Independent oil and gas production & development company EnQuest PLC (LON:ENQ) said it entered an agreement to acquire the entire issued share capital of Stratic Energy Corp (TSX-V:SE LON:SE), valuing the business at approximately US$45.7 million.
Stratic shareholders will get 0.089626 EnQuest shares per Stratic share. Based on EnQuest's average closing price on the LSE between July 28 and August 2 2010, this equates to an offer of 17 Canadian cents for each existing Stratic share.
The offer price represents a 70 percent premium to Stratic's closing price on July 30 and a 9 percent premium to Stratic's three month volume weighted average price of 15.56 Canadian cents.
The deal is recommended by Stratic's board and increases EnQuest's North Sea 2P reserves by 7.27 million barrels of oil equivalent. It consolidates EnQuest's 27.7 percent position in the West Don field in the North Sea with an additional 17.25 percent working interest, estimated to increase EnQuest's production by approximately a net 900 barrels of oil per day.
It also gives EnQuest with a 19 percent interest in the Crawford field development. Further additional production will be provided when the Crawford field starts production, estimated by EnQuest to be in 2013.
Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
Tuesday, 3 August 2010
ITV moves into pay-TV
Newly-appointed ITV (LON:ITV) chief executive Adam Crozier has hit the ground running with a decisive move into pay-TV.
The deal will see three of the free-to-air broadcaster’s high definition channels shown on rival Sky’s subscription platform and was announced alongside a £75 million additional investment in programming.
Crozier’s job of turning around ITV is made a little easier by the improving financial backdrop.
An encouraging set of interim results showed that net advertising revenues rose 18 per cent in the six months.
Operating profit more than tripled to £165 million from £46 million12 months earlier. At the same time the company’s debts fell to £437 million from £612 million.
The agreement with Sky will create high definition output for ITV2, 3 and 4. It is part of a five-year strategy that will see half the broadcaster's income come from non-advertising sources.
"For the past decade ITV has not faced up to the challenges presented by the rise of Internet-based platforms, the continuing growth of pay TV and subscription services and the globalisation of content," new CEO Crozier said.
"Re-shaping the economics of ITV will require changes not only to the strategy but also to ITV's management, culture and organisation and to deliver this we are today announcing a five-year transformation plan."
The deal will see three of the free-to-air broadcaster’s high definition channels shown on rival Sky’s subscription platform and was announced alongside a £75 million additional investment in programming.
Crozier’s job of turning around ITV is made a little easier by the improving financial backdrop.
An encouraging set of interim results showed that net advertising revenues rose 18 per cent in the six months.
Operating profit more than tripled to £165 million from £46 million12 months earlier. At the same time the company’s debts fell to £437 million from £612 million.
The agreement with Sky will create high definition output for ITV2, 3 and 4. It is part of a five-year strategy that will see half the broadcaster's income come from non-advertising sources.
"For the past decade ITV has not faced up to the challenges presented by the rise of Internet-based platforms, the continuing growth of pay TV and subscription services and the globalisation of content," new CEO Crozier said.
"Re-shaping the economics of ITV will require changes not only to the strategy but also to ITV's management, culture and organisation and to deliver this we are today announcing a five-year transformation plan."
Rio Tinto earmarks further $170 million for massive Simandou iron ore project
Transnational miner Rio Tinto (LON:RIO, NYSE:LON, ASX:RIO), the world's No 2 name in seaborne iron ore, has upped the ante in West Africa's iron ore race, the biggest in global mining, by announcing a further USD 170m investment in Guinea's Simandou, following USD 650m investment to date. After discovering Simandou in 2004, the iron ore system, 95% claimed by Rio Tinto, rapidly developed into one of the world's biggest mining hits.
Rio Tinto faced setbacks after portions of Simandou were apparently moved from its control when a military junta took control of the country in December 2008. On 30 April 2010, Brazilian supergroup Vale, the world's No 2 miner by value, and the global leader in seaborne iron ore, agreed to pay USD 2.5bn for a 51% stake in BSG Resources Guinea, which apparently holds rights to blocks 1 and 2 in Simandou.
This meant that the three names dominating about 60% of global seaborne iron ore, Vale, Rio Tinto, and BHP Billiton, were firmly pegged out across West African iron ore. On 19 January ArcelorMittal, an integrated global steelmaker, announced it had entered into initial discussions with BHP Billiton to potentially combine its respective iron ore mining and infrastructure interests in Liberia and Guinea within a joint venture.
On 19 March 2010 Rio Tinto announced a non-binding MOU with China's Chinalco, Rio Tinto's largest shareholder, to establish a Simandou joint venture, where the new partner would acquire a 47% interest by providing a USD 1.35bn earn-in over the next two to three years.
The agreement progressed to binding agreement last week; once Chalco has paid its USD 1.35bn, the effective interests of Rio Tinto and Chalco in the Simandou JV will be 50.35% and 44.65%; the remaining 5% will be owned by the International Finance Corporation. While a new government is yet to settle down in Guinea, Rio Tinto appears to be asserting rights to all of Simandou: "Rio Tinto's 95 per cent interest in the Simandou project will be held in the new JV", the group asserted today.
Rio Tinto has also indicated the potential size of its Simandou operation. While it may consider an export route through Liberia, the current plan anticipates the construction of a mine at Simandou with annual capacity of 95m tonnes, a 650km dedicated industrial railroad passing through 21km of tunnels traversing Guinea to the coast, a rail car-dumping facility, and a four-berth wharf located 11km offshore from Matakang.
The envisaged scale is titanic. A handy benchmark in iron ore investment can be cited in the Vale stable, which in 2007 flagged Serra Sul, a new mine, within its Carajás system in Brazil, as "the largest greenfield site in our history and the largest iron ore project in the world". Project completion was initially slated for the first half of 2012; this has now been pushed forward to the second half of 2013.
At least part of the reason is the massive budget required to build Serra Sul: USD 11.3bn (revised up from the original USD 10.1bn). Production at Serra Sul is targeted at 90m tonnes a year (a little less than Simandou), implying more than USD 1bn of investment for each 10m tonnes of output.
Even this cost is heavily discounted, given that Serra Sul has relatively near-access to Vale's existing infrastructure in its Northern System, including loading, rail, and port facilities, and even ships. Serra Sul is yet to be approved by the Vale board, which has, however, been attracted, or perhaps distracted, by West Africa's riches.
The building of the full blown Rio Tinto JV Simandou complex, to ship loading, could well cost USD 20bn or more, when rail, handling and port infrastructure is included. Rio Tinto has some advantages in this terrain, given its 1997 takeover of Alcan. Rio Tinto Alcan has long been holder of 45% of Halco Mining, a partnership which owns 51% of Compagnie des Bauxites de Guinee (CBG), one of Guinea's biggest miners, in operation since 1973, and today the single biggest supplier of bauxite to the Western world.
US aluminium giant Alcoa also holds 45% of Halco Mining; the Guinea government holds 49% of the parent company, CBG, which, overall, has annual capacity of 13m tonnes of bauxite, the raw material for aluminum. Guinea, which may hold close to half the world's reserves of bauxite, hosts other bauxite mines and developments.
Seaborne iron ore arguably ranks as the world's most lucrative franchise. A recent report by the UNCTAD Trust Fund on Iron Ore Information, in cooperation with the Sweden-based Raw Materials Group, put world production of iron ore at 1.588bn tonnes in 2009.
Chinese production figures -- re-evaluated and reduced in the latest study -- came to 234mt, on a "comparable grade" basis, by "upgrading" Chinese grades to the same magnitude as the world average of 63-64%. China has in recent years fallen to fourth globally, after Australia (394mt), Brazil (300mt), and India (257mt).
Despite the global recession, iron ore trade climbed to a record level of 955mt, in 2009, up 7.4% from the previous year. Australia ranks as biggest exporter: in 2009 it sent 363mt overseas, a 17 % increase; Brazil fell by 3% to 266mt; India was at 116mt.
China is by far the largest importer of iron ore, accounting for two-thirds of world imports. Despite the recession, its intake of ore climbed by 41% in 2009, to 628mt. The three largest iron ore companies, Vale, Rio Tinto, and BHP Billiton, together controlled 35% of total iron ore production and 61% of total seaborne trade in iron ore in 2009.
Rio Tinto faced setbacks after portions of Simandou were apparently moved from its control when a military junta took control of the country in December 2008. On 30 April 2010, Brazilian supergroup Vale, the world's No 2 miner by value, and the global leader in seaborne iron ore, agreed to pay USD 2.5bn for a 51% stake in BSG Resources Guinea, which apparently holds rights to blocks 1 and 2 in Simandou.
This meant that the three names dominating about 60% of global seaborne iron ore, Vale, Rio Tinto, and BHP Billiton, were firmly pegged out across West African iron ore. On 19 January ArcelorMittal, an integrated global steelmaker, announced it had entered into initial discussions with BHP Billiton to potentially combine its respective iron ore mining and infrastructure interests in Liberia and Guinea within a joint venture.
On 19 March 2010 Rio Tinto announced a non-binding MOU with China's Chinalco, Rio Tinto's largest shareholder, to establish a Simandou joint venture, where the new partner would acquire a 47% interest by providing a USD 1.35bn earn-in over the next two to three years.
The agreement progressed to binding agreement last week; once Chalco has paid its USD 1.35bn, the effective interests of Rio Tinto and Chalco in the Simandou JV will be 50.35% and 44.65%; the remaining 5% will be owned by the International Finance Corporation. While a new government is yet to settle down in Guinea, Rio Tinto appears to be asserting rights to all of Simandou: "Rio Tinto's 95 per cent interest in the Simandou project will be held in the new JV", the group asserted today.
Rio Tinto has also indicated the potential size of its Simandou operation. While it may consider an export route through Liberia, the current plan anticipates the construction of a mine at Simandou with annual capacity of 95m tonnes, a 650km dedicated industrial railroad passing through 21km of tunnels traversing Guinea to the coast, a rail car-dumping facility, and a four-berth wharf located 11km offshore from Matakang.
