Saints & Sinners: Oil & Gas
Chariot Oil & Gas (LON:CHAR) jumped 13% to 85p during early trading after UBS said BUY the shares as they do not see a read across from Tapir South to Chariot's other acreage, and they go on to say the door is open for significant upside from here. The company also said that on 14 May 2012 Adonis Pouroulis, Chariot's Non-Executive Chairman, bought 100,000 ordinary shares in the Company at a price of 74.95 pence per share. Following the purchase, Mr. Pouroulis holds 100,000 ordinary shares, representing 0.05% of the Company. Westward Investments Limited, a company which is owned by a discretionary trust of which Mr. Pouroulis is one of a number of beneficiaries, maintains its holding of 21,565,971 ordinary shares, representing 10.75% of the Company.
Matra Petroleum (LON:MTA) jumped 12% to 2.65p at the mid-price on big volume of 56 million shares before the end of lunch after the company said that exploration director Neil Hodgson has confirmed his intention to resign and step down from the board. Hodgson's resignation will become effective on May 31. Matra is currently considering its senior management organization and said it will announce appointments as they are confirmed.
Bahamas Petroleum (LON:BPC) slipped another 7% to 7.4p on big volume during early trading today. The shares did enjoy a brief rally following the election victory for the opposition Progressive Liberal Party in the Bahamas, as investors expect the new government to back future oil exploration. The close-run election result followed a campaign between the ousted Free National Movement party and the newly-incumbent Progressive Liberal Party, as they battled over issues such as oil exploration, the lacklustre economy and rising crime rates.
Range Resources (LON:RRL) slipped 7% to 8.9p during afternoon trading on decent volume. The shares have been battling with the 10p level for the last few sessions, even after what looked like bullish news yesterday, sellers were still pressing the exit buttons during trading today. The update says everything we need to know, the drill bit was at 3,425 meters yesterday, and they announced they were pushing on to the target depth of 3,800 meters. Possibly long term holders here will be looking for the final update over the coming weeks before making any rash decisions.
Empyrean Energy (LOM:EME) pushed 8% to 8p during early trading after the company said that Aurora Oil and Gas Ltd (AUT.AU), has that they have reached agreement to purchase a 6% non-operated working interest in the Sugarloaf Project for $95 million. Aurora is a partner with Empyrean in the Sugarloaf Project in Texas, U.S. Empyrean holds a 3% working interest in the same project. Commenting today, Empyrean CEO Tom Kelly said "This acquisition by Aurora and the recent offer by Aurora for Eureka, which has been rejected by the board of Eureka in their Target Statement response on ASX as being opportunistic and undervaluing Eureka's assets reinforces the board's view that there is strong interest in Eagle Ford Shale assets in the USA and in particular within our project acreage. The liquids rich nature of the acreage shelters the partners from low gas prices in the USA. The read across valuations from these corporate activities gives the board great comfort that our Sugarloaf Project is progressing successfully and that the fundamental value of the project is robust. The operator of the Sugarloaf Project will be trialling certain initiatives this year aimed at improving production, recoveries and reserves. The board looks forward to the further development of the Sugarloaf Project and our shareholders can expect to see an updated reserve report - likely for the period to 30 June along with news from operations as a substantial and aggressive development program unfolds through this year."
Exillon Energy (LON:EXI) slipped 2% to 106p during early trading, before the company announced that David Herbert, its Non-Executive Chairman of the Board, bought 42,750 ordinary shares at 115.35 pence each and now has 54,796. Exillon shares have been under a lot of pressure recently, much like a number of other companies in the sector, slipping from 290p at the start of the year, down to the current levels, and seem to have been hitting a new 52 week low virtually every day over the last few sessions. It will be interesting to see how the long term holders react to the psychological 100p level as the stock approaches it.
JKX Oil & Gas (LON:JKX) jumped 6% to 120p during early trading after the company said it has started delivering gas from its Koshekhablskoye field in southern Russia and will now focus on the next stage of development on the field. The company also said it has been awarded the Giorgievskoye exploration license immediately south of the Koshekhablskoye production license. The company noted that a significant part of Giorgievskoye also runs to the northwest of the Koshekhablskoye field and covers its east and west flanks. It said that mapping and reserves determinations have indicated that most of the oil reserves in the new license area will be recoverable through the existing wells on the Koshekhablskoye field. It also noted that further drilling on the new license could yield another 170 billion to 270 billion cubic feet of gas.
Gasol Plc. (LON:GAS) jumped another 15% to 0.635p during afternoon trading today, continuing its impressive recent run. The shares have jumped 0.365p to the current level in a little over 4 trading sessions. Even after the near 75% rally the shares are still a long way from the highs of 1.625p back on the 19th of May last year. Another thing that has caught the eye during the move is the volume traded, the numbers have been increasing steadily and we will continue to monitor this one closely.
