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24 September 2018 07:44 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,74426,65787.000.323.70
S&P 5002,9302,931-1.00-0.041.91
NASDAQ7,9878,028-41.00-0.510.52
FTSE 100 Index7,4907,367123.001.67-1.15
DAX 3012,43112,326104.000.850.29
CAC 40 Index5,4945,45243.000.781.14
Nikkei 225 (Japan)23,87023,675195.000.825.61
HKSE27,95427,478476.001.731.02
SSE Composite Index2,7972,72968.002.502.49
S&P/TSX Composite Index16,22416,2159.000.06-0.81
NZ 509,3179,376-59.00-0.631.71
US Volatility (Vix)12
Overseas Market Report

US sharemarkets were mixed ahead of major changes to S&P500 sectors on Monday. The Telecom sector will be absorbed in to a broader Communications sector. Weightings in Technology and Consumer Discretionary will also change. Shares in McDonalds rose by 2.8% after announcing a 15% lift in its quarterly dividend. The Dow Jones index ended higher by 86.5 points or 0.3%. The S&P500 index fell by less than 0.1% and the Nasdaq lost 41 points or 0.5%. Over the week the Dow rose by 2.2%, the S&P 500 rose by 0.8% but the Nasdaq lost 0.3%.

Global oil prices rose modestly on Friday ahead of a meeting of OPEC and some non-OPEC oil producers in Algeria. A meeting of OPEC and its allies in Algeria on Sunday ended without any decision to further increase oil output. Worries persist about the loss of Iranian supply from the market due to US sanctions. Brent crude rose by US10 cents or 0.1% to US$78.80 a barrel and the US Nymex price rose by US46 cents or 0.7% to US$70.78 a barrel. Over the week Brent rose by US71 cents or 0.9%. Nymex rose by US$1.79 or 2.6%.

Base metal prices rose by up to 5% on the London Metals Exchange (LME) on Friday with copper and nickel rising the most. But tin rose by only 0.3%. Over the week all metals rose with zinc up 7.9% and copper up 7.2%. Tin rose 0.1%.

The gold futures price fell by US$10.00 an ounce or 0.8% to $1,201.30 an ounce. The spot gold price was trading near US$1,199 an ounce in late US trade. Over the week gold rose by US20 cents. Iron ore fell by US55 cents or 0.8% to US$69.20 a tonne. Over the week iron ore fell by US40 cents or 0.6%.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent79.7678.800.961.225.20
Oil - West Texas crude71.5170.780.731.034.06
Gold Spot $/OZ1,198.001,199.00-1.00-0.08-0.65
Silver Spot $/OZ14.3014.300.00-0.07-3.64
Iron Ore64.6064.80-0.30-0.421.73
Thermal Coal Newcastle113.50113.200.300.27-3.49
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)2,0642,01252.002.561.68
Copper Mar-18 ($US/lb)2.842.8411.604.245.23
Lead ($US/t)2,0361,99245.002.232.57
Nickel ($US/t)13,16612,541626.004.99-2.29
Zinc ($US/t)2,4992,44554.002.203.00
Tin ($US/t)19,06219,01250.000.260.06
Uranium ($US/lb)27.0027.000.00-0.364.59
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,3056,27729.000.45-0.82
S&P/ASX 2006,1956,17025.000.41-0.84
ASX 24 Futures6,169
Australian Market Report

Friday 21 September - close. Strong gains in the mining sector have lifted the Australian share market to finish the week higher as a major ratings agency upgraded its outlook on the country's credit standing and trade war worries recede. The benchmark S&P/ASX200 index was up 25.1 points, or 0.41 per cent, to 6,194.6 points on Friday, while the broader All Ordinaries index was 28.5 points, or 0.45 per cent, higher at 6,305.4 points.

