Saturday, September 23rd 2023

News Round & Review

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News Round & Review

Block Energy

Bosses at Georgia-focused oil and gas company Block Energy might well be perplexed by a fall in the company’s share price this week.

In an operations update issued on Monday morning, 27 January, chief executive Paul Haywood boasted that Block is “hitting the ground running as we enter 2020”.

Updating investors on operational performance at its West Rustavi field, Block revealed that multi-race production testing is underway at its WR-38Z well, following a clean-up period to stabilise it and recover fluids that were lost during drilling, and that it has so far recorded peak production rates in excess of 550 barrels of oil equivalent per day.

However, by the end of the week Block’s share price had fallen to 4p – down more than  20 per cent in the week.

Dekel Agri-Vision PLC

Dekel Agri-Vision, the Cote d’Ivoire-focused agricultural business formerly known as DekelOil Public, is one to watch as global fears over coronavirus rise.

The price of crude palm oil fell as much as 10 per cent on Tuesday amid fears that the virus outbreak in China, a large importer of CPO, could hit demand for the product.

Dekel’s share price at the close of the week held up at 2.98p – down from a peak of 3.85p earlier this month. The company’s stock price has been stuck in a rut, in line with the price of palm oil, for nearly two years.

But bosses are confident they will emerge from the short-term issue strongly, pointing out that the current CPO price – around $775 per tonne – is above the long-term average of about $725.

Executive director Lincoln Moore told Proactive Investors this week: “Getting back around and above this level makes an enormous difference. So that business should do quite well this year; we are hopeful 2020 will see our palm oil operation return back to historic levels of profitability.”

Zenith Energy

Azerbaijan-focused oil and gas firm Zenith Energy announced on Wednesday the successful raising of NOK11.1million (approximately £935,000) through a private placement of shares at 1.7p on the Oslo Stock Exchanges Merkur Market.

The firm, which is listed on the TSX Venture Exchange as well as the London Stock Exchange, said it expects the payment and issue of the new shares – priced at NOK0.2 – to complete by Friday, 31 January.

Zenith intends to use the new funds to develop its business activities, including through the purchase of new drilling equipment in addition to (As announced on December 9the 2019) forming Zenith Norway a vehicle for intended participation in future licensing bids to be organised by the Norwegian Ministry of Petroleum and Energy, as well as to actively pursue the potential acquisition of working interests in mature energy production assets across Northern Europe.

Georgian Mining Corporation

The Georgian Mining Corporation saw its share price leap more than 150 per cent on Tuesday after the gold-copper exploration and development firm announced some good news from its Bolnisi Project.

Georgian Copper & Gold JSC, in which it owns a 50 per cent stake, has received confirmation of entitlement to two key deposits in the Bolnisi area – for Kvemo Bolnisi East and Dambludi.

Chief executive Mike Struthers said the firm would be working hard now to persuade Georgia’s National Agency of Mines that it is entitled to other important deposits in the area.

After an initial stock price leap, from less than 1p to 2.6p earlier in the week, the firm’s share value settled at around 1.75p by Friday.

Union Jack Oil

Union Jack Oil, the UK-focused onshore hydrocarbon producer, last week confirmed it had obtained planning permission for the development of an oil field in North Lincolnshire.

David Bramhill, the executive chairman of Union Jack, said his board was “delighted” to have won permission for the development of Wressle Oil Field from the Planning Inspectorate following a successful appeal. Union Jack has a 27.5 per cent interest in the joint venture licences for Wressle Oil Field.

Despite the positive news, Union Jack’s share price has remained at around 0.15p, around half its peak value last summer.

Jangada Mines PLC

Brazil-focused Jangada Mines has been on something of a roll this month. The firm’s share price has hopped up from 1.65p at the turn of the year to 2.20p by the end of the trading week.

Much of the momentum came from an announcement last week that it had begun a new 2,500-metre drilling programme at the Pitombeiras vanadium project.

It said the programme, which is fully funded, will drill at a rate of 10 hours per day and is scheduled to take around 90 days overall.

Chairman Brian McMaster said: The announcement marked an “important milestone” for the project.

Investors, who have seen shares in Jangada fall from above 4p in 2018, will be hoping for more good news soon.

Harvest Minerals

Harvest Minerals fertiliser brand is KPfertil. Heyhoe claims KPfertil has significant production advantages and consumer advantages over more conventional forms of fertiliser.

He claims that KPfertil is cheaper to produce than more conventional fertilisers (around US$18 per ton with scaled-up reduction to US$7.50). He also claims KPfertil is much easier to produce than many other fertilisers, because it is found in heavily weathered rock/lava at surface. The only processing required is for the KPfertil to be crushed, and Heyhoe claims crushers are inexpensive.

Heyhoe also explains that KPfertil is organic and natural, which feeds into the green narrative a lot of investors quite like. He also claims KPfertil has advantages for farmers; specifically, there is no leaching. KPfertil goes straight into the soil and stays there for longer than other fertilisers.

Interview with Mark Heyhoe, COO of Harvest Minerals (AIM: HMI) by CRUX 

The author was remunertaed but does not hold shares in the company
0:42 – Company Overview 1:20 – Product Uses & Cost of Production 2:35 – Effectiveness of the Fertiliser: How do They Know it Works? 3:21 – Share Price Drop in April: What Were the Reasons? 5:58 – The Market: Selling Product, Customers and Regaining Control 11:21, 22:17 – Business Plan: Why Go Big Early On? 12:57 – Telling the Story: Reasons for the Silence of Harvest Mineral’s Success 20:18 – Jurisdiction and Mining Conditions 27:35 – Scale of the Opportunity: Why Should You Invest in Harvest Minerals?