Bayfield Energy (LON:BEH) pushed 5% higher to 31p during early trading before settling back around the 29.5p level after the company said it is pleased to announce the appointment of FirstEnergy Capital LLP as its joint broker alongside the Company's existing broker, Seymour Pierce. The shares slumped yesterday after the company said Well EG7 is drilling ahead, having reached 5,280ft and encountered all the shallow reservoir objectives. In the interval between 1,000ft and 3,000ft, the reservoirs identified as the F,G and H Sands have been found to be predominantly water bearing. Only one reservoir interval was logged as oil bearing and has been sampled and tested with a mini drill stem test (mini-DST). EG7 is planned to drill to a total depth of 6,500ft.
Saints & Sinners: Mining
Namakwa Diamonds (LON:NAD) jumped 15% to 4.7p during afternoon trading as speculation from bulletin boards started to do the rounds saying "Fusion Tenders, in cooperation with I. Hennig & Co, is pleased to announce that a 100% sell through of all 64 lots of the KAO Production during the sealed bid tender in Antwerp from the 7th-11th May 2012. Richard Collocott, CEO of Namakwa Diamonds commented: "This has been an important week for Namakwa and Storm Mountain Diamonds to move the sale of the Lesotho's KAO production from South Africa to Antwerp. Antwerp remains, in our opinion, the most important trading centre for rough diamonds and despite challenging market conditions we are pleased to have achieved solid prices." Now as with all speculation this must be taken with a large pinch of salt until the company itself actually updates the market, but the speculation was enough to get the shares moving.
UK Coal (LON:UKC) bucked the overall negative trend in the market today, pushing 5% to 14.75p on decent volume during afternoon trading. The shares have been on a rollercoaster ride recently, jumping from 12p up to almost 25p, before falling back down to 13.5p yesterday, before recovering during trading today.
Leed Resources (LON:LDP) were very active once again today, with over 110 million shares changing hands before the end of lunch. The shares were 2% higher at 0.38p as holders sit and wait for another update from the company's investment in Manas Coal. The company has been very tight lipped for a while now, so it would be no surprise to see some sort of update materialise over the coming weeks.
Bellzone Mining (LON:BZM) slipped another 9% to a new all-time low of 18.5p on volume of just over 6 million shares traded just after lunch. The shares have really been underperforming over the last few months, slipping from a high of 98p back in January of last year, to the current levels.
Another Platinum stock that has really been under a lot of pressure of late is Aquarius Platinum (LON:AQP) and the shares slipped another 9% to 92.5p during afternoon trading today. The shares are a long way from the 345p high back in January of last year, and have been printing a new 52 week low virtually every day throughout May. I will be watching this one closely for any signs of a turnaround.
Angel Mining (LON:ANGM) hasslipped back to what looks like an very interesting support line at 1.175p, and as I type the shares were bouncing a touch off of that support line to trade at 1.25p at the mid-price on volume of just over 10 million shares. The last update back on the 9th of May said that, since the main generator was repaired and processing of ore recommenced on April 5, the mining and processing operations have progressed well at the Nalunaq Gold Mine. Circuit is now well primed with gold and on May 6 Angel completed a gold dore pour of 19.295kg [538oz]. Future gold pours are planned on a three weekly cycle and, following the next gold pour, the mine and plant are expected to settle into a much more consistent period of cash generative production. Company has also raised GBP260,000 through the issue of 18.62 million new ordinary shares to YA Global masters SPV Ltd. at 1.40 pence per share under the Standby Equity Distribution Agreement announced July 28. Proceeds will be used to meet the Company's repayment obligations for April under the promissory note facility with Yorkville.
Metminco (LON:MNC) slipped 11% to 8.55p during afternoon trading and looked to be on course for a retest of major support at 7.75p. The shares have been in free fall since the end of April, slipping from 13p to the current low of the day at 8.29p. It will be interesting to see how the long term holders react as the shares approach this significant support line once again.
From the trading floor
The FTSE 100 managed to cling to the major support at 5450 yesterday and closed just above, which gave the green light for a little relief rally first thing this morning as a few bear positions were closed. However, it was not long before the bears regained control and started to sell the market at 5500 down to a low of 5411, just above the next major support line of 5400. This was all done on relatively light volume of 550 million shares, and as I type the main index was down 24 points to 5441 (-0.43%). The FTSE AIM All-Share Index was 0.87% easier on volume of 924 million shares.
Gold - ↓Trading at $1555, down $1 (-0.05%)
Silver - ↓Trading at $28.14, down 2c (-0.04%)
Copper - ↑Trading at $7779, up $13 (+1.05%)
Zinc - ↓Trading at $1918, down $10 (-0.56%)
WTI Crude - ↑Trading at $94.89, up 11c (+0.12%)
Brent Crude - ↑Trading at $112.31, up 74c (+0.66%)
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