The envisaged scale is titanic. A handy benchmark in iron ore investment can be cited in the Vale stable, which in 2007 flagged Serra Sul, a new mine, within its Carajás system in Brazil, as "the largest greenfield site in our history and the largest iron ore project in the world". Project completion was initially slated for the first half of 2012; this has now been pushed forward to the second half of 2013.
At least part of the reason is the massive budget required to build Serra Sul: USD 11.3bn (revised up from the original USD 10.1bn). Production at Serra Sul is targeted at 90m tonnes a year (a little less than Simandou), implying more than USD 1bn of investment for each 10m tonnes of output.
Even this cost is heavily discounted, given that Serra Sul has relatively near-access to Vale's existing infrastructure in its Northern System, including loading, rail, and port facilities, and even ships. Serra Sul is yet to be approved by the Vale board, which has, however, been attracted, or perhaps distracted, by West Africa's riches.
The building of the full blown Rio Tinto JV Simandou complex, to ship loading, could well cost USD 20bn or more, when rail, handling and port infrastructure is included. Rio Tinto has some advantages in this terrain, given its 1997 takeover of Alcan. Rio Tinto Alcan has long been holder of 45% of Halco Mining, a partnership which owns 51% of Compagnie des Bauxites de Guinee (CBG), one of Guinea's biggest miners, in operation since 1973, and today the single biggest supplier of bauxite to the Western world.
US aluminium giant Alcoa also holds 45% of Halco Mining; the Guinea government holds 49% of the parent company, CBG, which, overall, has annual capacity of 13m tonnes of bauxite, the raw material for aluminum. Guinea, which may hold close to half the world's reserves of bauxite, hosts other bauxite mines and developments.
Seaborne iron ore arguably ranks as the world's most lucrative franchise. A recent report by the UNCTAD Trust Fund on Iron Ore Information, in cooperation with the Sweden-based Raw Materials Group, put world production of iron ore at 1.588bn tonnes in 2009.
Chinese production figures -- re-evaluated and reduced in the latest study -- came to 234mt, on a "comparable grade" basis, by "upgrading" Chinese grades to the same magnitude as the world average of 63-64%. China has in recent years fallen to fourth globally, after Australia (394mt), Brazil (300mt), and India (257mt).
Despite the global recession, iron ore trade climbed to a record level of 955mt, in 2009, up 7.4% from the previous year. Australia ranks as biggest exporter: in 2009 it sent 363mt overseas, a 17 % increase; Brazil fell by 3% to 266mt; India was at 116mt.
China is by far the largest importer of iron ore, accounting for two-thirds of world imports. Despite the recession, its intake of ore climbed by 41% in 2009, to 628mt. The three largest iron ore companies, Vale, Rio Tinto, and BHP Billiton, together controlled 35% of total iron ore production and 61% of total seaborne trade in iron ore in 2009.
FTSE 100 seen flat after rally as commodities retreat
The FTSE 100 is seen 0.1% lower today after rallying 2.65% on Tuesday after HSBC (LON:HSBA) reported a twofold jump in H1 profits. Investors got more good news when the Commerce Department said that construction spending unexpectedly increased in June. US manufacturing PMI (purchasing managers index) declined from 26.2 to 55.5, however analysts expected a steeper fall.
Oil and gas engineering firm Petrofac (LON:PFC) and quality and safety services firm Intertek (LON:ITRK) led the blue chips with gains of 6.2%. Anglo-Swiss miner Xstrata (LON:XTA) rose 6%. Oil and gas producer Tullow Oil (LON:TLW) advanced 5.6% and banking group HSBC (LON:HSBA) added just over 5%, as did base metal miner Vedanta Resources (LON:VED). Airline British Airways (LON:BAY), Kazakh miner Kazakhmys (LON:KAZ) and Essar Energy (LON:ESSR) climbed 5.1%.
Gold miner Randgold Resources (LON:RRS) was the only FTSE 100 constituent to lose more than 1%, shedding 1.7%.
Asian markets were in buying mode. Hong Kong’s Hang Seng and South Korea’s KOSPI, Australia’s S&P/ASX 200 rose 0.5%, China’s Shanghai Composite Index added 0.2% and Japan’s Nikkei 225 surged 1.3%.
Commodities
Oil prices rallied yesterday, tracking gains in equity markets. September Brent Crude reached US$80.87/barrel, while US light, sweet crude for September delivery climbed to US$81.40/barrel.
Precious metals retreated from yesterday’s levels. Gold slid to US$1,182/oz, while silver and platinum moved down to US$18.33/oz and US$1,587/oz respectively.
Base metals followed. Copper and nickel declined to US$3.35/lb and US$9.79/barrel, while zinc dropped to US$0.93/lb.
US pending home sales, factory orders, personal income, consumption and personal spending data is due out today.
http://www.proactiveinvestors.co.uk/companies/news/19578/ftse-100-seen-flat-after-rally-as-commodities-retreat-19578.html
Oil and gas engineering firm Petrofac (LON:PFC) and quality and safety services firm Intertek (LON:ITRK) led the blue chips with gains of 6.2%. Anglo-Swiss miner Xstrata (LON:XTA) rose 6%. Oil and gas producer Tullow Oil (LON:TLW) advanced 5.6% and banking group HSBC (LON:HSBA) added just over 5%, as did base metal miner Vedanta Resources (LON:VED). Airline British Airways (LON:BAY), Kazakh miner Kazakhmys (LON:KAZ) and Essar Energy (LON:ESSR) climbed 5.1%.
Gold miner Randgold Resources (LON:RRS) was the only FTSE 100 constituent to lose more than 1%, shedding 1.7%.
US stocks surged yesterday. The Dow Jones Industrial Average advanced 2%, while the broader S&P 500 index rallied 2.2% and the technology heavy NASDAQ composite moved up 1.8%.
Commodities
Oil prices rallied yesterday, tracking gains in equity markets. September Brent Crude reached US$80.87/barrel, while US light, sweet crude for September delivery climbed to US$81.40/barrel.
Precious metals retreated from yesterday’s levels. Gold slid to US$1,182/oz, while silver and platinum moved down to US$18.33/oz and US$1,587/oz respectively.
Base metals followed. Copper and nickel declined to US$3.35/lb and US$9.79/barrel, while zinc dropped to US$0.93/lb.
US pending home sales, factory orders, personal income, consumption and personal spending data is due out today.
http://www.proactiveinvestors.co.uk/companies/news/19578/ftse-100-seen-flat-after-rally-as-commodities-retreat-19578.html
Forte Energy appoints Brad George as Chief Operating Officer
Forte Energy (ASX: FTE, LON:FTE) has reported the key management appointment of Brad George as Chief Operating Officer. George is a qualified geoscientist with over 20 years extensive global mining industry knowledge.
Forte Energy said the appointment will support the growth of the company, its strategy and expanding uranium portfolio in Mauritania and Guinea.
George specialises in mineral project exploration and development programmes. He has worked for a number of exploration and development companies in Africa, Australia and China.
In addition, George has been the mining and metals analyst for the investment banking arm of London financial services firm Matrix Group since 2007.
Upon his appointment to the company, George will be granted one million options exercisable within three years at an exercise price of six pence each. A further two million options exercisable within three years at 10p will be granted after the successful completion of a trial period of one year.
Mark Reilly, managing director, said, “Brad is an important addition to Forte Energy’s team and I am delighted to welcome him to the management team. His extensive industry and business expertise will be invaluable in Forte’s ongoing development."
“Brad’s appointment comes at a significant time for the company following the recent initial JORC compliant resource at Bir En Nar, the promising drilling results at the new anomaly A238 in Mauritania, as well as our advanced Firawa project in Guinea which we will be shortly moving to the feasibility stages," Reilly added.
Forte Energy said the appointment will support the growth of the company, its strategy and expanding uranium portfolio in Mauritania and Guinea.
George specialises in mineral project exploration and development programmes. He has worked for a number of exploration and development companies in Africa, Australia and China.
In addition, George has been the mining and metals analyst for the investment banking arm of London financial services firm Matrix Group since 2007.
Upon his appointment to the company, George will be granted one million options exercisable within three years at an exercise price of six pence each. A further two million options exercisable within three years at 10p will be granted after the successful completion of a trial period of one year.
Mark Reilly, managing director, said, “Brad is an important addition to Forte Energy’s team and I am delighted to welcome him to the management team. His extensive industry and business expertise will be invaluable in Forte’s ongoing development."
“Brad’s appointment comes at a significant time for the company following the recent initial JORC compliant resource at Bir En Nar, the promising drilling results at the new anomaly A238 in Mauritania, as well as our advanced Firawa project in Guinea which we will be shortly moving to the feasibility stages," Reilly added.
FTSE 100 rallies 2.3% as HSBC H1 profits double
Overview: the FTSE 100 rallied 2.35% today on optimism about the reporting week in the banking sector after HSBC (LON:HSBA) beat expectations with its interim report, revealing a twofold jump in H1 profits to £7 billion. Investors got more good news when the Commerce Department said that construction spending unexpectedly increased in June. US manufacturing PMI (purchasing managers index) declined from 26.2 to 55.5, however analysts expected a steeper fall.
Anglo-Swiss miner Xstrata (LON:XTA) and quality and safety services provider Intertek (LON:ITRK) led the blue chips with gains of 6%. Oil and gas engineering firm Petrofac (LON:PFC) added 5.5%, as did oil and gas producer Tullow Oil (LON:TLW). Other notable risers included Essar Energy (LON:ESSR) and airline British Airways (LON:BAY) climbed 4.5%.
Gold miner Randgold Resources (LON:RRS) was the only FTSE 100 constituent to lose more than 1%, shedding 1.3%.
Commodities
Crude futures reclaimed the US$79/barrel level today, moving close to US$80/barrel, powered by a rally in global equity markets and concerns over the August hurricane season that could disrupt oil production in the Gulf of Mexico.
September Brent Crude rose to US$79.29/barrel, while US light, sweet crude for September delivery improved to US$79.91/barrel on New York Mercantile Exchange (NYMEX).
