RockRose Energy PLC (LON:RRE) was on the front foot after agreeing to buy oil and gas explorer Dyas BV for €107mln in cash.
The UK company said the acquisition of Dyas, which owns non-operated gas and condensate producing assets in the Netherlands, will add a further 13mln barrels of oil equivalent (boe) net developed reserves and more than 5,000 boe per day of production.
"On completion this acquisition grows our North Sea business to a level of production that is over 10,000 boepd and in addition to providing significant free cash flow diversifies the portfolio and strengthens the company's position," said RockRock chairman Andrew Austin.
"Management sees significant upside in the combined portfolio and is confident RockRose can organically maintain or grow profitable production from these levels without necessitating additional funding."
Shares rose 12.1% to 416p in afternoon trading.
GoTech to de-list from AIM and re-invent itself as a cannabis investment company
GoTech Group PLC (LON:GOT) shareholders turned their nose up at plans by the cash shell to de-list from AIM and transform itself into a cannabis investment company.
Shares have been suspended since December, when GoTech stopped putting money into its loss-making Skills2Achieve education business which it eventually sold for a £1 last month.
Under AIM rules, the firm must complete a reverse takeover before June 21 – six months after the initial suspension – otherwise they will be cancelled altogether.
GoTech said it has been looking at possible reverse takeover opportunities but none of them have been to the board’s liking.
As a result, it plans to list on the NEX exchange instead and raise £250,000 in the process to reposition itself as a cannabis-focused investment group. It wants to change its name to High Growth Capital to reflect the new direction.
A meeting will be held on June 11 where shareholders will be asked to approve the plans. If all goes to plan, Gotech’s AIM shares will be cancelled on June 22 and the new NEX shares will be admitted to trading on the same day.
The stock fell 18.9% to 0.28p on Thursday.
Recent well optimisation work pays off for Range
Range Resources Ltd (LON:RRL) flowed higher on Thursday after announcing that it has exceeded its quarterly oil production target.
The AIM-listed firm had set itself the goal of producing 800 barrels of oil per day by the end of June, but recent optimisation work on some of its wells in Trinidad allowed production to hit 820 bopd last week.
There is scope for that figure to rise in the coming weeks as well, with Range planning to work on 24 further wells between now and the end of next month (June). Shares jumped 14% to 0.26p.
Mediclinic slumps as value of Spire stake plunges
Hospitals group Mediclinic International Plc (LON:MDC) was the top blue-chip faller, diving almost 8% to 626p as it unveiled a huge full-year loss.
The FTSE 100 group was forced to take some eye-watering write-offs on its investments in Switzerland and Spire Healthcare Group PLC (LON:SPI).
The value of Mediclinic’s 30% stake in Spire slumped by £109mln as it paid out tens of millions in compensation to women treated by disgraced surgeon Ian Paterson, while it also had to take a £644mln charge at Swiss group Hirslanden. Overall, the firm posted a loss of £492mln in the year to March.
Turnaround strategy working at HSS Hire
HSS Hire Group PLC (LON:HSS) was among the top risers in London early on Thursday as its boss declared that the firm’s turnaround is “gaining momentum” after an encouraging start to the year.
The group, which hires out tools and equipment to builders and DIYers, has endured a rough few years since it listed on the London Stock Exchange, with losses widening amid struggles in its core rental business.
Chief executive Steve Ashmore was brought in last summer and immediately set about trimming HSS’s store estate and he also launched a strategic review of the business.
The changes seem to be working, with revenue climbing 5.2% to £84.4mln in the first three months of the year, while adjusted underlying earnings (EBITDA) soared 64.3% to £13.8mln.
“We have started 2018 positively and our recovery is now well established and gaining momentum,” said Ashmore.
“The business is trading well delivering adjusted EBITDA that is materially higher than the prior year and driving margin progress through cost savings and growth in core rental revenue.”
Katoro shines on Imweru update
Katoro Gold PLC (LON:KAT) took top spot though, more than doubling in value after confirming it plans to press ahead with its Imweru project in Tanzania.
