Oil and gas companies Solo Oil (LON:SOLO) and Aminex (LON:AEX) stole the limelight this afternoon as they announced that flow testing on the Ntorya 1 well would begin tomorrow and it will last four days.
The companies will then begin to make some material conclusions about the discovery.
In making the discovery, Aminex and Solo were rewarded for their perseverance, as the gas find followed an initially disappointing outcome - which signalled Tullow Oil's exit from the venture.
Aminex and Solo however elected to deepen the well from its original depth, and it was in this deeper hole that the discovery was made in February.
The gas discovery could not be properly examined at that time and investors have eagerly awaited further testing since then.
Ntorya is located near existing gas infrastructure which means that opportunities exist to develop the project relatively quickly, should the flow tests yield commercial rates.
It may also boost the partners planned farm-out process as both companies are looking to scale back their current interests (which increased with Tullow's exit).
This afternoon Aminex said that a 25 metres gross interval will be tested to help establish the potential level of gas production possible from the well.
It added that 3.5 metres of net pay had been perforated, and after an initial clean-up gas flowed to surface before the well was shut-in. Pressure gauges are now being installed.
Aside from the straight production numbers the tests will also provide further insight into an emerging.
Another article by Proactive Investors covered today’s research note on Auhua Clean Energy (LON:ACE) from Northland Capital.
The broker started coverage of the stock a day after the China focused renewable power firm reported strong full-year results, the first such report since Auhua listed on AIM in April.
Analyst Andy Hanson has initiated the company with a ‘buy’ recommendation and a 50 pence price target. The stock was last trading at 38 pence.
The manufacturer of solar powered water heaters reported a rise in revenues to Renminbi168.5 million, or £16.3 million, in the year to end-December 2011, a 24.2 percent rise from 2010.
Net profit over the same period rose 12.5 percent year-on-year to RMB42.3 million, or £4.1 million.
Cash balance at the end of the year stood at RMB 11.9 million, £1.15 million, and book orders amounted to RMB 93 million, or £8.97 million.
Hanson said Auhua’s results show a strong performance and that despite the slowdown in Chinese economic growth, end market demand is underpinned by the government’s commitment to reducing carbon emissions through subsidies and regulation and demand for new public housing throughout the People’s Republic.
“The management team is experienced, having been first movers in the industry, and we believe Auhua has one of the most advanced split systems available in the market. The balance sheet has a small net cash position allowing the company to increase production from its new plant (in Rushan) and continue to grow the business,” the analyst said.
We also covered today’s news from oil and gas group New World (LON:NEW), which reported that an updated competent persons report has confirmed the ‘world class’ potential of the Blue Creek project in Belize.
The CPR was produced by RPS Energy. And it follows the recently completed Phase 3 seismic acquisition programme.
It assessed the A and B Crest prospects which are estimated to be worth (expected monetary value) US$665 and US$506 million respectively.
And for the first time the West Gall Jug lead was assessed and its EMV was estimated at US$266 million.
"This CPR update confirms the Blue Creek Project in Belize, with indicative volumetrics and success case economic outcomes totalling 329 MMBO and an NPV10 of US$8.1bn, has the potential to be world class,” said chief executive Bill Kelleher.
“Although a slight adjustment of the P50 volumes has been made, greater confidence now exists as to the accuracy of what is being reported.
“Our multi-phase seismic programme has exposed shareholders to the potential for significant returns - potential we are confident of unlocking by drilling later this year.
“The fourth and final phase of the seismic programme, covering the remainder of the blocks, is continuing and I look forward to updating our shareholders on the results of Phase 4 in due course."
Kelleher adds that the new report confirms the ‘probability of geologic success’ of two drillable prospects (A and Crest B) as 1 in 5.
Meanwhile, one of today’s in-depth stories was dedicated to UK niche money lender S & U (LON:SUS), which has seen good results recently.
In a bullish AGM statement last month, the Midlands based firm said both its home credit and motor finance divisions were performing well, prompting a boost to the share price, which has shown significant growth in recent years.
The firm provides credit to consumers via two divisions - a home credit branch and motor finance business - and the May announcement revealed that collections were up over 7 per cent on last year and credit availability was now at a record level.
Speaking to Proactive Investors, chairman Anthony Coombs said that constrained credit meant people valued the company's products more than ever and saw little on the horizon to change that.
"We think it (credit market) will be constrained in the economy for the next five years, irrespective of what the Bank of England is doing in terms of quantitative easing (QE) because that will go to the corporate sector in the main," he said referring to the government's recent £80bn injection.
"This is to our advantage because we can offer facilities (credit) where these are difficult to obtain elsewhere."
However, he did concede that the accompanying fragility in consumer confidence did the firm no favours, but, as yet, there was no real evidence of customers being spooked.
"At the moment our customers seem to be pretty robust as far as their confidence is concerned, but obviously we want that to be maintained," he said.
Thus, the conditions have combined for S & U and led to a recent boost to profits in the firm's steadily growing home credit business (Loansathome4U) or, as Coombs puts it, "more customers are interested in home credit, where possibly they wouldn't have been in the past".
But if progress has been bolstered at Loansathome 4U, it has been decidedly marked at Advantage Motor Finance, where in May this year, S & U described the division’s development as "outstanding".
Here, Coombs said the combination of the lack of finance to consumers in the sector along with the buoyant state of sales had been a real positive for the firm.
Sales of new cars last month in the UK surged 7 per cent compared with the number in May 2011, while used car values have been holding up well.