Daily Brief Energy/Materials: JSR Corp, TerraVest Industries, Sintana Energy , VAALCO Energy and more

• Just out this AM, an article in Bloomberg (J) says “people familiar with the matter” suggest the Tender Offer could be launched as early as 19 March. 
• The language regarding the nature of the China regulatory “approval” is different than recent media articles, but they are in the same vein. 
• Original and updated data, information, grids, etc are shown below. 

• Bloomberg reports that JIC will start the JSR Corp (4185 JP) tender as early as 19 March. Separately, SUNY RF filed a response to Inpria/JSR’s 6 March filing last night.
• My reading of JSR and SUNY RF’s filings suggests that the Court is unlikely to conclude that SUNY RF’s lawsuit will be harmed if JIC proceeds with the tender offer.
• JIC seems comfortable taking on the litigation risk (if required). The key risk remains timing. For a late April payment, gross/annualised spread is 0.6%/4.0%.   

• Terravest is a Canadian company with a market cap of about a billion dollars, trading on the Toronto Stock Exchange.
• The company follows a roll-up strategy of acquiring, restructuring, and operating businesses in industries such as storage tanks and pressure vessels.
• Terravest’s management team has a significant portion of their net worth invested in the stock, and the company has delivered impressive shareholder returns over the past decade.

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• Galp Energia has announced that the Mopane-2X well has encountered light oil in high quality reservoirs across three horizons.
• The first horizon (AVO-1) was an appraisal target of the same horizon encountered in the Mopane-1X well.
• The pressure regime at both wells is consistent, confirming the lateral extension of the discovery made ~8 km to the East.

• VAALCO’s YE23 cash position of US$121 mm and FY23 WI production of 23,946 boe/d were in line with previous indications.
• The company held 77.3 mmboe WI 2P reserves at YE23 including 15.8 mmbbl in Gabon, 24.5 mmbbl in Egypt, 18.6 mmboe in Canada and 18.5 mmboe in EG. This represents a 1% increase vs YE23 as VAALCO has more than replaced its FY23 production given the strong performance of the producing assets in 2023.
• The FY24 capex budget is US$70-90 mm (we forecasted US$138 mm) as only US$30-40 mm will be spent in Gabon (on long lead items) with a larger than previously expected drilling programme starting in 2025.