The AIM-quoted explorer had suspended feasibility work at the project while it assessed the economic viability in light of the new mining legislation in Tanzania.
But Katoro said on Thursday it believes there is “still good upside exploration and development potential” at Imweru, which currently has a resource of 515,110 ounces of gold.
Shares soared 182% to 2.26p in early deals.
Petra to raise US$178mln
Petra Diamonds Limited (LON:PDL) was going the other way, though, after it launched a deeply-discounted US$178mln rights issue as it looks to pay down some of its mountain of debt.
Investors will be able to five new shares for every eight they currently hold at 40p each – 36p below Tuesday’s closing price.
The miner has been hit by a series of setbacks, including strike action in South Africa, an embargo on diamond exports from Tanzania and currency headwinds.
With net debt of US$622mln at the end of March, it is hoped the infusion of new cash will not only alleviate short-term financial concerns but also allow management to focus on "operational delivery and optimisation". Shares fell 11% to 67.7p.
Other Proactive news headlines:
Range Resources Ltd’s (LON:RRL) recent work to optimise its producing wells in Trinidad has allowed the oiler to exceed its production targets. The AIM-listed firm had set itself the goal of producing 800 barrels of oil per day (bopd) by the end of the current quarter.
Victoria Oil & Gas plc (LON:VOG) updated investors its first quarter, a period in which it was impacted by the non-renewal of a supply deal for a gas-fired power plant in Cameroon. The agreement with ENEO Cameroon SA expired at the end of December, but, whilst ENEO’s has yet to resume gas consumption, the AIM-quoted company said it is confident that there’ll be a resolution.
Alliance Pharma plc (LON: APH) chairman David Cook will provide the company annual meeting with an optimistic assessment of prospects, telling investors: "We look forward to the year ahead with confidence." Operationally, the business is seeing "good growth" from its star brand Kelo-cote, for scar reduction, while the continued international rollout of MacuShield, a food supplement that promotes eye health, will provide a further boost.
StatPro Group PLC (LON:SOG), the provider of cloud-based portfolio analysis and asset pricing services for the global asset management industry, has traded in line this year.
Greka Drilling Limited (LON:GDL) has secured a drilling contract in China’s Shanxi province and says it is bullish on securing new contracts in India despite setbacks with some of its current partners.
Bacanora Lithium PLC (LON:BCN), the London listed lithium exploration and development company, has drawn shareholders’ attention to surging lithium prices.
Gold miner Anglo Asian Mining Plc’s (LON:AAZ) has forecast a sizeable uplift in production in the current year after revenues and profits fell in 2017. Revenues for the year dropped to US$71.8mln from US$79.2mln as the proportion of concentrate sold increased.
Metal Tiger PLC (LON:MTR) said its joint venture project with MOD Resources Limited (ASX:MOD) has completed drilling for an infill and extension programme for its T3 (Motheo) Pit resource, with the assays received to date in line with expectations.
As Europa Oil & Gas (Holdings) PLC (LON:EOG) narrows its focus in on the Inishkea prospects, in the vicinity of Ireland’s Corrib gas field, it has decided to relinquish a portion of its portfolio. The explorer, in a stock market statement, revealed that it will give up offshore Licence Option 16/21 which covered an area in the Slyne basin, off Ireland’s West Coast.
United Oil & Gas Plc (LON:UOG) has revealed that it has landed two new exploration areas in the North Sea. It was provisionally awarded two new blocks in the UK Government’s 30th offshore licensing round.
ADES International Holding Ltd. (LON:ADES) has established a US$140mln line of credit to finance the acquisition of three jack-up oil drilling rigs from Nabors.
IronRidge Resources Limited (LON:IRR) has appointed Neil Herbert as non-executive chairman with immediate effect.
Asiamet Resources Limited (LON:ARS) has said that Stephen Hughes has notified the company that after 22 years in Indonesia he will be returning to live in Canada with his family and will step down from his positions of vice president - Exploration and a board executive director effective 24 May 2018. The group said Hughes will continue to serve the company as a consultant and advisor.