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In this update, INN looks at key events in the uranium and oil and gas sectors during the month of June. Watch to find out more.
As the weather heats up, so too does the energy sector.
In the uranium space in June, Canadian explorer Denison Mines (TSX:DML,NYSEAMERICAN:DNN) announced that it is moving into the environmental study phase at the Wheeler River uranium project in Saskatchewan’s Athabasca Basin.
The company has already received approval from the Canadian Nuclear Regulatory Agency and the federal government to progress. Denison plans to deploy an in-situ recovery (ISR) method for the Wheeler River uranium mine and processing plant. According to the company, this method is less impactful on the environment than conventional uranium mining.
“The project’s ISR mining operation is expected to produce no tailings, generate very small volumes of waste rock, and has the potential for low volumes or possibly no water discharge to surface water bodies, as well as the potential to use the existing power grid to operate on a near zero carbon emissions basis,” David Cates, Denison’s CEO and president, said in a press release.
Across the border in the US, a House subcommittee met to discuss extending a Grand Canyon uranium mining and claim moratorium first implemented by former President Barack Obama in 2012. The meeting came following an announcement from President Donald Trump that the US government will seek ways to increase domestic resource production across the board.
Later in the month, the Supreme Court of the US upheld a Virginia uranium mining ban that has been in place since 1982. Virginia Energy Resources (TSXV:VUI,OTCQX:VEGYF) and Virginia Uranium had argued that the ban is unconstitutional.
The current uranium spot price is US$24.70 per pound, up from last month’s US$24.65.
Over in the oil and gas sector, the month began with UK-based Hurricane Energy (LSE:HUR,OTC Pink:HRCXF) reporting production of the initial barrels of oil from an offshore fractured basement field.
The Lancaster field is the country’s first basement reservoir to enter production on the continental shelf.
On this side of the pond, the Canadian federal government approved the expansion of the Trans Mountain pipeline, which runs from Alberta to BC. Once the expansion is complete, the pipeline’s capacity will nearly triple from 300,000 barrels per day to 890,000 barrels per day.
Despite being a contentious issue on both sides of the Alberta-BC border, Canadian Prime Justin Minister Trudeau believes the C$6.8 billion project is a good investment that will ultimately fund several green initiatives around the country.
The prime minister’s statement reads in part:
“We have a responsibility to ensure that the decisions we make today move us toward a cleaner, sustainable economy. Major resource projects can move forward, but only if we do so in a way that protects the environment and respects Indigenous rights. The TMX project is a significant investment in Canadians and in Canada’s future that will create thousands of good, middle class jobs, maintain the highest environmental standards, and fund the clean energy solutions that Canada needs to stay competitive on the global stage.”
The current price of Brent crude in US$65.06 per barrel, while West Texas crude is sitting at US$59.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