Blue chip oil and gas producers were in demand today. Supermajors BP (LON:BP) and Shell (LON:RDSB) climbed 1.8% and 3.4% respectively. BG Group (LON:BG), Cairn Energy (LON:CNE) and Tullow Oil (LON:TLW) advanced 2.3%, 2.7% and 4.5% respectively.
Oil and gas engineering firms Amec (LON:AMEC) and Petrofac (LON:PFC) added 2.5% and 3.6%.
Midcaps also did well with the sole exception of JKX Oil & Gas (LON:JKX), which posted a small loss. Dana Petroleum (LON:DNX) and Melrose Resources (LON:MRS) gained less than 1%. Dragon Oil (LON:DGO) and Premier Oil (LON:PMO) added 2.3% and 2.2% respectively, while Soco International (LON:SIA) climbed 4.4% and Salamander Energy (LON:SMDR) took the lead with a 5.6% advance.
Services companies followed with Wood Group (LON:WG) and Wellstream Holdings (LON:WSM) tacking on 5.8% and 5.1% respectively.
Western Europe operating oil and gas company Northern Petroleum (LON:NOP) and Ukraine focused gas producer, Regal Petroleum (AIM: RPT) led the juniors with gains of 8%. US focused oil and gas junior Caza Oil & Gas (LON:CAZA) and Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LON:GOO) rallied 7.5% and 7%.
Energy investor Xtract Energy PLC (LON:XTR) headed in the opposite direction, slipping 9.5%. Mongolia-focused Petro Matad Ltd (LON:MATD) followed, shedding 5%.
Gold rises to $1,185
Gold rallied today, climbing close to US$1,190/oz despite today’s surge in the market. Precious metals were boosted by a slightly stronger safe haven demand and increased physical buying due to recent sharp falls in the price.
Gold last traded at US$1,186/oz. Silver and platinum improved to US$18.38/oz and US$1,587/oz respectively.
Major mining stocks were on the rise today.
Platinum miner Lonmin (LON:LMI) led the sector in the FTSE 100 with a 4.2% gain. silver miner Fresnillo (LON:FRES) followed, advancing 3%, while gold miner Randgold Resources (LON:RRS) went against the tide, sliding 1%. African Barrick Gold (LON:ABG) stood just above the opening level.
Specialty chemicals firm Johnson Matthey (LON:JMAT) also posted a 3% gain.
Midcaps did even better with Aquarius Platinum (LON:AQP) and silver producer Hochschild Mining (LON:HOC) rallying 5%. Gold miner Petropavlovsk (LON:POG) added 3%.
Turkey focused gold miner Ariana Resources (LON:AAU) and Africa operating gold miner GMA Resources (LON:GMA) took the lead in the sector with each surging 22%. South American based explorer Mariana Resources (LON: MARL) and Uzbekistan focused gold miner Oxus Gold (LON:OXS) followed with gains of 7.5% and 6%.
Junior diamond miner Stellar Diamonds (LON:STEL) was in the red with a 10% loss. Gemstone producer Gemfields (LON:GEM) and Kyrgyzstan focused gold explorer and developer Chaarat Gold Holdings (LON:CGH) lost more than 5%.
Copper and nickel climb to lift miners
Base metals were on the rise today. Copper and nickel moved up to US$3.35/lb and US$9.81/lb, while zinc reached US$0.91/lb.
Major mining stocks posted good gains today.
Eurasian Natural Resources (LON:ENRC) was up 3.3%, while Anglo American (LON:AAL), BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) added nearly 4%. Antofagasta (LON:ANTO) rose 4%. Kazakhmys (LON:KAZ) and Vedanta Resources (LON:VED) tacked on more than 4.5%. Xstrata (LON:XTA) rallied 6%.
London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LON:FXPO) managed to outperform the sector, surging 6.4%.
Russia focused copper and nickel miner Amur Minerals (LON:AMC), iron ore focused investor Red Rock Resources (LON:RRR) and specialty minerals exploration and development company Thor Mining (LON:THR) led the juniors with gains of over 6%.
Banks, insurance private equity
Boosted by a strong interim report, HSBC (LON:HSBA) rallied 5% to emerge as the top performer in the banking sector. Part-nationalized banks Lloyds (LON:LLOY) and Royal Bank of Scotland (LON:RBS) climbed 4%. Barclays (LON:BARC) added 3% and Standard Chartered (LON:STAN) moved up 1%.
Admiral Group (LON:ADM) and Aviva (LON:AV) were the top performing insurance companies today with gains of over 4%. Old Mutual (LON:OML) and Standard Life (LON:SL) added 3.5% and 3%, while Legal & General (LON:LGEN), Prudential (LON:PRU) and RSA Insurance Group (LON:RSA) tacked on nearly 2%.
Private equity group 3i (LON:III) was little moved.
Small Cap Movers
Other notable movers among the small caps included developer of CAD and image analysis software Medicsight (LON:MDST) with a 6.5% gain.
Small Cap News
Mission Capital PLC (LON:MCAP) said it is currently in preliminary discussions relating to an acquisition which would constitute a reverse takeover under AIM rules.
Turkey focused gold miner Ariana Resources (LON:AAU) said the latest drilling results from the Banu and Derya veins at its Red Rabbit project in Turkey “confirmed the integrity” of the resource at the Kiziltepe prospect with mineralised quartz intersected in every hole for a flawless “hit-rate”.
AVIA Health Informatics (LON:AVIA) will make a profit of around £250,000 in the coming year, according to forecasts compiled by the company’s broker Merchant Securities.
Herencia Resources (LON:HER) this morning said its latest drilling programme had uncovered a high grade extension to the Cathedral vein at its Paguanta zinc-silver-lead project in northern Chile.
Connemara Mining’s (LON:CON) latest drilling update on the Stonepark project in Limerick reveals it may be part of a ‘world-class’ zinc find, according to research carried out by Optiva Securities.
West Africa focused uranium explorer Forte Energy (LON:FTE. ASX:FTE) updated on its activities in the past quarter, which saw the completion of the maiden JORC resource estimate for its flagship Bir En Nar uranium project in Mauritania, which could soon see a substantial increase.
Range Resources Ltd (ASX:RRS; LON:RRL) reported on the progress made in the fourth quarter to end-June2010 and subsequently, noting that its joint venture partner in Somalia’s Puntland province, Africa Oil Corp, announced the farm-out of a 10 percent interest in the JV to ASX listed entity, Red Emperor Resources (ASX:AMP) during the period.
Serica Energy (TSX-V:SQZ, LON:SQZ) said that that on July 30, drilling operations commenced at the Oates exploration well location in Block 22/19c in the UK Central North Sea.
South American based explorer Mariana Resources (LON:MARL) has signed a drilling contract with Argentine company Eco Minera covering a minimum 10,000 metres at its Las Calandrias gold-silver project in the Santa Cruz province. The drilling programme is expected to take four months, starting in early September 2010, with an aim to produce a maiden resource estimate at the Calandria Sur target.
Large and Mid Cap News
WS Atkins PLC (LON:ATK) said it has it has entered into a definitive merger agreement to acquire The PBSJ Corp for US$280 million in cash, unanimously recommended by the boards of Atkins and PBSJ.
Hammerson (LON:HMSO), the shopping centre and office developer, reported a modest uptick in the value of its property portfolio as it said the outlook for the remainder of the year was "uncertain".
The new co-owners of the Broadgate office complex in the heart of the City have this morning unveiled their first major development project. British Land (LON:BLND) and its private equity partner Blackstone are about to pull the trigger on a £340 million bespoke trading floor and offices for UBS.
Anglo-Swiss miner Xstrata (LON:XTA) and quality and safety services provider Intertek (LON:ITRK) led the blue chips with gains of 6%. Oil and gas engineering firm Petrofac (LON:PFC) added 5.5%, as did oil and gas producer Tullow Oil (LON:TLW). Other notable risers included Essar Energy (LON:ESSR) and airline British Airways (LON:BAY) climbed 4.5%.
Gold miner Randgold Resources (LON:RRS) was the only FTSE 100 constituent to lose more than 1%, shedding 1.3%.
US stocks rallied in early trade. The Dow Jones Industrial Average advanced 1.7%, while the broader S&P 500 index and the technology heavy NASDAQ composite surged 1.85% and 1.75% respectively.
Crude futures reclaimed the US$79/barrel level today, moving close to US$80/barrel, powered by a rally in global equity markets and concerns over the August hurricane season that could disrupt oil production in the Gulf of Mexico.
September Brent Crude rose to US$79.29/barrel, while US light, sweet crude for September delivery improved to US$79.91/barrel on New York Mercantile Exchange (NYMEX).
Blue chip oil and gas producers were in demand today. Supermajors BP (LON:BP) and Shell (LON:RDSB) climbed 1.8% and 3.4% respectively. BG Group (LON:BG), Cairn Energy (LON:CNE) and Tullow Oil (LON:TLW) advanced 2.3%, 2.7% and 4.5% respectively.
Oil and gas engineering firms Amec (LON:AMEC) and Petrofac (LON:PFC) added 2.5% and 3.6%.
Midcaps also did well with the sole exception of JKX Oil & Gas (LON:JKX), which posted a small loss. Dana Petroleum (LON:DNX) and Melrose Resources (LON:MRS) gained less than 1%. Dragon Oil (LON:DGO) and Premier Oil (LON:PMO) added 2.3% and 2.2% respectively, while Soco International (LON:SIA) climbed 4.4% and Salamander Energy (LON:SMDR) took the lead with a 5.6% advance.
Services companies followed with Wood Group (LON:WG) and Wellstream Holdings (LON:WSM) tacking on 5.8% and 5.1% respectively.
Western Europe operating oil and gas company Northern Petroleum (LON:NOP) and Ukraine focused gas producer, Regal Petroleum (AIM: RPT) led the juniors with gains of 8%. US focused oil and gas junior Caza Oil & Gas (LON:CAZA) and Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LON:GOO) rallied 7.5% and 7%.
