logo-loader

Views from the Trading Floor - 24th February 2012

Published: 04:16 25 Feb 2012 AEDT

no_picture_pai

Saints & Sinners
 
Oil & Gas


Genel Energy (LON:GENL) threw a few hints out to the market yesterday, when Tony Hayward said “production from the firm's Kurdistan operations would generate sufficient cash to underwrite drilling and exploration activities this year. Genel, formed last year through a merger of the former BP PLC (BP.LN) chief executive's Vallares PLC investment vehicle and Turkey's Genel Enerji, still has some $1.9 billion in cash to use as an acquisition war-chest. The firm is open to either buying whole producing assets like oil fields, or companies in possession of them. He also said Libya and Egypt were areas of particular interest, highlighting Genel's identity as a Turkish firm as a particular advantage in seeking to secure access to these countries in the wake of the Arab Spring. The firm is open to either buying whole producing assets like oil fields, or companies in possession of them, Hayward said. He said Libya and Egypt were areas of particular interest, highlighting Genel's identity as a Turkish firm as a particular advantage in seeking to secure access to these countries in the wake of the Arab Spring.” We are doing a little digging on a few companies in the areas mentioned above, to see which would fit Mr. Hayward’s remit. Watch this space.
Serica Energy (LON:SQZ) jumped 5.5% to test resistance at 30p again today and on decent volume. If the shares can break through and close above this important level, then a retest of 40p could be next on the cards. One important thing to remember here is the announcement from the 14th of February that said “at the NAPE Expo to be held in Houston, Texas during February, the Company will be presenting farm-out opportunities in its Foum Draa and Sidi Moussa Licences, Offshore Morocco and its Rockall Basin Licences, Offshore Ireland.”


Max Petroleum (LON:MXP) moved another 11% better to 14p during lunchtime trading, after the company said it received notification that as at Feb. 21, Macquarie Bank Ltd, held directly a beneficial interest in 200.96 million ordinary shares in the company, consisting of 199.98 million ordinary shares and warrants entitling it to acquire a further 974,755 Ordinary Shares at an exercise price of 13.83-19.22 pence per share. The previous holding update that I could see from the 7th of December said that Macquarie had just over 211 million shares. Possibly the market is of the opinion that Macquarie could be done selling for now, hence the move higher today. We will be watching the news wires closely to see if they disclose any more holdings updates.


Woburn Energy (LON:WBN) were active once again today, trading almost 500,000 shares before the end of lunch. Now for a company that didn’t even trade a single share yesterday, these sort of volumes do tend to catch the eye. The company have been very quiet over the last 4 or 5 months, so it would not be a surprise if holders here were expecting some sort of update from the company soon. First line resistance looks to be around the 2.75p area, with support looking to kick in around 2p.


Mining


Sunrise Resources (LON:SRES) popped almost 30% higher to 1.65p by the lunchtime hour, on huge volume of almost 40 million shares. Now for a company that trades 3 to 5 million shares on a good day, this level of activity does catch the eye. I highlighted this one during the early part of this week, when the shares retraced to what looked like strong support at 1.15p. Since testing that support, the shares have not looked back. We will continue to monitor the news wires on this one for any potential updates.


Serabi Mining (LON:SRB) were playing catch up to the close on the Canadian line from last night during early trading today. They closed at almost 18p across the pond, yet were trading at 14.5p at the open today. The shares did start to rally from the word go today, moving 6% better to 15.25p at the mid-price. Still some way off of the rough Canadian equivalent. We will be watching how they close on both line today, to see if the potential arbitration remains for Mondays trading.


Cannemara Mining (LON:CON) leaped 22% during early trading to 14p on well over 6 time the average daily volume. The shares have been in favour ever since the company gave a positive update on it Limerick Zinc discovery. If the shares can break and close above the 15p resistance level, 17p could be the next area of interest.


Galantas Gold (LON:GAL) moved 13% better during trading today, on almost 3 times the average daily volume. The company did release a late announcement yesterday at 6pm that said “Galantas Gold Corporation (the 'Company'), the AIM and TSXV quoted producer/developer/explorer with a 100% interest in Ireland's only operating gold mine, is pleased to report that its wholly owned subsidiary, Omagh Minerals Limited (OML), has received confirmation of planning permits to export rock by road from the gold mine. Surplus rock, not required for restoration, is currently stored at the Omagh site in stockpiles which are at maximum capacity. The permits allow the surplus rock to be integrated into the local aggregates industry. Conditions are attached to the permits and are in line with OML expectations. The planning permit approvals were by the Department of Environment Northern Ireland. Roland Phelps (President and CEO, Galantas Gold Corporation) commented, "I am pleased that we have received the permits, which were the result of a long consultation process. Apart from the road transport issue, the permits also cover the on-going restoration program at the mine. Other permit applications are in the planning pipeline. Recently OML applied to construct a "cut and cover" type adit within back-fill of the worked section of the open pit and a determination is awaited. The adit will allow potential access to gold mineralisation below the Kearney open-pit, subject to a successful planning application for an underground mine. The underground mine application is being finalised with a pre-consultation exercise in place and Environmental Impact Assessmen t being completed." First line resistance looks to be around the 5.5p level on this one.


From the trading floor


On a very quiet day in the UK markets, the FTSE 100 was trading down 1 point at 5936 (-0.03%) on volume of 500 million shares traded by the time the US opening bell had rung. The FTSE AIM All-Share was 0.26% better on very thing volume of 800 million shares traded at the same point in time. Our Fox Davies Oil Monitor will follow with a roundup of the week’s movers and shakers.


UK 4th quarter GDP hit the wires at 9:30 UK time today, with expectations for a reading on -0.2%. On this occasion the forecasts were bang on, and they actual number came in at -0.2%.


Commodities Corner
 
Gold – ↑Trading at $1779, up $2 (+0.05%)
Silver – ↑Trading at $35.44, up 2c (+0.06%)
Copper – ↑Trading at $8404, up $28 (+0.43%)
Zinc – ↑Trading at $2070, up $14 (+0.77%)
WTI Crude – ↑Trading at $108.37, up 55c (+0.51%)
Brent Crude – ↑Trading at $123.87, up 28c (+0.23%)
Natural Gas (HH) – ↓Trading at $2.59, down 2c (-0.94%)
        
Any questions please don’t hesitate to contact me at steve.asfour@fox-davies.com


Written by Steven Asfour, Sales Trader at Fox-Davies

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

13 hours, 12 minutes ago