ASCENT RESOURCES (LON:AST)
SECTOR – OIL & GAS
RATING – BUY*
MARKET CAP – £33.8m
CURRENT PRICE – 1.85p
TARGET PRICE – 4.3p
COMPANY DESCRIPTION
Ascent Resources is a gas production company that is ramping up production levels at its 75%-owned Petišovci Gas Project, located in Slovenia.
NORTHLAND VIEW
Ascent Resources has been informed by its partners in Slovenia that a further appeal has been lodged with the Slovenian Administrative Court against the decision of the Slovenian Environment Agency and the Environment Minister that a full Environmental Impact Assessment was not required in relation to the proposed gas treatment facility at the Petišovci Gas Project by the same individual that previously objected.
The Company expects a decision from the Court in H217.
We fully expected this appeal to be lodged given the individual repeatedly objected to the project at every stage of the process. These objections have been rejected by the Environment Agency and the Environment Minister on both previous occasions and once by the Administrative Court. Whilst the Court did reject the permit, this was on grounds unrelated to the appellant’s complaint and the perceived issues identified by the Court in the last hearing have now been addressed by the Company. This ongoing process will not affect our forecasts as existing and expanded production under the agreement with INA does not require the IPPC permit.
ACTIVE ENERGY GROUP (LON:AEG)
SECTOR – RENEWABLE ENERGY
RATING – CORP*
MARKET CAP – £19.2m
CURRENT PRICE – 2.4p
COMPANY DESCRIPTION
Active Energy Group (AEG) is an international, vertically-integrated forestry management and renewable resource energy provider. The group combines management of forestry resources with the commercial development of a proprietary solution to the integration of wood-based (biomass) fuel into existing coal-fired thermal power plants. The Group operates in Canada, the U.K. and U.S.
NORTHLAND VIEW
Active Energy Group has established two separate affiliate companies. Advanced Biomass Solutions Plc (ABS) will hold all CoalSwitch operations. Timberlands International Plc (Timberlands) will hold all Timberland assets. Richard Spinks, Group CEO, has been appointed to the Board of Timberlands. Brian Evans-Jones, Group CFO, has been appointed to the Board of ABS. AEG intends to appoint additional Directors with relevant industry experience to each respective Board.
AEG will reduce its operating exposure to Ukraine and says that it will consider offers for its Ukrainian WoodFibre operations (AEG WoodFibre), although the company envisages that it will retain a share of the current and future revenues from AEG WoodFibre. Matteo Girlanda, the Group's Chief Operating Officer, has resigned from the AEG Board with immediate effect in order to, as AEG states, “present an offer for AEG WoodFibre and avoid any conflicts of interest during the period of negotiation”.
AEG Chairman, Michael Rowan, notes that exiting its Ukraine involvement will reduce AEG’s ”perceived geographic risk profile”. The decision also has implications for the Group’s principal source of earnings (Dec’16: US$24.38m), the supply of woodchip raw material to the Turkish fibreboard manufacturing sector. The refocus on CoalSwitch and timber assets management is logical and consistent with group strategy.
SECTOR – MINING
RATING – CORP*
MARKET CAP – £7.5m
CURRENT PRICE – 0.4p
COMPANY DESCRIPTION
Keras Resources is an exploration company with interests in gold projects, located in Australia, a manganese project located in Togo and has licences applications for cobalt and nickel in West Africa.
NORTHLAND VIEW
Keras Resources confirms that ASX quoted Pharmanet Group has lodged a prospectus with the Australian Securities and Investments Commission on 5th May 2017.
The prospectus has been lodged in order to raise A$7.8m (c. £4.6m) as part of Pharmanet’s acquisition of 100% of Keras (Gold) Australia.
Pharmanet expects to relist as Calidus Resources in June 2017.
Positive news from Keras Resources, as the Pharmanet transaction remains on schedule. The funds raised as part of the transaction will be used to undertake a major drilling programme and complete initial Scoping Studies at the Warrawoona Gold Project, located in Australia, as well as, repay the Acquisition Finance Facility.