>>> US Early premarket gappers

Early premarket gappers
Gapping up: CHTP +169.6%, DTLK +31.6%, GST +25%, RSOL +7.8%, VICL +6.9%, NGLS +4.9%, ARO +4.8%, SQNM +4.7%, GMED +3%, GM +2.9%, CTRL +2%, ERIC +2%, HSOL +1.9%, FRO +1.8%, TSLA +1.6%, RBS +1.3%, TWTR +1.2%, BAC +1.1%, AAPL +1%, MDRX +0.8%

Gapping down: XONE -14.2%, COOL -11.1%, VJET -9.3%, HTWR -8.1%, JKS -6.2%, UBNT -4%, NUS -3.3%, HMY -3.3%, DDD -3%, IRE -2.9%, THOR -2.2%, GOLD -2%, UN -1.9%, ARIA -1.8%, DEO -1.4%, WDAY -1.2%, BA -1.2%, SSYS -1.1%, ONVO -0.9%, ABX -0.6%

(BFW) Fertilizer Stocks Should Be Sold Into Recent Strength, BMO Says

+------------------------------------------------------------------------------+

Fertilizer Stocks Should Be Sold Into Recent Strength, BMO Says 2014-01-15 12:29:13.774 GMT

By Arie Shapira Jan. 15 (Bloomberg) -- Fertilizers may have limited upside this year given recent multiple expansion vs chemicals/miners and indices, BMO analyst Joel Jackson writes in note. * Sell group into strength; premiums “built in” for typical Jan./Feb. spring lift, BPC reunion prospects * Top picks AGU, Yara; rates CF, POT, MOS market perform and IPI, K+S underperform * NOTE: IPI last night announced it will cut 7% of workforce * NOTE: Potash-exposed fertilizers outperformed yday (IPI +5%, MOS +4.1%, POT +2.3%); BMO said Uralkali informing Brazil customers it will raise potash prices starting in March, citing FMB

For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>

--Editor: Steven Fromm

To contact the reporter on this story: Arie Shapira in New York at +1-212-617-1488 or ashapira3@bloomberg.net

To contact the editor responsible for this story: Joanna Ossinger at +1-212-617-7789 or jossinger@bloomberg.net

(KEP-CHEU) Business Services : Bureau Veritas, SGS, Intertek...

* Long-term fundamentals remain attractive
Despite the recent underperformance by stocks in the TIC sector (testing, inspection, certification), we believe there is little doubt in the market about the long-term attractiveness of the industry (high fragmentation, outsourcing, regulation, etc) and the strong financial track records of SGS, Bureau Veritas (BV) and Intertek, the main listed players.

* Minerals services to remain a drag on growth
However, for the short term we remain cautious as we do not expect a Vshaped recovery in the minerals activities, which have become one of the most important growth and earnings contributors for SGS, Intertek and BV over the last few years.

* SGS remains our preferred play in the sector
We believe SGS is the best positioned company in the sector, considering its strong diversification, financial track record and balance sheet, which offers the most potential for M&A or returning cash to shareholders. However, we see no rush to buy its shares, considering the current valuation (P/E 15E 20.6x) and the downside risk of c4% to EPS consensus estimates. We therefore reinitiate on SGS with a Hold. We also reinitiate on BV with Hold (TP: EUR 22) and on Intertek with a Reduce (TP: 2750p).

(BArclays) Tullow Oil : Exploration delivers again

* Exploration delivers again

Although production hiccups at the Jubilee field in Ghana are likely to result in an average production for the group marginally down in FY14, Tullow’s trading statement highlights how the company’s exploration effort during 2013 has once again delivered over 200MMbl of new resources net to the group through the drillbit. We believe this is further evidence of the breadth of company’s exploration portfolio, which comes with a well-funded balance sheet, and also underpins our valuation. Kenya is an important part of the company’ portfolio. Here, the group also reported positive news on the Amosing-1 and Ewoi-1 wells. This increases the number of consecutive oil finds to seven in the South Lokichar basin and the discovered resources tally to over 600m bl (TLW 50%), underscoring the potential of this region. With a programme that currently includes over 40 exploration and appraisal wells and material opportunities in Kenya, West Africa and Norway, we reiterate our Overweight rating with a Price Target up by 1% to £15/sh.

