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
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.
Ascent Resources is a gas production company that is ramping up production levels at its 75%-owned Petišovci Gas Project, located in Slovenia.
SECTOR – MINING
RATING – SPECULATIVE BUY*
MARKET CAP – £6.3m
CURRENT PRICE – 1.38p
Vutomi Joint Venture update
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.
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.