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Fox-Davies Capital

Fox-Davies Capital Newsflash including Ascent Resources, Leed Petroleum, Nostra Terra, Dragon Oil, Randgold and Jubilee Platinum

Ascent Resources (AST)  through its Hungarian subsidiary PetroHungaria Kft, has completed the drilling of the PEN-104 sidetracked gas well in the Nyírség permits of Eastern Hungary. The well drilled through 65m of Miocene reservoir formation, equivalent to a vertical thickness of 34m.  Drilling was stopped at 1,872m MD (1,322m TVD), close to the anticipated depth of the gas-water contact determined from offset wells.  The well, completed with a slotted liner and external casing packers, will be tested after the drilling rig, which is now being demobilised, has left the well site. Ascent has a 45.23% interest in the well; other partners in the project include DualEx Energy (37.5%), Geomega (8%), Leni Gas & Oil (7.27%) and Swede Resources (2%).

Meanwhile drilling continues at the Fontana-1 well in Italy’s Latina valley, and is currently at a depth of 99m. As operations are only in daylight hours and with a five day per week work schedule, Phase 1 is expected to take some three weeks and Phase 2, the coring and evaluation of the target strata, will take at least a further two weeks.
 
Leed Petroleum  (LDP)  announced that it has completed wire-line operations on the Eugene Island A-7 well in Mexico and returned it to production. Well tests indicate a gross production rate of 3.1MMscfd and 458bopd, or a combined rate of 977boepd, and zero water production through a 15/64" choke with a flowing tubing pressure of 7,500psi.
 
Nostra Terra  (NTOG)  announced the results of a reserves report on its Bloom property in the USA. The report outlines potential gross proved reserves of 2.26MMbbl (1.02MMbbl net) and 1,096MMcf gas potential gross proved reserves (494MMcf net).
 
Dragon Oil  (DGO)  has agreed to be acquired by shareholder Emirates National Oil Co. Ltd. (“ENOC”) for roughly £2.4bn. ENOC, agreed to pay 455p a share in cash to acquire it, a 35% premium to its share price June 3, the day before it said it had received an approach. ENOC holds about 51% of Dragon Oil.
 
ROC Oil (ROC)  announced that as of 7.00am this morning, it will no longer trade on the AIM market.
 
Mining Corporate News
 
Weatherly International  (WTI)  announced it has entered into an option agreement with a South African company, Cubenco 192 Pty Ltd whereby Cubenco has the option to purchase the Kombat mine from WMN's subsidiary, Ongopolo Mining Ltd for total consideration of US$3M. The Kombat mine was flooded late in 2007 and although the mine and plant has been kept on care and maintenance, it is not part of Weatherly's future development plans. Weatherly is focussing on the reopening of the Otjihase and Matchless mines and the development of the Tschudi open pit.

Cubenco has paid a non refundable option fee of R1.2m (US$160,000) and has 42 days in which to complete its due diligence and make a second payment of US$600,000. The final sale is subject to consent from Noteholders, East China Mineral Exploration and Development Bureau and the Government of Namibia. Assuming these are given, the final payment of US$2.24Mis due by the end of March 2010. Under the option agreement, Cubenco has early access rights to the site on completion of the second payment subject to various conditions including payment of all site costs during the option period. All proceeds from the sale will be applied to paying down the US$12M debt to Noteholders.
 
Randgold Resources  (RRS)  announced that, together with AngloGold Ashanti Limited, it has entered into a definitive agreement with L'Office des Mines d'Or de Kilo-Moto to purchase an additional 20% stake in the Moto gold project for an aggregate consideration of approximately US$113.6M.
 
Jubilee Platinum  (JLP)  announced that together with Sylvania Resources PLC they intend to enter into a strategic partnership jointly to provide a total capability solution for the processing of platinum group metals (PGMs) to the secondary PGM sector. This alliance brings together Sylvania’s demonstrated ability to retreat surface tailing stockpiles for recovery of PGMs into concentrate and Jubilee's industry accepted ConRoast smelting flexibility.
 
Braemore Resources  (BRR.)  announced that trading on AIM for the under-mentioned securities have been cancelled from 02/11/2009 07:00. Ordinary Shares of 0.1p each (B06GJQ0) (GB00B06GJQ01) fully paid.