Resources round-up: Valiant, Horizonte, Enegi Oil...

This round-up also covers TomCo Energy and Jubilee.

Valiant Petroleum, an AIM-listed company which operates in the North Sea, has begun drilling on the Tryfan prospect, which has gross prospective resources estimated internally by Valiant of 24m barrels of oil equivalent (mmboe), of which eight million are net to Valiant. Drilling on the well, which is operated by Apache North Sea, is expected to take around 25 days to complete.

Horizonte, the exploration and development company focused on Brazil, has raised £5.2m before expenses after placing just under 71.99m shares at 7.25p each. Following the placing, Horizonte will have net cash of around £9.0m, which is sufficient to advance the 100% Araguaia Nickel project through to the end of the Pre-Feasibility Stage over the next 12 to 14 months. Horizonte major shareholder, Teck Resources, has subscribed for 27.3m of the shares, taking its total holding to 41.8% of the share capital, which would ordinarily trigger a mandatory offer by Teck, only this requirement has been waived by Horizonte.

Enegi Oil, an independent oil and gas company, has revealed that the latest results from the PaP#1-ST#3 well at Garden Hill South, Newfoundland, indicate that it is in contact with at least 61.5m barrels of stock tank oil initially in place (stoiip) and 117 British cubic feet (bcf) gas initially in place (giip). Absolute open hole flow potential is expected to rise from 310 barrels of oil per day (boepd) and additional equipment has been purchased to enable the well to flow at higher rates. The company is also currently reviewing the market for the application of buoy technology and making enquiries as to the appetite of other North Sea operators to adopt the technology on currently licensed assets. In case other assets are pursued, the firm has upped its limit of the equity line facility from £7.5m to £25m.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

TomCo Energy, the US focused petroleum exploration and production company, narrowed its pre-tax losses for the half year ended March 31st, from £0.72m to £0.63m, despite declining revenue, down £0.001m to £0.007m. The results were improved by the firm's decision to exercise 34.7m warrants, raising cash of £0.52m. Losses per share narrowed from 0.09p to 0.04p. Year-on-year total equity increased from £4.1m to £12.1m. Cash at the end of the period rose from £0.26m to £0.91m. During the half year the company invested $5.0m in Red Lead Resources, which it says highlights its confidence in the business.

Jubilee, an AIM-listed mine-to-metal specialist, has been awarded the rights to recover platinum-group elements (PGEs) from high PGE-bearing dumped chromite tailings and chromite tailings from current and future operations on the Dilokong Chromite Mine in the Eastern Bushveld of South Africa. This award represents a major advance in the company's mine-to-metal strategy using its ConRoast process, the firm said. The dump tailings are believed to assay between 3.5 and 4.0 g/t (grams per tonne) PGEs and to contain between 90,000 and 100,000 ounces (oz) PGEs, while PGEs in concentrate production are projected to peak at some 12,900 oz per year when treating dump tailings and mine arisings.