Independent Resources are a small-cap (£30M or so) who have languished for a couple of years. They dropped 10% to 67p today, following a placing at 60p (generating c.10% dilution).
Their website is at: http://www.ir-plc.com
They reported interims to 31 Mar on the 9 June. Cash at that time was £3.3M and the comment was: 'Our cash position amply covers our commitments...'; hence, presumably, the surprise at a placing to raise £2.6M less expenses. They are not usually high spenders; the interims report a 6 month loss of £85,476 (2009: £127,836).
They have 3 strings to their bow:
Rivara (85%) This is a gas storage project that has been subject to Italian bureaucratic delays - but which may now be coming to fruition. The interims are hopeful and state that: 'Prime Minister Berlusconi wrote to his undersecretary urging priority for the project' and 'project approval [is] expected within months'.
The working capacity is estimated at 110bcf. The geology and geography are reported to be very positive for a storage function. ERG bought in to the project 2 years ago - at a price that valued IRG's remaining 85% at £1.08 per share (before the latest dilution).
Fiume Bruna (100% I believe). This is a CBM/shale project, also in Italy, which is not yet close to generating any income but which looks increasingly viable. It was earlier estimated at 91bcf recoverable but was the subject of a detailed resource upgrade to 160bcf here: http://www.stockopedia.com/news/announcement/IRG/100615irg000597.htm?title=independentresources-resource-update&date=1276556400
IRG are looking for a partner with experience (and cash) to help develop the project.
Ksar Hadada (Tunisia, 18.97% interest with a free carry for current 2010 drill programme) Two prospects have been identified for drilling this summer (the first is due to spud any day now). Sidi Toui is reported as having a 40% CoS and is targeting a P(mean) of 161mmbbls. Oryx is reported as having a 34% CoS and is targeting a P(mean) of 47mmbbls (gross).
Given the comments in the interims, I am not sure why they felt the need to raise cash.... and this must be an issue. However, they look far more exciting than they did a few months ago. If either of the 2 'imminent' projects (Ksar Hadada and Rivara) come good then things will be presumably be very rosy.... The diversity…
