Fox Davies Capital Update featuring Ascent Resources, Afren, Greystar Resources, Ariana Resources and European Nickel

Thursday, Mar 25 2010 by

Fox Davies Capital New Story ImageAscent Resources (BUY, £0.20) (AST, 5.75p, ? (2.22%)) through its wholly owned subsidiary Nemmoco Slovenia Corporation, announced it has completed the 3-D seismic processing and the preliminary interpretation for the Petišovci project in Slovenia with positive results. Management estimates an additional potential of 75 Bcf of recoverable gas, and over 12 new drilling targets have been mapped. In 2010 and 2011, the company expects to drill a number of wells on the project. New 65 km2 of 3-D seismic acquisition in the Hungarian area is to commence shortly.

Comment: This is a very encouraging result after a number of small setbacks for the Company in recent months. We estimate the risked value of those prospects at about 4p per share and 12p unrisked. We are not changing our price target of 20p as a few of the pieces on which it is predicated still need to fall into place. Also Ascent needs to provide some clarity on the funding of the additional drilling activity that those new prospects will generate.

Afren (AFR, 95.8p, ? (0.42%)) announced it has finalized arrangements for a new up to US$450m reserves based lending debt facility. The up to US$450m of debt, secured against the Ebok field reserves, has a maturity of a maximum of five years, is repayable semi-annually and has a margin of between 4% to 5.5% over LIBOR. 

Greystar Resources (GSL, 390p, ? (0.64%)) announced additional drill results from the Mongora prospect located immediately to the south of the Angostura gold-silver deposit in the California mining district, Colombia. Mongora is similar to Angostura, hosting higher-grade gold mineralization within broader zones of lower-grade gold mineralization. While the drill program at Mongora is focused on the delineation of open pit oxide gold mineralization, drill results have identified promising sulphide mineralization as well. Drilling at Mongora has the potential to outline a new oxide resource that could be added to the 2.26M oz oxide resource (measured and indicated) already defined at Angostura. To date 8,670 metres have been drilled in 26 holes at Mongora. Preliminary metallurgical evaluations are underway. Mongora remains open in all directions as well as to depth.

Weatherly International (WTI, 2.53p, ? (1.00%)) announced that Dundee Precious Metals Inc has waived the requirement for the approval of the holders of the Company's outstanding convertible loan notes to the…

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Ascent Resources plc is an independent oil and gas exploration and production (E&P) company. The Company's portfolio consists of European onshore projects. The Company operates through two segments: Slovenia and UK. The Slovenia segment is engaged in exploration and development work. The UK segment includes head office. It operates the Petisovci tight gas project in Slovenia. The Company's project is operated through a local entity in a joint venture. The Petisovci Tight Gas Project is located in an area covering approximately 100 square kilometers in north eastern Slovenia. The Petisovci Tight Gas Project targets the development of tight gas reservoirs, which include Miocene clastic sediments. The structure has over two sets of reservoirs, the shallower Upper Miocene and the deeper Middle Miocene. It is focused on the development of the Middle Miocene Badenian reservoirs. Its subsidiaries include Ascent Slovenia Limited, Ascent Resources doo and Ascent Resources Netherlands BV. more »

LSE Price
0.2p
Change
-11.1%
Mkt Cap (£m)
5.9
P/E (fwd)
2.0
Yield (fwd)
n/a



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About Fox Davies Capital

Fox Davies Capital

Fox-Davies Capital Limited (FDC) has been advising and raising funds for the natural resource sector since February 2001. The firm specialises in assisting international resource companies to gain access to the UK, European and North American capital markets and has a substantial background in emerging markets particularly in Africa, Asia, Russia and the CIS.  FDC enjoys a successful track record in advising and undertaking fundraising transactions for its clients ranging from private equity to IPO and secondary offerings and works with over 350 specialised institutional resource and emerging markets funds worldwide.  FDC is authorised and regulated by the Financial Services Authority (FSA) and is a member firm of the London Stock Exchange (LSE). more »



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