Ashanti Headlines

Invictus Energy Limited: (IVZ.ASX, 5.0 cps, m.cap A$18.3m with 365.7m SOI, Cash ~$3.8m, O&G Explorer) 

Highlights

  • Basin modelling and geochemical study confirms oil potential of Cabora Bassa Basin 
  • Hydrocarbon charge across the Cabora Bassa Basin generated from multiple fluvial, lacustrine influenced and lacustrine source rock sequences 
  • Primary target in Upper Angwa contains these source rocks within the wet gas and oil generation window present day 
  • Source kitchen contained within the fetch area is modelled to have sufficient charge to fill the Mzarabani structure 
  • Basin model demonstrates reduction of risk relating to timing of hydrocarbon charge vs. trap formation 
  • Preliminary gravity data reprocessing confirms shallow basement trend associated with Mzarabani anticline and identifies further leads

Managing Director, Scott Macmillan commented “The results of our ongoing technical work are extremely encouraging and is enhancing our understanding of the potential of our acreage in the Cabora Bassa Basin. The basin modelling and source rock characterisation is one of the key pieces of work that significantly de-risks the charge timing and availability to the Mzarabani Prospect and the wider basin as well. In addition, new processing techniques applied to the raw datasets that were not available 25 years ago are beginning to show additional structural detail in the basin that was not previously possible as indicated by the preliminary gravity processing results.” Our technical work is continuing on this exciting project and we look forward to updating the market on our progress in due course as our work program delivers results.”

Basin Modelling Study

  • Invictus Energy has announced that the ongoing basin modelling study and geochemical studies confirm the oil potential of the Cabora Bassa Basin
  • In addition, preliminary gravity data reprocessing also confirms the shallow basement trend associated with the massive Mzarabani anticline and identifies further leads
  • The Basin Model was built to assess the overall basin potential, to provide further data to de-risk specific prospects and to evaluate the range of parameters that control the magnitude, phase and timing of hydrocarbon generation, expulsion and migration across the Cabora Bassa Basin and SG 4571 acreage
  • The Basin Model utilises horizons derived from the vectorised paper seismic sections which have been interpreted to produce a series of basin wide depth surfaces that define the potential extent of the source rock in the Karoo Super Group series in the Cabora Bassa Basin
  • The Basin Model has allowed the Company to model the petroleum system, and migration of the hydrocarbons through time
  • The results of the modelling provide the Company with material to further de-risk the extent of the petroleum system across its SG 4571 acreage

Primary Target Source Rocks

  • The conclusions from previous source rock characterisation and basin modelling studies undertaken by Mobil over 25 years ago have been superseded with new geological understanding derived from updated industry classification of source rock types and basin modelling methods
  • The deep lacustrine (lake) source rock type present in the Cabora Bassa Basin was not widely regarded 25 years ago as having significant oil generating potential
  • However, recent multi-billion barrel oil discoveries in onshore African rift basins such as the Albertine Graben in Uganda and the Lokichar Basin in Kenya are derived from deep lacustrine source rocks contained in these basins
  • These significant oil discoveries in these basins and elsewhere which are derived from lacustrine source rocks has resulted in the reclassification of their potential as rich oil and wet-gas generating source rocks
  • Invictus is in the process of acquiring additional outcrop source rock samples over the basin wide area to further enhance the geochemical dataset

Reduction of Key Risk

  • The Basin Model further demonstrates a reduction in the key risk previously identified by Mobil relating to the timing of hydrocarbon charge and trap formation
  • The previous basin modelling work by Mobil concluded that the Upper Angwa source rock may have generated and expelled hydrocarbons prior to the formation of the trap (Mzarabani anticline / 4-way dip closure)
  • The new Basin Model concludes that the source rock within the primary target of the Mzarabani Prospect, the Upper Angwa Alternations Member, is within the oil and wet gas window present day on the flanks of the basin, and has undergone active hydrocarbon generation post trap formation from the source kitchen within the Mzarabani fetch area

Basin Model has assumed two separate end member cases

  • The Basin Model has assumed two separate end member cases due to the lack of well calibration within the Cabora Bassa Basin
  1. The first conservative case assumes a widespread but poor quality source rock distribution with little to no liquids potential as per Mobil’s previous interpretation
  2. The second updated case assumes a widespread fluvial to lacustrine source rock with liquids generation potential as per the updated understanding of the Cabora Bassa Basin from ongoing technical work

Please see attached link to the full announcement here.

Please contact the desk on +61 8 6169 2668 should you wish to discuss further.


Have a question? admin@ashanticapital.com.au

ERA Communications