Providence Resources (LON:PVR) was the most followed stock in London markets today after reporting further positive results from its Barryroe well in the Celtic Sea.
The company has perforated an additional gas bearing section of the 48/24-10z Barryroe appraisal well to test the potential of the upper part of the basal Wealden sandstone section.
The zone test achieved highly productive flow rates of seven million cubic feet of gas per day (mmcfpd) and 1,350 barrels of oil per day (bopd), which translates into 2,516 barrels of oil equivalent per day.
The productivity of the gas bearing interval far exceeded expectations, constraining the ability to fully open the well up to its maximum potential. Preliminary modeling of the pressure data indicates that a co-mingled flow rate of 17 mmcfpd and 3,350 bopd is achievable.
Well suspension operations are now complete and the rig will be demobilised to the UK imminently.
“We are very pleased to confirm that the gas zone was far more productive than we had anticipated,” said Providence chief executive Tony O'Reilly.
“It is particularly pleasing to note that both the oil and gas zones have far exceeded our pre-drill expectations, both in terms of reservoir development and more importantly, oil and gas flow rates.”
Apart from the appointment of VSA Capital Limited as a joint broker of Caza Oil & Gas (LON:CAZA), other news in the sector included a funding update from US operating group Empyrean Energy (LON:EME) and Xcite Energy’s (LON:XEL) full year results.
Empyrean is now fully funded for its anticipated drilling and development schedule through 2012 after agreeing indicative terms for a US$50 million debt facility.
This financing will enable the company to fund the development of its core asset – the Sugarloaf Project, an Eagle Ford shale condensate and gas project operated by Marathon Oil.
There are currently 24 wells in production on the project area, with a full development expected to exceed 200 wells and potentially 300 wells should certain prove successful.
In its full year report, North Sea explorer Xcite revealed a net profit of £0.1 million, translating into 0.1 pence per share and said it had £64.1 million in the bank at the end of the year. Xcite has since raised a further £26.4 million.
Earlier this week, Xcite confirmed that drilling is now underway on the first development well on the Bentley oil field.
It said the 9/3b-7 well was spudded yesterday. This well marks the start of the Phase 1A of the Bentley oilfield development.
Other companies that reported their financial results this morning included Tanzania focused mining company Uranium Resources (LON:URA), diamond explorer Botswana Diamonds (LON:BOD) and stamps and collectibles firm Stanley Gibbons (LON:SGI).
In its interim report, which covered the last six months of 2011, Uranium Resources highlighted the discovery of stacked mineralised roll-fronts at depth in multiple drillholes and the result of internal studies, which have indicated that the ore at the Mtonya project is amenable to in-situ recovery.
The company has planned a 20,000 metre drilling programme for the current year, which it said will take the project to a new stage.
“During the period under review, Uranium Resources has made remarkable progress,” said managing director of Uranium Resources Alex Gostevskikh.
“Our exploration model for Mtonya, which was tested by drilling deep holes in 2010, led to the discovery of roll-front uranium mineralisation in 2011.”
Botswana Diamonds also released its interim report for the final six months of 2011. The company has recently raised £1.5 million via a placing at four pence per share, covering currently budgeted expenditure plans for 2012.
“The future for diamonds is bright. BOD is well placed with good ground, funds and skills to successfully explore,” BOD said in the report.
Finally, Stanley Gibbons saw its sales reach £35.7 million in 2011, up 35 percent from the previous year as online sales jumped 72 percent to £4.3 million, resulting in a 17 percent increase in pre-tax profits to £5.2 million.
Earnings per share rose 22 percent to 18.5 pence, prompting the company to raised its final dividend by eight percent to 3.5 pence per share.
The increase in online revenues followed redesign of the group’s core website at the end of May with conversion rates doubling over past six months. Today, the group said the internet will become its primary sales channel and it will focus on developing its online strategy this year.
Stanley Gibbons also noted that sales to investors and high net worth clients improved as a result of its marketing campaigns and diversification into different collectible asset classes.
Elsewhere in the markets, specialty pharmaceutical company Oxford Pharmascience (LON:OXP) has signed a heads of terms agreement with Hermes Pharma to license and develop a range of products using its OXP zero ibuprofen technology.
Hermes Pharma is a division of Hermes Arzneimittel GmbH, Europe's largest manufacturer of pharmaceutical effervescent products.
Under the terms of the agreement, Hermes will be granted an exclusive option to develop a range of ‘direct to mouth’ granules using the technology. Once successfully developed, Hermes will be granted a ten year license to sell these products to its existing and new healthcare customers.
According to the agreement products will need to be licensed before the end of 2013 with royalties beginning before the end of 2014.
“Working with Hermes Pharma is a fantastic boost for us. It will speed up the development and launch of products containing our OXP zero technology,” said chief executive of Oxford Nigel Theobald.
“This is clear demonstration of the commercial appeal of OXP zero and will help accelerate to market finished products using the taste masking technology.”
Back in the mining sector, Bellzone Mining (LON:BZM) announced that iron ore production and product stockpiling for the Forécariah joint venture project in the Republic of Guinea has now started following yesterday’s maiden blast on the Yomboyeli Central ore body.
The maiden blast consisted of 213 holes and it is anticipated that this will provide more than 30,000 tonnes of run of mine ore for processing.
Bellzone is now awaiting the issue of a mining permit by the government.
“We remain committed to achieving both the objectives set for Forécariah, and those for bringing the Kalia Mine Project into production as planned in 2014,” said Bellzone chief executive Nik Zuks.