The Morning News Update with Tullow Oil, Serco and Goals Soccer Centres

FTSE 100

Tullow Oil (TLW) – the Hanssen wildcat well, in production licence 537, offshore Norway, has encountered a 20-25 metre oil bearing sandstone with good reservoir properties in the main target (Stø Formation). 

RSA Insurance (RSA) – has reached agreement to sell Sun Alliance Insurance (China) Limited to Swiss Re Corporate Solutions. RSA will receive consideration of approximately £71m payable in cash. The transaction is expected to result in a gain on sale and an addition to the Group’s tangible net assets of approximately £26m.

FTSE 250

Balfour Beatty (BBY) – has seen a further worsening in the trading performance of the mechanical and electrical engineering part of the UK construction business. This amounts to a £35 million profit shortfall but will be broadly offset by further targeted PPP disposal gains in the second half of 2014.

Ultra Electronics (ULE) – receives £64.4m contract extension for in-service support of the UK MoD’s Litening Pods.

Serco (SRP) – overall trading and financial position is in line with the expectations given to the market two months ago.

Small caps

Ortac Resources (OTC) – has commenced underground mining at its Šturec deposit in Slovakia.  

Distil (DIS) –  has continued to make steady progress in developing own brands and increasing their sales across the UK and international markets. Blackwoods Gin and RedLeg rum are outperforming the market and their categories.

Goals Soccer Centres (GOAL) – Trading for the six months to June is in-line with the Board’s expectations with overall sales increasing by 3% to £17m (2013: £16.6m) and like-for-like sales increasing by 3%.

GETECH (GTC) – has signed a further contract for delivery of its US gravity dataset at a price of $500k, for immediate delivery.

Leni Gas & Oil (LGO) – well GY-666 has been successfully drilled to a total depth of 3,357 feet measured depth and that analysis of the electric logs has indicated the presence of a total of at least 394 feet of net oil pay; with 185 feet of net oil pay in the Goudron Sandstone, as previously announced, and a further 209 feet of net oil pay in the Gros Morne Sandstone.