Fox Davies Capital Update featuring Gulfsands Petroleum, Borders and Southern, Cluff Gold

Friday, Mar 19 2010 by

Fox Davies Capital Update company news imageGulfsands Petroleum (HOLD, £3.00) (LON:GPX, 312.5p, ? (20.31%)) rejected the unsolicited approach received yesterday regarding a possible offer for the Company. The Board is unanimously of the view that the proposal was wholly inadequate and materially undervalued the Company. The Board is confident in Gulfsands' strategy to become one of the pre-eminent exploration and production companies in the Middle East and to continue to demonstrate tangible growth.
Comment: The FT was reporting this morning that the approach might have come from a large Indian oil company at a likely level of 350p. Gulfsands’ board, advised by Royal Bank of Canada, is understood to be unwilling to recommend any offer that is below 400p. Our valuation of the Company is about 300p, which even allowing for a control premium would result in a possible offer just below 400p and with anything above that level being unjustified on current shape of the Company.
Borders & Southern Petroleum (LON:BOR, 58.25p, ? (1.27%)) announced that the Company has appointed Mirabaud Securities LLP as its joint broker with immediate effect. Panmure Gordon & Co continues to act as NOMAD and joint broker and Ocean Equities Ltd continues to act as joint broker to the Company.

Cluff Gold Plc (LON:CLF, 92p, ? (0.55%)) announced record gold production of 19,288oz for the first two months of 2010. Operating cash costs for the two months were US$547/oz of fine gold produced at Kalsaka and US$797/oz of fine gold produced at Angovia.

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Borders & Southern Petroleum plc is an independent oil and gas exploration company. The Company's principal area of activity is in the Falkland Islands. The Falkland Islands are located in the South Atlantic, approximately 500 kilometers from the mainland of South America. The Company operates approximately three production licenses covering an area of approximately 10,000 square kilometers. These licenses are located approximately 150 kilometers south-east of the Islands. The Company's Darwin reservoir consists of Early Cretaceous shallow marine sandstone. The Darwin reservoir consists of two adjacent tilted fault blocks, Darwin East and Darwin West. more »

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Gulfsands Petroleum plc is an independent oil and gas exploration, and production company. The principal activity of the Company is that of provision of services to its subsidiaries, which are engaged in oil and gas production, exploration and development activities. Its segments include Syria, Morocco, Tunisia, Colombia and Other. It holds interests in oil and gas exploration projects in Morocco, Tunisia and Colombia. It is the operator of an onshore oil and gas exploration permit covering an area of approximately 2,820 square kilometers in northern Morocco. The Company holds interest in the operated Chorbane exploration permit onshore Tunisia covering approximately 1,940 square kilometers. The Chorbane permit contains an Eocene/Cretaceous light oil prospect. The Company has exploration and production contracts over two onshore contract areas in Colombia, including Llanos Block 50 and Putumayo Block 14, covering approximately 510 square kilometers and over 460 square kilometers. 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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