Fox-Davies Capital Wednesday Energy and Mining News Wrap

Oilex (OEX) issued an operation update for the quarter to 30 June 2009. The company continued to focus on restructuring its assets and operations, maintain production revenues and assess P1 opportunities. The company initiated a detailed technical and commercial review of its appraisal and development operations both in Oman and in India following the result from the Cambay-75 appraisal well drilled during the quarter. The Indian operations accounted for net oil production of 15,229 barrels for the quarter and are cash flow positive. A prime focus is to complete the proposed farm-out of part of its 25% interest in the Timor Sea block to reduce its financial exposure. The company continues to take all possible measures to resolve the Joint Venture issues in the West Kampar PSC, where the Pendalian Field development and exploration program have been temporarily suspended.

Forum Energy (FEP) published interim results to 30 June 2009, recording a loss of US$1.2m better than the US$1.7m of a year ago on lower revenues of US$0.2m due to substantial reduction of administrative expenses. The company, operating in the Philippines, initiated programme to convert the COC131 licence into a full production contract. It signed a gas sale and purchase agreement for the development of the Libertad field and commenced negotiations on power plant installation. First revenues from Galoc are expected in Q3 2009.

Ithaca Energy (IAE) gave a positive update on the Jacky field which is now flowing at rates in excess of 11,000 bopd. Optimisation of the downhole pump performance has resulted in progressive production rate improvement and now daily rates are in excess of 11,000 bopd (7,400 bopd net to Ithaca).

Beowulf Mining(BEM) announced that it has commissioned its initial metallurgical tests on ore grade material from its 100%-owned JORC-compliant Lulepotten copper-gold deposit in the Arjeplog County region of Northern Sweden, from MINPRO AB's research laboratory at Stråssa, Central Sweden. The resultant products will be made available to potential buyers for quality testing. Lulepotten currently forms the largest copper deposit within the Company's Ballek project area covering close to 11,000 hectares. As announced on 16 September 2008, the deposit has an estimated JORC-compliant inferred mineral resource of 5.4Mt grading 0.8% Cu and 0.3g/t Au, representing a total of 43,000t of contained copper metal and 52,000oz of contained gold using a cut-off value of 0.3% for copper. Further drilling is expected to significantly increase the resource

Berkeley Resources (BKY) announced that it had completed a Co-operation Agreement with ENUSA under which it can acquire 90pc of ENUSA's uranium mining assets in Salamanca province in Spain for a payment of Euro 25M. An 18 month Feasibility Study commenced on the Salamanca Uranium Project on 26 May 2009 and consultants have been engaged to assist with the study including AMC Consulting to perform resource modeling and mine planning and Golder Associates for environmental and permitting work. There is an inferred JORC resource for the Salamanca Retortillo deposit totaling 16.9m lbs of U3O8 at an average grade of 563ppm

DWYKA Resources (DWY) announced that a work programme has commenced, with focus on the Tulu Kapi and Yubdo gold prospects alongside Dwyka's existing assets in Ethiopia. The results of Minerva's 34 hole drilling programme at Tulu Kapi to be used with the intention of rapidly establishing a JORC resource and fast tracking the project to development.

Medusa Mining (MML) announced that its Philippines operating company Philsaga Mining Corporation, announces its Quarterly Activities Report for the period ending 31 March 2009. The phase I expansion to 60,000 annualised production, was completed ahead of schedule; and record production of 16,009oz (previous quarter 12,716oz); with record low cash costs US$198 per ounce (US$152 per ounce before taxes, royalties and local production taxes). The Resource base increased to 1,380,000oz at 10.8 g/t gold (an annualised increase of 60%, or 518,000oz); and the Reserve base increased by 101% to 500,000 ounces at 14.9 g/t gold which is sufficient to support a 5 year mine life at 100,000oz per year.

Sylvania Resources Ltd (SLV) announced that as at 5.00 pm Australian Western Standard Time on 21 July 2009 valid acceptances had been received for Sylvania's offers to acquire the entire issued share capital of: a) SA Metals Limited ACN 093 178 388 (SA Metals) (ASX: SXM) in respect of 173,667,958 SA Metals shares representing 57.26% of the issued share capital of SA Metals; and b)Great Australian Resources Limited ACN (Great Australian) (ASX: GAU) in respect of 22,846,396 Great Australian Shares representing 17.19% of the issued share capital of Great Australian. Including the 38,066,078 SA Metals shares and 26,455,382 Great Australian shares already owned by Sylvania, Sylvania now has a "Relevant Interest" (as defined in the Australian Corporations Act) in: a) 211,734,036 SA Metals Shares representing 69.81% of the issued share capital of SA Metals; and b) 49,301,778 Great Australian Shares representing 37.09% of the issued share capital of Great Australian.

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