Oil & Gas Corporate News
Hardy Oil & Gas (BUY, £3.00) (HDY, 194p, ? (1.04%)) issues its Interim Management Statement for the period from 1 July 2010 to date. Gross daily production from PY3 averaged 3,367stbd or a net of 606stbd. Hardy announced the KGV-D3-W1 natural gas discovery (Dhirubhai 52), the fourth consecutive discovery on the block. Capital expenditure amounted to $1.8 million principally on exploration activities, resulting in cash and short term investments of US$23.2m at 30 September 2010. The Company has no long term debt. On 27 October 2010, the Company completed the sale of its wholly owned subsidiary Hardy Oil (Africa) Limited for gross proceeds of US$4.6m million cash. In terms of outlook, one exploration well is expected to commence drilling in D9 before the end of 2010.
Comment: The stock price is back now below £2 and positive newsflow on D9 is needed to reinvigorate the momentum of the investment case. We see good value in the stock.
San Leon Energy (LON:SLE) (BUY, £0.80) (SLE, 15.75p, ? (3.28%)) has expanded the Concession for oil and gas reconnaissance and exploration and the mining usufruct agreement following an application process with the Polish Government. San Leon currently has 100% interest in the Concession. The Concession, totalling 894.41 km2, is located in the Baltic Basin, onshore northern Poland, across license blocks 48 and 49. The Concession is valid for up to 5 years and covers a work programme which includes geological studies, 280 km 2D seismic acquisition and a one well drilling obligation. The Concession also has an optional 3D seismic survey and an additional two wells. The expansion of the Gdansk W Concession increases the total area of the farm-out agreement with Talisman Energy. The Concession is on trend with recent drilling by Lane Energy and its partner ConocoPhillips and is also within the scope of our farm-out agreement with Talisman Energy.
Comment: This is positive news for the Company as it increases the shale gas acreage in the NW of Poland where the play is deemed to be the most prospective.
Mining Corporate News
Noventa Ltd (LON:NVTA) (NVTA, 11.5p, ? (0.0%)) announced the third successful shipment from the mine since restarting production. This shipment of 8,000kg of 27% tantalum pentoxide concentrate to one of the Company's major…
