The following stocks are the leading risers and fallers on AIM on Thursday.
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AIM - WINNERS
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Deltic Energy PLC, up 26% at 5.75 pence, 12-month range 4.25p-43p. The investor in UK offshore oil & gas assets has entered the second term of Licence P2437 at the Selene prospect, and expects first gas in 2028. The company reports a well cost estimate of $48 million, within the $49 million ‘carry cap’ pursuant to its farm-out arrangements, so it does not expect to have any residual exposure to the drilling costs. It also says it has completed preliminary reservoir modelling and updated its development concept based on data on the 48/8b-3Z well’s ‘improved reservoir characteristics’. Says technical work indicates that two horizontal wells would be sufficient to drain the majority of the Selene structure. Expects pre-tax net present value of $288 million for Selene, and a post-tax NPV of $61 million, with a 34% internal rate of return. ‘The workstreams now in train are an important signal to our investors as you wouldn’t commence this process if you didn’t believe there was a material commercial return at the end,’ Chief Executive Officer Andrew Nunn comments.
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Kodal Minerals PLC, up 13% at 0.355p, 12-month range 0.275p-0.64p. The West Africa-focused mineral explorer and developer says production at the Bougouni lithium project in southern Mali remains on track to start in the first quarter of 2025, and remains within its $65 million capital development budget. Construction is accelerating after an ‘abnormally long wet season’ and ‘all major buildings’ are now taking shape. Open pit mining at the Ngoualana deposit continues to advance ahead of schedule, with 59,500 tonnes of ore graded 1.20% lithium oxide mined. Also, assay results from diamond drilling at the Boumou prospect have confirmed ‘consistent wide, high grade’ lithium oxide intersections from 1.39% in drill hole KLDH041 up to 1.80% in KLDH029. CEO Bernard Aylward says these results ‘confirm the continuity of the wide, high grade pegmatite veins and highlight the potential to continue to expand the mineral resource base at the Boumou prospect’. Meanwhile, discussions are ongoing with the Hainan Group, with owns 51% of Kodal Mining UK Ltd, and Kodal regarding their off-take agreement over Bougouni.
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AIM - LOSERS
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Petro Matad Ltd, down 31% at 1.725p, 12-month range 1.725p-4.5p. The petroleum exploration, development and production company says the Heron-1 well in its Block XX production sharing contract in eastern Mongolia ‘is producing well’. Estimates maximum deliverability will be ‘similar to or greater than’ the 821 barrels of oil per day achieved in 2019 testing. However the oil has more associated gas than expected, improving flow potential but causing surface pressure fluctuations. Consequently, ‘production is currently choked back in the 200 to 300 bpd range’. On the plus side, it expects export paperwork for Block XX crude to be prepared soon, after which sales can start. Meanwhile at Heron-2, well testing operations started in late October although several days were lost due to a ‘major engine problem’. But production potential is estimated to be around 30 bpd, ‘significantly lower than the rates observed in Heron-1’. Heron-2 is therefore being suspended while pressure data and stimulation operation details will be reviewed ‘to determine if the flow rate is an indication of low reservoir permeability or some other down-hole issue’. Company says it will determine the well’s forward programme once the data evaluation is complete.
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