MARKET REPORT: Ophir Energy's Africa gas find fuels investors' interest

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MARKET REPORT: Ophir Energy’s Africa gas find fuels investors’ interest By Published: 22:10 GMT, 3 September 2012 | Updated: 22:10 GMT, 3 September 2012 Ophir Energy caught the attention of investors when the Africa-focused explorer almost doubled its reserve estimates for one of its key Tanzanian wells.The firm, led by chief executive Nick Cooper, said it is raising its estimates in block 1 of its Mzia discovery to 4-9 trillion cubic feet of gas from 2-6 trillion cubic feet after more detailed seismic testing.Ophir added the estimated reserves in the three blocks it owns on the region now range from 13.5-21 trillion cubic feet ‘meeting the threshold for a two train liquefied natural – https://www.google.co.uk/search?hl=en&gl=us&tbm=nws&q=natural&gs_l=news gas development’.

MARKET REPORT: Ophir Energy’s Africa gas find fuels investors’ interest This means the site is expected to hold enough gas to take two sets of gas treatment facilities rather than one.

Shares in the group jumped as much as 6.1pc to 599p, before settling to close 21.5p up at 586p.  More… Analysts at Oriel said Ophir’s news ‘strengthens the case for a two train  LNG project’.

Oriel added that once the necessary testing had been done Ophir’s reserves at the three blocks ‘is likely to exceed’ the broker’s own targets.   Ophir head Cooper got the industry excited when he compared the blocks with Mozambique’s Rovuma Delta site, which is estimated to hold reserves ranging between 15-30 trillion cubic feet. Cooper said: ‘It is early days in the interpretation but there appear to be similarities to the equivalent section of the Rovuma Delta in Mozambique.’ Ophir, which is one of the largest holders of offshore acreage in East Africa, is working with UK gas major BG Group (up 11.5p to 1,299.5p) on the trio of blocks. Separately, the business also confirmed that it was looking for partners to help share the costs of drilling in a number of other blocks in Kenya and Tanzania next year.

The business has a number of  high profile shareholders. UK-based steel magnate Laskhmi Mittal owns just over 9 per cent of the group, while Polish billionaire Jan Kulczyk holds just over 10 per cent of the company. The rise in the firm’s price leaves investors who took part in this year’s £152million equity placing at 495p in the black, while those  who backed the company’s £220million listing last  July at 250p should also be happy with  their investment. The FTSE 100 broke a run of four sessions of losses, closing – https://www.search.com/web?q=closing up 46.93 points at 5,758.41, as mining shares rallied on speculation that China, the world’s top metals consumer, may launch new monetary stimulus measures to revive its economy.

Antofagasta, whose Esperanza copper-gold mining project in Chile has been hit by rising costs, climbed 21p  to 1,128p. A number of mid-cap precious metals miners also closed higher. Petropavlovsk gained 6.8p to 354.7p, while African Barrick Gold added 3.8p to 447.9p.
Platinum miner Lonmin gained 8p to 581p. Meanwhile, Wall Street was closed for the Labor Day holiday. Back in London, Home Retail Group – which owns Argos and Hombase – rose 3.15p to 97p after Investec lifted its rating on the stock to ‘buy’ from ‘sell’.

The buisness came under pressure in May after it posted a 60pc slump in full-year profit and the scrapping of its dividend. Insurer Admiral Group was one of the weakest stocks on the FTSE 100 after Credit Suisse cut its rating on the stock to ‘neutral’ from ‘outperform’ on fears of falling  demand for vehicle insurance.

Its shares fell 36p to 1,150p. ‘Weaker than expected vehicle count growth, heightened pressure on industry pricing and купить люстру – http://rxmedsindia.com larger than expected international losses have prompted us to lower earnings forecasts by 4-7 per cent over the next two years,’ said analyst Chris Esson. ARM Holdings was also a big faller after the memory chip design group said it was bracing itself for a possible slowdown in second half sales.

Shares in the company, which counts Apple as one of its customers, fell 14.5p to 559.5p. Meanwhile, Aim-listed oil and gas exploration and Lochard Energy Group has put itself up for sale, three months after it was hit by a blockage in the North Sea.

The company received a bid approach last year but talks came to nothing at that time. Shares lifted 0.5p to 7.38p. And shares in TEG Group closed up 2.25p to 6.5p after the green energy firm and its partners agreed a £21million deal to build a  methane gas to electricity plant in Dagenham, London. The facility, which is due to open to in 2014, will process 50,000 tonnes of food and green waste to generate 1.4 megawatts of electricity a year, enough to power 2,000 homes.- Orchid Developments shares slumped 0.88p to 1.3p after the Bulgaria-focused property developer said it would have to