Last checked at 3 Nov 2014 08:18
PATERNOSTER RESOURCES PLC
"Paternoster" or the "Company"
Quarterly Update
Paternoster Resources (AIM: PRS), the investing company focused on the natural resources sector, is pleased to provide a quarterly update to 30 September 2014 on its portfolio.
The key unaudited performance indicators are set out below.
COMPANY STATISTICS | 30 September 2014 | 30 June 2014 | |
Net asset value | £2,662,191 | £2,470,132 | |
Net asset value per share (fully diluted) | 0.43p | 0.40p | |
Closing share price | 0.26p | 0.27p | |
Share price premium/(discount) to net asset value | (40%) | (32%) | |
Market capitalization | £1,502,000 | £1,560,000 | |
The Company's net asset value has increased by 7.8% over the last quarter. A detailed company update was published on 9 September 2014, covering the half-year results and developments within the portfolio up to that date.
The principal assets within the current portfolio are:
Investment | Ticker | Shares held |
Unlisted/pre IPO | ||
Elephant Oil Limited | - | 1,185,770 |
Andiamo Exploration Limited | - | 640,000 |
Bison Energy Services Limited | - | Loan stock |
Listed special situations | ||
Metal Tiger plc | AIM:MTR | 27,000,000 |
MX Oil plc | AIM:MXO | 8,600,000 |
Plutus Powergen plc | AIM:PPG | 94,300,000 |
Shumba Coal Limited | BOT:SHU SEM:SHCL | 2,500,000 |
North American Petroleum plc | ISDX:NAPP | 24,352,356 |
The balance of the portfolio principally comprises cash and investments in highly liquid companies including Rio Tinto plc, Cairn Energy plc and Ophir Energy plc. As at 30 September 2014, the value of cash and these investments amounted to £407,000.
During the quarter there have been developments with a number of the Company's investments:
Elephant Oil Limited
Paternoster acquired 1,185,750 shares in Elephant Oil Limited, an oil and gas exploration company focused on West Africa. Its initial asset is a 100% interest in Block B, onshore Benin, on the prolific West Africa Transform Margin. Work is taking place in preparation for a planned seismic acquisition program. Hunt Oil, operator of Block 2 diagonally adjacent to Elephant Oil's Block B, commenced drilling operations in October. Shell and Petrobras are planning to drill immediately following Hunt Oil.
Andiamo Exploration Limited
Assay results from the trenching programme confirm high grade gold and oxide copper mineralisation. These are encouraging signs of the potential to develop a commercial mine. Technical studies are expected to be completed in Q1/Q2 2015.
Metal Tiger plc
Terry Grammer, a highly regarded geologist, has recently been appointed as Chairman. The joint venture with South East Asia Exploration and Mining Co regarding various prospective gold properties has now been signed. The company has also entered into an option arrangement for an exploration license over an area in North West Spain prospective for gold, tungsten and tin.
MXO plc
Significant progress has been made since earlier in the year, including strengthening the management team, strategically shifting the company's focus, and raising over £3 million in new funding. The company then created a JV with Geo Estratos and this JV is now in discussions with regard to securing production sharing agreements for three assets in the Mexican oil and gas sector. Further updates are expected in due course.
Plutus Powergen plc
The company is now relisted and pursuing its strategy in the standby power generation sector. This sector clearly has potential against the background of the well-publicised shortages in capacity within the power generation sector.
Shumba Coal Limited
The company has been awarded a new prospecting license in Botswana in an area where, historically, significant reserves have previously been identified. The company has also now completed its recent fund raise of $3.2 million, from both Botswana and Mauritius investors resulting in an expanded shareholder base.
North American Petroleum plc
Production has been increasing significantly at the company's recently acquired 1,670 acre Shoats Creek Project. As a result, the company is planning to move onto additional reworks and new wells and is planning to rapidly grow production and, more generally, prove up reserves across its 2,107 net mineral acres in producing US onshore fields.
In summary, during this period, the Company has made very substantial progress with a number of its assets and continues to build an interesting portfolio of investments. In addition to developing the portfolio the Board has also been strengthened with the appointment of Matt Lofgran as a Director. Mr. Lofgran is also CEO of AIM listed Nostra Terra Oil and Gas Company plc and brings global experience in mining and oil and gas, both from the investment and operational sides.
Nicholas Lee, Chairman of Paternoster, commented:
"This has been a busy quarter with a lot of progress being made within the portfolio. Plutus Powergen is back on the market and Elephant Oil has recently been added to the portfolio. The board has also been strengthened by the addition of Matt Lofgran and, going forward, I am confident that Paternoster will be seeing an increasing number of interesting investment opportunities."
For more information please contact:
Paternoster Resources plc: +44 (0) 20 7580 7576
Nicholas Lee, Chairman
Nominated Adviser and Joint Broker: +44 (0) 20 7601 6100
Westhouse Securities
Antonio Bossi/David Coaten
Joint Broker: +44 (0) 20 7562 3351
Peterhouse Corporate Finance
Lucy Williams