Iraqi Kurdistan operating oil group Gulf Keystone Petroleum (LON:GKP) again emerged among the most followed stocks today after reporting “very promising” results from its fourth well on the Shaikan field.
Proactive Investors dedicated a feature story to the company, taking a closer look at today’s report, which revealed that the well uncovered what potentially are two new, deeper lying reservoirs in the Sargelu sands and Barsarin carbonates.
Gulf Keystone is now carrying out a testing programme of Shaikan-4, which is six kilometers west of the company’s initial well.
The company also revealed this morning it is restarting sales into the local market at the rate of 1,500 to 2,000 barrels a day.
Chief operating officer John Gerstenlauer said: “Following our recently completed tests at the Shaikan-2 appraisal well, we plan to replicate this successful programme at Shaikan-4.
“Our preliminary results for this well are very promising and we look forward to the Shaikan-4 well testing programme which is yet another step in the process of unlocking the full potential of the giant Shaikan discovery in the Kurdistan Region of Iraq.
“In this regard, the recommencement of our domestic oil sales is particularly significant as we prepare to upgrade the existing test production facilities and ramp up both domestic sales and oil exports of the Shaikan crude in the first half of 2012.”
Another article was dedicated to Gulf Keystone’s sector peers Rockhopper Exploration (LON:RKH) and Desire Petroleum (LON:DES), which also had positive news to report to investors today.
The two companies revealed today that the final well in the North Falkland drill programme proved to be a success.
The well has penetrated all four reservoir targets and wireline logging indicates that these reservoirs are hydrocarbon bearing. The reservoirs were both appraisal and exploration targets.
Both the Sea Lion and the Casper discoveries were successfully appraised, while the Beverley gas reservoir is the third discovery to be made in the Falklands.
In total the well encountered 89 metres of total gross reservoir with 57 metres of net pay.
Notably Rockhopper said that the well is close to the southernmost limit of the Sea Lion field and it is at the outer edge of its former maximum case area.
Rockhopper chief executive Sam Moody said it is a fantastic result. It was the most aggressive well of the campaign and he says it will further increase the minimum estimates of oil in place for Sea Lion and Casper.
Meanwhile, Ormonde Mining (LON:ORM) emerged among the most actively discussed mining companies today after reporting that an infill drilling programme at its flagship Barruecopardo tungsten project in Spain has resulted in a further upgrade in the company’s total resource grade.
Just as importantly, three-quarters of this resource base is now in the higher confidence indicated and measured categories.
The JORC resource rises to 7.12 metric tonne units (mtu) from 6.82 million mtus previously and 4.9 million mtus at the start of this year.
In all 1.86 million mtus are in the measured category and 3.2 million are classed as indicated.
Proactive Investors talked to chief executive Kerr Anderson, who said that the company “delivered what we said we would deliver”.
“It is a significantly bigger resource than we had before and we will be producing 60 per cent more tungsten annually than we previously planned, but our capital costs have stayed within previous estimates.”
Before the company goes into production it must raise the capital required for what is a fairly straightforward mining and production operation.
Key to this will be the publication of the bankable feasibility document, which will allow it advance discussions with the banks for funds.
However Anderson reveals the group is already in preliminary discussions with potential lenders, having issued an interim feasibility study in October.
There are other funding options that could be complementary or an alternative to traditional project finance.
The Ormonde boss’ remit is to minimise the dilution when shareholders are asked to stand their end of the capital costs for Barruecopardo.
Anderson will inevitably look for an off-take partner, and there may even be a possibility of forming a strategic alliance to develop what is a very valuable asset.
“The objective is to have the financing in place by the end of the first quarter.” he said
“If it slips into into the second quarter I won’t be too worried. The capital costs are very low for a mining project of its size and cash flows are extremely strong, even at tungsten prices well below the current levels. It’s a very fundable project.”
The final mine plan and the environmental applications are to be submitted to the relevant authorities very soon.
“Final documentation will go in shortly and then we will be dialogue with the administration,” he added.
“What we have been doing is ensuring that everything they need and want they have got. This means they don’t have to come back to us for more information.”
Fellow mining company Mariana Resources (LON:MARL), which is focused on gold, also garnered attention today as it reported high grade intercepts in the phase four drilling campaign at the wholly-owned Sierra Blanca gold-silver project in the Deseado Massif of southern Argentina.
The company said these results are highly encouraging and indicate significant potential for multiple mineralised systems at the Vetarron and Lucila targets which are more extensive at depth than is indicated at surface in outcrop and trench sampling.
The group reported first assay results from the initial eight holes of the campaign, including from the Vetarron Norte target, where it found 15 metres at 0.3 grammes gold per tonne and 0.7 g/t Ag from 22.5 metres in VND100; and 4 metres at 3.8 g/t gold equivalent (2.2 g/t Au & 93 g/t Ag) from 85.5 metres, including 0.5 metres at 24.3 g/t AuEq (12.1 g/t Au & 732 g/t Ag), from 87 metres at VND102.
Another gold miner Ortac Resources (LON:OTC) said the publication of a scoping study at the Šturec deposit in Slovakia is due within weeks.
This will be part of a pipeline of news, which will continue the momentum of the past six months, said the firm, which released its half year results today.
Ortac can then start a baseline environmental impact assessment at Šturec and the surrounding area.
Chairman Anthony Balme also said in today's statement: "Ortac benefits from a healthy balance sheet, which places the company favourably during the challenging market conditions which prevail at present.
"With £8.65 million in cash and investments as at December 6, 2011 we remain well positioned to fund further acquisitions and to further build value within the company,"
For the six months to September 30 this year, the firm posted a loss on ordinary activities of £595,000 compared to a loss of £1,157,000 in 2010.
The firm pointed out that this loss was before the £596,000 impairment provision in respect of the carrying value of Ortac's investment in the Rio Paranaíba project, which was acquired by the company as part of the reverse takeover of Templar Minerals Ltd.
The retained loss for the six months was £1,118,000 (2010: £314,000) and the loss per share was £0.08 (2010: £0.03).
The scoping study at Šturec is expected to be released in the second week of January next year, added Balme.