Valereum (AQSE: VLRM), the Gibraltar technology group, announced strategic initiatives and developments for 2024 to 2025. The Company is planning a full suite of innovative solutions that combine proprietary technology with external partnerships to support the lifecycle of tokenised digital assets for all asset classes, marketplaces and market participants. VLRM said it has an ambitious vision, which it believes is justified by the size of the opportunity. The world of tokenisation is rapidly evolving, both in the development of its technology and in operating marketplaces in public markets and real world assets. In short order, Valereum has established the new team, a comprehensive strategy and implemented a strong governance framework to operate a robust, transparent control environment, whilst building confidence with investors.
Comment: The new, rebooted VLRM is benefitting not only from new management and fresh momentum behind its strategy, but of course the fresh momentum behind crypto and the digital economy in general. This is something which the latest tokenisation moves fit in well. Presumably, bears who have been caught out by the recent rally in the shares will be trying to throw stones as they will not understand what the company is actually moving to achieve.
Kistos (KIST), the low carbon intensity hydrocarbon producer, announced that it has entered into a Sale and Purchase Agreement to acquire EDF Energy (Gas Storage) Limited, from EDF Energy (Thermal Generation) Limited, which owns two gas storage facilities onshore UK, Hill Top Farm and Hole House Farm. The total consideration for the Transaction is £25 million. KIST said its entry into the gas storage market marks another advancement in its growth strategy to expand the business through value-accretive acquisitions. Not only do these assets complement its upstream UK assets, but they also diversify its presence across the energy value chain with a foothold in the midstream market.
Comment: KIST takes advantage of its still £100m market cap, with a relatively chunky deal today. Given the recent weak share price run, it will be interesting to see whether the market will appreciate the “value-accretive” attractions of today’s news.
Predator Oil & Gas (PRD), the Jersey based Oil and Gas Company, provided an update on its Phase 1 rigless testing programme onshore Morocco. PRD said the analysis of gas collected from multiple levels whilst drilling MOU-3 is encouraging as it indicates gas from a biogenic origin with up to 99.57% methane content, which is ideally suited to a CNG development. Planning activities to drill MOU-5 are progressing smoothly and we are encouraged by the preliminary results from the geochemical characterisation of the Jurassic section in MOU-4. It was however fully aware that it needs to flow gas from its main zones in the most effective manner after accounting for formation damage, and it has confidence in Sandjet achieving that objective.
Comment: PRD continues to be the subject of positive noises on social media, something which is justified given how well the share price has held up despite numerous cash calls in the recent past. Today’s RNS could be the driver for a fresh move into the mid to upper teens share price.
ENGAGE XR (EXR), a Metaverse / spatial computing technology company, announced further progress on customer contracting, including the largest contract the Group has signed to date. The Group has signed a seven-figure contract with a large Middle East-based company in the education, training, and development sector. EXR said the signing of its biggest ever contract underlines the progress it is making in the education, training and development verticals, it also extends its presence in the Middle East.
Comment: Ideally today’s whopping contract win news is the trigger for a lasting turnaround in EXR shares, given the extended decline in the stock since the end of 2022. It would appear that the company is indeed gaining traction.
Nightcap (NGHT), the owner and operator of 46 premium bars, announced the acquisition of The Piano Works, the live entertainment concept currently operating at Nightcap’s Barrio Covent Garden venue and at a venue in Farringdon, London. NGHT said The Piano Works is another excellent addition to our Group. It very much looks forward to the future of this concept. It adds a whole new area of expertise to Nightcap and a different entertainment offer, bringing live music to its customers.
Comment: It is good to see NGHT simply getting on with the job, despite being the subject of rather maniacal bearish coverage / clickbait / trolling from certain quarters. That said, the share price trajectory does perhaps merit some fresh communication in terms of the company explaining the lay of the land.
Aterian (ATN), the critical metal-focused exploration and development company, announced the observations from the initial reconnaissance of the Akka and West Tazalaght Projects located in the Kingdom of Morocco. ATN said the preliminary findings from these initial reconnaissance visits to Akka and West Tazalaght are encouraging and consistent with our recent exploration in the Anti-Atlas region, with evidence of copper mineralisation occurring throughout.
Arrow Exploration (AXL), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, provide an update on activity on the Tapir Block in the Llanos Basin of Colombia in which the Company has a 50% beneficial working interest. AXL said the thick pay zones encountered in the CN-4 and CN-5 wells underpins the step change in value that has been created. The Company expects material reserves additions and production from further development of the multi-zone potential at Carrizales Norte. The defined Ubaque reservoir has set the stage for conventional horizontal exploitation which we expect to lead to material production, cash flow and reserves growth. Additional pay zones currently behind pipe provide further opportunities for production and reserves increases in the future.
Comment: More spud than Walkers Crisps, yet the share price is only just on the right side of 20p. Nevertheless, the fundamental momentum here and the strike rate so successful, it is almost impossible to imagine that AXL will not have its long awaited big re-rate to 30p plus during 2024.
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