07/06/2023

Zenith Energy (ZEN), the international energy production and development company, announced the formal submission of various legal proceedings against the Republic of Tunisia, with a total cumulative claimed amount of at least $48 million. The company said the Board, based on due and careful consideration surrounding the merits of the Arbitration and specialist legal advice received, believes there will either be a successful outcome resulting from the Arbitration or there will be an amicable settlement in due course.

Comment: Zenith may be joining other companies such as Fox Marble and Ascent Resources who have become proxies to potential big claim pay outs. In the case of ZEN, $48m on a no win / no fee basis is nothing to be sniffed at, especially given the company’s confidence of a positive settlement, and the present modest £10m market cap. A win would clearly be transformational.

i3 Energy (I3E), an independent oil and gas company, announced the audited results for the year ended 31 December 2022. The company said the first half of 2023 has seen continued operational and commercial activity. Its 2023 capital program has commenced with the pre-spring break component completed and it is very pleased to have repaid it outstanding debt and established a new CAD100 million loan facility, which validates the quality and scale of our reserves base in Canada.

Comment: I3E has certainly transformed itself over the past couple of years, and continues to develop in a sprawling fashion. It is perhaps a shame that the share price is not nearer the peaks we were treated to this time last year over 30p.

Ondo InsurTech (ONDO), the claims prevention technology group for home insurers, announced that premium US insurer Mutual of Enumclaw has signed a contract to distribute Ondo’s LeakBot system to homeowner insurance customers in Washington State. ONDO said it was pleased to announce this new agreement which represents another important step on its path to build a strong presence in the United States.

Comment: Another day, another RNS from Ondo, and something which is likely to add to the recent strong momentum for the share price. The fact that there has been a breakthrough in the key US market, and the anticipation that this deal will be the first of many, makes today’s development all the more sweet for shareholders.

Jersey Oil & Gas (JOG), an independent upstream oil and gas company, announced that the North Sea Transition Authority has approved an extension to the Second Term of its P2498 “Buchan” Licence.  The Company is also pleased to report that the NSTA has approved the Company’s request to assign a 50% working interest in both licence P2498 and licence P2170  to NEO Energy, as part of the recently announced Greater Buchan Area farm-out transaction.

Comment: Although markets have a habit of being rather reticent in terms of giving a thumbs up to positive news, it would be surprising if there was not a positive share price reaction at JOG given that the stock is off nearly 50% from its April peak.

Ramsdens (RFX), the diversified financial services provider and retailer, announced its Interim Results for the six months ended 31 March 2023. Profit Before Tax was up by 68% to £3.7m (HY22: £2.2m). Gross revenue increased by 33% to £39.0m (HY22: £29.3m). The company said it is successfully executing against its long-held strategic priorities.  It is focused on driving organic growth by delivering ongoing continuous improvements to its operations, expanding the store estate and investing in its online offering.  In addition, it is continuing to seek and appraise attractive consolidation opportunities in what remains a highly fragmented market.

Comment: A blow the lights out performance from Ramsdens, something which is perhaps hardly surprising given the cost of living crisis, and especially with interest rates going through the roof. The company will be a good barometer as to the state of the consumer over coming months and years.