Energy: Paringa just sent its first shipment of thermal coal to US customers

New producer Paringa Resources (ASX:PNL) has sent a maiden shipment of thermal coal down a US river to a couple of key customers.

The 1500t cargo came from the company’s Poplar Grove operation in western Kentucky.

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It was loaded onto barges at Paringa’s Ainsworth Dock on the Green River to be delivered to cornerstone customer, Louisville Gas and Electric Company, and Kentucky Utilities Company.

Paringa said the coal “exceeded key contract specifications”.

Stockhead has contacted the company to find out just how good its coal is and how much cash it expects to make from the shipment.

Paringa started production from the Poplar Grove mine in December last year and is in the process of ramping up to a capacity of 2.8 million tonnes per annum.

Despite the negative rhetoric around thermal coal, big resources funds still see potential in the market.

Last week Tribeca, which has around $1 billion invested in the resources space right now, agreed to loan Paringa $US56m ($79.5m).

Paringa says it has sold all of its coal production for 2019 and has so far sold about 70 per cent for 2020 with “leading regional power utilities”.

The company added that market conditions in the Illinois Basin remain strong, and it is in talks with existing and new customers regarding additional sales agreements.

Other interesting snippets in the ASX energy space:

Cooper Energy (ASX:COE) is watching its oil and gas sales go up, which has culminated in a 43 per cent jump in revenue for the March quarter to $20.6m. The company attributes the stronger result to the start of sales contracts and a 14 per cent increase in quarterly production to 330,000 barrels of oil equivalent.

Big Star Energy (ASX:BNL) has struck a deal to earn into 5,228 acres of oil and gas land in Wyoming, US. It is the company’s first acquisition since its restructure. The Percy Creek exploration licenses host four stacked oil plays that are estimated to contain a total best case gross prospective oil resource of 75 million barrels.

Tap Oil (ASX:TAP) has hedged another 55,312 barrels of Manora crude oil production with BP Singapore for between May and December this year. Tap said the hedging is designed to protect against oil price falls below $US60/bbl while retaining exposure to price increases up to $US81/bbl.

Triangle Energy (ASX:TEG) is facing difficulties at its Cliff Head oil field operations, with a technical issue during the March quarter impacting production and revenue. The company was forced to stop production due to the failure of an electrical submersible pump. March-quarter crude oil sales revenue dipped to $6.13m, from $6.4m in the prior quarter, on the sale of 72,193 barrels. Triangle is hoping to be back in production by late in the September quarter of this year.

Gas2Grid (ASXL:GGX) has launched a 1-for-2 entitlement issue to raise about $1.7m. The company will use the cash to deepening the Nuevo Malolos-1 oil well in the Philippines.