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BPC Ltd, Cove Energy, Circle Oil, KazMunaiGas, Coal of Africa news briefs

By Fox-Davies Capital

BPC Ltd announced that the Company has placed a total of 69,842,860 new ordinary shares, at a placing price of 3.5p per share with institutional shareholders to raise approximately ?2.4 million, gross of expenses. The Company intends to use the net proceeds from the Placing to provide additional working capital.

Cove Energy announced the Company has conditionally raised approximately ?25.7 million before expenses by the issue of 64,300,000 new ordinary shares at a price of 40p per ordinary share. New funds will be utilised for the Company's ongoing commitments in Rovuma Basin offshore Mozambique Area 1, operated by Anadarko Petroleum Corporation and for general working capital requirements.

Circle Oil has appointed Evolution Securities Ltd as its nominated adviser and broker with immediate effect.

KazMunaiGas announced the results of the annual reserves audit, as at 31 December, 2009. According to a report by the independent energy consulting firm Gaffney, Cline & Associates, proved plus probable (2P) reserves were 1,725 MMbbls, covering KMG EPs interests in Uzen and Emba fields. The reserves replacement ratio was 25% i.e. 16MMbbl were added against production of nearly 66MMbbl. The reserves replacement ratio over the last three years was 212% i.e. 436MMbbl were added against production of 206MMbbl. The reserves-to-production ratio at the end of 2009 was 26 years. Proved oil reserves (1P) are 646MMbbl while proved, probable and possible (3P) reserves stand at 1,989MMbbl.

Coal of Africa announced it has received approval from the South African Department of Mineral Resources to its application to take a bulk sample from its Makhado coking coal project. The Company will now commence the sampling process, which will involve excavating an opencast pit on the Farm Tanga. Approximately 411,000m3 of overburden will be removed to expose 19,100t of run-of-mine coal. This coal will be transported to Tshikondeni Colliery where it will be beneficiated to a 12% ash coking coal. This is expected to provide 4,400t of product which will be sampled and analysed at CoAL's laboratory in Polokwane.