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Proactive news summary - Oilex, Caza Oil & Gas, SerVision, Allocate, Shanta Gold

Published: 11:47 21 Jul 2014 EDT

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Oilex (LON:OEX) was a top performer jumping as much as 40% after revealing its pivotal Cambay 77H well flared gas and flowed light oil and condensate following a successful fracking programme.

The company said that hydrocarbon flows through the ‘clean-up’ phase were strong, and Cambay 77H exhibits characteristics of a high performance well.

More definitive production testing will begin once the ‘clean-up’ phase is complete and all the water from the fracking programme has been recovered. Thus far 40% of the ‘frack water’ has now been recovered.

RFC Ambrian said the recovery of API 50 light crude during flow-back operations is particularly encouraging, indicating higher than expected liquid hydrocarbon production.

Caza Oil & Gas (LON:OEX) was another of Monday’s riser as it announced another emphatic success in the Bone Springs play, where its fourth and latest well on the West Copperline property came online flowing at 1,598 barrels per day.

Better still, the company told investors that with increased familiarity of the play its operations are improving, meaning faster and cheaper wells are enhancing the economics of its production.

Elsewhere, AIM quoted security systems specialist Servision (LON:SEV) advanced 25% this afternoon after revealing a premium-priced shareissue to raise £625,000. The company issued 12mln new shares to subscribers at a price of 5.2p, some 73% above Friday’s closing price of 3p per share.

Healthcare software firm Allocate (LON:ALL) said tighter control of hospital staffing has led a surge in orders for Allocate Software’s (LON:ALL) new SafeCare product.

Allocate only launched SafeCare late last year but the number of UK hospitals using it has rapidly risen to 37.

An overhaul of NHS staffing policies following the Mid-Staffs scandal and various reports into what went wrong boosted Allocate’s business all round.

Overall, 147 major agreements with UK hospitals were signed across its product portfolio during the year, demand that led to a record year for earnings and 19% growth in UK revenues, which exceeded both the company’s own expectations as well as the markets’.

Total revenue increased by 8% to £40mln (2013: £37.1mln) in the year to May, while underlying profit (EBITDA) jumped by 44% to 6.9mln.  At the pre-tax level, Allocate swung to a profit to £2.89mln from a loss of £2.39mln, while net cash climbed to £13.7mln (2013: £9.1mln). The dividend for the year rises 10% to 1.45p per share.

In the junior mining sector, Shanta Gold (LON:SHG) appeared to be firing on all cylinders after it reported record first quarter production from the New Luika mine in Tanzania.

It unearthed 21,940 ounces of the precious metal in the second quarter, up 8% on the prior three months, while sales were 22,400 ounces at US$1,307 an ounce. The group said all in sustaining cash costs were US$959.

The group has revised its production guidance: it said output will be 80-83,000 ounces this year compared with its previous forecast of 80,000 ounces.

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