Energy investor Xtract Energy PLC (LON:XTR) headed in the opposite direction, slipping 9.5%. Mongolia-focused Petro Matad Ltd (LON:MATD) followed, shedding 5%.
Gold rises to $1,185
Gold rallied today, climbing close to US$1,190/oz despite today’s surge in the market. Precious metals were boosted by a slightly stronger safe haven demand and increased physical buying due to recent sharp falls in the price.
Gold last traded at US$1,186/oz. Silver and platinum improved to US$18.38/oz and US$1,587/oz respectively.
Major mining stocks were on the rise today.
Platinum miner Lonmin (LON:LMI) led the sector in the FTSE 100 with a 4.2% gain. silver miner Fresnillo (LON:FRES) followed, advancing 3%, while gold miner Randgold Resources (LON:RRS) went against the tide, sliding 1%. African Barrick Gold (LON:ABG) stood just above the opening level.
Specialty chemicals firm Johnson Matthey (LON:JMAT) also posted a 3% gain.
Midcaps did even better with Aquarius Platinum (LON:AQP) and silver producer Hochschild Mining (LON:HOC) rallying 5%. Gold miner Petropavlovsk (LON:POG) added 3%.
Turkey focused gold miner Ariana Resources (LON:AAU) and Africa operating gold miner GMA Resources (LON:GMA) took the lead in the sector with each surging 22%. South American based explorer Mariana Resources (LON: MARL) and Uzbekistan focused gold miner Oxus Gold (LON:OXS) followed with gains of 7.5% and 6%.
Junior diamond miner Stellar Diamonds (LON:STEL) was in the red with a 10% loss. Gemstone producer Gemfields (LON:GEM) and Kyrgyzstan focused gold explorer and developer Chaarat Gold Holdings (LON:CGH) lost more than 5%.
Copper and nickel climb to lift miners
Base metals were on the rise today. Copper and nickel moved up to US$3.35/lb and US$9.81/lb, while zinc reached US$0.91/lb.
Major mining stocks posted good gains today.
Eurasian Natural Resources (LON:ENRC) was up 3.3%, while Anglo American (LON:AAL), BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) added nearly 4%. Antofagasta (LON:ANTO) rose 4%. Kazakhmys (LON:KAZ) and Vedanta Resources (LON:VED) tacked on more than 4.5%. Xstrata (LON:XTA) rallied 6%.
London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LON:FXPO) managed to outperform the sector, surging 6.4%.
Russia focused copper and nickel miner Amur Minerals (LON:AMC), iron ore focused investor Red Rock Resources (LON:RRR) and specialty minerals exploration and development company Thor Mining (LON:THR) led the juniors with gains of over 6%.
Banks, insurance private equity
Boosted by a strong interim report, HSBC (LON:HSBA) rallied 5% to emerge as the top performer in the banking sector. Part-nationalized banks Lloyds (LON:LLOY) and Royal Bank of Scotland (LON:RBS) climbed 4%. Barclays (LON:BARC) added 3% and Standard Chartered (LON:STAN) moved up 1%.
Admiral Group (LON:ADM) and Aviva (LON:AV) were the top performing insurance companies today with gains of over 4%. Old Mutual (LON:OML) and Standard Life (LON:SL) added 3.5% and 3%, while Legal & General (LON:LGEN), Prudential (LON:PRU) and RSA Insurance Group (LON:RSA) tacked on nearly 2%.
Private equity group 3i (LON:III) was little moved.
Small Cap Movers
Other notable movers among the small caps included developer of CAD and image analysis software Medicsight (LON:MDST) with a 6.5% gain.
Small Cap News
Mission Capital PLC (LON:MCAP) said it is currently in preliminary discussions relating to an acquisition which would constitute a reverse takeover under AIM rules.
Turkey focused gold miner Ariana Resources (LON:AAU) said the latest drilling results from the Banu and Derya veins at its Red Rabbit project in Turkey “confirmed the integrity” of the resource at the Kiziltepe prospect with mineralised quartz intersected in every hole for a flawless “hit-rate”.
AVIA Health Informatics (LON:AVIA) will make a profit of around £250,000 in the coming year, according to forecasts compiled by the company’s broker Merchant Securities.
Herencia Resources (LON:HER) this morning said its latest drilling programme had uncovered a high grade extension to the Cathedral vein at its Paguanta zinc-silver-lead project in northern Chile.
Connemara Mining’s (LON:CON) latest drilling update on the Stonepark project in Limerick reveals it may be part of a ‘world-class’ zinc find, according to research carried out by Optiva Securities.
West Africa focused uranium explorer Forte Energy (LON:FTE. ASX:FTE) updated on its activities in the past quarter, which saw the completion of the maiden JORC resource estimate for its flagship Bir En Nar uranium project in Mauritania, which could soon see a substantial increase.
Range Resources Ltd (ASX:RRS; LON:RRL) reported on the progress made in the fourth quarter to end-June2010 and subsequently, noting that its joint venture partner in Somalia’s Puntland province, Africa Oil Corp, announced the farm-out of a 10 percent interest in the JV to ASX listed entity, Red Emperor Resources (ASX:AMP) during the period.
Serica Energy (TSX-V:SQZ, LON:SQZ) said that that on July 30, drilling operations commenced at the Oates exploration well location in Block 22/19c in the UK Central North Sea.
South American based explorer Mariana Resources (LON:MARL) has signed a drilling contract with Argentine company Eco Minera covering a minimum 10,000 metres at its Las Calandrias gold-silver project in the Santa Cruz province. The drilling programme is expected to take four months, starting in early September 2010, with an aim to produce a maiden resource estimate at the Calandria Sur target.
Large and Mid Cap News
WS Atkins PLC (LON:ATK) said it has it has entered into a definitive merger agreement to acquire The PBSJ Corp for US$280 million in cash, unanimously recommended by the boards of Atkins and PBSJ.
Hammerson (LON:HMSO), the shopping centre and office developer, reported a modest uptick in the value of its property portfolio as it said the outlook for the remainder of the year was "uncertain".
The new co-owners of the Broadgate office complex in the heart of the City have this morning unveiled their first major development project. British Land (LON:BLND) and its private equity partner Blackstone are about to pull the trigger on a £340 million bespoke trading floor and offices for UBS.
Gold climbs as physical demand remains strong
Gold rallied today, climbing close to US$1,190/oz despite today’s surge in the market. Precious metals were boosted by a slightly stronger safe haven demand and increased physical buying due to recent sharp falls in the price.
Friday’s economic data sent mixed signals, suggesting there could be further setbacks for the ongoing recovery and thus boosting the yellow metal’s safe haven appeal. While the University of Michigan consumer confidence index was revised upwards to 67.8 from a previous reading of 66.5 for July and the Chicago PMI (purchasing managers index) beat expectations with an improvement from 59.1 to 62.3 in July, Q2 US GDP failed to match expectations with a decline to 2.4% instead of the projected 2.5% and New York ISM index fell to 58.4 in July from 69.3 in June.
A survey by Bloomberg predicted an increase in gold prices this week due to higher physical demand spurred by the currently low prices that dipped below US$1,160/oz last week. Gold was weakened by the stress test results of European banks that showed just 7 failures.
Major mining stocks were on the rise today.
Platinum miner Lonmin (LON:LMI) led the sector in the FTSE 100 with a 4.2% gain. silver miner Fresnillo (LON:FRES) followed, advancing 3%, while gold miner Randgold Resources (LON:RRS) went against the tide, sliding 1%. African Barrick Gold (LON:ABG) stood just above the opening level.
Specialty chemicals firm Johnson Matthey (LON:JMAT) also posted a 3% gain.
Midcaps did even better with Aquarius Platinum (LON:AQP) and silver producer Hochschild Mining (LON:HOC) rallying 5%. Gold miner Petropavlovsk (LON:POG) added 3%.
Turkey focused gold miner Ariana Resources (LON:AAU) and Africa operating gold miner GMA Resources (LON:GMA) took the lead in the sector with each surging 22%. South American based explorer Mariana Resources (LON: MARL) and Uzbekistan focused gold miner Oxus Gold (LON:OXS) followed with gains of 7.5% and 6%.
Junior diamond miner Stellar Diamonds (LON:STEL) was in the red with a 10% loss. Gemstone producer Gemfields (LON:GEM) and Kyrgyzstan focused gold explorer and developer Chaarat Gold Holdings (LON:CGH) lost more than 5%.
Friday’s economic data sent mixed signals, suggesting there could be further setbacks for the ongoing recovery and thus boosting the yellow metal’s safe haven appeal. While the University of Michigan consumer confidence index was revised upwards to 67.8 from a previous reading of 66.5 for July and the Chicago PMI (purchasing managers index) beat expectations with an improvement from 59.1 to 62.3 in July, Q2 US GDP failed to match expectations with a decline to 2.4% instead of the projected 2.5% and New York ISM index fell to 58.4 in July from 69.3 in June.
A survey by Bloomberg predicted an increase in gold prices this week due to higher physical demand spurred by the currently low prices that dipped below US$1,160/oz last week. Gold was weakened by the stress test results of European banks that showed just 7 failures.
Gold last traded at US$1,186/oz. Silver and platinum improved to US$18.38/oz and US$1,587/oz respectively.
Platinum miner Lonmin (LON:LMI) led the sector in the FTSE 100 with a 4.2% gain. silver miner Fresnillo (LON:FRES) followed, advancing 3%, while gold miner Randgold Resources (LON:RRS) went against the tide, sliding 1%. African Barrick Gold (LON:ABG) stood just above the opening level.
Specialty chemicals firm Johnson Matthey (LON:JMAT) also posted a 3% gain.
Midcaps did even better with Aquarius Platinum (LON:AQP) and silver producer Hochschild Mining (LON:HOC) rallying 5%. Gold miner Petropavlovsk (LON:POG) added 3%.
