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Fox-Davies Capital Newsflash including Valiant Petroleum, Serica, Petra Diamonds and Kirkland Lake Gold

29th Sep 2009, 8:49 am Fox-Davies Capital Newsflash including Valiant Petroleum, Serica, Petra Diamonds and Kirkland Lake Gold

Valiant Petroleum (VPP)  announced its intention to raise approximately £66.5 million by way of a placing of new ordinary shares in the Company, with both new and existing institutional investors. While Valiant’s current financial position, along with its anticipated cash flow from the producing Don Fields, would allow it to complete its committed work programme for 2009 and 2010 and maintain its current debt covenants, its ability to actively pursue additional opportunities in its portfolio is limited in the near term. The proceeds will allow the Group to maintain operational and financial flexibility, accelerate its capital expenditure programme and maintain substantial equity stakes in its asset portfolio while also managing its debt obligations. As currently forecast, the Placing will allow Valiant to aggressively pursue a capital expenditure programme during 2010 and 2011 in excess of US$300 million which is anticipated to include: (i) the development of the Don Southwest and West Don fields; (ii) the development of the Causeway and Crawford fields; (iii) the appraisal of the Banquo discovery; (iv) the drilling of exploration wells on the Handcross, Tybalt and Viola prospects targeting approximately 305MMboe net to Valiant at current equity levels; and (v) maintaining material interests in all of its appraisal and exploration assets. The Company anticipates that the Placing proceeds will be further supplemented by debt finance on a number of the development assets as well as the potential farm-down of interests under a number of the exploration wells.
 
Serica (SQZ)  announced that production at the Kambuna field, offshore Sumatra, Indonesia, has been temporarily suspended at the request of the gas purchaser. Commercial sales to PLN, the Indonesian state electricity generator, began on 11th August. However, PLN has experienced problems with the gas turbines at its power station at Belawan and has requested that Kambuna production be temporarily suspended while it undertakes the required maintenance. The gas sales contract provides that future sales may be made at higher rates than contracted, in order to make up for any production lost while this maintenance is completed. Serica holds a 50% working interest in the Kambuna field.
 
Petra Diamonds  (PDL)  announced the recovery of an important 507.55 carat white diamond at the Cullinan mine in South Africa. It is currently with experts for analysis. Initial examinations indicate that it is of exceptional colour and clarity, and most likely to be a Type II diamond. The diamond was recovered alongside three other special white stones of similar colour and clarity in the same production run: another very large stone of 168.00 carats and two other stones of 58.50 and 53.30 carats.
 
Kirkland Lake Gold  (KGI)  announced an update on exploration drilling testing part of the South Mine Complex (SMC). The SMC consists of 15 or more mineralized zones, some of which are actively being explored and developed while others are now in production.  Recent drilling from one of many exploration programs currently in progress include further testing of the new discovery located 700 feet below the SMC. Typical intersections are grading ounces per ton over widths around 3 feet.

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