A successful outcome to arbitration proceedings sent shares in Falkland Island oil and gas explorer Rockhopper Exploration (LON: RKH) 61.1% higher to 14.1p. Compensation of €190m has been awarded plus interest compounded annually from 29 January 2016. The Italian government breached its legal obligations when it did not award a production concession for the Ombrina Mare field. The government has 120 days to apply for an annulment of the compensation. Rockhopper Exploration expects to retain 80% of the payment after costs. An agreement with the Falkland Island government means that this cash cannot be distributed to shareholders it has to be retained in the company.
Angus Energy (LON:ANGS) shares jumped60.8% to 2.05p after it announced that it had produced well head gas at its extraction and processing facility at Saltfleetby. Well B2 is producing five million standard cubic feet of gas per day, which is more than expected.
Egdon Resources (LON: EDR) holds 30% of the Wressle oil project and the share price jumped 37.4% to 6.8p after Union Jack Oil (LON: UJO), which owns 40% of Wressle, said that it has generated revenues of $9m for the company since re-commencement of production in August 2021. Union Jack Oil shares did not react as sharply as those of Egdon Resources even though it owns a higher percentage, but there was still a 10.3% rise to 32p. Europa OIL & Gas (LON: EOG) holds the other 30% of Wressle and the share price is 7.14% higher at 3p.
Record quarterly production of 14,467 barrels of oil a day helped PetroTal Corp (LON: PTAL) to generate net operating income of $98.6m in the second quarter of 2022. Free cash flow was $69.4m in the first six months of 2022. Production levels continue to increase. The 26,000 barrels of oil a day capacity of the central processing facility was nearly reached. The PetroTal share price is up 29% to 50p.
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Fallers
OptiBiotix Health (LON: OPTI) was the worst performer of the week with a 36.3% share price decline to 19.125p. Sales of the core prebiotics business fell in the first half due to customer delays in restocking and postponing of product launches. Larger partners are placing fewer, but more significant orders, which can make revenues lumpy. Orders may recover in the second half as delayed product launches happen. The figures will no longer consolidate 40%-owned ProBiotix Health (LON: PBX) following its spin-off on Aquis. That generated a gain in book value of £13.8m. OptiBiotix Health has £1.5m in cash.
Greatland Gold (LON: GGP) raised £29.7m in a placing at 8.2p a share, having originally sought £25m. The share price slumped 21% to 8.3p during the week. Newcrest Mining’s decision not to take up the option to buy a further 5% stake in the Havieron gold project in Western Australia sparked the fundraising. The share price was 10.4p before that decision was made public. Greatland Gold retains a 30% stake in Havieron. The price for the 5% stake had been set at $60m and much of that cash was earmarked to pay off loans from Newcrest Mining. Tribeca Investment Partners is putting up $13.8m of the new cash and it has agreed to provide $27.6m of additional funding to finance the development costs of Havieron. Bank debt is also being sought.
Independent Oil and Gas (LON: IOG) has been hit be development problems and the share price fell 19.2% to 29.4p. Full year gas production guidance has been reduced from 45-60mmcf/day to 30-50mmcf/day. Operating costs will be higher. The Saturn Banks phase 1 development problems have offset the positive of the initial revenues generated in the first half of 2022. The interim revenues were £30.2m and full year revenues of £86.2m are forecast and that could generate pre-tax profit of £50m. Earlier in the week. London Oil & Gas Ltd, which is in administration, reduced its shareholding from 26.99% to 25.83%.
Haydale Graphene Industries (LON: HAYD) has raised £5m at 2p a share and an open offer at the same price could raise up to £510,000. The share price slumped 18.8% to 2.6p due to this news. Haydale is developing inks and other products using its graphene technology that can be used in the aerospace, automotive, medical and electronics markets. The cash will fund the scaling-up of operations. There is a warrant attached to every two shares issued and they are exercisable at 2p a share.
ECR Minerals (LON: ECR) has received A$950,000 from the sale of the Bendigo property – the property was bought A$887,500 one year ago. A subsidiary will continue to use the property until the end of the year. The share price had already fallen 16.2% to 0.775p prior to the announcement. Next month follow-up drilling at the Blue Moon gold prospect will commence and if the results are positive the drilling programme will be expanded.
