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Arrow Exploration (AXL), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, announced that it has spud the Carrizales Norte-1 well on the Tapir Block in the Llanos Basin of Colombia using the contracted Petroworks rig. The company said it was extremely pleased to have spud the first well at Carrizales Norte on the Tapir Block. The success of this well could result in additional production, additional reserves and a new core area for Arrow. Should CN-1 prove to be commercially successful, the rig will immediately move to drill CN-2, which is expected to spud in early-June.

Comment: More spud than Golden Wonder for Arrow, with the only missing piece of the jigsaw a decent move through 20p. This appears to be one of those situations where the longer the wait, the bigger the eventual move to the upside will be.

Aterian (ATN), the exploration and development company advancing its portfolio of African-focused critical and strategic metal assets was informed on 2 May 2023 and 3 May 2023 of the following purchases of the company’s ordinary shares on each of those days by Charles Bray, Chairman. He purchased 7,500,000 shares in aggregate at 0.8p and 0.81p for a cost of £60,025.

Comment: We see the Chairman of the company leading from the front in terms of buying shares in Aterian, and in significant amounts to be an indicative buy signal for followers of the stock. Indeed, most such thick five figure purchases or above in the small cap space can be taken positively or very positively.

Future Metals NL (FME), provided an update on its upcoming drilling program at the Panton North project where the Company is farming into a majority 70% joint venture interest. This update also provides details of positive results from recent rock chip sampling at the Company’s wholly owned Panton Project located adjacent to Panton North. The company said FME continues to build upon its nickel sulphide exploration model and work towards the discovery of a large, high-grade accumulation of Ni-Cu sulphides. While BC1 and Panton West are the near-term targets for initial drilling in May and June 2023, it has made further exciting observations throughout the Panton project area, including the identification of a nickel and copper rich gossan which graded 1.95% Ni, 0.26% Cu, and 0.09% Co. Any further discovery of economic mineralisation within the Panton Complex will be highly complementary to its existing 6.9Moz PdEq JORC Resource which is the focus of our ongoing Scoping Study.

Comment: Shares of FME have given the impression over the past couple of months of bumping along the bottom, and seem still waiting to catch up with announcements like today on the group, which look to be shaping up in a significant way.

Union Jack Oil (UJO), a UK focused, onshore hydrocarbon production, development and exploration company, announced the disposal of its 2.5% interest in the Claymore Area Royalty Agreement. The company said it is pleased with the price and terms and conditions of the sale, which has generated an above average return on our original investment. Union Jack remains committed to becoming a mid-tier producer, with Wressle being the first step on that journey. The upcoming appraisal well at West Newton, planned drilling at Keddington and the other opportunities currently under evaluation all evidence significant progress towards our goal.

Comment: Even as it makes today’s disposal announcement, UJO reminds us that it continues to fire on all cylinders, even if it has sold one of them today – at a decent price.

Kendrick Resources Plc (KEN), a mineral exploration and development company with vanadium, nickel and copper projects in Scandinavia, announced its second set of results from its maiden 19 hole diamond drill programme over the Stormyra Deposit, part of the Espedalen Project, Norway. The first set of results were announced on 20 April 23 and assay results are pending for 6 holes. The company said assays received for the current programme are the highest individual assays ever recorded for this deposit and the intercept in Hole ES2308 is one of the best drilled to date. The Stormyra orebody is shaping up to be a potential shallow underground operation with minimal surface impact.

Comment: Shares of Kendrick have been rebounding well in recent weeks ahead of today’s results which should further back the company’s recovery prospects.

Mosman Oil and Gas (MSMN) the oil exploration, development, and production company, update on progress. The company said by drawing together the knowledge of David Minchin and the experience of the Mosman Board, it is hoped that it can achieve a separate stock market listing for the Australian assets, which we consider to be in the best interests of the Company in order to maximise value for shareholders.

Comment: Mosman, not surprisingly likes to mention its in-house rock star David Minchin, and justifiably so with the excellent idea for a separate stock market listing for its Australian assets.

Seeing Machines (SEE), the advanced computer vision technology company, published quarterly KPIs for the quarter ended 31 March 2023. The company said it was pleased with the consistent, steady quarterly growth across both Automotive and Aftermarket, and exceeding the major milestone of 50,000 Guardian units installed as at the end of April was particularly important in the face of supply chain issues over the past couple of years. The annual growth for cars on road of 177% and 30% for Guardian connections, is significant and will continue to accelerate as more cars start production across increasing programs, and as it gets its next generation of Guardian technology into the market.

Comment: It is perhaps somewhat disappointing that despite the progress made by the company in the past year, the shares have not returned to the dizzy heights seen over the period of the pandemic.

Let’s Explore Group (LETS) announced its audited results for the year ended 31 December 2022.  Following the year end, the Group’s largest business, Location Based Entertainment (LBE) was sold for approximately $25m. The company said the overall outcome for the year met its expectations, with Group revenue from total operations increasing by 23% per cent to £11.6m (2021: £9.4m).  Adjusted EBITDA from total operations (before central costs) increased by 51% to £1.4m (2021: £0.9m).

Comment: LETS delivers a lap of honour RNS, and quite rightly so given the $25m sale and sharply improved revenue and EBITDA metrics.

Reabold Resources (RBD), the oil & gas investing company with a diversified portfolio of exploration, appraisal and development projects, announced that, in accordance with the terms of its share buyback programme announced on 28 April 2023, it has purchased 1,770,179 shares between 0.1845p and 0.1860p.

Comment: RBD has given the market what it was baying for in terms of the share buyback, and one would expect its effect to take hold sooner rather than later.

First Class Metals (FCM), the UK metals exploration company seeking large scale metal discoveries across its extensive Canadian Schreiber-Hemlo & Sunbeam land holdings, provided an update on geochemical results from soil sampling on the Esa property. The company said the results continue to build a picture of potential gold mineralisation associated with robust structures adding credence to the shear zone theory. It is very encouraged with the correlation between these results and the previously announced geophysical interpretation. Planned work will further aide delineation of priority targets along with the submission of an Exploration permit.

Comment: FCM continues to progress in an active way, and one would expect this to filter in as far as the share price and the recent slack is taken up.

e-therapeutics (ETX), a company integrating computational power and biological data to discover life-transforming RNAi medicines, announced its audited results for the year ended 31 January 2023. The company said 2022/23 was a pivotal year for e-therapeutics as we made significant progress towards realising our goal of Computing the Future of Medicine. Through its innovative computational approach and RNAi-based therapeutic modality, it is able to rapidly identify and pursue promising targets in multiple disease areas. It is now well-positioned to advance its pipeline of first-in-class preclinical RNAi candidates, making significant progress in just one year.

Comment: ETX is arguably one of the most complex and advanced companies of its kind on the London market, something which might cause even rocket scientists and MENSA members to scratch their heads.

Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.