Stockhouse Canadian Small and Micro-cap Stock Report for Wednesday, July 22, 2009
TORONTO (SHfn) – A junior miner surged on investment news, while production increased for an oil and gas firm
Shares of Toronto-based VG Gold Corp. (TSX: T.VG, Stock Forum) surged 96% to 25.5 cents Wednesday, after the company announced that Lexam Explorations (TSX: V.LEX, Stock Forum), 49.4% owned by its chairman and CEO Rob McEwen, has agreed to make a strategic investment in the company. The aggregate subscription of 37.5 million units will be issued by way of a private placement, with each unit priced at eight cents, and completed in two tranches.
Ithaca Energy (TSX: T.IAE, Stock Forum) shares climbed more than 14% to 70 cents, after the company reported that production from the Jacky field in the North Sea is now flowing at rates in excess of 11,000 bopd. The company says that in May, the downhole pump was activated, immediately boosting the flow from the reservoir. Ithaca notes that daily rates are in excess of 11,000 bopd, with 7,400 bopd net to Ithaca.
Shares of EnerGulf Resources (TSX: V.ENG, Stock Forum) soared 67% to 72 cents, after the company reported that the Ministry of Mines and Energy of Namibia has released a press statement regarding Block 1711. The statement said that the geological analysis of the drilling results indicate the oil and gas potential of Block 1711 as well as good prospects for the region as a whole, with PetroAlliance Service Co. of Moscow estimating that the 4,698m - 4,748m interval could contain a potential gas resource of up to 14 trillion cubic feet. EnerGulf, which owns 10% of the block, elected not to participate in the testing program of the 4,698m to 4,748 interval, and says it looks forward to continuing in the exploration program of the block.
And, Stratic Energy Corporation (TSX: V.SE, Stock Forum) said that it has sold its 10% interest in the UK North Sea Breagh gas field, and its interests in associated exploration licenses, to RWE Dea UK SNS Limited, a subsidiary of Hamburg, Germany’s RWE Dea AG, for US$61.751 million, plus working capital adjustments. The sale is part of a consortium sale of 70% of Breagh. Shares of the company jumped more than 11.5% to 34 cents earlier on Wednesday, and closed up 8.2% to 33 cents. Meanwhile, Sterling Resources (TSX: V.SLG, Stock Forum) has sold a 15% interest in Breagh to RWE Dea UK for $C103 million, and will retain a 30% interest. Shares of the company were up 11% to $1.41.
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