As we head into the Bank Holiday weekend, we were all reminded that while spring may have, in theory, sprung, we are very much still subject to the whims of the notorious UK weather. Having seen a flurry of snow and Liberal amounts of sunshine this week alone, we’re preparing ourselves for all four seasons this weekend. In the Brief this Week….
Andalas Energy and Power (ADL) was re-admitted to trading on AIM following its farm-in to the Tuba Obi East concession in Indonesia; Atlas African Industries (AAI) released its results for the 18 months ended 31 December 2015 highlighting its transformational move into the industrial and manufacturing sector; Challenger Acquisitions (CHAL) is well-positioned for growth following transformational acquisitions, highlighted in its final results this week; DekelOil (DKL) is on track to refinance senior debt on improved terms following record palm oil production at its Project in Cote d’Ivoire; Falcon Acquisitions‘ (FAL) final results reiterate it remains focused on entering the exciting and prospective OTT market through its first acquisition; Highlands Natural Resources (HNR) reported new project acquisition and on the strong progress being made to commercialise its OT Ultravert Technology alongside Schlumberger and following this, was trading 40% higher than its placing price this week after raising over £500k to fund them through 2017; Keras Resources (KRS) successfully delivered its second gold ore batch at the Grants Patch Tribute Project in Australia; Northcote Energy (NCT) elected to acquire a 3.75% interest in Andalas’ Concession in Indonesia; Plexus (POS) raised US$5 million and is accelerating its entry into Russia’s major oil and gas production wellhead equipment market; while Tlou Energy (TLOU) published a quarterly report that highlights it has achieved sustained gas flows at its Lesedi CBM Project in Botswana.
Andalas was re-admitted to trading on AIM as an oil and gas operating company following its Farm-in to the Tuba Obi East [‘TOE’l Technical Assistance Programme in Indonesia, which constituted a RTO. The Company also raised £2.6 million through a placing, the proceeds of which willbe used to fund the agreed work programme at TOE, which includes drilling and flow testing of a single wellto assess the deliverability, recoverable volumes and gas quality in the Air Benakat Formation.
Atlas released its results for the 18 months ended 31 December 2015 highlighting the Company’s transformational shift into the industrial and manufacturing sectors with the establishment of its industrial division and acquisition of a state-of -the-art glass manufacturing facility in Ethiopia. With Ethiopia’s rapidly growing consumer market presenting an ever-increasing array of attractive opportunities, the Company’s well-timed transition should help to mitigate its Losses from liquidating its Kenyan business.
Challenger released its final results for the period ended 31 December 2015 after making a number of significant and potentially transformational acquisitions including the Starneth Group as well as upping its stake in the New York Wheel Project. The Company also announced an extension of existing convertible notes and the issue of a new £0.5 million convertible note.
DekelOil recently reported record palm oil production at its vertically integrated Ayenouan palm oil project in the Cote d’Ivoire, leaving the Company in a strong position to refinance its senior debt of €6.9 million on materially improved terms. The Company is making excellent progress towards ensuring its balance sheet befits its status as an established producer and the strong momentum should continue through 2016.
Falcon announced its final results this week and they re-emphasised the Company’s strategy to make its first acquisition in the rapidly growing OTT market, which has seen significant uptake in recent years thanks to an increase in broadband penetration and the use of mobile devices.
Highlands sparked shareholders· imagination this week after a corporate update showed the Company has made significant progress in commercialising its proprietary OT Ultravert refracking technology with the help of Schlumberger, with first tests planned for June 2016 in the Piceance Basin, Colorado. The Company also announced a cache of other projects including an acquisition in the Gravity Prospect and in-situ uranium mining prospect in Utah. The Company followed this up by successful y raising £500k, which should fund them through to the end of 2017.
Keras announced that it had successfully completed the second ore parcel haulage to the Paddington Mill from the Accord deposit at the Grants Patch Gold Tribute lease, near Kargoorlie in the Western Austral ian goldf ields. With an approximate total of 17,000 tonnes of ore containing an estimated 1,055 ounces of gold having been hauled for processing to date, the Company continues to advance plans for the next open pits.
Northcote elected to acquire a 3.75% interest in Andalas’ Tuba Obi East Concession in Indonesia, following Anda las· readmission to trading on AIM this week. This is in line with the Company’s strategy to create a diversified oil and gas portfolio and TOE presents an attractive entry point into the Indonesian gas and power market.
Plexus had a good week after its partner in the Russian oil and gas market, Gusar, put its money where its mouth is and acquired US$5m worth of shares in Plexus. In addition, Plexus has extended its relationship with both its Russian partners, Gusar and Konar, to include the supply of its best in class wellhead equipment to Russia’s major oil and gas production wellhead equipment market which, thanks to high levels of activity and investment, promises to accelerate its entry into this key market.
Tlou, which owns the most advanced coal bed methane project in Botswana, achieved sustained gas flows at its Lesedi Project, which marks a major milestone ahead of delivering independent reserves for the project. it is focused on delivering power to Botswana, which has a very constrained energy dynamic.
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