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Penny Share Review 442

Tuesday 27 May 2008

News that Caledon Resources (CDN) had raised £7.2m from an offer of Australian shares caused upturn in the price, according to The Times on Saturday, and momentum seemed to continue into this week, with the shares 1.25p healthier at 76.25p this morning.

Today’s Daily Telegraph featured an article regarding resurgent oil empires, which looked at the ‘underwater land-grab’ that is being fuelled by record prices. It mentioned Desire Petroleum (DES), with activities in the Falklands region, but concluded by quoting Dr Phil Richards from the British Geological survey, who doubts the area could hold as much as 60bn barrels of oil and, until there is actual drilling, noted “all we have so far are educated guesses”. Earlier, Saturday’s Times reported commitment of drilling costs to the Company by Rockhopper, a fellow Falklands explorer, but noted a Daniel Stewart analyst’s belief that Rockhopper would need ten times more cash to fund its commitment, suggesting Desire is a long way from being able to drill. The paper reiterated the broker’s sell advice and 20p price target. The shares were 8.25p lower at 98.75p following this press attention.

Mano River Resources (MANA) appeared in The Times on Saturday, which commented that the shares had risen after Russian steel group SeverStal bought a stake for £18.9m. This was also highlighted by Saturday’s Daily Mail and Independent. Further increase occurred earlier today, as the shares added 1.00p to reach 11.25p.

The Mail on Sunday included Rift Oil (RIFT), highlighting news of the ended dispute with Austral Pacific Energy that resulted in ownership of licenses in Papua New Guinea. The piece detailed that this could be significant, as the Company already has an agreement with Rio Tinto Alcan to supply gas to its plant in Australia. It went on that there could be a “small knock” to the shares, as the Company may seek fresh cash to complete development of the fields, but that a binding deal with Rio Tinto Alcan would “transform its fortunes” and is thought to be close. The shares grew by a further 0.125p to 6.50p during early trading today.

Prices above were taken at around 9.42am on Tuesday, 27 May 2008.

Announcements

The following companies, in which City Equities customers may have an interest, released announcements to the market this morning. These can be found by entering the relevant company name or ticker code in the search box on this site.

Amphion Innovations (AMP): DSC Fundraising.

Coffeeheaven International (COH): Change of Advisor and Placing.

EMED Mining (EMED): Public EGM Statement.

Empyrean Energy (EME): Trading Statement.

Galleon Holdings (GON): Skunk FU! Breaks into US.

Griffin Mining (GFM): Share Buyback.

Range Resources (RRL): Seismic Operations.

Stratex international (STI): Gold Mineralisation Discovered.

Look out for this week

Tuesday, 27 May – UK BBA Mortgage Lending (April).

Wednesday, 28 May – Nothing of Note.

Thursday, 29 May – Albidon (ALD) AGM.

Friday, 30 May – Results from Venue Solutions (VSH). England and Wales House Prices from Land Registry (April).

The next Penny Share Review will be posted on Monday, 2 June 2008.

Compiled by Chris Richards.

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