Turkey focused gold miner Ariana Resources (LON:AAU) and Africa operating gold miner GMA Resources (LON:GMA) took the lead in the sector with each surging 22%. South American based explorer Mariana Resources (LON: MARL) and Uzbekistan focused gold miner Oxus Gold (LON:OXS) followed with gains of 7.5% and 6%.
Junior diamond miner Stellar Diamonds (LON:STEL) was in the red with a 10% loss. Gemstone producer Gemfields (LON:GEM) and Kyrgyzstan focused gold explorer and developer Chaarat Gold Holdings (LON:CGH) lost more than 5%.
Oil tests $80 as markets rally on HSBC results
Crude futures reclaimed the US$79/barrel level today, moving close to US$80/barrel, powered by a rally in global equity markets and concerns over the August hurricane season that could disrupt oil production in the Gulf of Mexico.
The HSBC China Manufacturing PMI (purchasing managers index) released over the weekend showed a decline from 50.4 in June to 49.4 in July, reflecting a slowdown in manufacturing activity in the country. The news, however, had a positive effective on Chinese and Asian stocks, helping the Shanghai Composite Index to a 1.3% gain. Investors were optimistic that the contraction in the manufacturing sector will prompt the government to halt the policy tightening measures it has been actively implementing this year to prevent the rapidly growing economy from overheating.
The government’s official figures also showed a decline in the manufacturing PMI from 52.1 to 51.2, though it still stayed above 50, signalling expansion, yet at a slower pace.
Crude prices got more support from surging stock markets. The FTSE 100 jumped 2% today after HSBC (LON:HSBA) opened the banking reporting week with a strong set of interim results, which showed a twofold increase in profits to £7 billion. Part-nationalised bank Lloyds (LON:LLOY), which will release its report on Wednesday, is expected to post a profit of nearly £1 billion.
The bullish factors more than offset the negative impact from the soaring US inventories. Last week, the American Petroleum Institute (API) reported a 3.8 million barrel increase in US crude stockpiles, while a more closely watched report from Energy Information Administration (EIA) revealed a gain of 7.3 million barrels, reflecting lower demand in the world’s leading energy consumer.
September Brent Crude rose to US$79.29/barrel, while US light, sweet crude for September delivery improved to US$79.91/barrel on New York Mercantile Exchange (NYMEX).
Blue chip oil and gas producers were in demand today. Supermajors BP (LON:BP) and Shell (LON:RDSB) climbed 1.8% and 3.4% respectively. BG Group (LON:BG), Cairn Energy (LON:CNE) and Tullow Oil (LON:TLW) advanced 2.3%, 2.7% and 4.5% respectively.
Oil and gas engineering firms Amec (LON:AMEC) and Petrofac (LON:PFC) added 2.5% and 3.6%.
Midcaps also did well with the sole exception of JKX Oil & Gas (LON:JKX), which posted a small loss. Dana Petroleum (LON:DNX) and Melrose Resources (LON:MRS) gained less than 1%. Dragon Oil (LON:DGO) and Premier Oil (LON:PMO) added 2.3% and 2.2% respectively, while Soco International (LON:SIA) climbed 4.4% and Salamander Energy (LON:SMDR) took the lead with a 5.6% advance.
Services companies followed with Wood Group (LON:WG) and Wellstream Holdings (LON:WSM) tacking on 5.8% and 5.1% respectively.
Western Europe operating oil and gas company Northern Petroleum (LON:NOP) and Ukraine focused gas producer, Regal Petroleum (AIM: RPT) led the juniors with gains of 8%. US focused oil and gas junior Caza Oil & Gas (LON:CAZA) and Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LON:GOO) rallied 7.5% and 7%.
Energy investor Xtract Energy PLC (LON:XTR) headed in the opposite direction, slipping 9.5%. Mongolia-focused Petro Matad Ltd (LON:MATD) followed, shedding 5%.
http://www.proactiveinvestors.co.uk/companies/news/19570/oil-tests-80-as-markets-rally-on-hsbc-results-19570.html
The HSBC China Manufacturing PMI (purchasing managers index) released over the weekend showed a decline from 50.4 in June to 49.4 in July, reflecting a slowdown in manufacturing activity in the country. The news, however, had a positive effective on Chinese and Asian stocks, helping the Shanghai Composite Index to a 1.3% gain. Investors were optimistic that the contraction in the manufacturing sector will prompt the government to halt the policy tightening measures it has been actively implementing this year to prevent the rapidly growing economy from overheating.
The government’s official figures also showed a decline in the manufacturing PMI from 52.1 to 51.2, though it still stayed above 50, signalling expansion, yet at a slower pace.
The bullish factors more than offset the negative impact from the soaring US inventories. Last week, the American Petroleum Institute (API) reported a 3.8 million barrel increase in US crude stockpiles, while a more closely watched report from Energy Information Administration (EIA) revealed a gain of 7.3 million barrels, reflecting lower demand in the world’s leading energy consumer.
September Brent Crude rose to US$79.29/barrel, while US light, sweet crude for September delivery improved to US$79.91/barrel on New York Mercantile Exchange (NYMEX).
Blue chip oil and gas producers were in demand today. Supermajors BP (LON:BP) and Shell (LON:RDSB) climbed 1.8% and 3.4% respectively. BG Group (LON:BG), Cairn Energy (LON:CNE) and Tullow Oil (LON:TLW) advanced 2.3%, 2.7% and 4.5% respectively.
Oil and gas engineering firms Amec (LON:AMEC) and Petrofac (LON:PFC) added 2.5% and 3.6%.
Midcaps also did well with the sole exception of JKX Oil & Gas (LON:JKX), which posted a small loss. Dana Petroleum (LON:DNX) and Melrose Resources (LON:MRS) gained less than 1%. Dragon Oil (LON:DGO) and Premier Oil (LON:PMO) added 2.3% and 2.2% respectively, while Soco International (LON:SIA) climbed 4.4% and Salamander Energy (LON:SMDR) took the lead with a 5.6% advance.
Services companies followed with Wood Group (LON:WG) and Wellstream Holdings (LON:WSM) tacking on 5.8% and 5.1% respectively.
Western Europe operating oil and gas company Northern Petroleum (LON:NOP) and Ukraine focused gas producer, Regal Petroleum (AIM: RPT) led the juniors with gains of 8%. US focused oil and gas junior Caza Oil & Gas (LON:CAZA) and Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LON:GOO) rallied 7.5% and 7%.
Energy investor Xtract Energy PLC (LON:XTR) headed in the opposite direction, slipping 9.5%. Mongolia-focused Petro Matad Ltd (LON:MATD) followed, shedding 5%.
http://www.proactiveinvestors.co.uk/companies/news/19570/oil-tests-80-as-markets-rally-on-hsbc-results-19570.html
Monday, 2 August 2010
Serica Energy and Premier Oil start drilling at Oates prospect, UK North Sea
Serica Energy (TSX-V:SQZ, LON:SQZ) said that that on July 30, drilling operations commenced at the Oates exploration well location in Block 22/19c in the UK Central North Sea.
The well will be drilled by the Ensco 100 jack-up drilling rig to a depth of approximately 10,000 feet and is anticipated to take approximately 30 days to drill. Serica has a 50 percent interest in the well, with Premier Oil (LON:PMO).
The Oates prospect has estimated prospective resources of 180 billion standard cubic feet of gas or 60 million barrels of oil, depending upon whether oil or gas is found. The exploration well is being funded by Premier in return for its 50% stake and operatorship.
The well will be drilled by the Ensco 100 jack-up drilling rig to a depth of approximately 10,000 feet and is anticipated to take approximately 30 days to drill. Serica has a 50 percent interest in the well, with Premier Oil (LON:PMO).
The Oates prospect has estimated prospective resources of 180 billion standard cubic feet of gas or 60 million barrels of oil, depending upon whether oil or gas is found. The exploration well is being funded by Premier in return for its 50% stake and operatorship.
London-headquartered Serica holds exploration and production licences principally in the UK North Sea and East Irish Sea, the Atlantic Margins of Ireland and Morocco and in Indonesia. The Company's key producing and development assets are a 25 percent interest in the producing Kambuna field offshore Indonesia and a 50 percent stake in the UK Central North Sea Columbus field, under development.
Range Resources updates on progress in Q4
Range Resources Ltd (ASX:RRS; LON:RRL) reported on the progress made in the fourth quarter to end-June2010 and subsequently, noting that its joint venture partner in Somalia’s Puntland province, Africa Oil Corp, announced the farm-out of a 10 percent interest in the JV to ASX listed entity, Red Emperor Resources (ASX:AMP) during the period.
Under the terms of the Letter of Intent, Red Emperor will earn a 10 percent interest in both the Dharoor and Nugaal Valley Blocks. Red Emperor may, at its own discretion, exercise a right to increase its participating interest by an additional 10 percent in each of the Dharoor and Nugaal Blocks. Red Emperor must advise Africa Oil on or before August 31 2010 if they wish to exercise this option.
Range’s JV patner during the quarter also continued its efforts to finalise terms with international drilling related contractors willing to participate in the proposed drilling program in Puntland
In Texas, as part of the North Chapman Ranch joint centure's multi-well program, the Russell Bevly #1 appraisal well was spudded as announced on 11 May 2010.
After drilling to a revised total depth of 4,337m, the operator concluded open hole logging operations that indicated the presence of approximately 130 feet of net oil and gas pay in the Howell Hight formation.
This exceeded the net pay thickness of the Smith #1 discovery well and identified a new, potentially productive interval. The well was equipped with 4 1/2" production casing and currently awaits completion and installation of surface infrastructure in readiness for first sales late August /early September.
Russell Bevly #1 confirms the company's structural and stratigraphic models across the north western flank of the field, and once completed for production, the well is expected to add significant Proven Reserves, production, and cash flow to Range's Texas operations.
It is anticipated that the multi-well program will continue on North Chapman Ranch with the third well anticipated to spud Q4 2010.
Building on its success at North Chapman Ranch, during the quarter, Range acquired a 13.56 percent interest in approximately 1,570 gross acres encompassing a recent oil discovery located in Red River County, Texas, for total leasehold acquisition costs of US$254,000.