Kenya, a double- strike: In Kenya, Tullow announced two new oil discoveries in two different plays in South Lokichar. Amosing -1, which sits South of Ngamia along the “String of Pearls”, found 160-200m of net pay, significantly exceeding pre-drill expectations of c.100m of net pay. Ewoi-1 was drilled on basin flank up-dip from Etuko and encountered between 20-80m of net pay. As a result, we increase our discovered resources estimate by 150m bl to over 600m bl (TLW 50%) in-line with the company’s guidance. This is worth £1 risked (£1.40 unrisked) on our numbers. The company now believes that South Lokichar could hold in excess of 1bn bl of resources.

Well-funded balance sheet: 2013 y/e net debt was US$1.9bn in line with our forecasts. In addition, Tullow has undrawn facilities of up to US$2.4bn. We believe this, coupled with a pre-tax cash-flow of $1.9bn, provides sufficient flexibility to maintain an exploration spend of US$1bn pa and sustain ongoing development capital expenditures on the TEN development in Ghana, where farm-out negotiations are still ongoing.

Exploration momentum continues: Over the next 18 months, the company intends to drill over 40 wells. Half of them are located onshore Kenya, where the company is looking to further derisk the exploration potential of the South Lokichar basin, which on our numbers could be worth £4 unrisked under a blue-sky scenario, and test at least three new basins. In due course, we also expect the results of the Fregate well in Mauritania that could also have a material impact on our NAV, if successful.

(BFW) Tullow Reverses Gains; Barclays Cuts 2014 EPS Est. 20% to 45c

+------------------------------------------------------------------------------+

Tullow Reverses Gains; Barclays Cuts 2014 EPS Est. 20% to 45c 2014-01-15 09:20:05.90 GMT

By Benjamin Dow Jan. 15 (Bloomberg) -- Tullow (-2.2%) reverses gains of as much as 2.3% earlier after operations update, expansion of Kenya resource ests; vol. ~79% of 3-mo. daily avg. * House broker Barclays (overweight, PT 1,500p) “materially” cuts 2013 EPS est. to 13c vs 61c earlier * FirstEnergy (outperform) values Kenya wells at 15p-shr unrisked for Amosing-1, 11p/share unrisked for Ewoi-1 * Bernstein (outperform, PT 1,600p) notes lack of updates on Mauritania, “farming-down TEN” development * Block 10BB onshore Kenya partner Africa Oil (+5.7%) pares earlier gains of as much as 8.4%

For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>

--Editor: Gaurav Panchal

To contact the reporter on this story: Benjamin Dow in Moscow at +7-495-771-7735 or bdow2@bloomberg.net

To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net

>>> Royal Dutch Shell to sell USD 15bn of assets, including North Sea oil fields

Royal Dutch Shell to sell USD 15bn of assets, including North Sea oil fields 

Royal Dutch Shell will dispose of USD 15bn of assets, including some North Sea oil fields, in the next two years, the Financial Times reported.

The Dutch oil giant will sell mature oil fields in the North Sea and other locations, a portion of its refining operations and some early stage projects, according to a person with intimate company knowledge.

As oil prices plunge and costs pile up, investors have been clamoring for oil giants to clamp down on spending. The company's new Chief Executive Officer, Ben van Beurden, who assumed the helm two weeks ago, is expected to adopt more investor-friendly measures.

In October, Shell said it would increase sales of assets over the next two years to increase cash flow. It started a strategic review of its Nigerian assets and U.S. shale properties and recently said it would not move forward with a multi-billion dollar gas to liquids plant in Louisiana.



Source Financial Times

>>> BSkyB climbs amid deal speculation -

BSkyB climbs amid deal speculation - market reports

Shares in BSkyB, the UK-based listed satellite TV broadcaster, rose on 14 January amid chatter about potential M&A deals, the Daily Mail reported. UBS, an adviser to BSkyB, suggested a number of possible takeover transactions, thus increasing speculation, the report said.

