Resources round-up: Magnolia, New World Oil, Orsu Metals

Magnolia Petroleum, the US onshore focused oil and gas exploration and production company, has agreed to acquire 6,700 net mineral acres in Montana.

Magnolia Petroleum, the US onshore focused oil and gas exploration and production company, has agreed to acquire 6,700 net mineral acres in Montana.

Magnolia is paying $4m in cash for the acreage, most of which is located in Daniels County, surrounded by leases acquired earlier this year by Apache, the international oil and gas company. The company thinks the acreage has the potential to become a significant extension for production from the Bakken/Three Forks Sanish formations.

"The directors believe that with lower drilling costs and multiple pay zones, the economics of drilling to the Bakken/ Three Forks Sanish formations in Montana are very attractive," said Rita Whittington, Magnolia's Chief Operating Officer.

The share certificate printing machine at New World Oil and Gas, the oil and gas exploration and development company focused on Belize and Denmark, has been working overtime as a result of the exercising of warrants and the issue of shares as payment for services rendered.

The company said 3m warrants were exchanged for an equivalent number of ordinary shares at 6p a pop, while another 0.68m were exercised at 5p a go. On top of that, another 0.68m shares, valued at an average of 9.9p each, were given to contractors and advisers in part payment for services rendered.

Orsu Metals, the base and precious metals exploration and development company, has entered into an exclusivity agreement with David-Invest LLP , a Kyrgyz registered company, with a view to the potential sale of its wholly owned subsidiary Tournon Finance for $4.5m. The asset was valued at $5.88m in the company's most recent accounts.

Tournon indirectly owns the Akdjol-Tokhtazan gold exploration licences in Kyrgyzstan. In return for being granted exclusivity David-Invest will fund the exploration programme for the licences on a non-refundable basis for the remainder of this year, and, if the licences are renewed, during the remainder of the exclusivity agreement period.

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