Development of the shallow oil reservoir in the Cotton Valley formation is expected to begin during Q3 2010 with the drilling of a horizontal appraisal well, Morris 3H, expected to encounter good quality Cotton Valley sandstones along a horizontal well path approximately 2,500 ft long.
The well is projected to pass within 500 ft of the Morris 2H well, the first horizontal well drilled in the project area. The Morris 2H encountered good quality Cotton Valley reservoir rock and oil saturation, but was badly damaged during completion. If successful, the Morris 3H could trigger a horizontal development drilling program of 20-25 wells, each of which could recover more than 225,000 barrels of oil at an expected completed well cost of approximately US$1.6 million.
In Georgi, following the successful acquisition of 410km of seismic at the end of March 2010, seismic processing and interpretation commenced during the quarter. It is forecast that final interpretations and identification of potential drilling targets will be completed during Q3 2010.
In support of the identification of drill targets during 3Q 2010, initial logistics planning has commenced with regards to the development of anticipated drilling programs. As previously announced, assuming the successful identification of drillable targets, already indicated in three areas of the Blocks, the company will elect to either progress the targets at the current 50:50 equity basis with its partner Strait Oil and Gas (UK) Ltd or look to attract potential farm-in partners to joint fund a drilling program.
Subsequent to quarter end the company entered into a binding Heads of Agreement through SOCA Petroleum to acquire its rights to a 10 percent interest in companies whose wholly owned subsidiaries hold production licences for three blocks in producing onshore oilfields in Trinidad and a major local drilling company.
The production acreage and operating wells cover the Morne Diablo, Beach Marcelle and South Quarry oilfields, with the total acreage covering 16,253 gross acres on the southern coast onshore Trinidad. Current production from the fields is 700 bopd, however Range believes a minimal work program could lift production to more than 3,500 bopd within 36 months on the known reserves.
In addition to the two subsidiaries holding production licences for the onshore acreage, the proposed Range acquisition also includes a 10 percent interest in the parent of a wholly owned drilling company (located in Trinidad), which owns five onshore drill rigs, three production rigs, one swab rig and a full workshop and pipe yard, storage tanks and facilities.
Under the terms of the Letter of Intent, Red Emperor will earn a 10 percent interest in both the Dharoor and Nugaal Valley Blocks. Red Emperor may, at its own discretion, exercise a right to increase its participating interest by an additional 10 percent in each of the Dharoor and Nugaal Blocks. Red Emperor must advise Africa Oil on or before August 31 2010 if they wish to exercise this option.
Range’s JV patner during the quarter also continued its efforts to finalise terms with international drilling related contractors willing to participate in the proposed drilling program in Puntland
In Texas, as part of the North Chapman Ranch joint centure's multi-well program, the Russell Bevly #1 appraisal well was spudded as announced on 11 May 2010.
After drilling to a revised total depth of 4,337m, the operator concluded open hole logging operations that indicated the presence of approximately 130 feet of net oil and gas pay in the Howell Hight formation.
This exceeded the net pay thickness of the Smith #1 discovery well and identified a new, potentially productive interval. The well was equipped with 4 1/2" production casing and currently awaits completion and installation of surface infrastructure in readiness for first sales late August /early September.
Russell Bevly #1 confirms the company's structural and stratigraphic models across the north western flank of the field, and once completed for production, the well is expected to add significant Proven Reserves, production, and cash flow to Range's Texas operations.
It is anticipated that the multi-well program will continue on North Chapman Ranch with the third well anticipated to spud Q4 2010.
Building on its success at North Chapman Ranch, during the quarter, Range acquired a 13.56 percent interest in approximately 1,570 gross acres encompassing a recent oil discovery located in Red River County, Texas, for total leasehold acquisition costs of US$254,000.
Development of the shallow oil reservoir in the Cotton Valley formation is expected to begin during Q3 2010 with the drilling of a horizontal appraisal well, Morris 3H, expected to encounter good quality Cotton Valley sandstones along a horizontal well path approximately 2,500 ft long.
The well is projected to pass within 500 ft of the Morris 2H well, the first horizontal well drilled in the project area. The Morris 2H encountered good quality Cotton Valley reservoir rock and oil saturation, but was badly damaged during completion. If successful, the Morris 3H could trigger a horizontal development drilling program of 20-25 wells, each of which could recover more than 225,000 barrels of oil at an expected completed well cost of approximately US$1.6 million.
In Georgi, following the successful acquisition of 410km of seismic at the end of March 2010, seismic processing and interpretation commenced during the quarter. It is forecast that final interpretations and identification of potential drilling targets will be completed during Q3 2010.
In support of the identification of drill targets during 3Q 2010, initial logistics planning has commenced with regards to the development of anticipated drilling programs. As previously announced, assuming the successful identification of drillable targets, already indicated in three areas of the Blocks, the company will elect to either progress the targets at the current 50:50 equity basis with its partner Strait Oil and Gas (UK) Ltd or look to attract potential farm-in partners to joint fund a drilling program.
Subsequent to quarter end the company entered into a binding Heads of Agreement through SOCA Petroleum to acquire its rights to a 10 percent interest in companies whose wholly owned subsidiaries hold production licences for three blocks in producing onshore oilfields in Trinidad and a major local drilling company.
The production acreage and operating wells cover the Morne Diablo, Beach Marcelle and South Quarry oilfields, with the total acreage covering 16,253 gross acres on the southern coast onshore Trinidad. Current production from the fields is 700 bopd, however Range believes a minimal work program could lift production to more than 3,500 bopd within 36 months on the known reserves.
In addition to the two subsidiaries holding production licences for the onshore acreage, the proposed Range acquisition also includes a 10 percent interest in the parent of a wholly owned drilling company (located in Trinidad), which owns five onshore drill rigs, three production rigs, one swab rig and a full workshop and pipe yard, storage tanks and facilities.
Forte Energy looks to up uranium resource in Mauritania with further drilling
West Africa focused uranium explorer Forte Energy (LON:FTE. ASX:FTE) updated on its activities in the past quarter, which saw the completion of the maiden JORC resource estimate for its flagship Bir En Nar uranium project in Mauritania, which could soon see a substantial increase.
The company has been focusing its efforts on Mauritania, where it is now planning to “substantially” increase the maiden JORC resource that was established during the quarter. The current resource stands at 0.55 Mt (million tonnes) grading 886 ppm (parts per million) uranium for 1.07 Mlbs (million pounds) contained in the indicated category and an inferred resource of 0.78 Mt at 575 ppm for 0.99 Mlbs uranium in the inferred category.
Mineralisation remains open down-dip in many areas, while RC (reverse circulation) drilling has confirmed another mineralised zone between the Northern and the Southern Zones. Further drilling planned to test extensions along with testing aimed at verifying radiometric logging data omitted from initial JORC estimate.
Forte Energy said the results from the first five targets tested by RC drilling were promising, providing further confirmation of the potential of the Reguibat Craton in Northern Mauritania to be a significant new uranium province.
Uranium exploration in Guinea continued with the results of a metallurgical test at the Firawa project indicating potential for economic recovery from leaching, wile acid leach testing has shown uranium recovery rates of 67%. Further pre-feasibility optimisation testing is currently being undertaken to reduce acid consumption and further improve uranium recovery rates.
Forte will commence further pre-feasibility drilling at Firawa at the end of Q3 to extend the current JORC resource, which stands at 17.7 Mt grading 296 ppm uranium for 11.6 million pounds of contained uranium.
The company has been focusing its efforts on Mauritania, where it is now planning to “substantially” increase the maiden JORC resource that was established during the quarter. The current resource stands at 0.55 Mt (million tonnes) grading 886 ppm (parts per million) uranium for 1.07 Mlbs (million pounds) contained in the indicated category and an inferred resource of 0.78 Mt at 575 ppm for 0.99 Mlbs uranium in the inferred category.
Mineralisation remains open down-dip in many areas, while RC (reverse circulation) drilling has confirmed another mineralised zone between the Northern and the Southern Zones. Further drilling planned to test extensions along with testing aimed at verifying radiometric logging data omitted from initial JORC estimate.
Forte Energy said the results from the first five targets tested by RC drilling were promising, providing further confirmation of the potential of the Reguibat Craton in Northern Mauritania to be a significant new uranium province.
Uranium exploration in Guinea continued with the results of a metallurgical test at the Firawa project indicating potential for economic recovery from leaching, wile acid leach testing has shown uranium recovery rates of 67%. Further pre-feasibility optimisation testing is currently being undertaken to reduce acid consumption and further improve uranium recovery rates.
Forte will commence further pre-feasibility drilling at Firawa at the end of Q3 to extend the current JORC resource, which stands at 17.7 Mt grading 296 ppm uranium for 11.6 million pounds of contained uranium.
Optiva Securities: Connemara Mining may sit on world-class zinc find
Connemara Mining’s (LON:CON) latest drilling update on the Stonepark project in Limerick reveals it may be part of a ‘world-class’ zinc find, according to research carried out by Optiva Securities.
Last week the company, which has partnered with Canada’s Teck Resources (TSX, NYSE: TCK), said the work had defined a zone of zinc-lead mineralisation with a strike length of at least 650 metres.
Optiva believes Stonepark may actually be a continuation of the neighbouring Pallas Green deposit being developed by Xstrata (LON:XTA) and Minco PLC (LON: MIO).
"From what is known so far it would seem that both Stonepark and Pallas Green could form part of the same ore-body and be of world class resource status," the broker said in a note to clients.
The ramifications of this analysis are not lost on Optiva, which says it throws open a number of interesting ‘corporate options’ to monetise its key project.
This might involve either Teck or Xstrata taking control of the two areas, though there is an alternative. "Further interest in the region comes from Vedanta LON:VED), who recently acquired Anglo-American’s (LON:AAL) Lisheen zinc mine for US$308m, which lies just 60 kilometres from Stonepark," the broker added.
Last week the company, which has partnered with Canada’s Teck Resources (TSX, NYSE: TCK), said the work had defined a zone of zinc-lead mineralisation with a strike length of at least 650 metres.
