Arrow Exploration (AXL), the operator with a portfolio of assets across key Colombian hydrocarbon basins, provided an update on the Carrizales Norte-1 well (CN‑1), an exploration well on the Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50 per cent beneficial interest.
The company said the Carrizales Norte-1 discovery in both the C7 and Ubaque reservoirs are extremely important and material events for Arrow with both the C7 and Ubaque reservoirs exceeding expectations. These results expand and accelerate the Carrizales Norte development plan beyond three wells. As well, Arrow is planning to complete a new reserve report once the Carrizales Norte 2 and 3 wells have been completed. The expectation is that the Carrizales Norte wells will be quick to payout in the current oil price environment and add to shareholder value.
Comment: AXL continues to transform from a minnow to a serious mid tier operator, something which the market is getting on the back of with increasing enthusiasm. With CN-2 and CN-3 still in the mix, one would imagine that the latest share price breakout will gather increasing momentum this summer.
Sovereign Metals (SVML) reported on recent outcomes of downstream testwork on Kasiya’s graphite co-product. The Kasiya Project has the potential to be the one of the world’s lowest cost and lowest global warming potential sources of natural graphite. The Kasiya project is the largest natural rutile deposit and one of the largest flake graphite deposits in the world. Both minerals are critical to several of the world’s economies and decarbonisation targets. The company said these results bolster Kasiya’s competitive advantage, indicating that not only does the project have the potential to be a dominant rutile supplier, but also a dominant supplier of graphite suitable for the lithium-ion battery industry. Kasiya’s PFS is progressing well with the company looking forward to releasing the outcomes of the study in coming months.
Comment: Although the market remains largely asleep as far as the massive potential and quality of what SVML is sitting on, this state of affairs is unlikely to last for long, as the PFS progresses during the rest of 2023.
First Class Metals (FCM) the UK metals exploration company, provided an update on exploration activities. This included Zigzag Lithium-Initial reconnaissance trip with the property completely under the cover of snow returns grades of Lithium (Li) up to 1.00% and Tantalum (Ta) up to 198 ppm. The company said FCM remains focussed on bringing four of its key properties to drill ready status this field season. It is its stated intent, permits notwithstanding, of drilling at least one of these properties this season. The 2023 field season has started well and with the support of EGS it feels it is currently on track to accomplishing this objective.
Comment: It was always going to be the gas that the summer 2023 would be pivotal for FCM, and the company has illustrated that this is already the case. The Li and Ta are a good start, as would be drilling one of FCM’s properties this season.
Sabien Technology Group (SNT), the company focused on a green aggregation strategy, updated regarding its M2G business, Sabien Technology Ltd, which focuses on CO2 mitigation devices for commercial boilers. The company said M2G has performed ahead of its expectations. In delivering the Cloud solution, it has witnessed the extent to which the commercial heating market is keen to accept energy-saving innovations in support of both cost and CO2 reductions. This acceptance has been achieved as a result of M2G’s strong reputation for delivery and efficiency. Additionally, it has been pleasing to see continuing strong order flow into the traditionally slower summer period for M2G.
Comment: While some might regard the drive to net zero to be as wise as the Charge of the Light Brigade, there is clearly a strong demand to lower CO2 emission, even if it will be as effective as King Canute turning the tide. Sabien has illustrated that it is onto a winner with regard to greenhouse gas mitigation.
BSF (BSFA), the Main Market listed biotech company, announced that it will be undertaking a US investor roadshow between June 26-30, 2023 and has appointed a US Investor Relations agency to manage its communications in the region. This follows on from the Company’s successful listing on the OTCQB market, announced on 25 May 2023. The company said it intends to leverage its US listing to the very best of its abilities in order to improve its international profile, increase liquidity in our shares and maximise value for all of its shareholders.
Comment: The OTCQB listing was an obvious move for BSF, especially given the way that our friends across the pond were always more likely to get excited about a synthetic pork fillet than we are over here. Appointing a US IR group adds to the US push this summer.
Oxford Cannabinoid (OCTP) announced the appointment of Dr Tim Corn as the Company’s new Chief Medical Officer effective immediately. Dr Corn is an independent pharmaceuticals consultant who has held senior positions in both large and small pharma organisations. The company said it was delighted to welcome Tim to OCTP as Chief Medical Officer, a new position within the Group, highlighting yet another step change at OCTP, as it further strengthens the senior team. Tim’s knowledge of the regulatory environment and experience as a CMO make him a perfect fit for this key role as it moves forward through clinical trials towards commercialisation.
Comment: Today’s announcement from OCTP underlines the way that the medical cannabis space has come of age, especially since the pandemic. The market for pain alleviation is massive, as underlined by the opioid crisis, and companies like OCTP could play a big part in addressing this crisis with both natural and synthetic products.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
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