Amphion Innovations plc (LON:AMP) DataTern Receives Favourable Ruling
Market Cap: £11.8m; Current Price: 6p
Favourable ruling by the U.S. District Court in Massachusetts
- Amphion has announced that DataTern Inc., a wholly-owned subsidiary, has received a favourable ruling by the U.S. District Court in Massachusetts, which denied two motions for summary judgment filed by MicroStrategy Inc. seeking dismissal of DataTern's claims on the grounds of validity and infringement.
- In May of this year, there was a hearing on the two motions: one motion argued that DataTern's '502 patent is invalid under section 101 of the United States Patent Act, and the second argued that MicroStrategy did not infringe the '502 patent.
NORTHLAND CAPITAL PARTNERS VIEW: This result further confirms that DataTern’s patents have been infringed. Consequently, the group estimates that companies that are using or want to use its patented technology will wish to enter into equitable licensing agreements, which could result in substantial pay-outs.
Global Energy Development (LON:GED) – CORP: Interims
Market Cap: £10.6m; Current Price: 29.5p
Substantial cash resources provides purchasing firepower
- Maintained strong cash balance - $35m at H1 (FY14: $41.1m), following the disposal of the Llanos Basin Contract areas in December 2014 for $50m, less $1.0m of initial purchase price adjustments. During H1, GED received further and final proposed adjustments of $1.5m and $1.1m was agreed and paid out in H1. As GED had accrued for the additional $1.5m price adjustments, the difference (c. $386k) is recorded as profit from discontinued operations. A change to Colombian regulations on tax also resulted in a further c. $661k profit.
- Revenue from continuing operations fell 37.6% to $217k with production from Torcaz #2 averaging 35 gross bopd yielding 5,862 barrels of oil (H1 FY14: 3,940) with an average realised sales price of $37.10/bbl (H1 FY14: $88.39/bbl). Management has significantly reduced the ongoing cost base with headcount reducing c. 43% to 12 during H1. Overall administrative costs increased $0.7m to $2.5m but this included $173k in severance costs and $650k of technical and operational salary costs associated with the Cataline #1 well project. No salaries were capitalised in H1. Other operating costs reduced. Loss before tax from continuing operations was $2.8m (H1 FY14: $2.5m).
- Given the prevailing low oil price, the Group has been preserving its Bolivar and Bocachico contract acreage in Colombia by maintaining its ongoing environmental, social, safety and reporting requirements whilst delaying capex. It has also been discussing possible strategic alternatives for the contracts.
- Management has also been working to define, review and evaluate an initial list of possible investments and acquisitions of public and private energy sector companies as a use of its strong cash balance. The target list extends beyond South America.
NORTHLAND CAPITAL PARTNERS VIEW: After the successful disposal of the Llanos Basin Contracts at the end of FY14, management has been focused on reducing operating costs of the ongoing business and starting to evaluate how best to deploy its substantial cash resources. The substantial fall in the oil price has left many producers struggling and Global Energy is well placed to capitalise.
Sunrise Resources (LON:SRES) – SPECULATIVE BUY*: Bay State update
Market Cap: £2.3m; Current Price:0.325p
From Yesterday: Drill programme time frame extended
- The duration of the drill programme at the Bay State Silver Project has been extended for an additional week due to the technical challenges created by the steep terrain.
- As a result, there could also be a week’s delay in the receipt of the assay results.
NORTHLAND CAPITAL PARTNERS VIEW: Should the results of this maiden drill programme at the Bay State Silver Project, located in Nevada, define high grade mineralisation over significant incepts, as the limited sampling that has already been completed indicates, it would be major milestone for the Company. We maintain our Speculative Buy rating.