Analyst coverage in the AIM market has been evenly split between the oil and gas stocks, as well as metals and mining.
Seymour Pierce analyst Alan Sinclair looked at the latest news from Gulfsands Petroleum’s (LON:GPX) joint venture in Tunisia.
Sinclair noted that Gulfsands' preliminary analysis of the Lambouka-1 well 'has resulted in what it regards as a contingent resource estimate of 75 million barrels oil equivalent'.
“We estimate that this is worth 75 pence per share to Gulfsands ... Whilst some of this has been factored into the share price since the earlier announcement, we feel that the shares will go better on this news”, Sinclair said.
“Furthermore, there is additional up-dip reserve potential on the structure that may well be proved up by further drilling.”
Fox-Davies Capital examined Ascent Resources' (LON:AST) latest project acquisition in Hungary.
The stockbroker saw the addition as a positive development. “On the face of it a good project to be involved in, with oil potential."
A number of discoveries in similar geological structures nearby produce good quality oil at rates typically in excess of 100 bopd per well, increasing the chance of success”, the analyst said.
The analyst also commented on the delays at Matra Petroleum’s (LON:MTA) project in Russia.
“Production logging has indicated that the water production previously reported in well-12 is coming from a zone below the oil reservoir ... there is a likely channel in the cement behind the casing allowing this water to enter the wellbore.”
“Confirmation that the water produced does not come from the reservoir but from a water zone ... is good news.”
“However the remedial cementation job will cause further delays."
“We still believe the stock offers good potential but investors’ patience will also be tested by the apparent lack of progress.”
Once again Nautical Petroleum (LON:NPE) drew the attention of the oil and gas analysts, with the divestment of a 20% stake in the North Sea Mariner discovery. Statoil are set to by the asset for £87.5m.
“Monetising assets which are a long way away from FID and require substantial capex is a sound strategy for mid sized E&P’s ... monetising a project which is essentially ignored by the market is even better,” Keith Morris of Evolution Securities commented.
Similarly David Hart, oil & gas analyst at Westhouse Securities, saw the positives of the deal but questioned the £87.5m valuation.
“The sale makes perfect strategic sense. However we calculate the sale price at $2.03 per barrel of contingent resource, which could be considered low,” Hart said.
Ambrian Capital analyst Werner Riding claimed the deal ‘represents a defining moment for Nautical’.
“Along with the funds raised recently via the placing of £28.8m of new shares, we estimate that post-settlement Nautical will have around £117.5m net cash ... to unlock the value we believe is in its portfolio,” Riding commented.
“Looking to the immediate future, with a number of potential catalysts, we see the opportunity for further near-term drilling-related upside.”
Edison Investment Research looked at a couple of AIM’s mineral stocks.
Red Rock Resources (LON:RRR) could be worth over 20p per share, according to Edison Investment Research analyst Charles Gibson.
In a note entitled ‘Cranking Up’, Edison reflected on the diversified resource company’s "eventful summer".
After a series of recent updates and developments for its main assets - its interests in Jupiter Mines (ASX:JMS), Resource Star (ASX:RSL) and its Kenyan and Columbian gold assets - Gibson has an upbeat outlook for the company.
Additionally, Gibson said that shares in Goldplat (LON:GDP) are trading at a 7.3% discount to net assets and on a multiple well below those of other gold producers.
Edison is predicting that Goldplat could be generating earnings of 4 pence per share from FY (full year) 2012 onwards at a gold price of US$1,177/oz and with a throughput increase from 1,100 tpm (tonnes per month) to 1,500 tpm at GRG.
Basic earnings per share amounted to 1.10 pence in 2010.
Edison is valuing Goldplat at 20.12 pence with a 10% risk discount and assuming that it makes no effort to replenish its stockpiles.
Should it do that on terms akin to those achieved in the past, the valuation goes up to 29.93 pence.
Martin Potts, analyst at Daniel Stewart & Co, highlighted Thor Mining’s (LON:THR) progress with its progress in Australia.
“Work continues at the early stage Dundas gold project, where surface sampling yielded promising results ... the company intends to move on with a preliminary drilling programme as soon as permits are received.”
This morning’s upbeat results pushed Thor Mining shares 30% higher.