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Oil’s Hired Hands Declare Overseas Recovery With Robust 2022

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Author of the article: Bloomberg News David Wethe (Bloomberg) — Schlumberger is the latest oilfield giant to declare the worst is behind them in international markets after a historic crude price collapse, forecasting strong demand for their services into next year. The world’s biggest oilfield contractor joined rivals Halliburton Co. and Baker Hughes Co. this…

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Bloomberg News

David Wethe

(Bloomberg) — Schlumberger is the latest oilfield giant to declare the worst is behind them in international markets after a historic crude price collapse, forecasting strong demand for their services into next year.

The world’s biggest oilfield contractor joined rivals Halliburton Co. and Baker Hughes Co. this week in predicting expansion in overseas work and a more muted recovery in North America through the rest of 2021. Global oil demand should return to pre-pandemic levels by the end of next year, if not sooner, Schlumberger Chief Executive Officer Olivier Le Peuch told analysts on Friday.

“A new growth cycle has finally commenced,” he said in a statement released on Friday. “There is an increasingly positive sentiment in the industry outlook as the recovery strengthens despite the lingering concerns regarding the Covid-19 crisis.”

The service sector that helps oil explorers detect and drill underground reserves is slowly returning to work after a global glut and pandemic-led lockdowns sapped energy demand, triggering job cuts and bankruptcies across the industry. The big three contractors, who this week posted better-than-expected first-quarter results, are pivoting away from the once-booming North American shale patch and chasing work elsewhere instead.

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Schlumberger said it expects an increase in U.S. onshore activity in the second quarter that will level off during the second half. But international activity is poised to continue ramping up through the end of this year and beyond.

Sales are expected to grow by mid-single digits this quarter, while operating margins probably will expand by as much a percentage point, Chief Financial Officer Stephane Biguet said during the call.

The shares, which have climbed more than 50% in the past year, rose 1.9% to $25.73 at 10:58 a.m. in New York.

Le Peuch has cut tens of thousands of workers, reshuffled the company’s business around the globe and sold off assets in North America in order to focus on overseas work. The service provider expects to generate about 80% of sales from international markets.

The company continues to work on a pair of asset sales, including drilling rigs in the Middle East and a business in Canada that shares in the ownership of wells, Le Peuch said.

The first-quarter results reflect Schlumberger’s shifting strategy, with its lowest North American sales output since the start of the shale boom roughly a decade ago. While a seasonal drop in international revenue from the fourth quarter to the first quarter is typical, Schlumberger said the 3% sequential drop during the quarter was its shallowest since 2008.

Meanwhile, Halliburton CEO Jeff Miller told investors on Wednesday that early signs of an international recovery are already showing up in orders for tools.

“These signs give us greater conviction that the second half of this year will see a low double-digit increase in international activity year-on-year,” Miller said. “We believe the international markets will experience multiple years of growth.”

©2021 Bloomberg L.P.

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St. James Gold up 23% on financing news

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St. James Gold Corp. [LORD-TSXV; LRDJF-OTCQB; BVU3-FSE] said Thursday May 13 that it has struck a deal with an underwriting syndicate in connection with a brokered private placement of up to 2.17 million units at $3 per unit, which is expected to raise $6.51 million. Each unit will be comprised of one common share and…

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St. James Gold Corp. [LORD-TSXV; LRDJF-OTCQB; BVU3-FSE] said Thursday May 13 that it has struck a deal with an underwriting syndicate in connection with a brokered private placement of up to 2.17 million units at $3 per unit, which is expected to raise $6.51 million.

Each unit will be comprised of one common share and one common share purchase warrant. Each warrant is good to buy one additional share at an exercise price of $3.90 for three years.

The company granted the underwriters the option to increase the size of the offering by up to 500,000 units, potentially raising additional proceeds of $1.5 million.

St. James shares jumped 23.2% or 82 cents to $4.35. Shares are currently trading in a 52-week range of $6.50 and $0.055.

St James holds an option to acquire a 100% interest in 28 claims covering 1,730 acres in the Gander district in north-central Newfoundland adjacent to New Found Gold Corp.’s [NFG-TSXV] Queensway Project, and an option to acquire a 100% interest in 1,730 acres in central Newfoundland adjacent to Marathon Gold Corp.‘s [MOZ-TSX; OTC-MGDPF] Valentine Lake Gold Project.

Back in April, 2020, Marathon released a pre-feasibility study for the Valentine Lake Project. It envisages an open pit mining operation over a 12-year mine life with average gold production of 175,000 oz/year in years 1-9 from the processing of high-grade mill feed.

St James recently signed an option and joint venture agreement to acquire up to a 100% interest in the Florin gold project covering nearly 22,000 contiguous acres in the historic Tintina gold belt in the Yukon, subject to regulatory approval.

The company intends to use net proceeds of the offering to close the initial payment on the Florin project acquisition. Proceeds will also be used to finance drilling on the Florin gold project and Newfoundland properties.

The Florin Gold project contains an inferred resource of 2.47 million oz gold contained in 171 million tonnes of 0.45 g/t with a cut-off of 0.30 g/t at a gold price of US$1,650/oz.

