EUROPA METALS LTD
uropa Metals , the European focused lead-zinc and silver developer, further to its announcement of
The Investigation Permit has been renewed, following, inter alia, a consultation process conducted by the relevant bodies of the Junta of Castilla y Leon, for a further three years until
During the period to
The Company expects to shortly be able to announce the findings of
Furthermore,
In response to the ongoing COVID-19 pandemic,
'The renewal of our Investigation Permit for Toral for a further three year period follows the successful completion of the designated application process, and serves to demonstrate the supportive and cooperative development environment for appropriate metals projects within the Castilla y Leon region in
'With the Investigation Permit secured until late 2023, we shall now progress the further definition of the intrinsic value of Toral as a high grade, robust lead, zinc and silver project. It is anticipated that the independent updated economic study shall be concluded shortly, bringing together all the significant work completed at the project since 2018 and providing a detailed outline of a mine development model and related economics. On the ground , we shall now look to finalise our plans for our next drill campaign in order to commence this important element of the PFS work programme.
'As work progresses at Toral over the next three years ,
Contact:
Tel: +61 417 978 955
The average price for US onshore shale acreage has declined by more than 70% in two years, a Rystad Energy analysis shows, plunging to
Fundamentally, tight oil and gas economics have improved significantly since 2018, yet the implied price strip in our new base case is substantially lower than it was in 2018, which cuts off a large portion of the industry's undeveloped NPV potential. The Permian Delaware, at
Naturally, the multi-stacked potential of the play allows for simultaneous development of several zones from the same spacing unit, which in turn multiplies the surface acreage's NPV potential.
When it comes to the fundamental upstream asset value of specific leading public operators, we see a per acre drop of close to
For example, the average price for
Learn more in Rystad Energy's UCube.
'The reduction in valuations is promoting consolidation that wouldn't have happened in 2018-2019. Low equity prices and the need for investor support is motivating many operators to look for new options to merge, especially if it doesn't involve heavy debt and cash.
Such spin-offs and cash transactions could return when WTI recovers above the
Consolidation
Mergers and acquisitions (M&A) in the onshore industry reached a record high in the second half of this year, recovering sharply from the dramatic slowdown in the second quarter as the rapid spread of Covid-19 created a period of massive uncertainty, pushing both potential buyers and sellers to the sidelines.
So far this year, we have seen both mergers of equals as well as large acquisitions by major producers. That's in contrast to 2019 when most of the transactions were small premium deals between play-focused operators. By acquiring a neighboring player, operators were typically able to increase their existing acreage position, realizing operational synergies and growing output at a reduced cost. The recovery in M&A in the second half of this year is helping extend the trend of consolidation that began in 2018, which was briefly disrupted earlier this year.
Further consolidation and an increased degree of standardization, along with continued reductions in service costs, would likely result in an additional fall of up to 5% in industry-wide average D&C costs next year. Moreover, even more capital is likely to be allocated to Tier 1 acreage in the Permian in future, ultimately pushing the P50 breakeven price in the basin down toward
The ongoing onshore consolidation will surely result in a deceleration in the country's rate of production growth in future. The industry is moving away from the historical reinvestment rate of 75-90% toward a more conservative target of 70-80% because of a lack of investor support for aggressive growth models. This will take the growth rate of future oil production, over 2021-2025, from 7-8% per year under the old model, to 3-5% per year in a
Rystad Energy believed that the gradual recovery in US tight oil production in a
The impact of the recent mergers on the global crude supply, demand balance might have a dual influence - it might stimulate additional capital support, which in turn could lead to a steady rise in US volumes if WTI returns to
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Contact:
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Email: alisa.lukash@rystadenergy.com
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