Optiva believes Stonepark may actually be a continuation of the neighbouring Pallas Green deposit being developed by Xstrata (LON:XTA) and Minco PLC (LON: MIO).
"From what is known so far it would seem that both Stonepark and Pallas Green could form part of the same ore-body and be of world class resource status," the broker said in a note to clients.
The ramifications of this analysis are not lost on Optiva, which says it throws open a number of interesting ‘corporate options’ to monetise its key project.
This might involve either Teck or Xstrata taking control of the two areas, though there is an alternative. "Further interest in the region comes from Vedanta LON:VED), who recently acquired Anglo-American’s (LON:AAL) Lisheen zinc mine for US$308m, which lies just 60 kilometres from Stonepark," the broker added.
More good news from Herencia's Paguanta project
Herencia Resources (LON:HER) this morning said its latest drilling programme had uncovered a high grade extension to the Cathedral vein at its Paguanta zinc-silver-lead project in northern Chile.
At the same time it has also confirmed the existence of a new vein at the Paguanta project.
"It is also pleasing to see high silver and lead grades, over and above the excellent zinc grades, and noting the continued intersection of gold in most holes," said managing director Mike Bohm.
The company is on track to deliver a mineral resource estimate in September and a decision to go to full feasibility study will be made in October or November.
What the group has unearthed in its latest study will give investors and analysts cause for optimism. The stock was trading up 3.5 percent in midmorning deals.
The high grade mineralisation encompassed by holes PTDD037, PTDD048 and PTDD058 at Paguanta now covers in excess of 100 metres in strike length and remains open in most directions.
Hole PTDD056 was targeted to intersect cathedral vein between holes PTDD041 and PTDD043 and successfully returned a broad mineralisation intersection, which also including a high grade core. There was 15 metres at 3.4 per cent zinc, 1.6 per cent lead and 77 grams per tonne of sliver. This included 3 metres at 10 per cent zinc, 3.5 per cent lead and 180 grams per tonne of silver.
Elsewhere holes PTDD053 to PTDD055 were drilled to test the 'up-dip' of the recently discovered new vein. No significant intersections were returned from PTDD053 or PTDD055. However PTDD054 returned a high grade intersection of with 50 centimetres containing 10.8 per cent zinc, 3.7 per cent lead and 260 grams per tonne silver.
"Whilst narrow, it is positive that very high grades have been returned from this vein which may increase in width to the east," the company said.
Holes PTDD051 and PTDD052 were drilled to test the cathedral vein following the earlier high grade intersection in. Both successfully intersected mineralisation with PTDD052 extending cathedral vein down-dip approximately 30 metres, returning a broad intersection of minerals. Around 12.7 metres contained 2.4 per cent zinc, 2 per cent lead and 100 grams per tonne of silver.
Separately, hole PTDD056 was drilled to provide a core sample to Mintek of South Africa to see whether Paguanta’s deposits can be recovered using the dense media separation (DMS) technique, which would significantly lower the cost of the operation of the mine.
"DMS (Dense medium separation) might present an opportunity," Bohm said recently, though company is not budgeting on using this method.
Paguanta covers 39 square kilometres and is made up of 14 granted mining licences on the northern part of the Chilean copper belt.
At the same time it has also confirmed the existence of a new vein at the Paguanta project.
"It is also pleasing to see high silver and lead grades, over and above the excellent zinc grades, and noting the continued intersection of gold in most holes," said managing director Mike Bohm.
The company is on track to deliver a mineral resource estimate in September and a decision to go to full feasibility study will be made in October or November.
What the group has unearthed in its latest study will give investors and analysts cause for optimism. The stock was trading up 3.5 percent in midmorning deals.
The high grade mineralisation encompassed by holes PTDD037, PTDD048 and PTDD058 at Paguanta now covers in excess of 100 metres in strike length and remains open in most directions.
Hole PTDD056 was targeted to intersect cathedral vein between holes PTDD041 and PTDD043 and successfully returned a broad mineralisation intersection, which also including a high grade core. There was 15 metres at 3.4 per cent zinc, 1.6 per cent lead and 77 grams per tonne of sliver. This included 3 metres at 10 per cent zinc, 3.5 per cent lead and 180 grams per tonne of silver.
Elsewhere holes PTDD053 to PTDD055 were drilled to test the 'up-dip' of the recently discovered new vein. No significant intersections were returned from PTDD053 or PTDD055. However PTDD054 returned a high grade intersection of with 50 centimetres containing 10.8 per cent zinc, 3.7 per cent lead and 260 grams per tonne silver.
"Whilst narrow, it is positive that very high grades have been returned from this vein which may increase in width to the east," the company said.
Holes PTDD051 and PTDD052 were drilled to test the cathedral vein following the earlier high grade intersection in. Both successfully intersected mineralisation with PTDD052 extending cathedral vein down-dip approximately 30 metres, returning a broad intersection of minerals. Around 12.7 metres contained 2.4 per cent zinc, 2 per cent lead and 100 grams per tonne of silver.
Separately, hole PTDD056 was drilled to provide a core sample to Mintek of South Africa to see whether Paguanta’s deposits can be recovered using the dense media separation (DMS) technique, which would significantly lower the cost of the operation of the mine.
"DMS (Dense medium separation) might present an opportunity," Bohm said recently, though company is not budgeting on using this method.
Paguanta covers 39 square kilometres and is made up of 14 granted mining licences on the northern part of the Chilean copper belt.
Ariana Resources reports robust gold and silver grades from Red Rabbit drilling
Turkey focused gold miner Ariana Resources (LON:AAU) said the latest drilling results from the Banu and Derya veins at its Red Rabbit project in Turkey “confirmed the integrity” of the resource at the Kiziltepe prospect with mineralised quartz intersected in every hole for a flawless “hit-rate”.
In addition to that, the company said that the gold and silver grades were “robust” and demonstrated economic potential.
The intersections included 12.28 g/t (grammes per tonne) of gold equivalent over 2 metres, 4.59 g/t of gold equivalent over 14 metres and 3.31 g/t of gold equivalent over 11 metres. The peak gold equivalent grade reached 23.12 g/t over 1 metre.
The results have indicated that a further 580 metres of mineralised strike could be added to the deposit after showing a fully developed vein system between the Darya and Arzu South veins.
“These results underpin the integrity of the resource at the Kiziltepe deposit...the improvement of grade in this area indicates that there is now scope to increase the size of the resource through further drilling of these vein extensions. This discovery represents a very positive start to our Joint Venture with Proccea Construction and justifies further drilling in this area this season,” said managing director Kerim Sener.
The JV agreement between Ariana and Proccea was finalised in mid July with the latter committing US$8 million to the development of Red Rabbit. Under the terms of the joint venture, Proccea will provide US$1.4 million for a feasibility study, EIA (Environmental Impact Study) and additional permitting with a further US$6.6 million committed towards plant construction.
The current drilling programme has been devised to enable conversion of current resources on these veins from the Inferred to Indicated category.
Ariana is focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey. The company is exploring a portfolio of prospective licences selected on the basis of its in-house geological and remote-sensing database, on its own in western Turkey and in joint venture with European Goldfields Ltd (AIM, TSX: EGU) in north-eastern Turkey.
The core Kiziltepe and Tavsan sectors are separated by a distance of 75 kilometres. The total resource inventory currently stands at 401,000oz gold equivalent.
In addition to that, the company said that the gold and silver grades were “robust” and demonstrated economic potential.
The intersections included 12.28 g/t (grammes per tonne) of gold equivalent over 2 metres, 4.59 g/t of gold equivalent over 14 metres and 3.31 g/t of gold equivalent over 11 metres. The peak gold equivalent grade reached 23.12 g/t over 1 metre.
Other intervals included 5.92 g/t gold equivalent over 4 metres, 6.93 g/t gold equivalent over 5 metres, 3.53 g/t gold equivalent over 9 metres, 3.31 g/t gold equivalent over 11 metres, 3.44 g/t gold equivalent over 11 metres and 4.15 g/t gold equivalent over 5 metres.
“These results underpin the integrity of the resource at the Kiziltepe deposit...the improvement of grade in this area indicates that there is now scope to increase the size of the resource through further drilling of these vein extensions. This discovery represents a very positive start to our Joint Venture with Proccea Construction and justifies further drilling in this area this season,” said managing director Kerim Sener.
The JV agreement between Ariana and Proccea was finalised in mid July with the latter committing US$8 million to the development of Red Rabbit. Under the terms of the joint venture, Proccea will provide US$1.4 million for a feasibility study, EIA (Environmental Impact Study) and additional permitting with a further US$6.6 million committed towards plant construction.
The current drilling programme has been devised to enable conversion of current resources on these veins from the Inferred to Indicated category.
Ariana is focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey. The company is exploring a portfolio of prospective licences selected on the basis of its in-house geological and remote-sensing database, on its own in western Turkey and in joint venture with European Goldfields Ltd (AIM, TSX: EGU) in north-eastern Turkey.
The core Kiziltepe and Tavsan sectors are separated by a distance of 75 kilometres. The total resource inventory currently stands at 401,000oz gold equivalent.
Hammerson retains caution as interims show improvement
Hammerson (LON:HMSO), the shopping centre and office developer, reported a modest uptick in the value of its property portfolio as it said the outlook for the remainder of the year was "uncertain".
The net asset value of the firm, which has operations in the UK and France edged up 7.8 per cent in the six months to June 30 to 454p a share.
Pretax profits advanced to £335.6 million from an £818.5 million loss a year ago. However this figure was inflated by a revaluation gain of almost £259 million. Underlying earnings advanced 7 per cent to £70.2 million.
The company is paying a 7.15p a share interim dividend, a rise of 2.9 per cent on the year earlier.
Chairman John Nelson gave a rather downbeat assessment of prospects as he said: ‘"Although our markets have continued to recover from recession over the first half of 2010, the outlook remains uncertain.
"Against this background we are maintaining a clear focus on improving our portfolio, maximising the income from each of our assets and sound financial management.
