Fox Davies Capital Update featuring Tower Resources, Circle Oil, Ascent Resources, Alexander Mining, Ovoca Gold, Island Oil & Gas

Tuesday, Mar 23 2010 by
1

Fox Davies Capital Daily Update

Tower Resources (SELL, £0.02) (LON:TRP, 1.75p, ? (14.75%)) announced that its wholly owned subsidiary Neptune Petroleum (Uganda) Limited, has applied to the Minister of Energy and Mineral Development of Uganda, to continue exploration of Licence EA5 into the Third Exploration Period until March 2012. The forward programme will comprise geophysical activity as the next stage of operations, followed by a further exploration well, and this work programme together with relinquishment obligations are being discussed with government technical specialists. The Board concluded that the information from the first two exploration wells on EA5 demonstrates considerable exploration potential still exists in the Licence. The lack of good quality reservoir at either well location increases the emphasis on identifying structures in the deepest area of the basin, where the chances of encountering better reservoir are improved. This can only be achieved by substantially increasing seismic coverage in the areas of greatest interest, which will be addressed in the forward work programme. Most of the funding for the programme in the Third Exploration Period is expected to come from third parties and the Board is confident that this can be achieved. The company expects to have cash of about $3.5m after well costs are satisfied and this is sufficient to meet costs for the immediate future. Subject to Government approval and availability of equipment, Neptune is aiming to undertake an aero-gradiometry survey over the area of greatest interest as soon as possible, to improve structural definition, and intends to fund this programme from available cash resources.
 
Comment: A brave decision from Tower Resources that might yet be the right one. The main issue is financing, its availability and price, although the Board sounds confident in its ability to organise it. This is obviously a better outcome than a complete relinquishment of the licence.

Ascent Resources (BUY, £0.20) (LON:AST, 5.75p, ? (2.13%)) through its subsidiary PetroHungaria kft, provided an update on production and testing in the Penészlek area of the Nyírség permits in Hungary. Production from the PEN-105 well has commenced and is expected to stabilise at over 2 MMscfd within a few days. The completion of the PEN-101 well has been temporarily suspended as the acid stimulation, while clearly demonstrating a substantial improvement in productivity, caused a suspected failure of the cement isolation allowing some water production from a…

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Alexander Mining plc is a holding company. The Company is a mining and mineral processing technology company. The Company's principal activities are the commercialization of its mineral processing technologies, either through licensing to third-parties and/or the acquisition of equity stakes in amenable deposits. The Company is engaged in development and management of intellectual property rights. The Company, through its subsidiary, MetaLeach Limited (MetaLeach), is engaged in the commercialization of its hydrometallurgical mineral processing technologies. MetaLeach owns the intellectual property to two ambient temperature, ambient pressure hydrometallurgical technologies, namely AmmLeach and HyperLeach. The metals that are particular targets for the AmmLeach process include copper and copper/cobalt in carbonate and weathered oxide deposits; zinc (and cadmium) in mixed oxide deposits; nickel and cobalt in lateritic deposits, and gold, silver and copper in leached porphyries. more »

LSE Price
0.048p
Change
35.7%
Mkt Cap (£m)
1.5
P/E (fwd)
n/a
Yield (fwd)
n/a

Ascent Resources plc is an independent oil and gas exploration and production (E&P) company. The Company's portfolio consists of European onshore projects. The Company operates through two segments: Slovenia and UK. The Slovenia segment is engaged in exploration and development work. The UK segment includes head office. It operates the Petisovci tight gas project in Slovenia. The Company's project is operated through a local entity in a joint venture. The Petisovci Tight Gas Project is located in an area covering approximately 100 square kilometers in north eastern Slovenia. The Petisovci Tight Gas Project targets the development of tight gas reservoirs, which include Miocene clastic sediments. The structure has over two sets of reservoirs, the shallower Upper Miocene and the deeper Middle Miocene. It is focused on the development of the Middle Miocene Badenian reservoirs. Its subsidiaries include Ascent Slovenia Limited, Ascent Resources doo and Ascent Resources Netherlands BV. more »

LSE Price
0.225p
Change
 
Mkt Cap (£m)
5.9
P/E (fwd)
2.1
Yield (fwd)
n/a

Patagonia Gold PLC is a United Kingdom-based mining company. The Company’s principal business is to hold investments in mineral exploration companies involved in identifying, acquiring and developing mineral projects, either on its own or with joint venture partners. It is engaged in exploration, development and production of gold and silver projects in the southern Patagonia region of Argentina, in Chile and in Uruguay. Patagonia Gold PLC, indirectly through its subsidiaries or under option agreements, has mineral rights to over 220 properties in several provinces of Argentina, Chile and Uruguay. Its projects include the El Tranquilo block, La Paloma project and the La Manchuria project. The El Tranquilo block is located on the western margin of the Deseado Massif, Santa Cruz Province, Argentina. The La Paloma project comprises approximately 20 contiguous concessions totaling approximately 56,600 hectares. The La Manchuria project is located in the central-west of the Deseado Massif. more »

LSE Price
31p
Change
 
Mkt Cap (£m)
7.3
P/E (fwd)
n/a
Yield (fwd)
n/a



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3 Comments on this News show/hide all

Fangorn 23rd Mar '10 1 of 3

"Since 1947 Shell, BP, Gulf and Standard Oil have all tried and failed to tap the legendary ‘paradise oil fields’. And in 1988 they simply gave up. But now one tiny explorer has finally cracked the mystery – and could spark the biggest oil bonanza of the next decade! Even if just ONE of their 22 claims strikes oil, the value of the company could shoot up 2,044% in a matter of days!"

Having received this in an unsolicited email am delving a bit deeper. Is this tiny minnow they talk about BPC?

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sooty 23rd Mar '10 2 of 3

It sure is BPC.
Is that the same email where the author claimed to have tipped GKP?

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Fangorn 23rd Mar '10 3 of 3

Yes indeed.
I seem to get inundated with these emails, most of which I dont read if truth be told. But this one caught my eye, in conjunction of course with the front page telegrpah article on Oil reserves overestimated by a third(In another thread)

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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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