SMALL CAP MOVERS: Deltic Energy shares rise under drilling contract with Shell; Oxford BioDynamics is melting down as additional funding may be needed
Deltic Energy has been a noticeable increase since oil giant Shell has made a decision that creates a group cited by AIM, to get a great opportunity in a new gas exploration project off the east coast of England.
Deltic owns a 30 percent stake in the Pensacola exploration well, which Shell advanced this week by signing Maersk for its Resilient rig. Operations on the seabed are expected to begin later this month. when the well is lowered in September.
The news quickly captured the imagination of small-cap investors: over the past five days at 2.61 pence, the share has risen by about 11 per cent, not least because it will be a high-profile well with the potential to add significant new domestic gas resources to the UK.
Deltic Energy signs contract with Shell to drill Pensacola exploration well in North Sea
“We are very excited about Pensacola,” said Deltic CEO Graham Swindels Proactive.
“This is a very significant prospect that can be implemented relatively quickly [if the exploration well is a success] and that would be a real revelation for the southern North Sea. ”
Swindels says Deltic, which has yet to test the outlook in its portfolio, is in a state of “transformational growth” if Pensacola or one of its other outlook in the North Sea in the UK is going well.
“We are a relatively small company, with our market capitalization (today just over £ 40 million) and low overhead, we are really set up to succeed in exploration. Therefore, I do not think I am exaggerating when I say that the success of this well will be absolutely transformative for us and our shareholders.
This week has usually had special situations such as Deltic Energy.
Novocyte was another and also increased 11 percent, to 161p, after the diagnostic company unveiled a monkeypox test.
David Olmand, CEO, said: “Although the risk of transmitting the disease to humans currently remains low, we believe our RUO tests are important tools to help scientists and clinicians diagnose and control new threats of infectious diseases.” ‘
Biotechnology has provided much of the other excitement. Abingdon Health rose 15 per cent to 10.6 pence after saying it would receive £ 8.9 million from the Department of Health and Welfare after settling an invoice dispute over a side-flow check.
An asthma specialist Circassia was on the rise after it agreed on a timeline for the start of payments of up to $ 16.5 million from the American group BeyondAir.
They were in dispute over the licensing of the BeyondAir LungFit device, but reached an agreement a little over a year ago.
Under the terms of the agreement, Circassia waived its rights to the product in exchange for payment when LungFit – used to treat hypoxic respiratory failure – was approved by the U.S. Food and Drug Administration.
Now this approval has been obtained, so Circassia must pay $ 2.5 million within 60 days of approval, $ 3.5 million within 60 days after the first anniversary and $ 4.5 million within 60 days after the second anniversary.
In addition, Circassia is entitled to a royalty of 5 percent of the device’s net sales, starting on the second anniversary of approval, up to a maximum of $ 6 million.
Circassia grew 17 percent in the week to 34.
The AIM All-Share Index performed less well. Reflecting the excitement of small-cap investors over what the recession in the UK might hold, it has fallen 2.7 per cent over the past five days compared to falling 1.1 per cent on FTSE All Share.
Among those who provide AIM, Oxford BioDynamics fell more than a fifth on Tuesday before recovering, after a warning, additional funding may be needed.
The biotech company, which has just launched its flagship product EpiSwitch CiRT in the UK and US, has fallen from £ 250,000 to £ 90,000 in six months, and operating losses have risen from £ 3.5 million to £ 4.1 million.
SIMEC Atlantis Energy also fell, losing 40 percent, and its shares fell to 1.2 points after it discovered large losses.
In 2020, the tidal force group was £ 19.4 million in the red, but last year it jumped to £ 74.1 million.
The increase came as a result of the recognition of impairment losses at the Uskmut power plant in the amount of 32 million pounds after the decision in April 2022 not to transfer it to fuel waste.
SMALL CAPTAINS: Deltic Energy; Oxford BioDynamics
Source link SMALL CAPTAINS: Deltic Energy; Oxford BioDynamics