Lansdowne Oil and Gas (LOGP) and Providence Resources (PVR) were the stock market’s Glimmer Twins for the day, following an overnight “scoop” in the Business Post. This suggested that Providence had finalised a deal to farm out a stake in its Barryroe oil and gas field off the coast of Cork to the Norwegian consortium SpotOn Energy. On top of the story coming out while the London stock market was closed, the window on when the deal could be announced was boxed in by the due date by the end of November – so Monday 30. On this basis the respective rises for Lansdowne at 25% and Providence at 17% seemed rather tame, especially given the way Barryroe is the largest undeveloped field in Europe with an estimated $3bn NPV. The explanation was that either investors wanted to see the deal officially unveiled, or that there is caution ahead of what will be a long project development journey even after the farm out hits the newswires.
It appeared that some companies were undertaking a little Black Friday fundraising, with Rainbow Rare Earths (RBW) taking advantage of the previous session’s 33% rise by adding £2.56m to its kitty. Romania and Tunisia focused E&P group Serinus Energy (SENX) fell by 35% to 2.25p. Perhaps surprisingly, given the $21m raise it was said of the company that given the bombed-out share price investors may be keen to return to the fray – after the currency funding had been “digested.”
Having broken above the initial November resistance at 1p mid-week, we have seen shares of Deltic Energy (DELT) accelerate to the upside relatively quickly. Indeed, Friday delivered a 27% rise for the shares, in the wake of this week’s License P2428 prospectivity update, and the latest new TR1 stakeholder update. The latter element seemed to be the key factor in the strong price action.
It was possibly not outside the realms of expectation for shares of CBD specialist Zoetic International (ZOE) to build on their recent gains which they did to the tune of 14%. What helped the cause this week was the company revealing that it had struck a deal with the Asian American Trade Association to distribute its Chill brand of tobacco substitute CBD products to the 88,000 plus partners the AATA has.
Another stock building on its recent gains was JKX Oil & Gas (JKX) where there has been a notable shortage of stock. On the fundamentals, and backing the stock’s 13% rise was the way that traders were pointing out how the company is highly leveraged to a rising gas price, and is currently “throwing off cash.”
There was some relief to end the week for a couple of stocks which have been in the crosshairs of the bears of late. Anti-viral mask specialist Remote Monitored Systems (RMS) managed to close flat on the day at 1.9p, while inventory monetisation group Supply@Me Capital (SYME) closed 12% higher at 0.4p. This was helped by traders speculating that an overdue update from the company is due as soon as Monday.
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