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Ascent Resources, Geopark Holdings, Egdon Resources, Salamander Energy, Pangea DiamondFields, Mariana Resources, Stellar Diamonds, African Eagle Resources news briefs

By Fox-Davies Capital

Ascent Resources has agreed to sell a 45% interest in Italian drilling contractor Perazzoli Drilling for a cash consideration of EUR1.85 million. The Company's original interest was purchased to provide priority access, and ensure optimal contract terms for drilling services.  These advantages will  be  retained  through  a  five  year  service  alliance  with Perazzoli, which provides for a 30% discount on EUR10 million of  drilling services to Ascent and  first call on  uncommitted drilling units. Perazzoli owns three drilling units including a state-of-the-art HH-200 unit which provides low environmental impact drilling capability. The Company's original 22.5% interest in Perazzoli was held through its 50% owned subsidiary, Ascent Drilling Limited ('Ascent Drilling'), which was owned jointly with Ascent Director Mr Malcolm Groom.  To facilitate the transaction, Ascent agreed to purchase Mr Groom's 50% interest in Ascent Drilling and therefore a further 22.5% interest in Perazzoli by placing to him, 15,529,981 Ascent shares, providing Ascent with a 45% interest in Perazzoli.  These shares, when issued, will be priced at 5.105p each representing a 9% discount to the 15 day average trading price preceding 26 January 2010, which is the pricing mechanism used for Ascent's Equity Line of Credit with GEM Global Yield Fund. As Malcolm Groom is a Director of Ascent, the purchase of his share of Ascent Drilling is a related party transaction.  The Board of Directors of Ascent, with the exception of Malcolm Groom, having consulted with the Company's Nominated Adviser, Astaire Securities Plc, consider the terms of the transaction to be fair and reasonable insofar as the Company's shareholders are concerned. The purchase of Mr Groom's 50% interest in Ascent Drilling is conditional on the relevant resolutions being duly passed by Shareholders at an Extraordinary General Meeting, scheduled for 12 March 2010 to authorise the transaction. Following completion, Mr Groom will be interested in 17,527,686 shares of Ascent representing 3.40% of the total issued shares.

Comment: The transaction makes a lot of sense for Ascent shareholders.

Geopark Holdings provided an update on its drilling activities on the Fell Block in Chile including the successful testing of two new oil wells - Alakaluf 6 and Alakaluf 8. GeoPark operates and has a 100% working interest in the Fell Block.
1. Well Alakaluf 6 was drilled and completed to a total depth of 2,244m. A production test in the Springhill formation, at approximately 2,182m in a 10m perforated interval, flowed at a rate of approximately 774bopd with no water through a choke of 16mm and with a well head pressure of 137psi.  Surface facilities have been constructed and oil is now being produced and marketed.
2. Well Alakaluf 8 was drilled and completed to a total depth of 2,263m. A production test in the Springhill formation, at approximately 2,176m in an 8m perforated interval, tested at a rate of approximately 234bopd with no water.  Surface facilities are being constructed and a beam-pumping unit being installed, with a production target of approximately 200bopd of oil, and a start date of 3 March 2010.
3. Well Dicky 16 was drilled and completed to a total depth of 2,895m. Several production tests were performed in the Springhill formation, at approximately 2,835m, that tested water and some gas.  However, a mechanical failure of the bridge plug occurred which may have influenced the results and the test is considered inconclusive.  Further testing will be conducted in the future since the upper zones remain prospective.

Egdon Resources announced the execution of key commercial agreements in relation to the Kirkleatham gas field development in North Yorkshire and Teeside licence PEDL068. The PEDL068 Joint Venture partners and Sembcorp Utilities Limited, which owns the power station and much of the land on the Wilton International site and provides utilities and services to industrial customers on that site, have signed a series of agreements relating to the commercial terms of gas sales, the lease of a process site, the granting of wayleave rights for pipelines and for the operation and maintenance of the facilities on the Wilton site.

Salamander Energy announced the spudding of the Bang Nouan-1 exploration well in the Savannakhet PSC, Lao PDR. Salamander holds an operated 30% interest in the Savannakhet PSC. Salamander farmed out a 30% stake in the Savannakhet PSC to Origin Energy in December 2009. The Bang Nouan-1 well is targeting gas in the Permian limestones of the Pha Nok Khao formation. The mean gross pre-drill estimate of prospective recoverable gas resource is approximately 1.1Tcf. The well will be drilled by the MB Century 26 rig and is planned to be drilled to approximately 3,700 m true vertical depth sub-sea. It is forecast to take approximately 75 days to complete on a dry-hole basis.

Pangea DiamondFields announced that it has entered into a legally binding conditional sale and purchase agreement with International Gold Exploration AB ("IGE") whereby Pangea will merge its diamond interests with those of IGE by the disposal to IGE of the entire issued share capital of Efidium Limited, which is the holding company for all operational activities of Pangea, together with all intra-group claims in favour of Pangea. The consideration for the Merger will be satisfied by the issue of 495,399,057 new fully paid ordinary shares of IGE. On completion Pangea will hold IGE Shares representing approximately 38.4% of IGE's enlarged issued share capital. Based on the closing mid market price of the IGE Shares on the Oslo Stock Exchange as at 19 February 2010, the consideration represents a value of approximately US$47.6 million, or 1.7p per Pangea ordinary share.

Mariana Resources announced an update on its Los Amigos Joint Venture with Hochschild Mining. Rock chip sampling has been carried out along a north-west mineralised trend at least 5.5 km long and up to 100 m wide.  To  date approximately 100  rock chip samples have  been taken, of  which 25 returned values ranging from 0.1g/t to 5g/t Au and 5g/t to 100g/t Ag. The anomalous values are related to zones of silicification, quartz veins and sulphide vein breccias.  Additional surface rock chip sampling and geological mapping is continuing. Assay results of three scout Reverse Circulation holes drilled for a total of 900m have also been reported. All intersected wide alteration zones and contained intervals between 1-10m wide with quartz veinlets but encountered no significant gold and silver mineralisation. The best assay was 2m at 1.15g/t Au from 249m in RC hole LFRC09-011.

Stellar Diamonds announced its admission to the AIM market of the London Stock Exchange and the first day of dealings in its ordinary shares under ticker symbol STEL at 8.00 a.m. today, following the completion of the reverse acquisition of Stellar Diamonds Limited by West African Diamonds plc and a ?5 million placing. On Admission, the Company will have 96,581,432 ordinary shares in issue and will have a market capitalisation of approximately ?19 million. 

African Eagle Resources announced the first drill assay results from Ngasamo confirm the potential to increase the Dutwa resource. Nine of first 13 holes intersect mineralisation, with key intersections including; 66m at 1.1% nickel including 6m at 2.6%, 69m at 0.8% nickel including 27m at 1.0%, and 30m at 1.3% nickel including 6m at 2.1%. Results of the remaining 42 drill holes are anticipated before the end of Q1.