Fox Davies Capital Update featuring Desire Petroleum, Solomon Gold, Orosur Mining, Max Petroleum and Ascent Resources

Thursday, Dec 02 2010 by
Fox Davies Capital Update featuring Desire Petroleum Solomon Gold Orosur Mining Max Petroleum and Ascent Resources

Oil & Gas Corporate News

Ascent Resources (LON:AST) (BUY, £0.20) (AST, 6.25p, %u25B2 (4.17%)) has started mobilising a rig for the Pg-11 evaluation well in the Petisovci-Lovaszi project area in Slovenia, and that they expect to commence drilling on or around 16 December 2010, subject to weather conditions. The well is the first to be drilled by Ascent on the Petisovci-Lovaszi project area in which the Company recently announced an independently verified P50 estimate of gas-in-place of 412Bcf. The PG-11 well has a number of important objectives and the evaluation programme, which includes core sampling and state-of-the-art wireline logging, is designed to collect sufficient data for development planning, as well as calibration of the 3-D seismic to optimise the geological modelling over the entire project area.

Comment: The Petisovci-Lovaszi area is the company's operational focus. Ascent has taken important steps to progress the work on this asset including the recent financing through a loan facility and the Standby Equity Distribution Agreement ("SEDA") with Yorkville. This asset has the potential to drive near-term value and it is welcome news that the drilling operations are underway; PG-11 will be the first in a 4-well drilling programme. We look forward to further updates from the evaluation programme and maintain our Buy recommendation.

Desire Petroleum (LON:DES) (BUY, £2.00) (DES, 152.75p, %u25B2 (44.34%)) announced that the 14/15-2 Rachel North well has reached a total depth of 3052m and that preliminary data collected indicate that this well is an oil discovery. The company has run an initial suite of wireline logs and this together with the drilling data indicate that the well encountered a 349m gross interval from 2621-2970m of sands and shales with hydrocarbons, of which 57m is net pay in multiple zones. The thickest zone is 8m thick with an average porosity of 20%. Other zones are thinly bedded and lower porosity but require further analysis from additional wireline logs to establish reservoir potential. Desire now intends to complete the wireline logging and wireline sampling programme to obtain more information on the reservoir quality, the hydrocarbon saturations and the fluid type to assess the significance of this discovery. Further information will be released in due course.

Comment: Have Desire and Rockhopper cracked the North Falkland Basin? Possibly, as Rachel confirms one of…

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Asiamet Resources Limited, formerly Kalimantan Gold Corporation Limited, is a Canada-based exploration-stage company. The Company's principal business activities include the acquisition, exploration and development of mineral properties in Indonesia. The Company operates through mineral exploration and development segment. The Company has over three principal areas of interest, which include the KSK Contract of Work (KSK CoW) in Central Kalimantan with multiple copper and gold prospects, including the BKM Deposit that has mineral resources; the Beutong Izin Usaha Pertambangan (Beutong IUP) on the island of Sumatra, Indonesia, which covers approximately two porphyry copper-gold-molybdenum prospects (West and East Porphyries) and the Beutong Skarn (copper-gold) prospect, and the Jelai Izin Usaha Pertambangan (Jelai IUP) epithermal gold prospect in North Eastern Kalimantan, Indonesia. The Company's subsidiaries include Indokal Limited and PT Pancaran Cahaya Kahaya, among others. more »

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SolGold Plc is an Australia-based copper, gold exploration and development company. The Company is focused on the riches of the North Andean Copper Belt in Ecuador. The Company has several class intersections of continuous copper and gold mineralization from its flagship project Cascabel. The Company has assets in Ecuador, Solomon Islands and Australia. The Company’s Cascabel Project is a porphyry copper-gold deposit located in the Imbabura province of northwest Ecuador. more »

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Orosur Mining Inc. (Orosur) is a Canada-based gold producer and exploration company. The Company is focused on identifying and developing mineral opportunities. The Company operates in Uruguay, Chile and Colombia. In Uruguay, the Company operates the San Gregorio gold areas in the northern Department of Rivera. The Company is operating the Arenal Deeps underground mine and several open pits in the San Gregorio district. The Company has land holdings with active near mine and regional exploration programs. The gold is produced in the form of dore, which is shipped to refineries for final processing. In Chile, the Company conducts exploration and development activities on the Anillo property. The Company also owns the Pantanillo property, located in the Maricunga Belt and holds interests in the Talca exploration asset located close to La Serena, north of Santiago in Chile. more »

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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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