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Northland Capital Partners View on the City - Ascent Resources Plc, Botswana Diamonds

Northland Capital Partners View on the City -  Ascent Resources Plc, Botswana Diamonds

ASCENT RESOURCES (LON:AST)

SECTOR – OIL & GAS

RATING – BUY*

MARKET CAP – £52m

CURRENT PRICE – 2.4p

TARGET PRICE – 4.3p

Issue of shares to vendor of Trameta

NORTHLAND VIEW

 Ascent Resources has issued 5,000,000 shares to the vendors of Trameta as Tranche 1 of the consideration for the acquisition of land on which a pipeline is located, as announced on 01/08/16.

 Three additional tranches are expected to be paid:

 Tranche 2 - 20,000,000 shares on the first anniversary of the recertification of the export pipeline on the Slovenian side of the border which occurred on the 4 November 2016.

 Tranche 3 - 22,500,000 shares on the first anniversary of the date when, in aggregate, 1 million cubic meters of gas have been transported through the Croatian Export Pipeline.

 Tranche 4 - 27,500,000 shares on the first anniversary of the date when in aggregate 50 million cubic meters of gas have been transported through the Croatian Export Pipeline.

 Following Admission, Ascent will have 2,152,364,779 Ordinary Shares in issue

We had already factored in the issue of shares to Trameta, as part of the land acquisition on which the pipeline is located, into our forecasts and price target and, as a result, there is no change to our forecasts, price target or BUY rating.

COMPANY DESCRIPTION

Ascent Resources is a gas production company that is ramping up production levels at its 75%-owned Petišovci Gas Project, located in Slovenia.

 

Botswana Diamonds (LON:BOD)

SECTOR – MINING

RATING – SPECULATIVE BUY*

MARKET CAP – £6.3m

CURRENT PRICE – 1.38p

Vutomi Joint Venture update

NORTHLAND VIEW

 17 holes have now been drilled on the Frischgewaagt, Hartbeesfontein and Doornrivier farms that make up the Zebediela Project, located in the Limpopo Province of South Africa.

 Large Diameter Drilling is scheduled to commence at the project in October with the aim of delineating an Inferred Mineral Resource Estimate by the end of the year.

 At the Ontevreden Project geophysics has outlined the size of the kimberlite pipe as a minimum of 100m by 70m. Samples of this Group II kimberlite have been taken for kimberlite indicator analysis.

We recently returned from a site visit to the Zebediela Project, where we were impressed by the amount of work that has been completed at the project in a relatively short time frame. During the fieldtrip, we visited the Frischgewaagt, Hartbeesfontein and Doornrivier farms observing the drill programme and assessing the kimberlite blow targets, which importantly could add significant tonnages to the amount of prospective kimberlite at the project.

COMPANY DESCRIPTION

Botswana Diamonds is a diamond focused exploration company that has a joint venture with Alrosa in Botswana, an interest in the Maibwe discovery also in Botswana and an interest in 10 prospecting rights that contains 20 kimberlites, in South Africa.

 

 

 

 

 

 

 

 

 

1. Northland Capital Partners Limited (“Northland”) acts as Nominated Advisor and/or Broker to the company.

2. Northland) and/or its affiliates companies do beneficially own 1% or more of any class of the issuer’s equity securities, as of the end of the month immediately preceding the date of issuance of the research report or the end of the second most recent month if the issue date is less than 10 calendar days after the end of the most recent month. 

3. The authoring analyst or any associate of the authoring analyst does maintain a long or short position in any of the issuer’s securities directly or through derivatives, including options or futures positions.

4. Northland, its affiliated companies, partners, officers, directors or any authoring analyst of Northland has provided services to the issuer for remuneration during the preceding 12 months other than investment advisory or trading services.

5. Northland or any of its affiliated companies has performed investment banking services for the issuer during the 12 months preceding the date of issuance of the report.  

6. A partner, director, officer, employee or agent of Northland or any of its affiliated companies is an officer, director, employee or advisor of the issuer.  Disclosures are applicable for all companies

7. The authoring analyst, or any associate of the authoring analyst, has viewed the material operations of the issuer. 

8. The authoring analyst, or any associate of the authoring analyst, received reimbursement for travel expenses.

9. Northland makes a market in the securities of this company.

 

 

DISCLAIMER

This document is provided solely to enable clients to make their own investment decisions. It may therefore not be suitable for all recipients and does not constitute a personal recommendation to invest. It does not constitute an offer or solicitation to buy or sell securities or instruments of any kind. If you have any doubts about the suitability of this service, you should seek advice from your investment adviser. This document is produced in accordance with UK laws and regulations. It is not intended for any person whose nationality or residential circumstances may render its receipt unlawful.

The past is not necessarily a guide to future performance. The value of shares and the income arising from them can fall as well as rise and investors may get back less than they originally invested. The information contained in this document has been obtained from sources which Northland Capital Partners Limited believes to be re¬li¬able. The Com¬pany does not warrant that such information is accurate or complete. All estimates and prospective figures quoted in this report are forecasts and not guaranteed. Opinions included in this report reflect the Company’s judgement at the date of publication and are subject to change without notice. If the investment(s) mentioned in this report are denominated in a currency different from the currency of the country in which the recipient is a resident, the recipient should be aware that fluctuations in exchange rates may have an adverse effect on the value of the investment(s). The listing requirements for securities listed on AIM or PLUS markets are less demanding, also trading in them may be less liquid than main markets.

Northland Capital Partners Limited and/or its officers, as¬sociated entities or clients may have a position, or other material interest, in any securities men¬tioned in this report. Northland Capital Partners Limited does not provide recommendations on securities of firms with which it has a corporate relationship. More information about our management of Conflicts of Interest, Investment Research Methodology & Definition of Recommendations can be found at www.northlandcp.co.uk 

Northland Capital Partners Limited is authorised and regulated by the Financial Conduct Authority and a Member of the London Stock Exchange.

Published by/copyright: Northland Capital Partners Limited, 2013. All rights reserved

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