"We have made good progress this year in each of these areas. The underlying quality of our portfolio has been demonstrated in our results, with lower vacancy and growing income in a challenging environment.
"Over the period we have executed a number of transactions which will improve the future growth prospects of our business whilst releasing capital for potential reinvestment. We have advanced our valuable development pipeline in the UK and France which will provide a basis for additional future growth."
Net rental income fell 10.5 per cent to £140m due to the disposals Hammerson made in 2009.
The net asset value of the firm, which has operations in the UK and France edged up 7.8 per cent in the six months to June 30 to 454p a share.
Pretax profits advanced to £335.6 million from an £818.5 million loss a year ago. However this figure was inflated by a revaluation gain of almost £259 million. Underlying earnings advanced 7 per cent to £70.2 million.
The company is paying a 7.15p a share interim dividend, a rise of 2.9 per cent on the year earlier.
Chairman John Nelson gave a rather downbeat assessment of prospects as he said: ‘"Although our markets have continued to recover from recession over the first half of 2010, the outlook remains uncertain.
"Against this background we are maintaining a clear focus on improving our portfolio, maximising the income from each of our assets and sound financial management.
"We have made good progress this year in each of these areas. The underlying quality of our portfolio has been demonstrated in our results, with lower vacancy and growing income in a challenging environment.
"Over the period we have executed a number of transactions which will improve the future growth prospects of our business whilst releasing capital for potential reinvestment. We have advanced our valuable development pipeline in the UK and France which will provide a basis for additional future growth."
Net rental income fell 10.5 per cent to £140m due to the disposals Hammerson made in 2009.
Mission Capital in reverse takeover talks
Mission Capital PLC (LON:MCAP) said it is currently in preliminary discussions relating to an acquisition which would constitute a reverse takeover under AIM rules.
The currently targeted timescale envisages completion by 3 February 2011. A further announcement on this will be made in due course.
The directors have also evaluated a number of other potential investment opportunities, but none has been suitable to be submitted to shareholders for approval, it added.
Mission Capital is an acquisitive vehicle focusing on assets and businesses related to, or connected with, property. The company was incorporated in the UK in August 2005 and listed on AIM in December the same year.
The currently targeted timescale envisages completion by 3 February 2011. A further announcement on this will be made in due course.
The directors have also evaluated a number of other potential investment opportunities, but none has been suitable to be submitted to shareholders for approval, it added.
Mission Capital is an acquisitive vehicle focusing on assets and businesses related to, or connected with, property. The company was incorporated in the UK in August 2005 and listed on AIM in December the same year.
BP prepares to permanently plug Macondo well, Sage drops out of TeamSystem bidding
Battered oil and gas supermajor BP (LON:BP) is set to begin an operation dubbed static kill to permanently plug its Macondo well in the Gulf of Mexico to stop the oil leak that has so far wiped oil more than a third of the company’s market cap for good. Mud will be pumped into the reservoir to capture the oil inside and prevent it from leaking, bringing the well pressure down to zero.
BP announced the resignation of gaffe prone Chief Executive Tony Hayward this week, naming former CEO of Russian JV (joint venture) and current Managing Director Bob Dudley as his successor. Dudley will take over from Hayward on 1 October this year.
The asset sale is progressing with BP announcing that it is looking to sell assets in Pakistan and Vietnam. The company is looking to raise US$30 billion to pay off the charges stemming from the oil spills. BP’s gas fields in Vietnam have already drawn interest from Indian companies.
Meanwhile, it has been reported that the owners of BP branded gas stations in the US are considering rebranding them to Amoco, the brand of a US oil and gas major that merged with BP in 1998.
Dow Jones Newswires has reported that software developer Sage Group (LON:SGE) has pulled out of the action for Italian software company TeamSystem, which is being shopped by its owner Bain Capital, leaving Cinven Group and HgCapital as the only bidders. Sage has earlier withdrawn from bidding only to re-enter after UBS (NYSE:UBS) agreed to cut the price. According to Dow Jones, Bain is looking to sell the asset for €600 million, 6 years after purchasing it for €274 million.
Next week will see the release of interim reports from Britain’s major banks, including Royal Bank of Scotland (LON:RBS), Lloyds (LON:LLOY), Standard Chartered (LON:STAN), HSBC (LON:HSBA) and Barclays (LON:BARC). Lloyds is projected to post a profit of nearly £1 billion. The report from another part-nationalized bank, RBS (LON:RBS), could show profits of up to £500 million.
BP announced the resignation of gaffe prone Chief Executive Tony Hayward this week, naming former CEO of Russian JV (joint venture) and current Managing Director Bob Dudley as his successor. Dudley will take over from Hayward on 1 October this year.
The asset sale is progressing with BP announcing that it is looking to sell assets in Pakistan and Vietnam. The company is looking to raise US$30 billion to pay off the charges stemming from the oil spills. BP’s gas fields in Vietnam have already drawn interest from Indian companies.
BP announced a record £11 billion Q2 loss this week.
Dow Jones Newswires has reported that software developer Sage Group (LON:SGE) has pulled out of the action for Italian software company TeamSystem, which is being shopped by its owner Bain Capital, leaving Cinven Group and HgCapital as the only bidders. Sage has earlier withdrawn from bidding only to re-enter after UBS (NYSE:UBS) agreed to cut the price. According to Dow Jones, Bain is looking to sell the asset for €600 million, 6 years after purchasing it for €274 million.
Next week will see the release of interim reports from Britain’s major banks, including Royal Bank of Scotland (LON:RBS), Lloyds (LON:LLOY), Standard Chartered (LON:STAN), HSBC (LON:HSBA) and Barclays (LON:BARC). Lloyds is projected to post a profit of nearly £1 billion. The report from another part-nationalized bank, RBS (LON:RBS), could show profits of up to £500 million.
Mariana Resources hires drilling contractor for Las Calandrias
South American based explorer Mariana Resources (LON:MARL) has signed a drilling contract with Argentine company Eco Minera covering a minimum 10,000 metres at its Las Calandrias gold-silver project in the Santa Cruz province.
The drilling programme is expected to take four months, starting in early September 2010, with an aim to produce a maiden resource estimate at the Calandria Sur target.
The programme will consist of delineation drilling of a breccia-hosted gold-silver resource at Calandria Sur with indicated bulk tonnage potential, priority drilling below and along strike from previous exceptional drill intersections of the gold-silver mineralisation and drilling of the entire 450m-long target trend at Calandria Norte and exploration drilling of the 1.5 km (kilometre) long target trend at El Nido Norte prospect and new targets identified at the El Nido Dome field.
Best drill intersections at Calandria Sur include 68 metres grading 2.4 g/t (grammes per tonne) gold and 24 g/t silver and 106 metres at 1.6 g/t gold and 27 g/t silver. Intersections from the Calandria Sur mineralisation included 4 metres at 76 g/t gold and 70 g/t silver and 4.5 metres at 102 g/t gold and 72 g/t silver.
The company expects to complete the maiden estimate by the end of Q4 2010.
“The signing of the contract signals the next exciting stage of our programme which will fast-track the Calandria Sur bulk tonnage target towards a maiden resource... n tandem with this, we will carry out further exploration drilling at Calandria Norte which we believe could become the stand-out discovery at Las Calandrias, with previous drill intersections of bonanza-grade vein-breccia-hosted gold/silver mineralisation. Additionally, intensive exploration of the El Nido Dome field is well underway and we expect to generate additional drill targets which could further expand the project's economic potential,” said managing Director of Mariana Resources John Sutcliffe.
The first of two SANDVIK DE710 diamond drill rigs will be mobilised onsite at the end of August 2010 with a second drill rig to follow at the end of September 2010.
Mariana is currently conducting exploration of the Las Calandrias rhyolite dome field, which includes ground magnetics, lag/trench sampling and 2D/3D IP surveying. In addition to that, the company has commenced the preliminary metallurgical testwork for the Calandria Sur target has commenced.
Back in June, the company raised £6.75 million through a placing for the fast-track exploration drilling at Las Calandrias.
The drilling programme is expected to take four months, starting in early September 2010, with an aim to produce a maiden resource estimate at the Calandria Sur target.
The programme will consist of delineation drilling of a breccia-hosted gold-silver resource at Calandria Sur with indicated bulk tonnage potential, priority drilling below and along strike from previous exceptional drill intersections of the gold-silver mineralisation and drilling of the entire 450m-long target trend at Calandria Norte and exploration drilling of the 1.5 km (kilometre) long target trend at El Nido Norte prospect and new targets identified at the El Nido Dome field.
Best drill intersections at Calandria Sur include 68 metres grading 2.4 g/t (grammes per tonne) gold and 24 g/t silver and 106 metres at 1.6 g/t gold and 27 g/t silver. Intersections from the Calandria Sur mineralisation included 4 metres at 76 g/t gold and 70 g/t silver and 4.5 metres at 102 g/t gold and 72 g/t silver.
The company expects to complete the maiden estimate by the end of Q4 2010.
“The signing of the contract signals the next exciting stage of our programme which will fast-track the Calandria Sur bulk tonnage target towards a maiden resource... n tandem with this, we will carry out further exploration drilling at Calandria Norte which we believe could become the stand-out discovery at Las Calandrias, with previous drill intersections of bonanza-grade vein-breccia-hosted gold/silver mineralisation. Additionally, intensive exploration of the El Nido Dome field is well underway and we expect to generate additional drill targets which could further expand the project's economic potential,” said managing Director of Mariana Resources John Sutcliffe.
The first of two SANDVIK DE710 diamond drill rigs will be mobilised onsite at the end of August 2010 with a second drill rig to follow at the end of September 2010.
Mariana is currently conducting exploration of the Las Calandrias rhyolite dome field, which includes ground magnetics, lag/trench sampling and 2D/3D IP surveying. In addition to that, the company has commenced the preliminary metallurgical testwork for the Calandria Sur target has commenced.
Back in June, the company raised £6.75 million through a placing for the fast-track exploration drilling at Las Calandrias.
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