London and Toronto listed Xcite Energy is sitting on a likely 160 million-barrel recoverable oilfield in the North Sea and, although it has the drilling and offtake agreements in place to begin extracting oil by the middle of next year, has a share price that values the company at under a dollar per barrel for its resource.
Among the possible reasons why the market is viewing the shares with an unsympathetic eye, is the fact that the oil in its reservoir is viscous – referred to as ‘heavy oil’ in the industry - which has historically made the extraction process more problematic and means it is sold at a 8-12% discount to more free-flowing Brent Crude. Furthermore the company is small and is unwilling to farm out the extraction process to a larger player, an unusual approach from a small cap resources player – but an innovative one that should reap significantly larger rewards in the long run. The key here is the securing of the business partners earlier this year; BP, AMEC and Transocean/ADTI, who will provide the credibility and services to enable the field to be developed. Small cap doesn’t look so small cap after all.
The oilfield – named Bentley and situated 160 kilometres east of the Shetland islands - was previously owned by Conoco, the world’s fifth largest refiner, who drilled three times in the 1980s but failed to bring oil to surface. ‘They had a bad day,’ confirms Xcite’s chief financial officer Rupert Cole. ‘They had the wrong pump set-up, the wrong sand screens and the oil price and the level of technology was much lower then.’ Indeed, heavy oil is now much less of a technological problem and is being extracted commercially in several continents around the globe, with Statoil’s Grane heavy oil field producing 200,000 bopd (barrels of oil per day) only a few miles away from Bentley and a number of others in the region targeted for 40-60% recovery rates.
BVI-domiciled Xcite acquired 100% of Bentley in 2003 and, with a team that includes a number of former Conoco men, proved oil does flow with an appraisal well in early 2008. This, along with two subsequent Competent Person’s Reports and recent reprocessing of 3D seismic data has shown the oil field could be one of the largest in the North Sea, with an upside of 886 million barrels (mmbbls) of petroleum initially in place (PIIP). However, the company is understandably being cautious and says the most likely level of PIIP for the Bentley field is 689 million barrels (this excludes upside from some lower, Jurassic oil that has been encountered and logged).
The likely amount of viscous oil that can be extracted, according to Competent Person RPS Energy, is between 72 and 166 mmbbls, with a most likely case of 122.5 mmbbls. The recent seismic reprocessing by the company lifts the recoverability estimates to between 109 and 220 mmbbls, with a base case of 160 mmbls. With the project’s current chance of commercial success calculated at 70%, the base risked case is 112 mmbbls. Successful completion of a planned drilling project this July and August will take the chance of commercial success up to 90%, will upgrade a portion of the contingent resources to a proven and probable reserve level, and will cement Xcite’s place as the third biggest independent producer company active in the UK North Sea in terms of reserves. Cole adds that recent 3D analysis means that ‘applying upside reservoir parameters we now think that the 160 mmbbls base case could be 235 mmbbls.’
The oil is contained in large, homogeneous body of high porosity, highly permeable sand and, heavy as it is, the oil has been found to be saturated with methane gas, which makes it ‘behave like lighter oil in situ’, according to the company. So this is a very good reservoir.
Now, can Xcite extract it and then sell it for a reasonable price?
An oilfield of this size is generally only found in the hands of an Exxon, a BP, a Shell or a Statoil. These giants of the industry would simply employ the very best drilling and engineering contractors and most likely succeed without much of a hitch. ‘So we have secured exactly the same team as a major oil company would,’ explains Cole. Xcite has created the ‘Bentley Alliance’, a group of industry partners that will provide the services as well as potentially contributing to the equity/cash flow to take the oil field into an ‘early production system’ next year and to the full production that is expected in 2014.
Top engineers AMEC will take care of the ‘top side’ engineering and consultancy, backed up by Schlumberger behind them, and with Transocean doing the drilling (and taking a 4% quasi-equity stake in the field in return for its $4m contribution to well costs). Another major coup has been to get BP to sign up as the offtake partner, incentivised to maximise the sales value of the oil and with the offtake fee directly related to the realised price achieved by BP in relation to the prevailing Brent crude price. Bentley oil has a very high diesel cut (ie it is good to refine for diesel fuel), among several other uses, and Cole is confident that BP ‘will be able to minimize the discount to Brent’.
It’s quite an agreement that Xcite has rigged for itself and a testament to the experience of the management team, says Cole, himself a former Halliburton man. The board has a wide range of industry experience both upstream and down, and is led by CEO Richard Smith, who worked with Cole at Halliburton, and chairman Roger Ramshaw, former chairman and managing director of ConocoPhillips in the UK and in Venezuela (heavy oil), with local expertise bolstered by exploration and development director Stephen Kew’s 25 years with Conoco and specific experience in respect of the Bentley field.
Cole explains that the result of this brains trust is an excellent deal for all concerned: ‘The Alliance is unusual for a small company like this, but we have done it before. As Xcite is unlikely to fund a conventional full field development, we are going to do it in bite-sized chunks and engage the Alliance partners to provide an extraction service. For our partners this is potentially a very important contract, due to the way we are able to structure it. They would have the potential to earn significant bonus revenues as they are incentivized to deliver much more than the minimum amount extracted.’
With a £24.9 million placing (at 40p a share) completed on 18 March, Xcite has the financing to complete the drilling and flow testing of a pre-development well this summer. By around the end of June, Transocean should have one of its jack-up rigs standing on the sea bed to drill a horizontal well of around 500m with the aim of achieving a representative flow rate and moving the contingent resources to reserve status.
The next stage will be the early production system (EPS), which is an extension of this summer’s drilling, with 5 wells planned to be drilled. ‘If we had the money we’d probably do it now,’ says Cole, who says that this is planned for ‘the middle of next year and should be in production for around two years’ and produce ‘around 10 mmbbls; our first oil and cash flow’. He says the EPS funding should be around $100m and will probably be made up of ‘half debt and half equity’.
At £80 million market cap, the 60p shares mean the market is only ascribing 75cents per barrel to Xcite’s base case oil reserves, compared to a Brent crude price of around $80. This assumes a huge amount of uncertainty in the project – much more than seems justifiable based on the big industry names which have signed up to the Alliance after full due diligence on the field. Broker Arbuthnot, based on the Competent Person’s Report, calculates a ‘low’ net present value of 79p, a base of 340p and a high of 669p.
http://www.proactiveinvestors.co.uk/companies/news/15616/xcite-energy-exciting-times-ahead-15616.html
Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
Monday, 26 April 2010
Asterand: investing for the future
Scientists have been increasingly using well-characterised human tissue to develop new drug candidates. Often, these scientists need to see if their drugs cause a desired response in targeted tissue, but they also need to test to see if their drugs cause a response in non-targeted tissue that may lead to an undesired side effect. Meanwhile, tissue samples can be helpful in determining which genes or proteins are the cause of certain diseases.
Formed out of a merger in January 2006 of two human-tissue focused businesses – Pharmagene and a US firm also known as Asterand –, the company today boasts an international network for human tissue supply as well as expertise in human tissue-based research services. This makes the firm a one-stop shop for clients seeking human tissue-based solutions for research and development projects.
Asterand is able to supply tissue samples in a variety of formats, as well as tissue derivatives. It can also provide consultancy advice on the development of in-house tissue banks and it offers applied experimental research services, using human tissue, that are tailored to the needs of individual clients.
Asterand’s main competition consists of direct sourcing activities (where pharmaceutical research labs collaborate with academic organisations and research hospitals in order to obtain tissue), as well as smaller rivals offering a similar tissue sourcing service to the pharmaceutical industry. So, it has been able to leverage both the organisation of its business and its economies of scale to good effect. For example, Asterand has unparalleled access to human tissue through a worldwide network of over 100 active collaborative donor institutions, while its XpressBANK biobank contains several hundred thousand specimens from a broad range of therapeutic areas and a diverse ethnic representation. It is not just about economies of scale as the Asterand brand is strongly focused on quality.
Meanwhile, the company’s PhaseZERO process for testing the effect of drugs on human tissue is used by many large pharmaceutical businesses around the world. PhaseZERO enables Asterand to provide a collaborative scientific approach to the delivery of human tissue-based data on target and biomarker validation as well as compound potency, efficacy, disposition and safety.
Since its merger, Asterand has won contracts with a number of large businesses and prestigious organisations in the healthcare arena. For example, Bristol-Myers Squibb has been a key customer for several years.
In fact, the company’s client base now includes every one of the top 30 pharmaceutical companies in the world. And by the end of last year, 13 of these companies had signed master service agreements (MSAs) with Asterand.
Deals made in 2009 included an extension of Bristol-Myers Squibbs’ MSA for a further three years, as well as the signing of an MSA with new client Lundbeck – the Danish research firm that develops drugs to tackle a range of central nervous system disorders, including schizophrenia, Alzheimers, Parkinson’s disease and Huntington’s disease).
Last year also saw a collaborative agreement with Abcam, the fast-growing Cambridge-based firm that markets antibodies online. Asterand assisted the Abcam in the validation and characterisation of selected antibodies using its PhaseZERO platform.
In March this year, the firm’s newly-acquired subsidiary, BioSeek, finalised a drug development collaboration with Japan’s Ono Pharmaceuticals, offering ample milestone based upside possibilities. BioSeek will use its proprietary BioMAP platform in an exclusive collaboration that is centred on a specific drug target class designated by Ono. BioMAP systems are primary cell-based models of human disease biology that are designed to replicate the intricate cell and pathway interactions as they are observed in human pharmacology and toxicology.
The acquisition of San Francisco-based BioSeek was part of Asterand’s ongoing strategy to consolidate its leadership in the global market for human tissue and human tissue-based services. Asterand has agreed to pay up to $14m by the end of 2011 for the business, depending on the level of sales growth achieved by BioSeek.
In the second half of 2009 the pharmaceutical sector as a whole reduced its R&D expenditure affecting most CRO (Contract Research Organization) businesses. Results for 2009 showed that revenues came in lower than for 2008: £12m compared with £15.2m, and Asterand posted adjusted EBITDA of £0.21 million (2008: £3.1 million). However, despite turnover being lower overall, Asterand had benefited in 2008 from £3.4m of non-recurring licensing revenue from its client Allergan. In the firm’s Human Tissue-Based Solutions segment, where revenues amounted to £11.8m in 2008, there were two further non-recurring items: £1.3m connected to the firm’s contract with the US Department of Defense for the evaluation of the Armed Forces Institute of Pathology’s biorepository; and £2.6m relating to Asterand’s contract with Baylor School of Medicine.
So, Asterand’s management points out that base business revenue actually increased from £7.9m to £9.5m in 2009. Meanwhile, the firm’s profit margin was affected by £1m of exceptional general and administrative costs, which included legal and professional fees connected to the BioSeek acquisition as well as other items.
Asterand certainly has its eye on the future, and its management is prepared to take some short term pain so that the firm can benefit over the long term.
As well as its acquisition of BioSeek, last year also saw it invest in building its supply of biospecimens and accreditation for its UK facility in Royston as a member of the UK Good Laboratory Practice (GLP) Compliance Monitoring Programme.
