$50.7 million and it remained debt free. Meanwhile, LNG stock has risen 65.88% in three months as on August 7, 2018. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $ 0.810.
 

Strike Energy Ltd

Raised $3 million through Share Placement:Strike Energy Ltd.’s (ASX: STX) stock surged 9.09% on August 8, 2018 after the company raised $3 million through Share Placement and will issue  28,571,428 fully paid ordinary shares at $0.105 per share to four institutional and sophisticated investors. The placement price is 5% premium to the last closing price of $0.10 per share on 3 August 2018 and is equal to the 5?day volume weighted average price. The funds raised will be used for the pilot testing of the Jaws?1 wells which is a part of the commercial appraisal of  the Southern Cooper coals, for getting long lead items for the drilling of the West Erregulla?2  well in the Perth Basin in early 2019, and for general working capital. Moreover, the company has commissioned Jaws-1 project and is now fully online. Meanwhile, STX stock has risen 44.74% in three months as on August 7, 2018. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $ 0.120.

 
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