Red Rock shares soar on Resource Star's Texan oil plan
Date: Friday 02 Aug 2013
LONDON (ShareCast) - Shares in Red Rock Resources carved out gains of nearly 15 per cent after it emerged its Australian associate intends to buy a stake in a Texan oil project.
Resource Star, which is 39% owned by Red Rock, has struck a binding agreement to buy a 50% stake in D-Bar Leasing from Searex Petroleum.
The oil project in Abilene Texas holds a 100% working interest in eight oil producing leases covering 2,732 acres plus a further 10 acres of freehold land and buildings, drill rigs and other equipment.
Andrew Bell, Chairman of both Red Rock and Resource Start said: “For Red Rock this transaction is beneficial because it strengthens an associate that was suffering poor performance as a result of the conditions in the uranium market and is likely to bring increased liquidity to our Resource Star shareholding.”
It will be interesting to see how much of the CLN YA have converted when the next announcement comes (imo prob end of next week). CLN for £550K was announced 30th April. £90K of it was converted by 30th May. £200K of it was converted by 25th June.
£260K remaining from that point and an end of July conversion RNS would seem to fit the emerging patterm.
Seems slow progress though and I'm wondering if this is generating cash quick enough to meet the ongoing demands of debt repayment and working capital.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.