Positive news of the SABER tool and its downhole tests has pushed up the share price of oil and gas equipment supplier Enteq Techniques (LON: NTQ) by 21.2% to 10p. SABER completed drilling testing in North America and met test objectives, including being able to change the direction of the well. The next step is potential customer trials. SABER has a lower risk of system failure than existing rival products.
Sylvania Platinum (LON: SLP) has entered into a joint venture agreement with a subsidiary of ChromeTech Mining Company. The Thaba joint venture will process platinum group metals and chrome ore from existing tailings from the Limberg chrome mine. This should increase Sylvania Platinum’s platinum group metals production by 9% – it does not currently produce chrome. The AIM company will fund the capital costs of $32m and provide a $5m working capital facility. Cash payback should be within three years of commissioning – based on long-term price estimates. First production will be in the second half of 2025. The share price rose 7.68% to 71.5p.
CyanConnode (LON: CYAN) has gained an order for 500,000 Omnimesh modules for smart meters in Gujarat, India. Supply will start in the third quarter of 2023. This takes the total modules ordered in the past three months to 1.4 million. The share price is 6.45% higher at 16.1p.
Data analysis services and software provider D4T4 Solutions (LON: D4T4) has secured one of the two major contract wins expected in the previous financial year. This is a large contract with an existing bank customer, although it includes significant hardware sales that are low margin. The contract should be completed in the first half. This helps to underpin the expected improvement in full year revenues from £21.4m to £32.3m and improved pre-tax profit of £5.3m. The share price moved ahead by 2.56% to 200p.
Star Energy (LON: STAR) average production of 2,080 barrels of oil equivalent/day in the first half of 2023 and it should be maintained at just below this level for the year as a whole, even though July production was even higher. Net debt was £2.7m at the end of June 2023. Management is seeking potential geothermal projects. The share price increased 3.06% to 11.8p.
FALLERS
Velocity Composites (LON: VEL) has raised £6.2m at 40p/share. The share price fell 8.7% to 42p. A REX retail offer could raise up to a further £600,000. Last month, Velocity Composites said the GKN contract in the US was taking longer than expected to ramp up. Cenkos cut its 2022-23 revenue forecast for the contract £5m to £2.2m and for the group from £20.1m to £16.2m. A £2.9m loss is forecast. The GKN contract could eventually generate £15.4m/year.
