Mining News
Highland Gold Mining (LON:HGM) Limited (HGM LN, 41.0p, ?2.50%) announced that Barrick has determined upon review, that its approximate 20.4% shareholding in Highland is now non-core to Barrick's business operations and strategy. Despite this determination, Barrick remains very supportive of Highland's Board of Directors and Management as they continue to execute on Highland's impressive growth objectives. Barrick intends to divest its shareholding in Highland in an orderly process which delivers proper value to Barrick and, accordingly, supports the interests and aims of Highland and its shareholders. Barrick, Highland, and Highland's largest shareholder, Primerod International Ltd., have agreed that each party will work together to achieve an orderly divestiture for Barrick. Barrick has appointed HSBC Bank plc as its lead financial advisor to assist in Barrick's divestiture of its shareholding in Highland. Further details on the structure of this divestiture will be announced in due course. Due to the intended divestiture, Barrick will not exercise its right pursuant to the Co-operation Agreement between Barrick and Highland to nominate any directors to the Highland board of directors.
Oil and Gas News
Jubilant Energy (JUB LN, 27.25p, ? 0.0%): Deen Dayal Spud marks next stage of development ? but what will it show? Jubilant has announced that it has spudded the DDE-A-2 appraisal well, and is the third appraisal well in the Deen Dayal East (?DDE?) area of the KG-OSN-2001/3 block. The appraisal well is targeting the lower Cretaceous Early Rift fill sands that were shown to be hydrocarbon bearing by the KG-16 discovery well at a depth of 5,300m; this is the 18th well to be drilled in the block and the 13 wells drilled all flowed gas and condensates. Jubilant holds a 10% participating interest. Given the disappointment following Jubilant?s last DDE well, all eyes will be on these results. We believe that the understanding of the asset?s geology has improved, and as such the well will support its commercialisation.
Tower Resources (LON:TRP) (TRP LN, 3.55p, ? 1.43%): Mvule ? 1 spuds ? Last Shot at Uganda? Tower Resources has disclosed that its Mvule-1 exploration well has spudded, and will drill to a depth of 620m; drilling is expected to take two to three weeks. With this being amongst the last obligation wells in the licence block, there is a sense that a…