In Asterand’s recent results announcement the firm’s management points out that while other firms were downsizing, closing facilities and reducing inventories, it invested in new business, technology and product development, which it anticipates will pay off over time.
Although Asterand’s management remains cautious about short-term prospects, the company expects the long-term trend for increased testing on human tissue, as opposed to animals, to continue.
House broker Daniel Stewart & Company (DS&C) value the stock at a buy up to 25p stating Asterand’s performance was in line with expectations, while noting the 7% growth in its core tissue supply business amid significant reduction of R&D spending in the pharmaceutical industry. The broker also called the BioSeek acquisition the “key highlight” of the period, saying that its core product throughput assay system BioMAP is highly complementary with Asterand’s current product and service portfolio.
Cenkos Securities also issued a note on Asterand, saying the group has made great strides by investing in its supplier network, making the acquisition of BioSeek, gaining GLP accreditation and expanding its sales force to leverage global partnerships. It does not expect the current year to be without difficulty but Asterand has positioned itself at the forefront of the human tissue testing market.
Human tissue testing is becoming mission critical to the pharmaceutical industry. Asterand is well placed in a market that is growing, and may well grow more quickly in the future. Consolidation within the sector is also a possibility.
Listed on the main board also has its advantages for Asterand though the stock is still fairly illiquid so should be considered a medium term play and not a short term punt. As the last 6 months have shown, there will be ups and downs along the way, but over 2 to 3 years the future looks promising.
http://www.proactiveinvestors.co.uk/companies/news/15716/asterand-investing-for-the-future-15716.html
Formed out of a merger in January 2006 of two human-tissue focused businesses – Pharmagene and a US firm also known as Asterand –, the company today boasts an international network for human tissue supply as well as expertise in human tissue-based research services. This makes the firm a one-stop shop for clients seeking human tissue-based solutions for research and development projects.
Asterand is able to supply tissue samples in a variety of formats, as well as tissue derivatives. It can also provide consultancy advice on the development of in-house tissue banks and it offers applied experimental research services, using human tissue, that are tailored to the needs of individual clients.
Asterand’s main competition consists of direct sourcing activities (where pharmaceutical research labs collaborate with academic organisations and research hospitals in order to obtain tissue), as well as smaller rivals offering a similar tissue sourcing service to the pharmaceutical industry. So, it has been able to leverage both the organisation of its business and its economies of scale to good effect. For example, Asterand has unparalleled access to human tissue through a worldwide network of over 100 active collaborative donor institutions, while its XpressBANK biobank contains several hundred thousand specimens from a broad range of therapeutic areas and a diverse ethnic representation. It is not just about economies of scale as the Asterand brand is strongly focused on quality.
Meanwhile, the company’s PhaseZERO process for testing the effect of drugs on human tissue is used by many large pharmaceutical businesses around the world. PhaseZERO enables Asterand to provide a collaborative scientific approach to the delivery of human tissue-based data on target and biomarker validation as well as compound potency, efficacy, disposition and safety.
Since its merger, Asterand has won contracts with a number of large businesses and prestigious organisations in the healthcare arena. For example, Bristol-Myers Squibb has been a key customer for several years.
In fact, the company’s client base now includes every one of the top 30 pharmaceutical companies in the world. And by the end of last year, 13 of these companies had signed master service agreements (MSAs) with Asterand.
Deals made in 2009 included an extension of Bristol-Myers Squibbs’ MSA for a further three years, as well as the signing of an MSA with new client Lundbeck – the Danish research firm that develops drugs to tackle a range of central nervous system disorders, including schizophrenia, Alzheimers, Parkinson’s disease and Huntington’s disease).
Last year also saw a collaborative agreement with Abcam, the fast-growing Cambridge-based firm that markets antibodies online. Asterand assisted the Abcam in the validation and characterisation of selected antibodies using its PhaseZERO platform.
In March this year, the firm’s newly-acquired subsidiary, BioSeek, finalised a drug development collaboration with Japan’s Ono Pharmaceuticals, offering ample milestone based upside possibilities. BioSeek will use its proprietary BioMAP platform in an exclusive collaboration that is centred on a specific drug target class designated by Ono. BioMAP systems are primary cell-based models of human disease biology that are designed to replicate the intricate cell and pathway interactions as they are observed in human pharmacology and toxicology.
The acquisition of San Francisco-based BioSeek was part of Asterand’s ongoing strategy to consolidate its leadership in the global market for human tissue and human tissue-based services. Asterand has agreed to pay up to $14m by the end of 2011 for the business, depending on the level of sales growth achieved by BioSeek.
In the second half of 2009 the pharmaceutical sector as a whole reduced its R&D expenditure affecting most CRO (Contract Research Organization) businesses. Results for 2009 showed that revenues came in lower than for 2008: £12m compared with £15.2m, and Asterand posted adjusted EBITDA of £0.21 million (2008: £3.1 million). However, despite turnover being lower overall, Asterand had benefited in 2008 from £3.4m of non-recurring licensing revenue from its client Allergan. In the firm’s Human Tissue-Based Solutions segment, where revenues amounted to £11.8m in 2008, there were two further non-recurring items: £1.3m connected to the firm’s contract with the US Department of Defense for the evaluation of the Armed Forces Institute of Pathology’s biorepository; and £2.6m relating to Asterand’s contract with Baylor School of Medicine.
So, Asterand’s management points out that base business revenue actually increased from £7.9m to £9.5m in 2009. Meanwhile, the firm’s profit margin was affected by £1m of exceptional general and administrative costs, which included legal and professional fees connected to the BioSeek acquisition as well as other items.
Asterand certainly has its eye on the future, and its management is prepared to take some short term pain so that the firm can benefit over the long term.
As well as its acquisition of BioSeek, last year also saw it invest in building its supply of biospecimens and accreditation for its UK facility in Royston as a member of the UK Good Laboratory Practice (GLP) Compliance Monitoring Programme.
In Asterand’s recent results announcement the firm’s management points out that while other firms were downsizing, closing facilities and reducing inventories, it invested in new business, technology and product development, which it anticipates will pay off over time.
Although Asterand’s management remains cautious about short-term prospects, the company expects the long-term trend for increased testing on human tissue, as opposed to animals, to continue.
House broker Daniel Stewart & Company (DS&C) value the stock at a buy up to 25p stating Asterand’s performance was in line with expectations, while noting the 7% growth in its core tissue supply business amid significant reduction of R&D spending in the pharmaceutical industry. The broker also called the BioSeek acquisition the “key highlight” of the period, saying that its core product throughput assay system BioMAP is highly complementary with Asterand’s current product and service portfolio.
Cenkos Securities also issued a note on Asterand, saying the group has made great strides by investing in its supplier network, making the acquisition of BioSeek, gaining GLP accreditation and expanding its sales force to leverage global partnerships. It does not expect the current year to be without difficulty but Asterand has positioned itself at the forefront of the human tissue testing market.
Human tissue testing is becoming mission critical to the pharmaceutical industry. Asterand is well placed in a market that is growing, and may well grow more quickly in the future. Consolidation within the sector is also a possibility.
Listed on the main board also has its advantages for Asterand though the stock is still fairly illiquid so should be considered a medium term play and not a short term punt. As the last 6 months have shown, there will be ups and downs along the way, but over 2 to 3 years the future looks promising.
http://www.proactiveinvestors.co.uk/companies/news/15716/asterand-investing-for-the-future-15716.html
Lo-Q: Busting the theme park queues
Anyone who has ever visited a theme park will know about the mild frustration that can be brought on by having to queue for the most popular rides. You have already paid to get in, you have only a few hours to enjoy the day, so why oh why should you spend half of it queuing?
Thankfully, one Alternative Investment Market-quoted business has come up with a solution to this issue, and it has both increasing revenues and profits as a result.
Founded in August 2000, Lo-Q developed technology that was based on the idea of ‘dynamic virtual queuing’ that was conceived by Leonard Sim (a former electronics engineer and Lo-Q’s founding director) after a two-hour wait for a ride that broke down, at a Florida theme park in the 1990s.
Soon after its foundation, the company completed its IPO, using the proceeds raised to fund a large-scale Lo-Q installation in its first park: the Six Flags Over Georgia attraction, located near Atlanta in the US. The completion of a second round of funding enabled the company to install its system in a further five parks in 2002.
Queuing solutions supplied by Lo-Q include Q-bot. This is a handheld unit that park visitors can rent. After selecting a ride by using the Q-bot buttons, the system adds that person or group into a virtual queue. Guests are informed via the Q-bot’s display, accompanied by a beep and vibration, that their ride is ready, while the device can also inform users of a ride’s breakdown and allow rescheduling of reservations.
The advantage of Q-bot is that it allows theme park visitors to reserve their rides without having to queue, so a visitor does not have to spend their time waiting in a line and they can spend their time enjoying other attractions or go to a restaurant.
Another solution offered by Lo-Q is Q-txt. This also enables ride reservations, although it uses the visitor’s mobile phone instead of the Q-bot handheld device. Users can book their place in line by sending a simple text and the Q-txt computer then allocates a time to ride for the user.
Although Q-txt’s deployment requires little capital investment from the venue using it, it does require a mobile phone connection. Q-txt is now a well-established virtual queuing system at both Flamingo Land, in the north of England and at Parque Isla Mágica in Seville, Spain.
Lo-Q has patents registered in several countries, including the US and UK, covering its Queue Management System and has patents pending that cover its Q-bot products. Other patents have also been applied for.
Results for 2009 showed that despite poor weather causing fewer sales of Q-bot in June and October last year, the company still managed to increase revenues by 27.9% to £17.3m during the 10-month period to 31 October 2009 against £13.5m in the 12 months to 31 December 2008.
Lo-Q’s board took a prudent approach in managing its cost base and cash position during the year, which helped the company to boost its pre-tax profits for 2009 by 29.2% to £2.4m, which translated to diluted earnings per share of 11.5 pence (2008: 12 pence).
The firm had a cash position of £4.4m at the end of October, compared with £2.6m at the end of 2008, and it has no debt.
Although Lo-Q’s management team has been cautious with the business since the recession started, keeping a lid on the company’s costs, there is some evidence available that theme parks have been quite resilient in terms of visitor numbers during the economic downturn.
For example, Disney reported in May last year that while the recession had led visitors to spend less money in its theme parks, US attendance had been about even with the previous year. Meanwhile, a report released in March this year from consumer research organisation Mintel found that the theme park sector in the UK has traded strongly through the recession.
Mintel says that a trend towards holidaying at home was a factor in attracting 3% of adults to make a first-time trip to a theme park during 2009, equating to approximately 1.2 million new visitors. In 2010, admission levels to theme parks are set to break the 14 million level for the first time – up from 12.3 million five years ago.
But the theme park industry is not completely resilient against recession, as reflected by Lo-Q’s rollercoaster share price performance since its major customer – Six Flags – filed for Chapter 11 bankruptcy protection in June last year. Despite this blow, not all of the theme park operator’s parks were affected and Lo-Q’s management said back in February that it was hopeful that once the Chapter 11 process has been completed the negative effect on the company’s share price will end.
Indeed, that already appears to have happened. Lo-Q’s shares – 111.5 pence each at the time of writing (having achieved 118.5 pence in late March) – are already up by almost 50% on their level at the beginning of this year.