UBS suggested Sky’s 39% shareholder 21st Century Fox Group - owned by Rupert Murdoch - might try and merge the business with its existing Sky Italia and Sky Deutschland pay-TV operations, the Daily Telegraph said. It added that the analysts said, alternatively, BSkyB might tie up with a mobile-phone company such as O2 or Vodafone to increase its financial strength against competitors.

The Financial Times, which also noted the deal speculation, said that UBS is one of Vodafone’s joint house brokers and formerly advised Murdoch-owned News Corp on a 2011 bid to buy out Sky.

The listed British telecoms group BT has also recently been tipped as a potential buyer of BSkyB, the Mail report said.
Source Daily Mail, Daily Telegraph, Financial Times

>>> A2A looks to buy other utilities

A2A looks to buy other utilities
A2A, the listed Italian utility, is looking to become an aggregating force in the utilities sector, Italian language daily Il Sole 24 Ore reported. The report cited documentation produced by A2A management that still needs to be approved by shareholders.

The report said that A2A is looking to target small utilities in its immediate geographic area.

The report said that A2A has ruled out any capital increase to fund any M&A and has also said that any transactions will not put at risk the control of the group by the Milan and Brescia city councils.

A2A has a market cap of EUR 2.636bn.


Source Il Sole 24 Ore

>>> Tullow Kenya Update

Tullow Oil plc (“Tullow”) today announces oil discoveries at the Amosing-1 and Ewoi-1 exploration wells in Block 10BB onshore northern Kenya. As a result of these latest successes and recently reported discoveries at Ekales-1 and Agete-1, Tullow has updated its estimate of discovered resources in this basin to over 600 mmbo. Tullow believes that the overall potential for the basin, which will be fully assessed over the next two years through a significant programme of exploration and appraisal wells, is in excess of one billion barrels of oil.
Exploration well results
The Amosing-1 and Ewoi-1 discoveries in Block 10BB continue Tullow’s 100% success record in the basin with seven out of seven discoveries to date. Based on results of drilling, wireline logs and samples of reservoir fluid, the Amosing-1 well has intersected net oil pay of between 160 and 200 metres, significantly exceeding Tullow’s pre-drill expectations. The Ewoi-1 well has encountered net pay of 20 to 80 metres and has continued to de-risk the basin flank play opened up by the Etuko-1 well in 2013. Following completion of logging operations the wells will be suspended for future flow testing to confirm the net pay counts. The rigs will then move to drill the Emong-1 well, adjacent to the Ngamia field, and the Twiga South-2 appraisal well, both in Block 13T. The partnership has elected not to continue into the next exploration phase in Block 10A in Kenya.
Development and pipeline studies
Given the significant volumes discovered and the extensive exploration and appraisal programme planned to fully assess the upside potential of the basin, Tullow and partners have agreed with the Government of Kenya to commence development studies. In addition, the partnership is involved in a comprehensive pre-FEED study of the export pipeline. The current ambition of the Government of Kenya and the joint venture partnership is to reach project sanction for development, including an export pipeline, in the period 2015/2016.
Tullow operates both the Amosing-1 and Ewoi-1 wells with a 50% interest and Africa Oil has a 50% non-operated interest.
ANGUS McCOSS, EXPLORATION DIRECTOR, TULLOW OIL PLC, COMMENTED TODAY,
“Exploration results to date from the first basin, amongst a chain of basins, have proven that Tullow's onshore acreage in northern Kenya has the potential to become a significant new hydrocarbon province. The programme of over 20 wells we have planned across our licences over the next twenty four months should materially add to the 600 mmbo discovered to date through a combination of exploration and appraisal. With up to five other analogous basins being tested during this programme, Tullow has the opportunity to increase Kenya’s resources significantly beyond today’s estimates.”
PAUL McDADE, CHIEF OPERATING OFFICER, TULLOW OIL PLC, COMMENTED TODAY,
“The results to date are extremely positive for achieving a commercial development from the discoveries made in this basin. We will now be working with the National and County Governments with the aim of progressing both the upstream development and the associated export pipeline to project sanction in the period 2015/2016. There is clearly scope for the development to be expanded if there is further exploration success in other basins.”