VIDEO - Energy Update September 2018

Energy Investing

In this September energy update, Georgia and Olivia discuss multimillion-dollar deals, large-scale acquisitions, mounting supply fears and even some presidential tweets.

With summer drawing to a close the energy sector is just heating up.

In this September energy update, Georgia and Olivia discuss multimillion-dollar deals, large-scale acquisitions, mounting supply fears and even some presidential tweets.

Watch the video above or read the full transcript below.

Olivia: What were some of the biggest news stories out of the uranium sector, Georgia?

Georgia: In September, UEX (TSX:UEX) began its summer drill program at the Christie Lake uranium project in Northern Saskatchewan. Christie Lake is located in the Athabasca Basin, arguably Canada’s uranium capital, so UEX is hopeful its project will be viable and lucrative.

Olivia: UEX wasn’t the only Saskatchewan-focused explorer making news in September, right?

Georgia: Correct. Denison Mines (TSX:DML,NYSEAMERICAN:DNN), one of the leading global uranium explorers, entered into a deal with Cameco (TSX:CCO,NYSE:CCJ) to purchase Cameco’s 24-percent interest in the Wheeler Lake project.

Now, our viewers may remember last month the sector was reacting to Cameco indefinitely shutting down the McArthur River mine. This C$16-million dollar deal with Denison is the second uranium project in Saskatchewan that the company has moved away from. We will have to see where Cameco decides to focus its exploration and production efforts.

Olivia: Speaking of discovery in Saskatchewan, INN sat down with IsoEnergy (TSXV:ISO,OTCQX:ISENF) CEO Craig Perry. Did he have any insights into exploration in the area?

Georgia: Yes, Perry did sit down with INN to give an overview of his company’s projects. During the interview he said, “Saskatchewan is the best place on the planet to explore, develop and operate a mine, and the Athabasca Basin is the best place in the world for uranium production.”

Olivia: Moving to oil and gas, what were some of the interesting stories out of that sector in September?

Georgia: Australian energy producer Santos (ASX:STO) completed its sale of all its non-core Asian assets. The company announced in May it would be selling off its Asian assets in an effort to consolidate its focus on newer, more productive projects in Australia and New Guinea.

The Asian asset sale brought in US$221 million for Santos. The company also plans to offload projects in Vietnam, Indonesia, Malaysia and Bangladesh as part of its new strategy. You covered a pretty interesting natural gas story out of Australia as well.

Olivia: Yes. Consultancy firm Wood Mackenzie released a report on Australia’s natural gas predicament. According to the firm, the country is in dire need of new liquefied natural gas supply, as well as exploration programs, or it could run out by 2028.

Georgia: What is creating this worry of a shortage?

Olivia: According to Wood Mackenzie, the country needs to find better ways to balance domestic supply and international exports.

Georgia: Interesting. International oil exports were making news last week when President Trump tweeted at OPEC to bring prices down. Oil prices have been steadily increasing as supply becomes increasingly precarious. In November, sanctions against Iran will take effect, and hundreds of thousands of barrels of oil will be removed from the market.

The president had hoped that OPEC leaders meeting in Algeria last weekend would discuss bringing prices down globally. However, it appears that the OPEC nations have no plans to follow the president’s words and bring prices down. In fact, WTI crude was at a six-month high on September 24, sitting around US$73 a barrel. Brent crude also skyrocketed to US$79.93 a barrel, a four-month record.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: IsoEnergy is a client of the Investing News Network. This article is not paid-for content.

The Conversation (0)


S&P 5004454.49+10.54


Heating Oil3.26-0.03
Natural Gas2.76-0.09