Helping to spur the shares on was the recent news that Lo-Q had signed renewal agreements with five of its customers to extend their contracts for Lo-Q’s queue management systems. LEGOLAND Windsor, in the UK, has extended for a further three years, as has Dreamworld in Australia. Mirabilandia in Italy has extended its contract for a further four years, while Dollywood of Tennessee, in the US, has extended for a further year.
Meanwhile, Parque Isla Mágica in Seville has extended its one-year rolling contract to use the Q-txt system.
Lo-Q has also entered the US market, having signed an agreement to install its Q-txt queue management system at the Lake Compounce Family Theme Park in Connecticut. Lake Compounce is operated by Palace Entertainment, part of the Parques Reunidos family of parks. Palace Entertainment is the largest operator of waterparks and family entertainment centres in the USA, with over 14 million visitors annually at 38 locations with seven theme parks, 10 waterparks and 21 family entertainment centres.
Lake Compounce has over 700,000 visitors annually and attendances continue to grow. The theme park offers both ‘waterpark’ and ‘dry’ attractions. Water park growth has been very significant in recent years.
Analyst forecasts estimate that Lo-Q’s revenues should increase to £23.3m this year while pre-tax profit is expected to come in at £2.5m, translating to earnings per share of 12 pence.
http://www.proactiveinvestors.co.uk/companies/news/15686/lo-q-busting-the-theme-park-queues-15686.html
Thankfully, one Alternative Investment Market-quoted business has come up with a solution to this issue, and it has both increasing revenues and profits as a result.
Founded in August 2000, Lo-Q developed technology that was based on the idea of ‘dynamic virtual queuing’ that was conceived by Leonard Sim (a former electronics engineer and Lo-Q’s founding director) after a two-hour wait for a ride that broke down, at a Florida theme park in the 1990s.
Soon after its foundation, the company completed its IPO, using the proceeds raised to fund a large-scale Lo-Q installation in its first park: the Six Flags Over Georgia attraction, located near Atlanta in the US. The completion of a second round of funding enabled the company to install its system in a further five parks in 2002.
Queuing solutions supplied by Lo-Q include Q-bot. This is a handheld unit that park visitors can rent. After selecting a ride by using the Q-bot buttons, the system adds that person or group into a virtual queue. Guests are informed via the Q-bot’s display, accompanied by a beep and vibration, that their ride is ready, while the device can also inform users of a ride’s breakdown and allow rescheduling of reservations.
The advantage of Q-bot is that it allows theme park visitors to reserve their rides without having to queue, so a visitor does not have to spend their time waiting in a line and they can spend their time enjoying other attractions or go to a restaurant.
Another solution offered by Lo-Q is Q-txt. This also enables ride reservations, although it uses the visitor’s mobile phone instead of the Q-bot handheld device. Users can book their place in line by sending a simple text and the Q-txt computer then allocates a time to ride for the user.
Although Q-txt’s deployment requires little capital investment from the venue using it, it does require a mobile phone connection. Q-txt is now a well-established virtual queuing system at both Flamingo Land, in the north of England and at Parque Isla Mágica in Seville, Spain.
Lo-Q has patents registered in several countries, including the US and UK, covering its Queue Management System and has patents pending that cover its Q-bot products. Other patents have also been applied for.
Results for 2009 showed that despite poor weather causing fewer sales of Q-bot in June and October last year, the company still managed to increase revenues by 27.9% to £17.3m during the 10-month period to 31 October 2009 against £13.5m in the 12 months to 31 December 2008.
Lo-Q’s board took a prudent approach in managing its cost base and cash position during the year, which helped the company to boost its pre-tax profits for 2009 by 29.2% to £2.4m, which translated to diluted earnings per share of 11.5 pence (2008: 12 pence).
The firm had a cash position of £4.4m at the end of October, compared with £2.6m at the end of 2008, and it has no debt.
Although Lo-Q’s management team has been cautious with the business since the recession started, keeping a lid on the company’s costs, there is some evidence available that theme parks have been quite resilient in terms of visitor numbers during the economic downturn.
For example, Disney reported in May last year that while the recession had led visitors to spend less money in its theme parks, US attendance had been about even with the previous year. Meanwhile, a report released in March this year from consumer research organisation Mintel found that the theme park sector in the UK has traded strongly through the recession.
Mintel says that a trend towards holidaying at home was a factor in attracting 3% of adults to make a first-time trip to a theme park during 2009, equating to approximately 1.2 million new visitors. In 2010, admission levels to theme parks are set to break the 14 million level for the first time – up from 12.3 million five years ago.
But the theme park industry is not completely resilient against recession, as reflected by Lo-Q’s rollercoaster share price performance since its major customer – Six Flags – filed for Chapter 11 bankruptcy protection in June last year. Despite this blow, not all of the theme park operator’s parks were affected and Lo-Q’s management said back in February that it was hopeful that once the Chapter 11 process has been completed the negative effect on the company’s share price will end.
Indeed, that already appears to have happened. Lo-Q’s shares – 111.5 pence each at the time of writing (having achieved 118.5 pence in late March) – are already up by almost 50% on their level at the beginning of this year.
Helping to spur the shares on was the recent news that Lo-Q had signed renewal agreements with five of its customers to extend their contracts for Lo-Q’s queue management systems. LEGOLAND Windsor, in the UK, has extended for a further three years, as has Dreamworld in Australia. Mirabilandia in Italy has extended its contract for a further four years, while Dollywood of Tennessee, in the US, has extended for a further year.
Meanwhile, Parque Isla Mágica in Seville has extended its one-year rolling contract to use the Q-txt system.
Lo-Q has also entered the US market, having signed an agreement to install its Q-txt queue management system at the Lake Compounce Family Theme Park in Connecticut. Lake Compounce is operated by Palace Entertainment, part of the Parques Reunidos family of parks. Palace Entertainment is the largest operator of waterparks and family entertainment centres in the USA, with over 14 million visitors annually at 38 locations with seven theme parks, 10 waterparks and 21 family entertainment centres.
Lake Compounce has over 700,000 visitors annually and attendances continue to grow. The theme park offers both ‘waterpark’ and ‘dry’ attractions. Water park growth has been very significant in recent years.
Analyst forecasts estimate that Lo-Q’s revenues should increase to £23.3m this year while pre-tax profit is expected to come in at £2.5m, translating to earnings per share of 12 pence.
http://www.proactiveinvestors.co.uk/companies/news/15686/lo-q-busting-the-theme-park-queues-15686.html
Friday, 16 April 2010
Patagonia Gold to move forward with Lomada de Levia gold project after securing permit
Patagonia Gold (AIM: PGD) has announced that State Secretariat of Mining of the Province of Santa Cruz in Argentina has approved the environmental impact study and issued the necessary permit for the proposed trial heap leach operation at the Lomada de Leiva gold project, allowing the company to move forward with its operations there.
Engineering design and procurement contracts are well advanced and the construction of the elution processing plant is set to begin in Q3. The construction of the pad, mining and loading of the trial heap leach is expected to be completed in Q4 and will be followed by the commencement of irrigation and processing. The construction of the main heap leach operation will kick off with production start-up in the second half of 2011.
The main heap leach operation at Lomada is expected to produce over 21,000 ounces of gold per year at a low cash cost of US$300 per ounce, for the minimum expected mine life of 7 years. Patagonia has said that the project has “considerable growth potential” with the conversion of the inferred resources by infill drilling and the development of additional resources.
The Lomada de Leiva project is contained within the La Paloma Group of concessions totalling 44 sq km (square kilometres) owned 100% by Patagonia Gold. These concessions were acquired in February 2007 from subsidiaries of Barrick Gold Corporation (NYSE, TSX: ABX)under an agreement which includes a back-in option clause on delineation of 2 Moz (million ounces) gold equivalent.
Other projects hosted by this mining district include Cerro Vanguardia with 4.4 Moz gold equivalent (AngloGold-Ashanti ), Cerro Negro with about 2.5 Moz gold equivalent (Andean Resources), Manantial Espejo with 1.2 Moz gold equivalent (Pan American Silver), San Jose with 1.99 Moz gold equivalent (Hochschild/Minera Andes) and Mina Martha with 22 Moz silver equivalent (Coeur D'Alene).
Previous exploration at Lomada de Levia returned grades of 5.33 g/t (grammes per tonne) gold over 11 metres, 5.45 g/t over 17 metres, 9.08 g/t gold over 17.6 metres, 3.13 g/t gold over 10 metres, 2.59 g/t gold over 12.45 metres and 5.21 g/t gold over 14.7 metres.
A drilling campaign by Patagonia reported intercepts including 18 metres at 6.87 g/t gold, 10 metres at 12.68 g/t gold and 36 metres at 4.78 g/t gold.
http://www.proactiveinvestors.com.au/companies/news/6521/patagonia-gold-to-move-forward-with-lomada-de-levia-gold-project-after-securing-permit-6521.html
Engineering design and procurement contracts are well advanced and the construction of the elution processing plant is set to begin in Q3. The construction of the pad, mining and loading of the trial heap leach is expected to be completed in Q4 and will be followed by the commencement of irrigation and processing. The construction of the main heap leach operation will kick off with production start-up in the second half of 2011.
The main heap leach operation at Lomada is expected to produce over 21,000 ounces of gold per year at a low cash cost of US$300 per ounce, for the minimum expected mine life of 7 years. Patagonia has said that the project has “considerable growth potential” with the conversion of the inferred resources by infill drilling and the development of additional resources.
The Lomada de Leiva project is contained within the La Paloma Group of concessions totalling 44 sq km (square kilometres) owned 100% by Patagonia Gold. These concessions were acquired in February 2007 from subsidiaries of Barrick Gold Corporation (NYSE, TSX: ABX)under an agreement which includes a back-in option clause on delineation of 2 Moz (million ounces) gold equivalent.
Other projects hosted by this mining district include Cerro Vanguardia with 4.4 Moz gold equivalent (AngloGold-Ashanti ), Cerro Negro with about 2.5 Moz gold equivalent (Andean Resources), Manantial Espejo with 1.2 Moz gold equivalent (Pan American Silver), San Jose with 1.99 Moz gold equivalent (Hochschild/Minera Andes) and Mina Martha with 22 Moz silver equivalent (Coeur D'Alene).
Previous exploration at Lomada de Levia returned grades of 5.33 g/t (grammes per tonne) gold over 11 metres, 5.45 g/t over 17 metres, 9.08 g/t gold over 17.6 metres, 3.13 g/t gold over 10 metres, 2.59 g/t gold over 12.45 metres and 5.21 g/t gold over 14.7 metres.
A drilling campaign by Patagonia reported intercepts including 18 metres at 6.87 g/t gold, 10 metres at 12.68 g/t gold and 36 metres at 4.78 g/t gold.
http://www.proactiveinvestors.com.au/companies/news/6521/patagonia-gold-to-move-forward-with-lomada-de-levia-gold-project-after-securing-permit-6521.html
Mariana Resources completes drilling at Calandria Sur target at Las Calandrias
Mariana Resources (AIM: MARL) has completed a further 14 diamond drill holes at the Calandria Sur target at its wholly owned Las Calandrias Project in the Santa Cruz Province of Southern Argentina, bringing the total number of holes to 28 and 3,200m drilled. Assay results are expected from late April to late May.