The Florin property is 55 km northwest of Mayo and 130 km east of Dawson City.


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Blue Lagoon drills 0.98 metres of 36.7 g/t gold at Dome Mountain, British Columbia

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Blue Lagoon Resources Inc. [BLLG-CSE; BLAGF-OTCQB; 7BL-FSE] provided a drilling update and results from the 2021 phase 1 drill program on its Dome Mountain gold project, an all-year accessible property located a short 50-minute drive from Smithers, British Columbia, which holds both an Environmental Management Act (EMA) permit and a mining permit providing for up…

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Blue Lagoon Resources Inc. [BLLG-CSE; BLAGF-OTCQB; 7BL-FSE] provided a drilling update and results from the 2021 phase 1 drill program on its Dome Mountain gold project, an all-year accessible property located a short 50-minute drive from Smithers, British Columbia, which holds both an Environmental Management Act (EMA) permit and a mining permit providing for up to 75,000 tonnes production annually.

Highlights included hole DM-21-164 that returned 36.7 g/t gold and 580 g/t silver over 0.98 metres. DM-21-165 returned 11.08 g/t gold and 34.39 g/t silver over 4.13 metres, including 22.80 g/t gold and 42 g/t silver over 1.37 metres. DM-21-168 returned 25.8 g/t gold and 74 g/t silver over 1.45 metres.

“We are very pleased with the results to date from our 2021, 20,000-meter drill program, which continue to confirm the hi-grade nature of the Boulder Vein,” said Rana Vig, President and CEO of Blue Lagoon Resources. “With the first phase now complete with 7176.5 meters drilled in 31 holes, we’re getting ready to recommence drilling once all the snow melts and break-up is complete with ground conditions becoming more favorable for our drill crew to mobilize,” he added.

The first phase of this drill program at Dome Mountain also included three drill holes targeting the Forks Vein zone, located 500 metres south of the Boulder Vein. The Forks Vein zone is a shallow dipping structure to the north.

Hole DM-21-154  returned  3.0 metres of 0.95 g/t gold and 14.5    g/t silver and 3.0 metres of      8.3 g/t gold and 14.5 g/t silver, including 1.5 metres of 15.4 g/t gold and 26 g/t silver. DM-21-156 returned 1.7 metres of 4.02 g/t gold and 21 g/t silver.

The mineralized structure is shallow dipping to the northeast and remains open along strike and down dip. Holes 154 and 156 hit the down-dip segment 150 metres from historic workings where a shaft and drifting encountered the mineralized zone at 35 metres depth.

“These holes targeted mineralization identified from holes drilled in the 1980s and confirmed the high-grade nature and trend of the mineralized Forks Structure,” said William Cronk, Chief Geologist for Blue Lagoon. “Further drilling will test for continued mineralization to the NE along the down dip trend with a goal to follow this mineralized structure to its intersection with the Boulder Vein System,” he added.


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Santacruz produces 706,978 oz AgEq in Q1 in Mexico

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Santacruz Silver Mining Ltd. [SCZ-TSXV; 1SZ-FSE] reported operating results from the 100%-owned Zimapan Mine located in Zimapan, Hidalgo, Mexico, and the 100%-optioned Rosario Project in Charcas, San Luis Potosi, Mexico, for the first quarter 2021. The company is not including production from the Veta Grande Project in this report as operations at Veta Grande were…

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Santacruz Silver Mining Ltd. [SCZ-TSXV; 1SZ-FSE] reported operating results from the 100%-owned Zimapan Mine located in Zimapan, Hidalgo, Mexico, and the 100%-optioned Rosario Project in Charcas, San Luis Potosi, Mexico, for the first quarter 2021. The company is not including production from the Veta Grande Project in this report as operations at Veta Grande were suspended during Q1 2020.

Production highlights include silver equivalent ounces produced 706,978 in Q1. Silver head grades increase 9.4% at Zimapan Mine as compared to Q1 and Q4 2020. There was increased tonnage throughput from Lomo del Toro zone of the Zimapan Mine from 4,000 during January and February to 6,000 tonnes for the month of March. A new mining method introduced in late March at Rosario that is expected to significantly reduce costs by less handling of waste material

Carlos Silva, Santacruz’s COO, stated, “As we keep advancing our workings deeper into the higher-grade Lomo del Toro manto and increase the tonnage mined from this zone, we are seeing a corresponding increase in head grades at our Zimapan Mine. We are progressing well towards our objective of reaching 15,000 tonnes per month of mill feed from this higher-grade area by the end of the second quarter.” Silva continued, “We expect further efficiencies at our Rosario Project during Q2 as a result of a revised mining plan which results in less waste material being handled. These very encouraging improvements were unfortunately partially offset by an unstable power supply from Mexico’s Comision Federal de Electricidad (Mexico’s power supply company). The unstable power supply impacted the mill throughput at both mines in February as motors for the ball mills were damaged. The matter was resolved in early March but mill throughput was materially reduced for eight days.”

The company continues to take all appropriate measures to prevent COVID-19 among the work force and local communities and to monitor the effectiveness of these measures in mitigating any potential impact on business activities. The company’s actions have been successful to date and the pandemic has not had any material impact on the business.


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