What was in the announcement?

Byron Energy said it had evacuated production operators from its assets at South Marsh Island 58 and South Marsh Island 71 due to adverse weather conditions caused by hurricane Zeta. 

At the company's South Marsh Island 58 asset, tying of the G2 well into production equipment is almost complete. Production from the well can begin after the tie-in is completed, the company said. However, production has been delayed due to hurricane Zeta and is now expected to resume next week after 2 November 2020. Byron has a 100% working interest in the well and an 83.33% revenue interest.

Production from the Byron Energy operated South Marshal Island 71 F platform was shut down on 25 October 2020 due to pipeline shut ins associated with hurricane Zeta. Byron Energy holds a 50% working interest in the platform and 40.625% net revenue interest in the block. Otto Energy Ltd (ASX: OEL) holds a working interest and net revenue interest in the asset equivalent to Byron Energy.

According to the Byron Energy, production at South Marshall Island 58 and South Marshal Island 71 will continue as soon as conditions are safe.

About the Byron Energy share price

Byron Energy is an oil and gas explorer with assets in the gulf of Mexico. The company has been listed on the ASX since 2005.

In the year to 30 June 2020, Byron Energy had revenue from the sale of oil and gas of US$24.37 million, down from US$38.57 million in the year to 30 June 2019. Byron Energy posted a loss of US$70,396 in FY2020, this followed a profit of US$5.74 million in the 2019 financial year.

At 30 June 2020, Byron Energy had proven reserves (1P) of 8.1 million barrels of oil and 58.5 billion cubic feet of gas. The company had proven and probable reserves (2P) of 17.5 million barrels of oil and 105.3 billion cubic feet of gas at 30 June 2020.

The Byron Energy share price is up 60% since its 52-week low of 10 cents, however, it is down 46.67% since the beginning of the year. The Byron Energy share price is down 46.67% since this time last year.

The post Byron Energy (ASX:BYE) rigs evacuated as hurricane Zeta approaches appeared first on The Motley Fool Australia.

The S&P/ASX 300 Metal & Mining (Index:^AXMM) (ASX:XMM) index has rocketed up 16% over the past six-months when the S&P/ASX 200 (Index:^AXJO) (ASX:XJO) and S&P/ASX 200 Energy (Index:^AXEJ) (ASX:XEJ) indices have shed about 4% each.

Investors have been taken by our miners as commodity prices have outperformed expectations in 2018 and coffers in the sector have been overflowing with cash, which in turn is fuelling expectations of more capital returns like special dividends.

This thematic has benefitted the likes of the BHP Group Ltd (ASX: BHP) share price, Rio Tinto Limited (ASX: RIO) share price, South32 Ltd (ASX: S32) share price and Independence Group NL (ASX: IGO) share price.

Miners close to full valuations

However, Morgans thinks the "easy gains" have been made and it's time for investors to shift their focus on the better value energy sector.

"This reporting season we are faced with a wide disconnect in themes playing out across several commodity markets. Bulks have enjoyed continued strength, particularly in iron ore, which has pushed the majority of bulk producers near or beyond our price targets," said Morgans.

"While at the other end of the spectrum we have continued volatility in oil prices leaning heavily on investor sentiment in energy stocks. We believe this sets up a clear opportunity to take profits from iron ore and coal producers to reinvest in cheaper energy names this reporting season."

The broker said its analysts have just returned from the US where they've spoken with several oil and gas producers.

Oil stocks better priced

They noted that confidence in the sector is surprisingly low with several producers planning on cutting production in the near-term.

This is despite the fact that crude oil prices have rebounded from their lows since the start of the 2019 calendar year.

"This has made us more confident in the prospects of a further oil price recovery given the contrast this presented to the popular view covered in the media that shale oil output is more robust than pundits give it credit for," said the broker.

"With share prices across our coverage universe showing implied oil prices around current spot, and with oil prices in our view likely to recover sometime this year, we see now as a good opportunity to increase exposure to the energy sector."

The standout large cap stock in the energy sector is Woodside Petroleum Limited (ASX: WPL), according to Morgans as the liquified natural gas (LNG) market continue to outpace expectations.

Meanwhile, Morgans' small cap star pick in the sector is Otto Energy Limited (ASX: OEL) after the junior made a promising discovery at its Lightning prospect.

The post Morgans urges investors to switch from miners to oil stocks appeared first on The Motley Fool Australia.

While one-day movements aren't usually meaningful, it can pay to keep an eye on them. These five companies had a shocker today…

Otto Energy Limited (ASX: OEL) slumped 41% to 3.6 cents, after reporting disappointing results for its Hawkeye well offshore The Philippines, as we covered previously today. It was bad news for the company, which will now switch focus to its properties in Alaska and Tanzania.

Ashley Services Group Ltd (ASX: ASH) crumbled 11.5% to 50 cents, after IMF Bentham Ltd (ASX: IMF) announced that it was funding a shareholder class action – something we said wouldn't surprise us back in April this year. Ashley Services missed its prospectus forecasts after its training division reported falling enrolments, but perhaps it was the over-optimistic earnings forecasts doing the main damage.

Southern Cross Media Group Ltd (ASX: SXL) dropped 3.7% to 91 cents, despite no news from the company. But it could've been the consumer backlash following a multi-million dollar advertising campaign calling for the removal of the reach rule. Many social media users have questioned the real motives behind the regional TV broadcasters, which want to be able to merge with metropolitan broadcasters.

Transpacific Industries Group Ltd. (ASX: TPI) has dropped 3.7% to $0.66. The recycling and waste management company faces charges of breaching workplace safety laws over a fire in 2013 at the Wingfield chemical waste plant, according to a report by ABC News last month. Transpacific shares are down 40% in the past year, as the company attempt to recover back to where it was prior to the GFC – and a share price north of $10.

OzForex Group Ltd (ASX: OFX) has dropped 3.7% to $2.64 – again despite no news from the company. Perhaps it was short term traders following the lead of FIL Investment Management, which recently sold down its position from 10% to 8.3%. Or perhaps it was just traders taking some profits after Friday's bounce. The currency exchange company inked a deal with accounting firm Xero on Friday and shares jumped higher.

The post 5 stocks slammed on the ASX today appeared first on The Motley Fool Australia.

The well, offshore Palawan Basin in the Philippines, will now be plugged and abandoned.

As Managing Director and CEO Matthew Allen noted, "The Hawkeye-1 exploration well has proven the existence of hydrocarbons in SC55. The hydrocarbon size discovered is however at the very low end of expectations and is not economic to develop." (Bold emphasis mine). It must be hugely disappointing for the company and shareholders – just last month the company said in a presentation, "Success at Hawkeye unlocks significant follow-up potential at Cinco and associated prospects."

The results show the toss of a coin outcome of drilling deep sea oil and gas wells. They are hugely expensive, with some running into the hundreds of millions of dollars, but the odds of drilling an un-commercial well are high. Find one that pays though… and that could be enough to establish the company as a major oil and gas producer.

Otto is now preparing for upcoming exploration programs in its Alaskan and Tanzanian assets.

The post Otto Energy Limited share price crashes down 39% appeared first on The Motley Fool Australia.