In total the 5,600 hectare Las Calandrias project consists of four key target areas: Calandria Sur, Calandria Norte, El Nido Este and El Nido Norte.
The current phase of drilling at Calandria Sur has now been completed. Together with the seven 2009 drill holes, the drilling covers an area of approximately 700 metres NW-SE by 120 metres to 220 metres NE-SW.
The last 12 holes have been testing the core of the rhyolite dome with the first 14 holes mostly along the eastern and northern dome margins. Mariana said that most holes intersected broad zones of brecciation, silicification and arcasite/pyrite stockworks from 14m to 80m down-hole.
Samples from 16 holes have been submitted to the assay laboratory so far.
Across the whole Las Calandrias Project area, an additional eight holes are proposed for priority targets at Calandria Norte, El Nido Este and El Nido Norte, as part of the current programme.
Earlier this month, in an operational update, Mariana said that at El Nido Norte detailed mapping, lag sampling and limited trenching is in progress and this new target will be tested as part of the current drill programme.
At El Nido Norte, ongoing exploration has identified a north-east trending 50x80m veined area, abundant visible gold and silver mineralization was noted in a narrow mineralized structure within this zone, Mariana stated. Surface channel samples returned bonanza gold and silver assays including 0.4m at 62 grams per tonne (gpt) gold and 332gpt silver, 0.5m at 106 gpt gold & 510 gpt silver and 0.7m at 75.4 gpt gold & 2,490gpt silver.
“The recent bonanza gold and silver assays in follow up channel sampling at the El Nido Norte prospect are very exciting and present new drill targets" Mariana MD John Sutcliffe recently stated.
This latest drilling program follows extensive exploration activity in the area, after the Calandria Sur discovery in late 2009. Recent exploration consisted of detailed mapping, rock chip geochemistry and an Induced Polarization Survey (IP). Las Calandrias, which was formerly the Dos Calandrias project, was subsequently extended to include the Calandria Sur and Calandria Norte mineralised rhyolite dome complexes to south-east and the recently discovered El Nido dome complex located to the west.
http://www.proactiveinvestors.com.au/companies/news/6520/mariana-resources-completes-drilling-at-calandria-sur-target-at-las-calandrias-6520.html
In total the 5,600 hectare Las Calandrias project consists of four key target areas: Calandria Sur, Calandria Norte, El Nido Este and El Nido Norte.
The current phase of drilling at Calandria Sur has now been completed. Together with the seven 2009 drill holes, the drilling covers an area of approximately 700 metres NW-SE by 120 metres to 220 metres NE-SW.
The last 12 holes have been testing the core of the rhyolite dome with the first 14 holes mostly along the eastern and northern dome margins. Mariana said that most holes intersected broad zones of brecciation, silicification and arcasite/pyrite stockworks from 14m to 80m down-hole.
Samples from 16 holes have been submitted to the assay laboratory so far.
Across the whole Las Calandrias Project area, an additional eight holes are proposed for priority targets at Calandria Norte, El Nido Este and El Nido Norte, as part of the current programme.
Earlier this month, in an operational update, Mariana said that at El Nido Norte detailed mapping, lag sampling and limited trenching is in progress and this new target will be tested as part of the current drill programme.
At El Nido Norte, ongoing exploration has identified a north-east trending 50x80m veined area, abundant visible gold and silver mineralization was noted in a narrow mineralized structure within this zone, Mariana stated. Surface channel samples returned bonanza gold and silver assays including 0.4m at 62 grams per tonne (gpt) gold and 332gpt silver, 0.5m at 106 gpt gold & 510 gpt silver and 0.7m at 75.4 gpt gold & 2,490gpt silver.
“The recent bonanza gold and silver assays in follow up channel sampling at the El Nido Norte prospect are very exciting and present new drill targets" Mariana MD John Sutcliffe recently stated.
This latest drilling program follows extensive exploration activity in the area, after the Calandria Sur discovery in late 2009. Recent exploration consisted of detailed mapping, rock chip geochemistry and an Induced Polarization Survey (IP). Las Calandrias, which was formerly the Dos Calandrias project, was subsequently extended to include the Calandria Sur and Calandria Norte mineralised rhyolite dome complexes to south-east and the recently discovered El Nido dome complex located to the west.
http://www.proactiveinvestors.com.au/companies/news/6520/mariana-resources-completes-drilling-at-calandria-sur-target-at-las-calandrias-6520.html
Westminster Group adds blue chip security specialist CTAC to its portfolio
Westminster Group PLC (AIM: WSG), supplier of systems and products to the security, defence, fire protection and safety markets worldwide, announced the acquisition of CTAC Ltd, paying up to £1.82 million depending on future performance.
CTAC provides ‘high end’ security systems and services to a blue chip client base including Brinks, DeBeers LV and Seven Trent Water who operate in operationally critical, high value and high profile fields such as cash handling, bullion storage, jewellery and diamond merchants, chemical storage and utilities.
A key strength of the business is its 24 hour Alarm Receiving Centre (ARC) which is built, operated and certificated to the National Security Inspectorate (NSI) Gold standard, the highest level of such certification in the UK. The ARC operates as a 24/7 control & command centre and monitors alarm and video signals from over 1,000 systems across the UK, producing a strong recurring revenue stream.
Founded in 2004, CTAC operates from premises in Kidderminster, UK, supporting clients primarily within the UK but with a growing interest and significant market potential internationally, Westminster said.
Westminster has built a considerable global presence operating through established agents in 45 countries, offering a niche portfolio of security, defence, fire and safety products and services. The addition of CTAC to the group continues Westminster’s expansion through the integration of complementary services.
CTAC’s 24 hour Control & Command facility and Alarm Receiving Centre is a major enhancement to the group’s service operations, presenting cross selling opportunities to other group companies and international clients operating across international time zones.
The acquisition gives Westminster the opportunity to add new services such as 24 hour travel advice, emergency medical & hostile extraction services to overseas travellers and third party remote monitoring & call centre services as well as providing it with a ready built nationwide service team and infrastructure to serve Westminster’s increasing UK customer base.
Having secured the CTAC service team, Westminster will now not have to expend capital to set one up from scratch for fulfilling the recently announced contract with the Ministry of Justice covering 139 prisons in England and Wales.
Westminster’s RMS installation business should also get a substantial boost from the new addition to the group, as CTAC until now typically subcontracted the installation of monitoring and alarm systems at client sites.
The business will be of particular benefit to its Close Protection business, Longmoor, which will use the ARC for monitoring and management of operations and for intelligence gathering for client travel advice and emergency extraction services, the group said.
The centre’s capacity is also expandable without requiring much capital cost, which should be of benefit in case Westminster acquires more providers of security services, chief executive Peter Fowler said.
Excluding exceptional costs, CTAC’s operating profit for 2009 was £204,683. The first three trading months of 2010 indicate an underlying trading profit of £89,000 and a strong recurring revenue base.
CTAC’s vendor and managing director Adrian Johnson will remain with the business as a consultant for a period of 24 months.
Westminster will pay an initial £825,000, of which £500,000 in cash and the balance of £325,000 by the issue of 792,683 new Westminster shares at 41p on the date of completion. A further maximum £1 million performance based payment will be made in two parts, calculated on 40 percent of net profit in each of the two years following completion.
CEO Fowler commented: “I believe CTAC is at an exciting stage with tremendous growth prospects and by joining our group we can now provide the investment and marketing infrastructure to help achieve that growth. The company is an excellent fit for our business, broadening our scope of services and offering additional synergistic opportunities to our other group companies. CTAC is an excellent fit with our RMS business and a clear benefit is for the two businesses to share resources and technologies as well as cross selling services.
“The acquisition of CTAC, with its large UK customer base and sizeable recurring revenue stream, is also in line with our current strategy of enhancing our operations in the UK and Europe and in significantly growing high margin recurring revenue,” Fowler said.
Westminster's principal activity is the design, supply and ongoing support of advanced technology security solutions, risk assessments and close protection services. These can range from product only assignments, such as the supply of specialised scanners, to the design and implementation of an integrated system solution such as a border detection and surveillance system. The majority of its customer base, by value, comprises governments and government agencies, non-governmental organisations and blue chip commercial organisations.
Westminster announced in the same statement that it has raised further working capital through a subscription of 1,250,000 new ordinary shares at 41p, raising £512,500 before expenses from new investors. The shares for the acquisition and the subscription carry a good premium over Westminster’s share price yesterday of around 34.5 pence.
In a separate statement, the group announced it has added three more institutional shareholders to its register. Westminster has placed 747,000 new ordinary shares at 33.5p to raise £250,245 before expenses to supplement working capital requirements. The CEO said the investors are venture capital trusts which have agreed a three-year lock-in, and added: “The growth and the prospects of our business have attracted attention, both within our industry and the financial markets. It is pleasing therefore to see institutions actively investing in Westminster."
The shares issued for the CTAC acquisition and the subscription are expected to be admitted to AIM on April 22, with the shares for the VCT investment to be admitted on April 21.
http://www.proactiveinvestors.com.au/companies/news/6519/westminster-group-adds-blue-chip-security-specialist-ctac-to-its-portfolio-6519.html
CTAC provides ‘high end’ security systems and services to a blue chip client base including Brinks, DeBeers LV and Seven Trent Water who operate in operationally critical, high value and high profile fields such as cash handling, bullion storage, jewellery and diamond merchants, chemical storage and utilities.
A key strength of the business is its 24 hour Alarm Receiving Centre (ARC) which is built, operated and certificated to the National Security Inspectorate (NSI) Gold standard, the highest level of such certification in the UK. The ARC operates as a 24/7 control & command centre and monitors alarm and video signals from over 1,000 systems across the UK, producing a strong recurring revenue stream.
Founded in 2004, CTAC operates from premises in Kidderminster, UK, supporting clients primarily within the UK but with a growing interest and significant market potential internationally, Westminster said.
Westminster has built a considerable global presence operating through established agents in 45 countries, offering a niche portfolio of security, defence, fire and safety products and services. The addition of CTAC to the group continues Westminster’s expansion through the integration of complementary services.
CTAC’s 24 hour Control & Command facility and Alarm Receiving Centre is a major enhancement to the group’s service operations, presenting cross selling opportunities to other group companies and international clients operating across international time zones.
The acquisition gives Westminster the opportunity to add new services such as 24 hour travel advice, emergency medical & hostile extraction services to overseas travellers and third party remote monitoring & call centre services as well as providing it with a ready built nationwide service team and infrastructure to serve Westminster’s increasing UK customer base.
Having secured the CTAC service team, Westminster will now not have to expend capital to set one up from scratch for fulfilling the recently announced contract with the Ministry of Justice covering 139 prisons in England and Wales.
Westminster’s RMS installation business should also get a substantial boost from the new addition to the group, as CTAC until now typically subcontracted the installation of monitoring and alarm systems at client sites.
The business will be of particular benefit to its Close Protection business, Longmoor, which will use the ARC for monitoring and management of operations and for intelligence gathering for client travel advice and emergency extraction services, the group said.
