An update from Savannah this morning in which the company announces that it is extremely close to obtaining Ministerial Consent in relation to the approval of the Seven Energy transaction.
The company has submitted the the revised terms as announced on 20th September to the DPR and has been informed that the ministry has completed its due diligence in relation to, and is fully satisfied with the transaction. Indeed, the application is being processed and will imminently be with the Minister for final approval.
There are no added comments from the company, as one might expect, as whilst the deal is not yet rubber stamped it would be premature to celebrate early but they are surely nearly over the line. This has taken a lot of hard graft and more time than the market and investors had expected but it will undoubtedly bear significant fruit over pretty much any timescale. On a day when markets around the world are falling rapidly and the oil price has had a bad couple of days I am not surprised at the muted response but expect a significant rise before long.
Chariot has announced that the Prospect S well offshore Namibia did not encounter hydrocarbons and whilst the well penetrated the anticipated turbidite sands the reservoirs were water bearing. This is a major disappointment even though drilling in frontier acreage carries with it more than the usual risk.
For Chariot this is probably time to retrench and whilst there are still other opportunities in the portfolio and it is ‘fully funded’ to progress assets in Morocco and Brazil I don’t expect much imminent activity.
For all those others who have recently taken positions offshore Namibia there will be a lot of analysis of data but I don’t expect this to write off the basin, indeed others may consider their acreage to have been enhanced in a tangential way.
DGO has announced yet another acquisition, this time paying $183m for Core Appalachia Holding Co with assets in Kentucky, West Virginia and Virginia. With production of ~11,200 boe/d from ~5000 wells and upside possibilities from theNGL’s cash margins are high and the deal is immediately accretive to cash flow and earnings. In addition the assets are apparently highly complementary to those of EQ! Acquired in July and value will be added by consolidating to a single operator.
The company has added midstream assets as part of the deal including moving third party volumes that enhance the economics. DGO has found a niche that investors like and seems to be a gift that keeps on giving, what’s not to like?
Trading volume in Asiamet shares are 600% above the monthly average, as investors look to take advantage of the recent dip in price the company experienced following the speculation regarding protests in the Nagan Raya area where its Beutong asset is located.
Andalas Energy (ADL), recently released its corporate presentation to the public underlining its new ongoing strategy. The oil and gas exploration and production company explores opportunities in assets in the UK and Indonesia.
Read a roundup of This Week’s Trading Updates: Broker and Tipster Sentiment by Stockomendation Analyst James Bowden.
On today's podcast: David Ciclitira, Executive Chairman of Live Company Group (LVCG) talks about their recent acquisition of Bright Bricks and about general progress at the company. Also Russ Mould, Investment Director at stockbroker AJ Bell talks about: Zytronic (ZYT), Redcentric (RCN) & Tharisa (THS).
SP Angel morning note on commodities featuring: Scotgold Resources* (SGZ LN) – Cononish update
See Today's AIM Risers Featuring Safestay, CAP-XX, Fontera Resources and PhotonStar LED Group
Five financial stories, trending today in a 70 second podcast, including: Food sales saw their steepest drop in three years in September as consumers tightened their belts after the unusually hot summer, the Office for National Statistics (ONS) has said. Sales of food were down 1.5% in the month, contributing to a 0.8% fall in total UK retail sales.