Southern Energy Corp (LON: SOUC) is acquiring the rest of the acreage of the Gwinville onshore oil and gas field in Mississippi for $3.2m. This is equivalent to $1.76/barrel of oil equivalent based on reserves. There will be a significant boost to production with potential cost savings, plus potential upside. Field costs could be reduced by 30%. The share price jumped 16.3% to 23.25p, although it is still 52% down on the start of the year.
Oil and gas company Barryroe Offshore Energy (LON: BEY) shares have recovered some of yesterday’s loss after the Irish government refused to grant the Barryroe lease undertaking on the grounds of financial capability. The share price is 21.05% higher at 1.15p. However, Lansdowne Oil & Gas (LON: LOGP) has fallen a further 12.5% to 0.175p.
Southern Energy Corp (LON: SOUC) is acquiring the rest of the acreage of the Gwinville onshore oil and gas field in Mississippi for $3.2m. This is equivalent to $1.76/barrel of oil equivalent based on reserves. There will be a significant boost to production with potential cost savings, plus potential upside. Field costs could be reduced by 30%.
Calnex Solutions (LON: CLX) had already warned that orders were delayed, and the full year figures were as expected. The telecoms testing equipment supplier reported a one-fifth improvement in pre-tax profit to £7.2m. There is a £19.1m cash pile even after capitalised development spending and the acquisition of iTrinegy. Pre-tax profit could fall to £4m, but cash generation remains strong. Investors were reassured. The share price recovered 8.08% from its recent low to 107p.
BP Marsh (LON: BPM) is selling its 18.7% stake in Kentro Capita, formerly Nexus Underwriting, to Brown & Brown for £51.5m, having more than quadrupled its investment. That is in line with the July 2022 valuation of the stake. That means that BP Marsh will have £55.2m of cash, which is more than two-fifths of the market capitalisation. The share price is 4.67% ahead at 336p.
Eneraqua Technologies (LON: ETP) had a bumper year to January 2023, helped by higher margin projects being moved to the fourth quarter. However, this year is set to be dominated by lower margin work for the energy and water efficiency business as social housing spending is held back. This year, pre-tax profit could fall from £10.1m to £7m, even though revenues will be higher. Margins should subsequently recover. The market has taken this news badly and the share price has slumped 37.5% to 162.5p, which is a new low. The prospective multiple is eleven.
A trading update from Physiomics (LON: PYC) warns that full year revenues will be more than 10% below the previous guidance of £750,000 – possibly as low as £660,000. That is due to delays in clients supplying data to be analysed using the company’s models. A new client project has also been delayed. The share price declined 16.7% to 2.25p.
Watkin Jones (LON: WJG) says that although institutional interest in investment in development projects is improving the company is cautious about the outcome for the year. The second half will be better than the first half, where there was a small profit, but full year pre-tax profit forecasts have been cut from £48m to £26m. There are five potential forward-fund deals, but they may not all be signed this year. The funding of the deals is also changing meaning that more of the cash will be paid at a later stage of development. The share price fell 15.7% to 81.3p, which is not far fom the low last October.
Staffing firm Empresaria (LON: EMR) says that the market is softening with hiring decisions taking longer, and net fee income is 5% lower in the first four months of 2023. That will lead to a sharp fall in interim profit. Singer has cut its 2023 pre-tax profit forecast from £9m to £7m based on flat net fee income. At 52p, down 15.5%, the shares are trading on eight times prospective earnings.
