This week witnessed the rise and rise of David Lenigas vehicle Pennpetro (PPP). The shares were up nearly 3x this week, and are up 11x on the year to date. The trigger for the share price rise, apart from the presence of Mr Lenigas, of UKOG / Gatwick Gusher fame, and many others, was the announcement of a transformative deal. This was an up to 30 year royalty deal for PPP on oil wells in Texas, whereby Globalvision International buys all of the shares in Pennpetro’s subsidiary in Texas Nobel USA Inc in exchange for a life of asset sales revenues. The market has loved the deals, and all of this underlines that the worse the state of the stock market, the better deals have to be.
This applies not only to existing companies on the stock market, but also IPOs, something we have seen of late at European Green Transition (EGT), Helix Exploration (HEX) and at the end of last week, for Rome Resources (RMR).
The next big thing will hopefully be new listing Georgina Energy (GEX), expected to hit the market on Tuesday. The sizzle here is of course partly the more than doubling of fellow helium play HEX, as well as Helium One (HE1) managing to see its share price bounce, despite several chunky fundraises. There is also the backdrop of the relationship between Georgina Energy and Mosman (MSMN), whereby Georgina Energy, has a formal Farm-in agreement with rights to earn up to a 90% working interest at EP155 Mount Winter, in Northern Territory, Australia. Given the way that MSMN shares are up 5x since the start of the year, one can imagine a few holders either top slicing into Georgina, or getting into the new listing for exposure to this hot sector of the market.
If PPP has given the punters all they would wish for, Upland (UPL) rather managed to do the reverse. After having pulled the rug from under their feet in the autumn on a spoof takeover, those who hoped that lightning could not strike twice, saw shares in the stock fall 62% during the week off the back of UPL not apparently being the only game in town in Sarawak regarding a petroleum sharing agreement. Perhaps something to soothe nerves and wallets will be revealed by the company at its AGM on Tuesday? In the meantime, recent resistance at 1.5p is the level to break.
It was a decent week for small caps looking to move their milestones along. URA (URAH) said that Premier Miton has increased its stake in the emerald mining company from 6.79% to 10.32%. Sovereign Metals (SVML) announced that the dry mining trial is now complete with a test pit successfully excavated as part of the ongoing Pilot Mining and Land Rehabilitation Program (Pilot Phase) at the Company’s Kasiya Rutile-Graphite Project (Kasiya) in Malawi.
Metals One (MET1), which is focused on Finland and Norway, announced that the Company’s Råna Project partner and operator, Kingsrose Mining Limited, has entered into a service agreement with Arctic Drilling AS, for the commencement of helicopter supported core drilling at the Rånbogen prospect on the Råna Project in August 2024. Power Metal Resources (POW), announced an update on the intended formation of a uranium-focused JV involving Power Metal’s entire portfolio of uranium licences, with ACAM LP. POW said whilst significant progress has been made towards completion of the Joint Venture, certain legal due diligence processes remain outstanding. Consequently, the Parties have agreed to extend the due diligence period until 23 August 2024. The Parties fully expect completion within that period and given how strong the uranium market is at the moment, this should be a decent driver for the stock.
Finally, one of the interview highlights of the week which is worth catching up on for those who missed it was with Mark Routh, CEO Prospex Energy (PXEN), delivered very well by Mark, a seasoned campaigner in the energy field.
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