The centre’s capacity is also expandable without requiring much capital cost, which should be of benefit in case Westminster acquires more providers of security services, chief executive Peter Fowler said.
Excluding exceptional costs, CTAC’s operating profit for 2009 was £204,683. The first three trading months of 2010 indicate an underlying trading profit of £89,000 and a strong recurring revenue base.
CTAC’s vendor and managing director Adrian Johnson will remain with the business as a consultant for a period of 24 months.
Westminster will pay an initial £825,000, of which £500,000 in cash and the balance of £325,000 by the issue of 792,683 new Westminster shares at 41p on the date of completion. A further maximum £1 million performance based payment will be made in two parts, calculated on 40 percent of net profit in each of the two years following completion.
CEO Fowler commented: “I believe CTAC is at an exciting stage with tremendous growth prospects and by joining our group we can now provide the investment and marketing infrastructure to help achieve that growth. The company is an excellent fit for our business, broadening our scope of services and offering additional synergistic opportunities to our other group companies. CTAC is an excellent fit with our RMS business and a clear benefit is for the two businesses to share resources and technologies as well as cross selling services.
“The acquisition of CTAC, with its large UK customer base and sizeable recurring revenue stream, is also in line with our current strategy of enhancing our operations in the UK and Europe and in significantly growing high margin recurring revenue,” Fowler said.
Westminster's principal activity is the design, supply and ongoing support of advanced technology security solutions, risk assessments and close protection services. These can range from product only assignments, such as the supply of specialised scanners, to the design and implementation of an integrated system solution such as a border detection and surveillance system. The majority of its customer base, by value, comprises governments and government agencies, non-governmental organisations and blue chip commercial organisations.
Westminster announced in the same statement that it has raised further working capital through a subscription of 1,250,000 new ordinary shares at 41p, raising £512,500 before expenses from new investors. The shares for the acquisition and the subscription carry a good premium over Westminster’s share price yesterday of around 34.5 pence.
In a separate statement, the group announced it has added three more institutional shareholders to its register. Westminster has placed 747,000 new ordinary shares at 33.5p to raise £250,245 before expenses to supplement working capital requirements. The CEO said the investors are venture capital trusts which have agreed a three-year lock-in, and added: “The growth and the prospects of our business have attracted attention, both within our industry and the financial markets. It is pleasing therefore to see institutions actively investing in Westminster."
The shares issued for the CTAC acquisition and the subscription are expected to be admitted to AIM on April 22, with the shares for the VCT investment to be admitted on April 21.
http://www.proactiveinvestors.com.au/companies/news/6519/westminster-group-adds-blue-chip-security-specialist-ctac-to-its-portfolio-6519.html
Bass Metals reports on quarterly activities and cash flow
Bass Metals (ASX:BSM) has released its March 2010 quarterly operating and cash flow report.
In this period Bass received all the statutory and internal approvals for the development of its second and larger scale mine, the Hellyer Mine Project, and commenced development activities.
During the quarter the company immersed itself in the activities associated with the launch of the Hellyer Mine Project with the consequence of significantly advancing its transformation towards becoming a mid-tier diversified mining business.
The company had Strong closing cash position of $17.6 million and operating revenue for the quarter is estimated to be $3.3 million.
Optimisation of the Hellyer Mine Project DFS results was shown in improved project EBIT of $54 million (up 13%) and lower benchmark C1 production cost of US$0.17/lb zinc (48% lower), after credits.
Hellyer Mine Project approvals are completed and work has commenced; the mill refurbishment is progressing well and the Fossey decline has progressed 38 metres from the portal.
A specialist metallurgical consulting group has been retained to undertake a major gold recovery study based on Hellyer Tailings and hard-rock gold resources.
An exciting new outcropping Fossey style VMS mineralisation was discovered south of Fossey over a 100 metre strike extent, within a large 600 metre long soil anomaly not previously drill-tested.
Diamond drilling testing of new target zones is continuing, with a second rig arriving at site in late March.
The company is currently drilling at North Hellyer and Mt Charter West.
http://www.proactiveinvestors.com.au/companies/news/6517/bass-metals-reports-on-quarterly-activities-and-cash-flow-6517.html
In this period Bass received all the statutory and internal approvals for the development of its second and larger scale mine, the Hellyer Mine Project, and commenced development activities.
During the quarter the company immersed itself in the activities associated with the launch of the Hellyer Mine Project with the consequence of significantly advancing its transformation towards becoming a mid-tier diversified mining business.
The company had Strong closing cash position of $17.6 million and operating revenue for the quarter is estimated to be $3.3 million.
Optimisation of the Hellyer Mine Project DFS results was shown in improved project EBIT of $54 million (up 13%) and lower benchmark C1 production cost of US$0.17/lb zinc (48% lower), after credits.
Hellyer Mine Project approvals are completed and work has commenced; the mill refurbishment is progressing well and the Fossey decline has progressed 38 metres from the portal.
A specialist metallurgical consulting group has been retained to undertake a major gold recovery study based on Hellyer Tailings and hard-rock gold resources.
An exciting new outcropping Fossey style VMS mineralisation was discovered south of Fossey over a 100 metre strike extent, within a large 600 metre long soil anomaly not previously drill-tested.
Diamond drilling testing of new target zones is continuing, with a second rig arriving at site in late March.
The company is currently drilling at North Hellyer and Mt Charter West.
http://www.proactiveinvestors.com.au/companies/news/6517/bass-metals-reports-on-quarterly-activities-and-cash-flow-6517.html
Octanex makes off-market takeover bid for Orion Petroleum
Octanex N.L. (ASX: OXX) has made an off-market bid to acquire all of the ordinary shares in Orion Petroleum Limited (ASX: OIP).
A bidder's statement was lodged with the Australian Securities and Investments Commission on 1 April 2010 in relation to Octanex N.L.'s off-market takeover offer for all of the issued ordinary shares in Orion Petroleum Limited.
Octanex and its subsidiaries are involved in oil and gas exploration and its related activities in the offshore waters within the jurisdiction of Australia.
The related activities include investment in companies operating within the wider energy sector, both inside and outside of Australia.
Orion Petroleum is an oil and gas explorer intending to explore within a number of petroleum exploration licences in northern NSW held by Eastern Star Gas Limited (ASX code: ESG) or in which ESG had an interest.
In addition, the company aims to acquire interest in other petroleum exploration licences with the purpose of engaging in exploration, development and production of oil and/or gas.
http://www.proactiveinvestors.com.au/companies/news/6516/octanex-makes-off-market-takeover-bid-for-orion-petroleum-6516.html
A bidder's statement was lodged with the Australian Securities and Investments Commission on 1 April 2010 in relation to Octanex N.L.'s off-market takeover offer for all of the issued ordinary shares in Orion Petroleum Limited.
Octanex and its subsidiaries are involved in oil and gas exploration and its related activities in the offshore waters within the jurisdiction of Australia.
The related activities include investment in companies operating within the wider energy sector, both inside and outside of Australia.
Orion Petroleum is an oil and gas explorer intending to explore within a number of petroleum exploration licences in northern NSW held by Eastern Star Gas Limited (ASX code: ESG) or in which ESG had an interest.
In addition, the company aims to acquire interest in other petroleum exploration licences with the purpose of engaging in exploration, development and production of oil and/or gas.
http://www.proactiveinvestors.com.au/companies/news/6516/octanex-makes-off-market-takeover-bid-for-orion-petroleum-6516.html
Pluton Resources Ltd hits high-grade iron ore at Irvine Island
Pluton Resources (ASX: PLV) has advised that drilling has intersected visually high grade and potentially direct shipping ore, west of the current Inferred Resource on Hardstaff Peninsula, Irvine Island, Western Australia (E04/1172).
Drilling is targeting a total 100Mt of iron ore on Hardstaff Peninsula, Irvine Island, as an extension of the current Inferred Resource of 54Mt @ 49% iron (Fe).
This target is contained entirely within the primary Yampi Member target horizon and does not include additional iron mineralisation contained within overlying Wonganin Sandstones.
Positive scoping level mining studies have been conducted by AMC Mining Consultants Melbourne on the Inferred Resource based on 2009 iron ore prices.
Managing Director, Tony Schoer, said “We are now drilling well outside of the current Inferred mineralised envelope. Results to date indicate that we will reach our target of 100Mt for Hardstaff Peninsula.”
“Drill Hole ID6B confirms our belief that the Yampi is thickening, and that grades are improving, as we head west. It is particularly encouraging that we are seeing increasing volumes of material of high quality.”
Drill Hole ID6B located on the western side of the Hardstaff Peninsula has intersected the targeted Yampi Member.
Visual examination of the drill core from ID6B by on-site geologists during logging has identified higher grade zones of iron mineralisation within the Yampi Member target horizon.
Drill Hole ID6B has intersected 60 metres of iron mineralisation, including 24 metres within the Yampi Member that visually appears to be high grade and potentially suitable for direct
shipping.
The company said the hole continues to confirm the extension of the mineralisation to the west and outside the current Inferred Resource.
Drillcore from Hole ID6B has been logged, cut, and sent to Ultra Trace Laboratories, Perth for assay. Assay results are pending.
Drilling has commenced on Hole ID6C collared from the same location as Hole ID6B. Drill Hole ID6C is angled towards the south west and is expected to intersect further down dip extensions of the mineralisation encountered in Drill Hole ID6B.
The company expects to release drill results for Hole ID12A in the next week. Updating of the resource model is expected to commence in approximately four weeks time following te receipt of assays from Drill Hole ID6B.
http://www.proactiveinvestors.com.au/companies/news/6515/pluton-resources-ltd-hits-high-grade-iron-ore-at-irvine-island-6515.html
Drilling is targeting a total 100Mt of iron ore on Hardstaff Peninsula, Irvine Island, as an extension of the current Inferred Resource of 54Mt @ 49% iron (Fe).
This target is contained entirely within the primary Yampi Member target horizon and does not include additional iron mineralisation contained within overlying Wonganin Sandstones.
Positive scoping level mining studies have been conducted by AMC Mining Consultants Melbourne on the Inferred Resource based on 2009 iron ore prices.
Managing Director, Tony Schoer, said “We are now drilling well outside of the current Inferred mineralised envelope. Results to date indicate that we will reach our target of 100Mt for Hardstaff Peninsula.”
“Drill Hole ID6B confirms our belief that the Yampi is thickening, and that grades are improving, as we head west. It is particularly encouraging that we are seeing increasing volumes of material of high quality.”
Drill Hole ID6B located on the western side of the Hardstaff Peninsula has intersected the targeted Yampi Member.
Visual examination of the drill core from ID6B by on-site geologists during logging has identified higher grade zones of iron mineralisation within the Yampi Member target horizon.
Drill Hole ID6B has intersected 60 metres of iron mineralisation, including 24 metres within the Yampi Member that visually appears to be high grade and potentially suitable for direct
shipping.
The company said the hole continues to confirm the extension of the mineralisation to the west and outside the current Inferred Resource.
Drillcore from Hole ID6B has been logged, cut, and sent to Ultra Trace Laboratories, Perth for assay. Assay results are pending.
Drilling has commenced on Hole ID6C collared from the same location as Hole ID6B. Drill Hole ID6C is angled towards the south west and is expected to intersect further down dip extensions of the mineralisation encountered in Drill Hole ID6B.
