Hybridan Small Cap Feast

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Hybridan Small Cap Feast

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ADM Energy* 0.85p  £2.2m (ADME.L)

The natural resources investing company announces the completion of the 17th Lifting at the Aje Field, part of OML 113 offshore Nigeria. The Lifting totalled 94,187 barrels with a net share of 8,683 barrels to ADM, which equates to ADM’s profit interest of approximately 9.2%. The nominated offtake partner for the Lifting was Mercuria, a global energy and commodity group. The proceeds of the Lifting will be used to continue work on the development plans for the Aje field with the JV Partners. The Field Development Plan at Aje includes the potential drilling of three new wells to significantly increase production of oil and gas liquids at the asset.

Argo Group 14p  £5.5m (ARGO.L)

The alternative investment manager focused on emerging markets announces its interim results for the six months ended 30 June 2022. Revenues was US$1.3m, down by 23% year-over-year. Loss before tax was US$3.5m, 17.5x of the 1H21 level. Net assets decreased 16% to US$19.4m during the period (31 December 2021: US$23.1m) due to rising interest rates, capital outflows and market illiquidity. However, the investment manager believes that the second half of the year will improve, with inflationary pressures projected to soften and interest rates curve inverting. 

Ascent Resources 4.3p  £5.5m (AST.L)

The onshore Hispanic America and European focussed energy and natural resources company, announces receipt of the first cash payment from its Slovenian partner. As announced on 2 August, the company and its JV partner agreed Ascent’s entitlement to 90% of the hydrocarbon production revenues from the PG-10 and PG-11A wells for the period of April 2020 through to June 2022.  The company has received the first net cash payment of EUR 651k in relation to production from April 2020 through December 2021. The second and final payments relating for 2022 production, totalling a further net cash of EUR 858k, is expected to follow shortly.

Eco (Atlantic) O&G 29.0p  £106.2m (ECO.L)

The oil and gas exploration company confirms that the Island Innovator rig, owned by Island Drilling Company AS, was released and mobilised today. The rig is now under contract to Eco and its JV partners and will move on to the Gazania-1 well on Block 2B, 25km offshore the Northern Cape in Orange Basin South Africa. The company also announce that it has signed Joint Operating Agreements with NAMCOR, the National Petroleum Corporation of Namibia, with regard to the company’s four operated offshore Petroleum Licence (PEL) interests in Namibia: PEL 97 (Cooper), PEL 98 (Sharon), PEL 99 (Guy), and PEL 100 (Tamar).

Global Invacom Group 7p  £11.7m (GINV.L)

The global provider of satellite communications equipment and electronics, announces its financial results for the six months ended 30 June 2022 (1H 2022): revenue down by 7.5% to £37.4m, gross profit down by 16.1% to £7.4m and net losses widened by 189.2% to £3.2m, as a result of semiconductor shortage, materials availability issue, rising costs and labour challenges. Cash and cash equivalents as at 30 June 2022 was US$10.0m (31 December 2021: US$10.8m). The company has embarked on a business review exercise, to better manage operations.

IQGeo Group 128.0p  £74m (IQG.L)

The provider of geospatial collaboration and productivity software to the telecommunications and utilities industries, announces that it has acquired COMSOF N.V. for a total consideration of up to EUR 13m. To fund the acquisition and working capital going forward, the company intends to raise approximately £3.5m by way of a placing of ordinary shares and a direct subscription of ordinary shares by the directors and those associated with them. The issue price for placing and subscription is 125 pence per share.

Jadestone Energy 91.5p  £425.7m (JSE.L)

The independent oil and gas production company has decided to temporarily shut-in production from Montara to focus on maintenance and inspection, following the small leak of oil from a crude oil tank on the Montara Venture FPSO reported in June 2022. As a result, the company now expects its 2022 production to be 13,000-14,000 boe/d (vs. 15,500 boe/d guided on June 2022). The impact is short-term and there is no reduction in reserves. Given its strong balance sheet, the company intends to continue the share buy-back programme announced on 2 August 2022.

Mission Group  60.5p £55.1m (TMG.L)

The creator of Work That Counts comprising a network of 17 creative agencies, announces that it was informed by the Trustee of  The Mission Marketing Group Employee Benefit Trust (EBT) on 10th August 2022 that the EBT acquired 23,435 shares of the company, at a price of 64.00 pence per share, on 10th August 2022. Following this purchase, a total of 1,417,013 ordinary shares, representing approx. 1.6% of the company’s total voting rights, are held in the EBT.  

Pittards 55.5p  £6.6m (PTD.L)

The specialist producer of technically advanced leather and luxury leather goods, announces that it has signed a new sponsorship deal with hometown team Yeovil Town Football Club. The agreement with ‘The Glovers’ will see Pittards’ branding added pitch-side and on the back & sleeves of the team’s shirts. The club is also donating new kit to the Sarus Addus Sefir youth football team of Addis Ababa, Ethiopia, where Pittards employs circa 1000 people.

President Energy 1.25p  £25.7m (PPC.L)

The international energy company announces key highlights from the independently reviewed results from the first six months to 30 June 2022 (H1) in Argentina in accordance with Argentine reporting rules. Turnover was in excess of US$18m and the company is projecting turnover in Argentina for the full year to exceed of US$40m. Profit before tax for H1 was US$8.1m. The half year accounts according to UK standards is expected to be published before the end of September. 

What’s cooking in the IPO kitchen?

Unigel Group, intends to join the Aquis Growth Market.  Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports to over 40 countries and is a key supplier to almost every leading fibre optic cable manufacturer worldwide and is the industry’s only organisation with multiple manufacturing facilities spread across 3 continents. The Company acts as the holding company for its wholly-owned operating subsidiary, Unitape Limited and its 60% owned operating subsidiary, Unigel (UK) Limited. Delayed, timing TBC.

Georgina Energy, an early-stage resource company with a strategy of actively pursuing the exploration, commercial development and monetisation of helium, hydrogen and hydrocarbon interests located in the Amadeus and Officer Basins in Northern and Western Australia intends to join AIM. Georgina Energy has two principal onshore interests. The first, the Mount Winter Prospect is located in the Amadeus Basin in Northern Australia, which the Company has a right to earn an initial 75% interest. The second interest, the Hussar Prospect is 100% owned by the Company and is located in the Officer Basin in Western Australia. Expected late September.

Mise En Place**

UK GDP shrank by 0.1% during the second quarter of 2022, a significant decrease from growth of 0.8% during Q1. This was driven by a particularly punishing 0.6% contraction in June. Spread betting provider CMC Market’s Chief Market Analyst Michael Hewson said that there were surprising glimmers of hope among the gloom, commenting that:

“On the various PMI indicators, despite rising costs economic activity has been positive, which jars with the ONS official numbers which show the complete opposite.”

However, inflation remains a concern across Europe despite promising US figures due to increasing divergence in energy prices. 

*A corporate client of Hybridan LLP

** Content not provided by Hybridan LLP

This document has been prepared by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor. The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such. Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document. This document is sent to you as market commentary only. As market commentary this document does not constitute any of (i) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments for the purposes of the UK retained version of section B of annex I to Directive 2014/65/EU (“MIFID II Directive”); or (ii) investment research as defined in the UK retained version of article 36(1) of Commission Delegated Regulation 2017/565/EU made pursuant to the MIFID II Directive; or (iii) non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook).

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