A pair of AIM-quoted oil and gas juniors provided London’s stand-out market moves on Wednesday morning.
Separate United States well successes for Empyrean Energy Plc (LON:EME) and Highlands Natural Resources Plc (LON:HNR) provided the catalysts; with the former up 13% at 10.6p and the latter gaining 10% to 25.23p.
For Empyrean Energy it is the latest positive update from the Dempsey well, this time the results indicate the existence of new zones of “significant gas shows in improved reservoirs”.
Meanwhile, HNR’s positive initial results show that the well planning was “just about perfect”, according to WH Ireland analyst Brendan Long, albeit he noted that more results will now be awaited.
“The efficient delivery of the this well is a real achievement for a junior oil company,” the analyst said in a note.
“The indications of oil do not particularly move the dial for us given the wells are located in an understood area with multiple nearby wells drilled by ConocoPhillips – RPS energy has ascribed the wells with “proven” reserves amounting to 424k boe/well so the presence of oil & gas in the drilling fluid is a confirmation of expectations.”
HSS Hire Group dented by 20% in Wednesday’s early deals as its first half disappoints
Plant equipment firm HSS Hire Group Plc (LON:HSS) was sinking in Wednesday’s early deals, down almost 20% trading at 45.66p after revealing higher first half losses and materially lower sales growth.
Elsewhere, news of a senior management exit dented homewares retailer Dunelm Group Plc (LON:DNLM), down 2.45% to 582.5p, with chief executive John Browett stepping down for personal reasons with immediate effect. Chairman Andy Harrison will fill the role on temporary basis while the company searches for a successor.
In the small caps, a stand-out faller was Cluff Natural Resources Plc (LON:CLNR) with interim results from the North Sea gas showing just £893,000 of cash, and first half losses measuring £774,288 (with £687,508 of cash used in first half operations).
Cluff is pursuing a ‘farm-out’ transaction, targeting new funding partners that would cover exploration costs. It revealed that talks have been had with ‘several interested parties’.
Nonetheless, whilst summing up the six month period chair and chief executive Algy Cluff said “Whilst we have added significant technical clarity to our two licences in the Southern North Sea, it is difficult to fully articulate the effort which we have invested in promoting the farm-out of these licences”.
Two small cap winners, meanwhile, stood out clearly with a new US$120mln funding deal with Oman’s sovereign wealth fund sending Berkeley Energia Ltd (LON:BKY) up more than 10% in early deals and the latest positive update for Empyrean Energy Plc’s (LON:EME) Dempsey gas well in California sending it about 13% higher.
FTSE 250 constituent Diploma PLC (LON:DPLM) rose more than 7%, to 1,101p, after the business services group gave investors a bullish trading update giving expectations for 17% revenue growth in upcoming financial results (for period ending September 30).
Proactive news headlines:
Bezant PLC (LON:BZT) announced today that gold- platinum sampling is now underway at the HGE-082 licence area located approximately 4km from its current mining operations at the Choco Project, Western Colombia.
Amryt Pharma PLC (LON:AMYT) has announced the appointment of Kieran Rooney as its Vice President of Strategic Alliances and Licensing. The AIM-listed biopharmaceutical company focused on treatments for rare and orphan diseases said Dr Rooney has over 25 years of experience in the biopharmaceutical industry, with significant expertise in business development and commercial strategy.
Amphion Innovations PLC (LON:AMP) has reduced its stake in its partner company, Motif Bio PLC (LON:MFTB) with the sale of 1.7mln shares. Following the disposal, AIM-listed Amphion still holds around 41.45mln ordinary shares in Motif Bio, representing a15.8% stake.
Pantheon Resources PLC (LON:PANR) shares dropped 10% as it said Hurricane Harvey has disrupted its oil and gas operations in Texas. Pantheon said in a statement that all of its operations were suspended ahead of the storm and its locations were secure but it has no information on whether any of its wellheads or associated facilities have been affected by the high rainfall.
Strategic Minerals Plc (LON:SML) has announced that its wholly-owned subsidiary, Central Australian Rare Earths has commenced the first phase of the 2017 Hanns Camp drilling programme.
Highlands Natural Resources Plc (LON:HNR) told investors that the Powell well, its first at the East Denver project, has now completed drilling. The well was targeting the East Denver niobrara shale, and was drilled down to a depth of 18,230 feet. Setting and cement casing was completed on August 29.
Vast Resources PLC (LON:VAST) is hopeful mining will start by the end of the year at the Baita Plai mine at Romania following the grant of a right to mine licence. Baita, the holder of the head licence at the site, chose Vast’s subsidiary African Consolidated Resources after a competitive process.
Sunrise Resources Plc (LON:SRES) has disposed of its Junction Gold project in Humboldt County, Nevada as it focused solely on the CS Pozzolan-Perlite project, also in Nevada. Patrick Cheetham, executive chairman, said this was the first of what it hopes will be a number of project disposals following the decision to focus on CS.
Pre-revenue explorer Tethyan Resources PLC (LON:TETH) confirmed it remains liquid as it continues to advance its gold interests in eastern Europe. Operationally, the company expects to release results from recently drilled holes in early September, and a large geophysical survey programme is due to start in 'late August'.
Metal Tiger PLC (LON:MTR) has raised its stake in MOD Resources Ltd, its joint venture partner in the T3 exploration project in the Kalahari copper belt in Botswana. The group bought an additional 3,748,720 shares in MOD Resources for AU$0.06157 each or a total of AU$230,808, bringing its total shareholding to 5%.
Berkeley Energia Limited (LON:BKY) has arranged the finance to bring its Salamanca uranium project into production through a US$120mln convertible loan and option package with Oman’s sovereign wealth fund.
Thor Mining PLC (LON:THR) has reported more encouraging core samples from its Desert Scheelite deposit at the Pilot Mountain tungsten project in Nevada.
OptiBiotix Health plc (LON:OPTI) said its interim results charted a period of "significant” commercial progress, including product launches and sales agreements. The life sciences company is developing pro-biotic compounds that tackle obesity, high cholesterol and diabetes.
BATM Advanced Communications Limited (LON:BVC), a provider of real-time technology for networking and lab systems, said it is seeing the financial rewards following a period of investment, new product launches and bolt-on acquisitions. It also confirmed it expects growth for the full-year to be in line with market expectations.
OPG Power Ventures PLC (LON:OPG), the developer and operator of generation plants in India, said it expects full-year earnings and dividends to be line with market forecasts as it updated on progress in the first quarter of the new financial period. In the three months to June 30, total generation was 1.25bn units, up 27%, while the plant load factor was 78% for its Chennai facility and 79% for Gujarat.