The company expects to release drill results for Hole ID12A in the next week. Updating of the resource model is expected to commence in approximately four weeks time following te receipt of assays from Drill Hole ID6B.
http://www.proactiveinvestors.com.au/companies/news/6515/pluton-resources-ltd-hits-high-grade-iron-ore-at-irvine-island-6515.html
India Resources receives conversion of convertible notes notice
India Resources (ASX: IRL) has received a notice for the conversion of two convertible notes each with a face value of $125,000 from Alexandra Resources Pty Ltd (Alexandra).
In accordance with the terms of the convertible notes, 12,437,810 ordinary fully paid shares have been issued to Alexandra.
A further one convertible note with a face value of $125,000 remains on issue to Alexandra.
This notice is given by the company under section 708A(5)(e) of the Corporations Act in relation to an issue of ordinary fully paid shares by the company without disclosure to investors under Part 6D.2 of the Corporations Act.
http://www.proactiveinvestors.com.au/companies/news/6514/india-resources-receives-conversion-of-convertible-notes-notice-6514.html
In accordance with the terms of the convertible notes, 12,437,810 ordinary fully paid shares have been issued to Alexandra.
A further one convertible note with a face value of $125,000 remains on issue to Alexandra.
This notice is given by the company under section 708A(5)(e) of the Corporations Act in relation to an issue of ordinary fully paid shares by the company without disclosure to investors under Part 6D.2 of the Corporations Act.
http://www.proactiveinvestors.com.au/companies/news/6514/india-resources-receives-conversion-of-convertible-notes-notice-6514.html
WestSide Corporation re-commences drilling at Bowen Basin CGS wells
WestSide Corporation (ASX: WCL) has re-commenced drilling operations in its Bowen Basin coal seam gas (CSG) exploration tenements following recent wet weather across the region.
A total of nine wells are currently planned across ATP 688P and ATP7 69P. Further wells are planned, dependant on results from the initial wells in the program.
In response to promising gas content and saturation data from the MSM (Mount Saint Martin) #1 well, WestSide has commenced a program of several new exploratory and core wells in the region to further define the lateral extension of the target coal seams and appraise the gas contents over the wider area to extend the 3P reserves position in the tenement.
The MSM #5 core well and the MSM #6 and MSM#7 exploratory chip holes will test the extent of the resource previously identified at Mount Saint Martin. Core wells Mount Leslie #8 and Exmoor #9 will target the gas potential of new precincts in ATP 688P.
The MSM #2 appraisal well spud on 10 April and has reached its target depth of 680m. The well intersected 20m of net coal and is currently being tested across three seams. Following analysis of the DST results the well may be under reamed and completed for production testing.
The well has confirmed the presence of deeper coal seams towards the eastern flank of the Mount Saint Martin prospect that could significantly increase the Company’s CSG resource in the area.
The MSM #5 exploratory core hole spud on 12 April and is waiting on cement after setting surface casing at 121m.
The program is being drilled with the Boart Longyear operated TXD 180 rig and the Lucas 180 rig.
The company said Seismic acquisition in ATP 688P is planned to commence on 26 April.
Seismic data was acquired over 5 km at Mount Saint Martin in October and has been analysed to confirm the geological structure and now an additional 50 km of seismic has been planned over a wider area
http://www.proactiveinvestors.com.au/companies/news/6513/westside-corporation-re-commences-drilling-at-bowen-basin-cgs-wells-6513.html
A total of nine wells are currently planned across ATP 688P and ATP7 69P. Further wells are planned, dependant on results from the initial wells in the program.
In response to promising gas content and saturation data from the MSM (Mount Saint Martin) #1 well, WestSide has commenced a program of several new exploratory and core wells in the region to further define the lateral extension of the target coal seams and appraise the gas contents over the wider area to extend the 3P reserves position in the tenement.
The MSM #5 core well and the MSM #6 and MSM#7 exploratory chip holes will test the extent of the resource previously identified at Mount Saint Martin. Core wells Mount Leslie #8 and Exmoor #9 will target the gas potential of new precincts in ATP 688P.
The MSM #2 appraisal well spud on 10 April and has reached its target depth of 680m. The well intersected 20m of net coal and is currently being tested across three seams. Following analysis of the DST results the well may be under reamed and completed for production testing.
The well has confirmed the presence of deeper coal seams towards the eastern flank of the Mount Saint Martin prospect that could significantly increase the Company’s CSG resource in the area.
The MSM #5 exploratory core hole spud on 12 April and is waiting on cement after setting surface casing at 121m.
The program is being drilled with the Boart Longyear operated TXD 180 rig and the Lucas 180 rig.
The company said Seismic acquisition in ATP 688P is planned to commence on 26 April.
Seismic data was acquired over 5 km at Mount Saint Martin in October and has been analysed to confirm the geological structure and now an additional 50 km of seismic has been planned over a wider area
http://www.proactiveinvestors.com.au/companies/news/6513/westside-corporation-re-commences-drilling-at-bowen-basin-cgs-wells-6513.html
Energy Metals sees uranium resource potential at Cappers
Energy Metals (ASX: EME) has announced the results of a recently completed resource estimate for its 100% owned Cappers Prospect, located 180km northwest of Alice Springs, Northern Territory and 150km southeast of the Bigrlyi Uranium Project (Energy Metals 53.7%).
Consultants Hellman & Schofield Pty Ltd (H&S) have estimated an Inferred Mineral Resource at Cappers of 22 million tonnes averaging 145 parts per million (ppm) U3O8 for a contained U3O8 content of 3.2 tonnes (7.0 million pounds) at a cut-off grade of 100ppm U3O8.
Both Contained Tonnes U3O8 and Contained Pounds U3O8 are based on contained metal in the ground and do not consider any mining, metallurgical or economic parameters at this stage.
This resource estimate is based on chemical assays and down hole geophysical probing from 359 holes drilled by Energy Metals between September 2008 and December 2009. All mineralisation is hosted in shallow calcrete, sand and clay layers at depths less than 10 metres below surface.
Despite the current broad drill hole spacing the MIK resource model for Cappers shows good continuity at cutoff grades up to 100ppm U3O8, with a strike length of around 10km at this cutoff.
The Cappers deposit is located close to infrastructure, being immediately adjacent to the sealed section of the Tanami Highway, within 40km of the Alice Springs to Darwin gas pipeline and with access to the main north-south railway through Alice Springs.
The project is also located approximately 20km northwest of the Napperby uranium deposit (7.4Mlb Inferred Resource) currently being explored by Toro Energy (ASX: TOE).
Energy Metals considers that there is excellent potential to increase the resource base at Cappers.
Future programs will include drilling designed to test strike extensions to the known mineralisation and infill the current model to increase the level of confidence in the resource and better define higher grade sections of the deposit.
Energy Metals will also obtain samples for bulk density measurements to more accurately estimate resource tonnages, and undertake preliminary metallurgical testwork to investigate process route options and the potential to beneficiate the mineralisation.
http://www.proactiveinvestors.com.au/companies/news/6512/energy-metals-sees-uranium-resource-potential-at-cappers-6512.html
Consultants Hellman & Schofield Pty Ltd (H&S) have estimated an Inferred Mineral Resource at Cappers of 22 million tonnes averaging 145 parts per million (ppm) U3O8 for a contained U3O8 content of 3.2 tonnes (7.0 million pounds) at a cut-off grade of 100ppm U3O8.
Both Contained Tonnes U3O8 and Contained Pounds U3O8 are based on contained metal in the ground and do not consider any mining, metallurgical or economic parameters at this stage.
This resource estimate is based on chemical assays and down hole geophysical probing from 359 holes drilled by Energy Metals between September 2008 and December 2009. All mineralisation is hosted in shallow calcrete, sand and clay layers at depths less than 10 metres below surface.
Despite the current broad drill hole spacing the MIK resource model for Cappers shows good continuity at cutoff grades up to 100ppm U3O8, with a strike length of around 10km at this cutoff.
The Cappers deposit is located close to infrastructure, being immediately adjacent to the sealed section of the Tanami Highway, within 40km of the Alice Springs to Darwin gas pipeline and with access to the main north-south railway through Alice Springs.
The project is also located approximately 20km northwest of the Napperby uranium deposit (7.4Mlb Inferred Resource) currently being explored by Toro Energy (ASX: TOE).
Energy Metals considers that there is excellent potential to increase the resource base at Cappers.
Future programs will include drilling designed to test strike extensions to the known mineralisation and infill the current model to increase the level of confidence in the resource and better define higher grade sections of the deposit.
Energy Metals will also obtain samples for bulk density measurements to more accurately estimate resource tonnages, and undertake preliminary metallurgical testwork to investigate process route options and the potential to beneficiate the mineralisation.
http://www.proactiveinvestors.com.au/companies/news/6512/energy-metals-sees-uranium-resource-potential-at-cappers-6512.html
Arc Exploration shares rise on Trenggalek gold project drill results
Arc Exploration (ASX: ARX) has announced further results from its scout drilling programme at Trenggalek in East Java.
On 12 and 29 March 2010, ARX announced encouraging gold results from its first five holes TRDD 1- 5 drilled at Trenggalek.
Since that time, results have been received for the latest 3 holes (TRDD 6, 7 and 8) completed along the southern portion of the West Sentul Vein.
Holes TRDD 6 and 7 were drilled on a section 100 metres to the northeast of the section containing holes TRDD 2, 4 and 5, and hole TRDD 8 was drilled 200 metres to the northeast.
TRDD 6 returned two separate intersections of 2.6 m at 4.3 g/t Au & 7 g/t Ag and 1.95 m at 5.32 g/t Au & 7 g/t Ag within an 11.95 m intersection of 2.12 g/t Au & 5 g/t Ag from 37.45 m down-hole.
TRDD 7 returned two separate intersections of 6 m at 1.19 g/t Au & 7 g/t Ag and 6.9 m at 1.63 g/t Au & 9 g/t Ag within a 34.5 m intersection of 0.69 g/t Au & 4 g/t Ag from 75.5 m down-hole.
TRDD 8 returned a narrow intersection of 4 m at 1.29 g/t Au & 4 g/t Ag from 99.1 m down-hole.
The true width of the vein on section TRDD 6/7 is about 7-8 metres, slightly wider than on the section 100 m to the southwest. To the northeast, the vein splits into several narrow veins in hole TRDD 8.
The lower gold grades in holes TRDD 6, 7 and 8 are explained by lower sulphide content and a greater volume of barren carbonate within the vein. These holes differ from the previous holes by the presence of limestone and lack of an andesite intrusion.
These holes confirm extensions of the strike of the mineralised vein system for 200 metres to the northwest but at present, potential for high-grade ore shoots appears to be greater at the southern end of West Sentul where surface vein outcrops and drill intersections have returned the widest and highest grade gold intersections to date.
To the southwest, strike and down plunge extent of the mineralised vein remains open.
Drilling continues to test the vein targets at Sentul and a second rig is being mobilised to accelerate progress and commence testing of other prospects within Trenggalek so that they can be ranked for follow-up drilling.
Total reported meterage to-date is 924 metres, or just over 18% of the 5,000 metre programme to be conducted this year.
