Six AIM commodity players update investors

Investors were kept on their toes with updates from Nostra Terra Oil and Gas (NTOG), Northern Petroleum (NOP), Edgon Resources (EDR), Minera IRL (MIRL), Wasabi Energy (WAS) and GGG Resources. (GGG)

Nostra Terra Oil and Gas

Drilling had begun on Oklahama’s Bale Creek prospect, in which Nostra Terra Oil and Gas has a 30% working interest

Drilling of the well is expected to be completed in approximately 30 days, depending on logging and possible formation tests. The aim of the well is to determine "the most promising of all the potential productive zones".

"The Bale Creek prospect has a multi-pay potential from as many as eight reservoirs, so will be interesting to see if this well delivers," said broker FoxDavies.

Northern Petroleum

Northern Petroleum said it hoped to achieve a "new material farmout" for its 2012 drilling programme.

The announcement came as the company confirmed that it had achieved a daily production rate of 1582 barrels of oil equivalent per day (boepd), up 31% upon 2010, and within its target of between 1550 and 1650 boepd.

The oil and gas company guided towards a first half of 2012 production target of approximately 1040 boepd, almost all from the six producing gas fields in the Netherlands.

Additionally, the company said that there would be "rapid follow up drilling and extension of seismic coverage after the 2011 oil discovery" in offshore Guyane to de-risk the licence area.

Edgon Resources

Terrain Energy and Corfe Energy have each acquired a 12.5% interest in Edgon Resources’ Petroleum Exploration and Development Licence 201 (PEDL201).

Under the terms of the agreement, Terrain and Corfe will each pay 12.5% of the cost of the planned Burton on the Wolds-1 exploration well to earn a 6.25% interest. As a result, Egdon's exposure to the well is reduced from 50% to 25% up to an agreed well cost. The transfer of interests is subject to the approval by the Department of Energy and Climate Change.

PEDL201, awarded in 2008, is estimated to hold a gross best estimate prospective resource of 1.4 million barrels of oil in the shallower target.

"This farm-out agreement enables Egdon to promote the well up the drilling schedule whilst managing our risk and cost exposure on the prospect," stated managing director Mark Abbott.

The company is expecting to submit a planning application during the second quarter with a view to drilling before end 2012.

Minera IRL

Minera IRL has obtained a receipt for an offering of its ordinary shares for gross proceeds of up to C$30 million.

"The net proceeds of the Offering will be used to advance the Company's Ollachea and Don Nicholas projects in Peru and Argentina, to assist the Company in funding exploration programs on its portfolio of properties and for working capital and general corporate purposes," confirmed the company.

GGG resources

Gold exploration and development group GGG Resources yesterday announced a formal takeover offer for joint-venture partner Auzex Resources.

GGG and Auzex are equal partners in the Bullabulling Gold Project in Western Australia. GGG chairman Peter Ruxton said he believed the bid, which values Auzex at A$94.9 million, would be supported by Auzex shareholders, although its board is continuing to oppose the takeover in its current form.

Wasabi Energy

Wasabi Energy has increased its ownership interest in Aqua Guardian Group from 47.5% to 79% through the conversion of $4.2 million of intercompany loans, into equity in the investee company.

The company said that the consolidated ownership position provides Aqua Guardian Group with a clean balance sheet and increased flexibility to pursue and secure business growth and expansion opportunities.

In addition to its flagship water conservation product2 AquaArmour, the Aqua Guardian Group also owns approximately 26% of ASX listed clean technology company Clean TeQ, a provider of innovative clean technology solutions for the air and water treatment markets.

For an understanding of what to look for when considering exposure to the sector, read: Analysing... Miners.