Gulfsands Petroleum (HOLD, £3.00) (LON:GPX, 323.5p, ? (1.22 %)) announced its annual results for the twelve months ended 31 December 2009. Revenues were up by 57% to $84.4m and Profit after tax $27.8m vs. loss of $5.4m in 2008. Cash from operating activities was up by 117% to $43.5 million resulting in free cash balances at year-end of $57.6m vs. $36.8m in 2008. Group 2P working interest reserves were up by 25% to 50.7MMbbl, with contribution from Syria up by 31% to 46.0MMbbl vs. 35.2MMbbl in 2008. Working interest production in Syria was up by 70% during 2009 to 8,500bopd at year-end and Khurbet East early production facility was upgraded to 18,000bopd capacity. The commercial development approval was obtained for Yousefieh field. The Company intends to capture the available upside in Block 26 before the final expiry of the exploration period in August 2012 by drilling an additional three exploration wells exploration and acquiring 500km2 of 3D seismic. Two exploration wells and additional 3D seismic will also be acquired in Tunisia on the new licences. Finally the Company is determined to sell the US business when market conditions are favourable.
Comment: A good set of results from Gulfsands, with impressive operating numbers and renewed strategic determination. Management intend to seek further opportunities in Syria and build substantial business in Iraq, highlighting their track-record and relationships in the region. Hence making all the right noises as the company is still in play despite the rejection of a recent unsolicited offer. The results are broadly in-line with expectations and we maintain current recommendation and target price.
Nighthawk Energy Plc (LON:HAWK, 24p, ? (0.0%)) announced the appointment, with immediate effect, of Matrix Corporate Capital LLP as Joint Broker to the Company. Westhouse Securities Limited continues as Nominated Adviser and Joint Broker.
Amec Plc (LON:AMEC, 766p, ? (0.0%)) announced the acquisition of Entec Holdings Ltd (Entec), the UK-based environmental and engineering consultancy, from its owner-managers and investors, Growth Capital Partners, for an initial consideration of £61.2 million. The acquisition has been made on a cash free/debt free basis and the consideration has been settled in cash. Entec operates in the water services and wastewater sector. It also provides renewable, nuclear and other energy services, industrial engineering, contaminated land and regeneration services, environmental planning and project management services.
