ST BRIDES PARTNERS WEEKLY BRIEF – 05.02.16
In the Brief this Week…
Andalas Energy and Power (ADL) had a busy week, announcing a new NOMAD and broker, Board changes and a farm-in agreement for the Tuba Obi East oil and gas concession in Indonesia; FinnAust Mining (FAM) announced positive survey results at its Pituffik Titanium Project in Greenland, revealing that high grade ilmenite extends offshore into the shallow marine environment; Highlands Natural Resources (HNR) was re-admitted to trading on the LSE this week; Hummingbird Resources (HUM) added US$24m and 169,000oz gold to its Yanfolila Gold Project in Mali; MX Oil (MXO) received an eye-catching US$18 million offer for its stake in the Aje Field, offshore Nigeria and provided an update on its four Mexican concessions; Noricum Gold (NMG) announced positive drill results at its Kvemo Bolnisi Project in the Republic of Georgia; Northcote Energy (NCT) completed infrastructure upgrades at the Shoats Creek Field, Louisiana, which has allowed production to commence at the Lutcher Moore #20 well; Plexus Holdings (POS) and its Malaysian JV partner won its first £0.9M well order with Talisman Energy in Indonesia; and Teathers Financial Plc (TEA) has issued an update as it continues to identify development opportunities following its suspension on AIM in December last year.
Andalas Energy and Power (ADL) had a busy week, first announcing it had appointed Cantor Fitzgerald as its NOMAD and broker, then swiftly following this up with Board changes. Bolstering its Board, the Company appointed Daniel Jorgensen as Chief Financial Officer, while former NED Paul Warwick has taken up the mantle of Chairman. Having achieved a number of significant milestones since focusing on the Indonesian oil and gas market, the appointments recognise the need to ensure strong leadership is in place as it progresses its strategy in the region. ADL closed out the week by announcing it had signed a heads of agreement to farm-in to an Indonesian gas project covering the Tuba Obi East concession, giving it a beach head into the prolific hydrocarbon region.
FinnAust Mining (FAM) announced the results of recent testing of the seafloor at its Pituffik Titanium Project in Greenland, which demonstrate that the shallow marine environment hosts very large volumes of potentially high grade, titanium rich, ilmenite sediments. The positive results reinforce the Company’s strategy to deliver near-term proof of concept production, currently scheduled for 2017, with the ‘drowned beaches’, one of three targets identified at the Project, offering exciting, low cost production opportunities.
Highlands Natural Resources (HNR) was re-admitted to trading on the LSE, following its acquisition of US based Diversion Technology, which has developed a technology that could dramatically reduce costs associated with lifting production from unconventional fields. With its dynamic technology having already sparked the interest of oil field services leader Schlumberger, which has signed indicative terms for a 20 year licensing agreement, and due diligence scheduled to begin within 6 months, 2016 is set to be an exciting year for the Company.
Hummingbird Resources (HUM) received excellent results from a Desktop Study on the Gonka deposit, located 5km south of its Yanfolila Gold Project in Mali. The study highlighted that the Gonka deposit will add US$24m and 169,000oz gold to Yanfolila, where first gold production is targeted for 2017.
MX Oil (MXO) received an impressive offer for its stake in the Aje Field, offshore Nigeria. The Company, which previously announced it had received interest for its stake in the Nigerian interest, announced this week that it has been made an offer of US$18 million, far outstripping the Company’s current market cap of £5 million. Later in the week, the Company provided an update on the four onshore concessions it was recently awarded in Mexico, announcing it has satisfied its initial obligations. With a strong technical team in place to extract maximum value from the previously discovered yet underexploited conventional fields, MXO will focus on building a leading Mexican focused oil and gas investment company.
Noricum Gold (NMG) announced positive drill results at its Kvemo Bolnisi Project in the Republic of Georgia which reiterate the potential for low-cost early-stage gold production inH2 2016.
Northcote Energy (NCT) completed planned infrastructure upgrades at the Shoats Creek Field in Louisiana, which is now fully equipped to support production from the LM#20 well as well as production from future Frio wells up to a capacity of 1,500 bopd.
Plexus Holdings (POS) secured a purchase order with Talisman Malaysia, part of REPSOL, to supply its best in class wellhead system for an exploration well offshore Malaysia. The £0.9m contract is the first for to be awarded to the Company through its JV with its local Malaysian partner
Teathers Financial (TEA) has been reviewing possible new investments and assessing the likelihood of implementing / satisfying the conditions of its investing policy before 4 June 2016 in order to lift its current suspension on AIM. The board’s current view is that it is unlikely the Company will be deemed to have implemented its investing policy by this time. However, the Company has been in discussions with two potential targets regarding a potential reverse takeover. The board has also been in discussions with its advisers about creating a structure that would give shareholders both direct ownership of TFSL and the potential upside from a reverse takeover. Operationally, Teathers continues to maintain its portfolio of investments and in particular continues to support the activities of its innovative software subsidiary TFSL
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