Oil & Gas News
Gulf Keystone Petroleum (BUY, £2.00) (LON:GKP, 87.25p, ▲ (0.29%)) announced an operational update on the preparations for its 2010 drilling campaign in the Kurdistan Region of Iraq. Gulf Keystone plans to commence the acquisition of 3D seismic over the Shaikan structure during the first quarter of 2010. A well workover on Shaikan-1 is planned, as well as a further three appraisal wells on the licence, with plans to spud two in 2Q10 and one in 4Q10. An exploration well is also planned on the Sheikh Adi block in 3Q10.
Gulf Keystone Petroleum (BUY, £2.00) (LON:GKP, 87.25p, ▲ (0.29%)) also announced that it has today completed a fully subscribed placing of 20,915,034 new common shares at a placing price of 76.5p per share, raising gross proceeds of approximately £16m. These shares were placed by the Company and broker Fox-Davies Capital Limited with existing and new institutional shareholders. The net proceeds will be utilised towards funding the Company's ongoing operations in Kurdistan. Further funding will be required during the course of 2010 and the Company is considering its best funding strategy with its advisers.
Comment: Given the level of activity planned in the next year or so as well as the financial commitment resulting from the change in the PSC structure following the default by Etamic, we estimate that the Company needs to raise some US$150m in total to fund it all. The equity raise announced this morning addresses only a portion of those needs, while the Company is also deemed to receive some US$10m from the disposal of their assets in Algeria. The balance could come from an additional equity raise later this year, possibly combined with a limited asset sale such as the disposal of the 20% interest in the Akri-Bijeel licence to MOL.
To read more and discuss Gulf Keystone, click here.
Aurelian Oil & Gas Plc (LON:AUL, 37.25p, ▲ (1.36%)) announced the appointment of John Conlin as a non-executive director and Chairman-elect. It is intended that Mr. Conlin will become Chairman at the Company's Annual General Meeting, to be held in May, when David Prior will step down from the role while remaining as a Non-Executive Director. Mr Conlin has previously served as a non-executive Director of Hardman Resources and Delphian Technologies, and Chairman of Fuelture Limited. He is currently Chairman of Nautical Petroleum.
Mining Corporate News
Stellar Diamonds (LON:STEL, 16.75p, ► (0.0%)) announced that mining at the 100% owned Mandala diamond mine in southeast Guinea has produced 64,800 carats at a grade of over 42 carats per hundred tonnes since mining commenced in mid-2009. The project currently has a measured and indicated diamond resource of 676,000 carats, with a further 114,000 carats in the inferred category. Production for January and February 2010 reached 16,400 carats at an average grade of 38.5cpht. During February a special 37 carat ‘fancy’ yellow stone was recovered, the largest diamond produced to date by Stellar at the Mandala mine. The diamond has been exported to Antwerp for valuation and sale. Between May 2009 and Feb 2010 some 60,800 carats have been sold from the Mandala mine, generating revenues in excess of US$1.7million for the Company, at an average price of US$29 per carat. The latest sale of 6,000 carats in early March recorded an average price of US$42 per carat (excluding the 37 carat fancy yellow diamond), indicative of an improving rough diamond market.
Beowulf Mining (LON:BEM, 3.63p, ▲ (7.41%)) announced that it had agreed to placement of 40,000,000 new ordinary shares of 1p each in the Company at a placing price of 2.5p per ordinary share to raise £1,000,000 before expenses. The net proceeds from the Placing will be used to finance the commencement of a planned drilling campaign at the Company’s two major iron ore projects (Ruoutevare and Kallak), the assessment of potential opportunities for commercial expansion and general working capital purposes.
Kalahari Minerals (LON:KAH, 177p, ▼ (1.67%)) announced an update, published by Extract Resources Ltd, in which Kalahari's subsidiary, Kalahari Uranium Limited, holds a 40.41% interest, regarding an update on the progress made on the Rossing South Definitive Feasibility Study, which is expected to confirm the project's potential to be one of the world's largest uranium mines. In particular, it should be noted that the operating costs at the Husab Uranium Project are unlikely to be significantly different to those stated in the scoping study announced in August 2009, indicating that the Rossing South project is still set to be a profitable, low risk, bulk tonnage, open pit mine with a mine life in excess of 20 years.
Red Rock Resources (LON:RRR, 2.28p, ▲ (7.06%)) announced that a percussion drilling programme was carried out in late 2009 in order to test the remnant mineralisation of the Macalder tailings. Thirty-two holes (totalling 358m) were drilled on a 25x25 metre grid in December 2009, followed by approximately 100m of infill drilling (six holes) in January 2010. In late 2009 and early 2010, 507m of reverse circulation ('RC') drilling was completed on the Migori licences. The eleven holes were drilled over the period December 2009-January 2010 at four main targets across both licence areas, SPL122 and SPL202. In the western licence (SPL122) four holes were drilled at the Macalder gossan and two at Gori Maria; and in the eastern licence (SPL202), four holes were drilled at Carlos Far West (Mwiro) and one at Nyabisawa.
Diamondcorp Plc (LON:DCP, 9.5p, ► (0.0%)) announced that it has conditionally placed 100,154,695 new ordinary shares at 7 pence per share to raise approximately £7M (beforeexpenses) Subscription for 907,843 new ordinary shares at 7 pence to raise £63,459 The proceeds of the placing are to be applied to allow the Company to resume underground development at the Lace mine in South Africa, continue with its diamond exploration programmes in Botswana, meet scheduled debt repayments for 2010 and for working capital The Placing is subject to shareholder approval at a general meeting which will be held on 1 April 2010 at 12 noon UK time.