In today’s briefing:
- Kansai Paint (4613) – Going Hard with a BIG Buyback and More Capital Moves Beyond
- VAALCO Energy (NYSE: EGY): Very good operating update in Canada
- Arrow Exploration Corp. (AIM: AXL): All eyes on the first horizontal well at Carrizales Norte
Kansai Paint (4613) – Going Hard with a BIG Buyback and More Capital Moves Beyond
- 24mos ago, Kansai Paint (4613 JP) announced a new MTMP, a large buyback, and plans to unwind cross-holdings. Big. 15mos ago a large secondary offering kicked off the festivities.
- Key was Toyota sold. Then KP could sell its Toyota shares – two-thirds of its cross-holdings. The offering was one to buy. A buyback followed. KP vs Nippon Paint doubled.
- KP offered a CB recently with the delta hedge done by TN-3. Now there is a HUGE new buyback. Really big. This gets rid of more cross-holders. And there’s more.
VAALCO Energy (NYSE: EGY): Very good operating update in Canada
- VAALCO has brought online four new long (2.75 mile) lateral wells in Canada.
- Three wells delivered IP rates of 500 bbl/d while the fourth well flowed 350 bbl/d for a total production capacity addition of 1.85 mbbl/d.
- This is a good result and compares with individual IP30 oil rates of 374-444 bbl/d achieved at the two wells drilled in 2023.
Arrow Exploration Corp. (AIM: AXL): All eyes on the first horizontal well at Carrizales Norte
- The 1Q24 production of 2,730 boe/d was close to our expectations.
- Arrow’s cash position of US$11.6 mm was also in line.
- The first water disposal well at RCE is being brought into production and the conversion of the CN-4 well is currently waiting regulatory approval.
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