Africa-focused oil and gas company Afentra (LON: AET) has returned from suspension following the publication of an admission document covering the proposed acquisition of interests in the producing Block 3/05 and the exploration Block 23 in Angola from Sonangol. The share price jumped 85.6% to 27p. Afentra chief executive Paul McDade bought 821,192 shares at 24.3p each.
The initial cost of the acquisition is $80.5m, with up to $50m of contingent consideration for the Block 23 interest. The acquisition cost is equivalent to $3.60/barrel – based on proved and probable reserves. In the first half of 2022, the net production from Block 3/05 was 4,700 barrels per day and it could generate an estimated $36m of cash a year at an oil price of $75/barrel.
Artemis Resources Ltd (LON: ARV) returned from a much shorter suspension during the week after reporting additional results for drilling at the Greater Carlow Castle copper gold cobalt project in Australia. A review of the results has been completed. Crosscut zone results have identified an offset mineralised load to the west, while mineralisation is open to the north. Carlow West zone drilling has intersected two areas of mineralisation. A mineral resource calculation is planned. The share price rose 75.9% to 2.75p.
Shares in rail infrastructure monitoring technology provider Cordel (LON: CRDL) rose 66.7% to 8.75p following the announcement earlier in the week of a five-year contract with Angel Trains to install fully automated monitoring hardware on in-service passenger trains. Robert Lojszczyk bought 200,000 shares at 6.98p each on Thursday.
Stakebuilding in Igas Energy (LON: IGAS) by Odey Asset Management appears to have pushed the share price higher. It has risen by 45.2% to 74.2p. Odey announced a declarable holding of 3.71% at the beginning of August and this has been increased to 4.26%. This is the highest the share price has been since early 2019 and it is still 98% below the peak in 2014.
Trinidad-focused oil and gas company Touchstone Exploration (LON: TXP) shares are continuing their recent recovery and the price has risen 39.8% to 98p. The authorities have accepted the Environmental Impact Assessment for the 80%-owned Cascadura project. A final determination will be made by 15 September. The Coho gas facility will soon start pre-commissioning. Coho and Cascadura could add total net production of more than 10,000 barrels of oil equivalent per day. Quarterly oil production from was 2% higher at 1,402 barrels of oil per day. Revenues were 66% higher at $12.6m, however, a higher tax charge meant that there was a small net loss.
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Fallers
Kropz (LON: KRPZ) says that its Elandsfontein phosphate project has been delayed due to initial ore variability and that made it the worst performer on AIM during the week with a 29% decline to 5.15p. This delay means Kropz immediately requires $4.2m of additional funding to tide it over. A $7.3m bridge loan facility has been agreed with ARC Fund on top of the existing facility already provided. The bridge loan is payable on demand. Further funding is likely to be required for working capital, particularly if there are any more delays.
A tax issue and a slow start to the current financial year knocked the ECO Animal Health (LON: EAH) share price, which fell 21.6% to 100p. Trading for the year to March 2022 will be in line with expectations. The profit will include a £1m foreign exchange gain that helped to offset a similar provision for sales tax on imported products – this has not been previously expensed. The total provision, covering more than one year, is likely to be £2.5m. There is also an additional R&D charge of £300,000 for work that did not meet the criteria for capitalisation. Low Chinese hog prices have hampered demand for antibiotics in the first quarter and the subsequent rise in prices will take time to boost demand. Group revenues are likely to be flat in 2022-23.
Digital media company Digitalbox (LON: DBOX) reported a strong first half trading with revenues 40% higher at £1.9m and an increase in net cash to £2.4m. This is before the completion of the acquisition of the assets of TVGuide.co.uk. However, management is concerned about advertising levels in the second half. Digitalbox management believes that it can still achieve full year pre-tax profit expectations of £1.2m, though. The interims will be reported on 27 September.
