RNS Hotlist with Zak Mir: HARL, JLP, RBD, CREO, UJO, PANR, CHLL, GCAT, CKT, CEG & FOG via Vox Markets

Harland & Wolff Group (HARL), the UK quoted company focused on strategic infrastructure projects, provided an update on the Cory Barges contract.

Author @ZaksTradersCafe

The company said it is fantastic to walk round the fabrication halls in Belfast and see them being a hive of activity. It has been fascinating to watch the adoption of new technology with our twin headed robotic welding line delivering production improvements by a magnitude of four to six times against conventional production and welding methods.

Comment: For levels of enthusiasm this RNS is difficult to beat. It could even be enough to convince H&W fans that the next leg up for the share price is nigh.

Jubilee Metals (JLP), a diversified metals processing group, announces that CEO, Leon Coetzer, will be hosting a webcast on 17 February 2023 at 10:00am GMT (12 noon SAST), offering shareholders and investors the opportunity to engage with the company for a General Update and to elaborate on the Company’s Operations Update for the six months to 31 December 2022 and Refinement of its Zambian Strategy.

Comment: One of the rules we have been reminded of on the stock market this week with Jubilee, is that a company can overdo it with regard to operational issues, especially when sorted out they could be positive down the line. The fall in JLP shares appears to be have been totally out of line with the financial performance and prospects of the company, especially if one considers that there is little prospect or need for a fundraise, which would be the only real excuse for a 20% plus decline in the share price.

Reabold Resources (RBD), the oil & gas investing company, announced that a copy of a Competent Person’s Report prepared by RPS Group on UKCS Licence P2478 on behalf of the Joint Venture partnership with Baron Oil (BOIL) and Upland Resources (UPL) in which Reabold is the Licence Administrator with a 36% working interest. RBD said it was pleased that the CPR has confirmed the western part of the Dunrobin complex is a relatively low-cost exploration well and can target more than 100 mmbbl of gross Pmean Prospective Resources. It believes the results from this CPR for P2478 alone strongly supports its decision to acquire licence P2478 from Corallian Energy for £250,000. Reabold has retained four other licences from that acquisition that we continue to progress technically and commercially. The publication of this CPR adds further validity to the technical work carried out by Reabold and supports the ongoing farmout campaign being formally run by us for the Reabold North Sea portfolio, which has already attracted industry interest.

Comment: Reabold’s bargain £250,00 P2478 deal looks to have been well validated. It will be interesting to see when the positive read across to the share price starts to filter through. Perhaps fans of BOIL and UPL will help in this process.

Creo Medical Group (CREO), a medical device company, announced a proposed fundraising by way of an accelerated bookbuild to raise a minimum of £25.0m at 20p, and is proposing to raise up to approximately £5.2 million by way of an open offer.

Comment: A rather hefty cash call from Creo, especially given the way that the company is not perhaps front and centre as far as awareness with retail investors. The message is perhaps that if the company can get this away, we could be presumptuous enough to assume the liquidity crunch in the small cap space is finally over.

Union Jack Oil (UJO), a UK focused onshore hydrocarbon production, announced that it has purchased a total of 50,000 of its shares at 26.5p.

Comment: Given how nasty thing have been in the small cap space of late, a company buying its own stock is to be commended, if only on the basis of it being an easy to understand message to the market regarding the value of its shares.

Pantheon Resources (PANR), the AIM-quoted oil and gas company, provided an update on the cleanout of the sand blockage in the Alkaid #2 well which is now complete. The company said it was excited to resume flow testing, with a clean wellbore which will flow directly into its permanent facility, which was designed, procured, built and commissioned in a single season.

Comment: This may not be the announcement that scares off the recent bear attack in the stock. However, proving the doubters wrong is something which the company may be able to do, with a decent “business as usual” attitude.

Chill Brands (CHLL), the international consumer packaged goods company, provided an update on the development of its online sales strategy following the addition of the first third-party brand to the Chill.com website. Products from Mad Tasty, America’s leading brand of hemp-infused beverages, are now available for purchase by US consumers on Chill.com.

Comment: Shares of Chill have been rallying of late, presumably on anticipation of today’s news. Clearly, if successful, the first third party brand on its website, could be a fundamental inflection point for the company.

Caracal Gold (GCAT), the East African gold producer, announced that it has raised $1 million via the issue of secured Convertible Loan Notes to Orca Capital GmbH and the proceeds have been drawn down. The company has granted the subscriber an option to subscribe for up to a further $4 million of Loan Notes.

Comment: Caracal continues to regroup after the financing disappointment last month. It will be interesting to see how it negotiates its fightback in this respect over coming weeks. So far it appears to be on track.

Checkit (CKT), the intelligent operations platform for the deskless worker, reported an unaudited trading update for the year ended 31 January 2023. ARR increased by 28% to £11.5m, vs. consensus market expectations of £10.8m (+20%). Net cash at 31 January 2023 of £15.6m vs. consensus market expectations of £15.2m. The company said ARR growth was better than expected during H2 amidst a challenging economic and political environment, driven by consistent sales momentum, with contracts signed offering further expansion opportunities underpinning the Board’s confidence in future growth.

Comment: Checkit is one of those companies that despite the lack of name recognition amongst many retail investors, looks to be flourishing despite current difficult economic conditions. Such companies should be on the watchlist.

Challenger Energy (CEG), the Caribbean and Americas focused oil and gas company, provided an update on its 2023 strategy and work program. The company said that during 2022 it reset its business following earlier non-commercial exploration drilling outcomes. Now, as it starts 2023, the focus is on those areas that offer the best scope for near-term value upside. Uruguay is most obvious, and the plan for AREA OFF-1 is to complete our initial low-cost work program and then proceed rapidly to farm-out the asset.

Comment: Ideally, the reset the company says it has made on a fundamental basis, will be reflected in a reset in sentiment amongst investors. If this is the case then 2023 will indeed be a rather better one than recent years.

Falcon Oil & Gas Ltd. (FOG) announced the commencement of the well stimulation programme at the Amungee NW-2H well. The company said this is an exciting phase of operations in the Beetaloo with the potential for obtaining production rates that would support the joint venture moving to a multi-well pilot development program in 2023/2024.

Comment: FOG has to date remained something of an unsung hero in terms of market perception. Ideally, this new phase for the company at Beetaloo will start to move the dial.

Author @ZaksTradersCafe

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