Quarterly update

RNS Number : 9503V

Paternoster Resources PLC

03 November 2014

 



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:                                                         [phone]

Nicholas Lee, Chairman

Nominated Adviser and Joint Broker:                             [phone]

Westhouse Securities

Antonio Bossi/David Coaten

Joint Broker:                                                                          [phone]

Peterhouse Corporate Finance

Lucy Williams

 

END

 

 

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