PATERNOSTER RESOURCES PLC
"Paternoster" or the
"Company"
Quarterly Update to 30 September
2015
Paternoster Resources plc, the
investing company focused on the natural resources sector, is
pleased to provide a quarterly update to 30 September
2015.
The key unaudited performance
indicators are set out below.
COMPANY STATISTICS
|
30 September 2015
|
30 June 2015
|
Change %
|
Net asset value
|
£3,024,948
|
£3,040,522
|
-1%
|
Net asset value - fully diluted per
share
|
0.44p
|
0.44p
|
+0%
|
Closing share price
|
0.17p
|
0.21p
|
-19%
|
Share price premium/(discount) to
net asset value
|
(62%)
|
(52%)
|
-
|
Market capitalisation
|
£1,144,000
|
£1,413,000
|
-19%
|
|
|
|
|
|
Category
|
Principal investments
|
Cost or valuation (£)
|
|
|
|
Unlisted/pre IPO
|
Bison Energy Services Limited,
Andiamo Exploration Limited and Elephant Oil Limited
|
674,692
|
|
|
|
Listed special situations
|
Metal Tiger plc, MX Oil plc, Plutus
Powergen plc, Shumba Coal Limited, Northcote Energy plc and New
World Oil and Gas plc
|
2,138,354
|
|
|
|
Investment portfolio
|
|
2,813,046
|
|
|
|
Cash and highly liquid listed
investments
|
|
110,590
|
|
|
|
Total
|
|
2,923,626
|
The last update was provided on 28
September 2015 as part of the half year review. Since then there
have been the following developments with a number of the company's
investments:
New World Oil and Gas plc
On 22 September 2015, Paternoster
acquired 366,618,383 shares in New World Oil and Gas plc at a price
of 0.07 pence per share, for an aggregate consideration of
£256,688. This represents a shareholding in the company of
8.0%.
New World's principal assets
comprise the Blue Creek Project in Belize and around US$4.5 million
(£2.9 million) of cash as at 28 August 2015, as a result of the
placing and open offer that concluded in July 2015. This investment
provides Paternoster with a significant interest in a listed
company with a substantial cash balance at an attractive
valuation. It has been proposed that your Chairman and Adam
Reynolds join the company's board subject to shareholder approval
at the company's AGM.
Metal Tiger plc
The company has now started to
expand its interests materially in Thailand through its
existing joint venture held with South East Asia
Mining. The company is also currently
engaged in advanced negotiations to acquire additional Thai
precious and base metal interests.
The results of the drilling at its
Lagrosan gold and tungsten project in Spain have outlined
two potentially significant tungsten
deposits. The findings to date are significant and could lead to a
resource development project that may hold considerable commercial
value.
The company has just acquired a
strategic interest in prospecting licences situated along the
Mahumo Structural Corridor, in the Kalahari Copper Belt in
Botswana, in joint venture with ASX listed MOD Resources Limited,
providing it with exposure to a valuable strategic holding in the
highly prospective Kalahari copper belt. It has also secured
an option to participate in a gold tailings production opportunity
alongside Eurasia Mining plc under the new project collaboration
agreement already in place between the companies.
The company has also just raised an
additional £290,000 for working capital and investment
purposes.
MX Oil plc
The company's investment in the
Nigerian oil and gas asset, OML 113, continues to progress. The
drilling of the first well in a two well first phase programme has
now been completed and the rig has moved on to the second
well.
In Mexico, the company has submitted
its pre-qualification filing with the National Hydrocarbons
Commission regarding its participation in the third phase of Bid
Round 1, for mature onshore conventional fields. The company
plans to bid for five concessions and it is expected that
concessions will be awarded in December 2015.
Plutus PowerGen plc
Plutus PowerGen has
been awarded further management contracts for the construction and
operation of 20MW flexible stand-by electricity plants, by Portman
Power Limited and Valence Power Limited being two major customers
of Rockpool Investments LLP ("Rockpool"). Rockpool has
invested £3.6 million of equity into each company, which brings the
total invested by Rockpool's investors into companies to be managed
by Plutus Powergen to £25 million. The company has also
received a number of additional financing proposals at individual
asset level, which it is currently in the process of
evaluating.
Recently announced changes to EIS
funding will mean that this source of funding can no longer be used
to finance the company's projects going forward, however, there
will be no impact to the company's seven existing projects.
Furthermore, the company has been aware of this possibility for
some time and so has already secured alternative sources of funding
and is continuing to assess other funding proposals which are
likely to lead to an increase in the company's equity participation
in new sites.
The company has also received
planning permission for a 20MW flexible stand-by power generation
site in Crumlin, South Wales. Preparations for the civil
construction phase of the project will now commence and it is
expected that power generation will begin in 2016.
Northcote Energy plc
The company's drilling at Shoats
Creek has yielded some encouraging results, with the successful
drilling of the Lutcher Moore 20 well, the first of a multi-well
programme planned for the field. This well produced 260
barrels of oil and 500 Mcf of natural gas per day (340 barrels of
oil equivalent per day) during a 24-hour test. This exceeded
pre-drill expectations and provides the company with immediate cash
flows. It has also de-risked another three drilling
locations on the field, increasing the defined new well inventory
for Shoats Creek to 11, with potential to increase this
further. In addition, the company has also recently
increased its participation in this asset by acquiring an interest
from its partner.
In Mexico, Northcote has now
submitted its pre-qualification filing with the National
Hydrocarbons Commission regarding its participation in the third
phase of Bid Round 1, for mature onshore conventional fields. It
has also assembled a multi-disciplinary bid team to evaluate the
fields, headed by an experienced international oil and gas
professional, Christopher Newport who, subject to a successful bid,
will serve as President of Northcote's Mexican upstream oil and gas
business.
Nicholas Lee, Chairman of
Paternoster, commented:
"The value of a number to
Paternoster's investments is increasing, and this is now starting
to be reflected in the Company's share price which is now
significantly above the level as at this period end, albeit still
at a discount to the Company's underlying valuation. The recent
investment in New World demonstrates that the Company can access
and execute attractive investment opportunities that are capable of
driving up shareholder value."
For more information please
contact:
Paternoster Resources
Plc:
Nicholas Lee,
Chairman
+44 (0) 20 7580 7576
Matt
Lofgran
+1 480
993-8933
Nominated Adviser and Joint
Broker:
+44 (0) 20 7601 6100
Westhouse Securities
Antonio Bossi/David Coaten
Joint
Broker:
+44 (0) 20 7562 3351
Peterhouse Capital Limited
Lucy Williams