Arc Exploration shares rose 12% to 4 cents in trading this morning.
http://www.proactiveinvestors.com.au/companies/news/6511/arc-exploration-shares-rise-on-trenggalek-gold-project-drill-results-6511.html
On 12 and 29 March 2010, ARX announced encouraging gold results from its first five holes TRDD 1- 5 drilled at Trenggalek.
Since that time, results have been received for the latest 3 holes (TRDD 6, 7 and 8) completed along the southern portion of the West Sentul Vein.
Holes TRDD 6 and 7 were drilled on a section 100 metres to the northeast of the section containing holes TRDD 2, 4 and 5, and hole TRDD 8 was drilled 200 metres to the northeast.
TRDD 6 returned two separate intersections of 2.6 m at 4.3 g/t Au & 7 g/t Ag and 1.95 m at 5.32 g/t Au & 7 g/t Ag within an 11.95 m intersection of 2.12 g/t Au & 5 g/t Ag from 37.45 m down-hole.
TRDD 7 returned two separate intersections of 6 m at 1.19 g/t Au & 7 g/t Ag and 6.9 m at 1.63 g/t Au & 9 g/t Ag within a 34.5 m intersection of 0.69 g/t Au & 4 g/t Ag from 75.5 m down-hole.
TRDD 8 returned a narrow intersection of 4 m at 1.29 g/t Au & 4 g/t Ag from 99.1 m down-hole.
The true width of the vein on section TRDD 6/7 is about 7-8 metres, slightly wider than on the section 100 m to the southwest. To the northeast, the vein splits into several narrow veins in hole TRDD 8.
The lower gold grades in holes TRDD 6, 7 and 8 are explained by lower sulphide content and a greater volume of barren carbonate within the vein. These holes differ from the previous holes by the presence of limestone and lack of an andesite intrusion.
These holes confirm extensions of the strike of the mineralised vein system for 200 metres to the northwest but at present, potential for high-grade ore shoots appears to be greater at the southern end of West Sentul where surface vein outcrops and drill intersections have returned the widest and highest grade gold intersections to date.
To the southwest, strike and down plunge extent of the mineralised vein remains open.
Drilling continues to test the vein targets at Sentul and a second rig is being mobilised to accelerate progress and commence testing of other prospects within Trenggalek so that they can be ranked for follow-up drilling.
Total reported meterage to-date is 924 metres, or just over 18% of the 5,000 metre programme to be conducted this year.
Arc Exploration shares rose 12% to 4 cents in trading this morning.
http://www.proactiveinvestors.com.au/companies/news/6511/arc-exploration-shares-rise-on-trenggalek-gold-project-drill-results-6511.html
Gulf Resources gives notice on Share Placement
Gulf Resources (ASX: GLF), the African focused industrial mineral developer, has today given notice under section 708A(5)(e) of the Corporations Act in relation to an issue of 27,000,000 fully paid ordinary shares by Gulf without disclosure to investors under Part 6D.2 of the Corporations Act.
As at the date of this notice, Gulf has complied with:
(a) the provision of Chapter 2M of the Corporations Act as they apply to Gulf; and
(b) section 674 of the Corporations Act.
Gulf confirms that, as at the date of this notice, there is no information that:
(a) has been excluded from a continuous disclosure notice given to the ASX in accordance with the ASX Listing Rules; and
(b) investors and their professional advisers would reasonably require for the purpose of making an informed assessment of:
(i) the assets and liabilities, financial position and performance, profits and losses of Gulf; and
(ii) the rights and liabilities attaching to fully paid ordinary shares, to the extent to which it would be reasonable for investors and their professional advisers to expect to find such information.
Gulf Resources successfully placed 27,000,000 shares at $0.021 per share to clients of Veritas Securities Limited and sophisticated and professional investors on 12 April, to raise a total of A$567,000 (before expenses).
The funds raised will be utilised on the development of the East African Vermiculite project to ensure the commissioning of the processing plant, expected to come online by the end of this month and for working capital purposes.
Following the completion of this placement, the company will have 212,874,729 shares on issue.
http://www.proactiveinvestors.com.au/companies/news/6510/gulf-resources-gives-notice-on-share-placement-6510.html
As at the date of this notice, Gulf has complied with:
(a) the provision of Chapter 2M of the Corporations Act as they apply to Gulf; and
(b) section 674 of the Corporations Act.
Gulf confirms that, as at the date of this notice, there is no information that:
(a) has been excluded from a continuous disclosure notice given to the ASX in accordance with the ASX Listing Rules; and
(b) investors and their professional advisers would reasonably require for the purpose of making an informed assessment of:
(i) the assets and liabilities, financial position and performance, profits and losses of Gulf; and
(ii) the rights and liabilities attaching to fully paid ordinary shares, to the extent to which it would be reasonable for investors and their professional advisers to expect to find such information.
Gulf Resources successfully placed 27,000,000 shares at $0.021 per share to clients of Veritas Securities Limited and sophisticated and professional investors on 12 April, to raise a total of A$567,000 (before expenses).
The funds raised will be utilised on the development of the East African Vermiculite project to ensure the commissioning of the processing plant, expected to come online by the end of this month and for working capital purposes.
Following the completion of this placement, the company will have 212,874,729 shares on issue.
http://www.proactiveinvestors.com.au/companies/news/6510/gulf-resources-gives-notice-on-share-placement-6510.html
Blue Energy resumes drilling at Galilee, Bowen Basins gas prospects
Blue Energy (ASX: BUL) has recommenced operations in both the Galilee and Bowen Basins following a prolonged delay due to the recent widespread flooding in in Queensland.
Access to the Stainburn Downs 1 site (ATP813P Galilee Basin) was re-established last week and Boart Longyear 7 rig has been mobilised from the Ballangarry 1 well in the Surat Basin to the Stainburn Downs 1 location.
Following conditioning of the hole, operations have recommenced and the rig is preparing to core ahead at a depth of 982 metres in the Permian Betts Creek Beds (primary target). The anticipated total depth for the well is 1,250 metres.
Access to the Monslatt 6C area (ATP814P Bowen Basin) has been re-established in the last week and efforts are now being focussed at preparing locations for the upcoming Pilot well drilling campaign and further stratigraphic and coring activity in the Monslatt block.
The company expects that the Depco 29 coring rig will be mobilised to site in the week commencing 26 April and Monlsatt 6C will spud shortly thereafter. This well is designed to establish stratigraphic control ahead of the proposed Monslatt 6 production pilot well which is expected to spud in early May.
Access to the Sapphire 2 drilling location has been also been re-established and the lease is being re-conditioned following the recent flooding. It is planned that Depco 29 rig will move onto the Sapphire 2 location on completion of the Monslatt 6C & 5C stratigtraphic wells.
John Phillips, Chief Executive Officer, said this is likely to occur in early May 2010.
Sapphire 2 will target the Rangal, Fort Cooper and Moranbah Coal Measure sequences approximately 2.7km north east of the Sapphire 1 well drilled by Blue Energy in 2008. The location is 14km east of Arrow Energy’s Moranbah Gas Project.
The Ballangarry 1 well (ATP819P Surat Basin) reached a total depth of 602 metres in the Cretaceous Doncaster Formation. Wireline logs have been acquired and this data, together with desorption samples will be evaluated more fully in the coming weeks.
In accordance with plan, the well has been plugged and abandoned. The Boart Longyear 7 rig has mobilised to ATP813P to complete the Stainburn Downs CSG corehole.
http://www.proactiveinvestors.com.au/companies/news/6509/blue-energy-resumes-drilling-at-galilee-bowen-basins-gas-prospects-6509.html
Access to the Stainburn Downs 1 site (ATP813P Galilee Basin) was re-established last week and Boart Longyear 7 rig has been mobilised from the Ballangarry 1 well in the Surat Basin to the Stainburn Downs 1 location.
Following conditioning of the hole, operations have recommenced and the rig is preparing to core ahead at a depth of 982 metres in the Permian Betts Creek Beds (primary target). The anticipated total depth for the well is 1,250 metres.
Access to the Monslatt 6C area (ATP814P Bowen Basin) has been re-established in the last week and efforts are now being focussed at preparing locations for the upcoming Pilot well drilling campaign and further stratigraphic and coring activity in the Monslatt block.
The company expects that the Depco 29 coring rig will be mobilised to site in the week commencing 26 April and Monlsatt 6C will spud shortly thereafter. This well is designed to establish stratigraphic control ahead of the proposed Monslatt 6 production pilot well which is expected to spud in early May.
Access to the Sapphire 2 drilling location has been also been re-established and the lease is being re-conditioned following the recent flooding. It is planned that Depco 29 rig will move onto the Sapphire 2 location on completion of the Monslatt 6C & 5C stratigtraphic wells.
John Phillips, Chief Executive Officer, said this is likely to occur in early May 2010.
Sapphire 2 will target the Rangal, Fort Cooper and Moranbah Coal Measure sequences approximately 2.7km north east of the Sapphire 1 well drilled by Blue Energy in 2008. The location is 14km east of Arrow Energy’s Moranbah Gas Project.
The Ballangarry 1 well (ATP819P Surat Basin) reached a total depth of 602 metres in the Cretaceous Doncaster Formation. Wireline logs have been acquired and this data, together with desorption samples will be evaluated more fully in the coming weeks.
In accordance with plan, the well has been plugged and abandoned. The Boart Longyear 7 rig has mobilised to ATP813P to complete the Stainburn Downs CSG corehole.
http://www.proactiveinvestors.com.au/companies/news/6509/blue-energy-resumes-drilling-at-galilee-bowen-basins-gas-prospects-6509.html
Carpentaria Exploration requests trading halt
The securities of Carpentaria Exploration (ASX:CAP) will be placed in pre-open at the request of the company, pending the release of an announcement by the company.
Unless ASX decides otherwise, the securities will remain in pre-open until the earlier of the commencement of normal trading on Tuesday, 20 April 2010 or when the announcement is released to the market.
The company said it is not aware of any reason why the trading halt should not be granted.
http://www.proactiveinvestors.com.au/companies/news/6508/carpentaria-exploration-requests-trading-halt-6508.html
Unless ASX decides otherwise, the securities will remain in pre-open until the earlier of the commencement of normal trading on Tuesday, 20 April 2010 or when the announcement is released to the market.
The company said it is not aware of any reason why the trading halt should not be granted.
http://www.proactiveinvestors.com.au/companies/news/6508/carpentaria-exploration-requests-trading-halt-6508.html
Jupiter Energy requests trading halt
Jupiter Energy (ASX: JPR) has requested that the company's shares be placed in pre-open, pending the release of an announcment by the company.
Unless ASX decides otherwise, the securities will remain in pre-open until the earlier of the commencement of normal trading on Tuesday, 20 April 2010 or when the announcement is released to the market.
The company said it is not aware of any reason why the trading halt should not be granted.
Jupiter Energy has recently updated shareholders on the future activities for the J-50 well and in particular the key milestones that will be met to ensure the end of drilling operations on J-50 by the end of April 2010.
http://www.proactiveinvestors.com.au/companies/news/6507/jupiter-energy-requests-trading-halt-6507.html
Unless ASX decides otherwise, the securities will remain in pre-open until the earlier of the commencement of normal trading on Tuesday, 20 April 2010 or when the announcement is released to the market.
The company said it is not aware of any reason why the trading halt should not be granted.
Jupiter Energy has recently updated shareholders on the future activities for the J-50 well and in particular the key milestones that will be met to ensure the end of drilling operations on J-50 by the end of April 2010.
http://www.proactiveinvestors.com.au/companies/news/6507/jupiter-energy-requests-trading-halt-6507.html
Batavia Mining lifts suspension of trading
Batavia Mining (ASX: BTV) has announced the suspension of trading of its securities will be lifted immediately, following the announcement in relation to the material capital raising.
Batavia is in the process of completing a $9.6 million capital raising through two share placements to underpin the exploration and evaluation of the Roper River Iron Ore Project in the Northern Territory.
Batavia Mining is an investment and iron ore exploration company with a particular focus in Australia.
http://www.proactiveinvestors.com.au/companies/news/6506/batavia-mining-lifts-suspension-of-trading-6506.html
Batavia is in the process of completing a $9.6 million capital raising through two share placements to underpin the exploration and evaluation of the Roper River Iron Ore Project in the Northern Territory.
Batavia Mining is an investment and iron ore exploration company with a particular focus in Australia.
http://www.proactiveinvestors.com.au/companies/news/6506/batavia-mining-lifts-suspension-of-trading-6506.html
Andean Resources extends gold mineralisation at Argentina project
Andean Resources (ASX, TSX: AND) has reported results from the ongoing exploration program at its wholly owned Cerro Negro Project in Santa Cruz Province, Argentina.
Discovery of the San Marcos, Mariana Norte, and Mariana Central vein systems located 4 to 6 kilometers northeast of the Eureka deposit has lead to a focused drill program that is defining the shape and extent of these potential ore bodies.
Highlights include:
San Marcos – holes confirming and extending mineralization along strike by 100 meters - 12.4m of 16.5 g/t Au and 131 g/t Ag from 143.6m, 6.4m of 10.7 g/t Au and 144 g/t Ag from 142.7m, 3.65m of 12.2 g/t Au and 52 g/t Ag from 108m; and 11.45m of 15.2 g/t Au and 136 g/t Ag from103.55m.
Holes SDD-1010 (8.9m of 24.5 g/t Au and 292 g/t Ag from 121m and 5.3m of 12.8 g/t Au and 80 g/t Ag from 141.7m) and SDD-1012 (6.4m of 19.8 g/t Au and >100 g/t Ag from 226.9m and
12.3m of 15.6 g/t Au and 100 g/t Ag from 256.7m) extended the mineralization in the San Marcos veins a further 100 meters to the east.
The holes could have intersected the veins at a shallower angle due to a potential change in the vein dip.
The change in strike and dip are currently being confirmed by additional drilling. San Marcos remains open to the east and at depth.
Mariana Norte – new assays confirm mineralized strike length of at least 300 meters - 9.0m of 15.8 g/t Au and 72 g/t Ag from 163.4m; 3.0m of 9.5 g/t Au and 89 g/t Ag from 184.0m; and 8.4m of 22.7 g/t Au and 57 g/t Ag from 173.6m.
Further drilling has extended these veins an additional 100 meters to the northwest; this vein system remains open along strike and to depth.
Mariana Central – downdip extension hole of 110 meters- 5.9m of 55.5 g/t Au and 199 g/t Ag from 207.3m.
Further drilling has extended this vein system an additional 225 meters; assays are pending and the vein remains open to depth and along strike.
William Wulftange, Andean’s Vice President of Exploration stated, “Cerro Negro now has at least three distinct centers of mineralization that include Bajo Negro and Vein Zone to the east, Eureka to the west and now the Mariana’s and San Marcos mineral system located in the north central part of the property."
"The fact that all three systems have significant gold grades over broad widths is quite exciting and a very rare occurrence in the gold industry."
"I believe that as the exploration program continues, Andean geologists will develop a geologic link between the three deposits that will help us find additional mineral zones outside of the current known deposit areas.”
As of mid-April 2010, Andean has completed 4,994 meters in 24 holes on the San Marcos veins located just 1.2 kilometers north of the Mariana Norte vein system.
The San Marcos target is comprised of at least two sub-parallel veins that strike 290° and dip nearly vertical, as currently tested.
The company has defined mineralization in the vein for at least 500 meters along strike and from 100 meters to 250 meters down dip based on assay results.
Mineralization can approach 10 meters in true width, but average 4.4 meters true width based on current drill results.
Initial grade times horizontal thickness long section interpretations show the mineral body plunging 20° to 30°E and open to the surface, to depth and to the east.
http://www.proactiveinvestors.com.au/companies/news/6504/andean-resources-extends-gold-mineralisation-at-argentina-project-6504.html
Discovery of the San Marcos, Mariana Norte, and Mariana Central vein systems located 4 to 6 kilometers northeast of the Eureka deposit has lead to a focused drill program that is defining the shape and extent of these potential ore bodies.
Highlights include:
San Marcos – holes confirming and extending mineralization along strike by 100 meters - 12.4m of 16.5 g/t Au and 131 g/t Ag from 143.6m, 6.4m of 10.7 g/t Au and 144 g/t Ag from 142.7m, 3.65m of 12.2 g/t Au and 52 g/t Ag from 108m; and 11.45m of 15.2 g/t Au and 136 g/t Ag from103.55m.
Holes SDD-1010 (8.9m of 24.5 g/t Au and 292 g/t Ag from 121m and 5.3m of 12.8 g/t Au and 80 g/t Ag from 141.7m) and SDD-1012 (6.4m of 19.8 g/t Au and >100 g/t Ag from 226.9m and
12.3m of 15.6 g/t Au and 100 g/t Ag from 256.7m) extended the mineralization in the San Marcos veins a further 100 meters to the east.
The holes could have intersected the veins at a shallower angle due to a potential change in the vein dip.
The change in strike and dip are currently being confirmed by additional drilling. San Marcos remains open to the east and at depth.
Mariana Norte – new assays confirm mineralized strike length of at least 300 meters - 9.0m of 15.8 g/t Au and 72 g/t Ag from 163.4m; 3.0m of 9.5 g/t Au and 89 g/t Ag from 184.0m; and 8.4m of 22.7 g/t Au and 57 g/t Ag from 173.6m.
Further drilling has extended these veins an additional 100 meters to the northwest; this vein system remains open along strike and to depth.
Mariana Central – downdip extension hole of 110 meters- 5.9m of 55.5 g/t Au and 199 g/t Ag from 207.3m.
Further drilling has extended this vein system an additional 225 meters; assays are pending and the vein remains open to depth and along strike.
William Wulftange, Andean’s Vice President of Exploration stated, “Cerro Negro now has at least three distinct centers of mineralization that include Bajo Negro and Vein Zone to the east, Eureka to the west and now the Mariana’s and San Marcos mineral system located in the north central part of the property."
"The fact that all three systems have significant gold grades over broad widths is quite exciting and a very rare occurrence in the gold industry."
"I believe that as the exploration program continues, Andean geologists will develop a geologic link between the three deposits that will help us find additional mineral zones outside of the current known deposit areas.”
As of mid-April 2010, Andean has completed 4,994 meters in 24 holes on the San Marcos veins located just 1.2 kilometers north of the Mariana Norte vein system.
The San Marcos target is comprised of at least two sub-parallel veins that strike 290° and dip nearly vertical, as currently tested.
The company has defined mineralization in the vein for at least 500 meters along strike and from 100 meters to 250 meters down dip based on assay results.
Mineralization can approach 10 meters in true width, but average 4.4 meters true width based on current drill results.
Initial grade times horizontal thickness long section interpretations show the mineral body plunging 20° to 30°E and open to the surface, to depth and to the east.
http://www.proactiveinvestors.com.au/companies/news/6504/andean-resources-extends-gold-mineralisation-at-argentina-project-6504.html
Golden Cross Resources to drill Queensland coal targets
Golden Cross Resources (ASX: GCR) has applied for nine permits in the Bowen, Surat, Clarence- Moreton and Galilee Basins in Queensland since November 2008 and is planning to drill four of its coal permits that have been recently granted or offered.
The focus of exploration will be evaluating the potential of deeper “stranded coal seams” for UCG extraction where the opportunity for shallow, open cut resources is limited. A 2,000 metre, 5-10 hole drill program planned.
Of the nine applications, one has been granted in the Boonah area south of Ipswich (EPC1643) and two have been granted and one offered in the area between Chinchilla and Dalby (EPCs 1655, 1658 and 1659).
These coal permits are located in the vicinity of the Underground Coal Gasification-Gas to Liquids (UCG-GTL) of Linc Energy’s (ASX: LNC) and Carbon Energy’s (ASX: CNX) UCG projects, and the Kogan Creek and Wilkie Creek open cut mines.
Two other permit applications have been lodged in the Boonah area (EPCs 2068 and 2082) with the remaining EPC’s lodged in the Pentland area (EPC1642), Nebo area (EPC1639) and Warwick area (EPC1656) are classified as competing applications.
GCR is waiting for the Department’s assessment of all 3 overlapping applications.
Over the course of the next three months GCR will refine its drill targets, and subject to drill rig and specialist consultant availability, evaluate the coal and UCG potential of its granted coal permits and applications under offer when granted.
Golden Cross is investigating opportunities to place its coal assets in a dedicated coal company.
GCR is currently evaluating other coal areas in Queensland’s major coal producing basins for permit applications, joint venture opportunities, or outright acquisition.
http://www.proactiveinvestors.com.au/companies/news/6503/golden-cross-resources-to-drill-queensland-coal-targets-6503.html
The focus of exploration will be evaluating the potential of deeper “stranded coal seams” for UCG extraction where the opportunity for shallow, open cut resources is limited. A 2,000 metre, 5-10 hole drill program planned.
Of the nine applications, one has been granted in the Boonah area south of Ipswich (EPC1643) and two have been granted and one offered in the area between Chinchilla and Dalby (EPCs 1655, 1658 and 1659).
These coal permits are located in the vicinity of the Underground Coal Gasification-Gas to Liquids (UCG-GTL) of Linc Energy’s (ASX: LNC) and Carbon Energy’s (ASX: CNX) UCG projects, and the Kogan Creek and Wilkie Creek open cut mines.
Two other permit applications have been lodged in the Boonah area (EPCs 2068 and 2082) with the remaining EPC’s lodged in the Pentland area (EPC1642), Nebo area (EPC1639) and Warwick area (EPC1656) are classified as competing applications.
GCR is waiting for the Department’s assessment of all 3 overlapping applications.
Over the course of the next three months GCR will refine its drill targets, and subject to drill rig and specialist consultant availability, evaluate the coal and UCG potential of its granted coal permits and applications under offer when granted.
Golden Cross is investigating opportunities to place its coal assets in a dedicated coal company.
GCR is currently evaluating other coal areas in Queensland’s major coal producing basins for permit applications, joint venture opportunities, or outright acquisition.
http://www.proactiveinvestors.com.au/companies/news/6503/golden-cross-resources-to-drill-queensland-coal-targets-6503.html
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