LME Copper 3 Month Rolling Forward 

Copper has been trying to break out of its downtrend for the last few sessions, but cannot seem to break trend line highlighted below in white. If it can finally make its way through the resistance, a test of the 100 day moving average (red line) at 7830 would be the next level to watch for. Support will look to kick in around 7500.

Source = Bloomberg

Spot Gold US Dollar Per Troy Ounce 

Gold has been struggling to get through the 50 day (green line) and 100 day (red line) moving average since early March of this year, and once again we find gold failing to get through the 50 day moving average (green line). Support will look to kick in along the uptrend highlighted below by the white line, which sits around $1560.

Source = Bloomberg

Range Resources (LON:RRL) wasactive once again today, with over 11 million shares traded before lunch  after the company said "In response to a number of shareholder requests, Range Resources is pleased to provide a Q&A addressing questions raised over the past fortnight. Please refer to the Home Page of the Company's website for the Q&A." www.rangeresources.com.au 

Creon Resources (LON:CRO) surged 25% to 1.25p during early trading after the company said it has entered into a joint venture with China based shipbuilding giant, Yangzijiang Shipbuilding (Holdings) Pte Ltd., in the offshore oil and gas infrastructure sector. Creon and YZJ Holdings will each invest into the joint venture company--YZJ Offshore Engineering Pte Ltd., a Singapore registered company recently set up by YZJ Holdings to design and construct marine offshore oil and gas vessels. Creon will invest 15.33 million U.S. dollars for a 46.45% shareholding in YZJ Holdings, with YZJ Holdings investing $14.85 million for 45% and third parties investing a further $2.82 million for the balancing 8.55%. To date, YZJ Offshore has been capitalized with $3.0 million of equity; as at June 30 YZJ Offshore had net assets of $2.85 million and made an operating loss of $0.15 million in the six month period ended June 30. As part of the Investment, Creon has set up a wholly owned subsidiary, Creon Resources (Asia) Pte Ltd, into which the Investment will, in due course, be transferred. 

Tullow Oil (LON:TLW) were flat on the day at 1384p after Credit Suisse cut its target price to 1796p from 1841p following the company's update on the Jaguar-1 exploration well in Guyana. 

Premier Oil (LON:PMO) pushed 4% higher again today despite the Argentine government saying that will pursue "civil and criminal" charges against the company after the recent deal with Rockhopper (LON:RKH). The latter slipped another 9% to 202p during afternoon trading on decent volume of 12 million shares before the end of lunch. 

After yesterday's poor Stebbing update Borders & Southern (LON:BOR) eased another 7% to 17p after Jefferies cut the company to HOLD from BUY. 

Northern Petroleum (LON:NOP) pushed 4% higher to 66.5p at the mid-price during afternoon trading after the company said that as anticipated by Shell France on June 23rd, the Stena Drillmax ICE drillship commenced operations on the GM-ES-2, the second well on the Guyane Maritime permit on Friday 6th July. GM-ES-2 follows up on the Zaedyus oil discovery in late 2011, which encountered 72 metres of net oil pay in two turbidite sand systems successfully proving that the Jubilee play is mirrored across the Atlantic from West Africa. The potential of this well was indicated by the Chief Executive of Shell France, Patrick Romeo who stated that, "drilling should last three months and Shell hopes to discover a reserve of at least 300 million barrels of oil" as reported by Dow Jones Newswires. Also, Tullow's Exploration Director, Angus McCoss was quoted in the New York Times as having said the field could be larger than Jubilee, with 1 billion barrels or more of recoverable oil. The partner interests in offshore Guyane are: Shell 45.0% and operator Tullow 27.5%, Total 25.0%, Northpet Investment 2.5% (Northern owns a 50% equity interest in Northpet investments)

Noventa (LON:NVTA) came back to earth with a bump, slipping 15% to 1.6p at the mid-price after the company was forced to issue a statement yesterday that said "The Board of Noventa notes the current increase in the Company's share price. The Directors are not aware of any factor relating to the Company that would lead to such a movement in its price. The Company continues to pursue its efforts to raise additional capital as outlined in the Company's announcement of 28 June 2012." The shares did surge during trading yesterday, and traded as high as 3p, which prompted the company to issue the RNS to the market. 

Orsu Metals (LON:OSU) jumped 37% to 8.5p during early trading after the company said it had agreed to sell its 40% interest in its Talas gold-copper-molybdenum project in the Kyrgyz Republic to a wholly owned subsidiary of Gold Fields Limited ("Gold Fields") for US$10 million - Placing expected to raise CAD$10 million via Gold Fields' agreed subscription for 25 million units at CAD$0.40 each - Proceeds of the sale and subscription will fund Orsu's equity portion of the Karchiga Project capital expenditure. 

London Mining (LON:LOND) slipped 4.5% to 188p during afternoon trading after the company reported higher second quarter output of the steelmaking ingredient but warned that it's experiencing reduced profit margins, due in part to lower iron ore prices, and only expects margins to improve in the third quarter when it begins to load bigger ships. The company produced 397,000 wet metric tons of iron ore concentrate in the second quarter from its Sierra Leone Marampa mine, up 26% from 315,000 wet metric tons in the first quarter. Iron ore concentrate sales rose 36% on quarter to 350,000 wet metric tons while the average selling price, including hedges, dropped 8% to $105/ton on a free on board basis. 

Scotgold Resources (LON:SGZ) pushed 8.5% to 4.75p during afternoon trading after the company said it is pleased to announce assay results from the first three holes from their infill drilling program at Cononish. The infill program within the Inferred Resource zone above the 400m level continues to encounter high grades and excellent widths of gold and silver mineralization. Chris Sangster, CEO, said: "These results from the initial phase of the infill program continue to confirm the high grade nature of the Cononish vein. The program is designed to increase the debt capacity for the Project by demonstrating with increased certainty the presence and continuity in the high grade ore in the section that will be the first to be mined. Together with the Pre-Development Funding from RMB announced recently, the Company is well placed to progress towards first production." 

CIC Mining (LON:CICR) jumped 15% to 2.775p at the mid-price during early trading after the company said it is pleased to provide an operational update of CIC Precious Metals Group Limited ("CICP") and advise of first gold production at Shanba Gold Mine, China. CIC holds a 43% equity interest in CICP. Shanba is a heap leach oxide gold mining operation, the mining and processing operations of which are managed by Mr. Su, a director of CICP and a leading oxide gold miner in China. Following a 48-day leaching period Shanba has produced 3,825 oz. gold, with a further three-heap leach pad due to complete final leaching in the near future. A total of 4,790 oz. gold has been produced to date. It is proposed that the mine and processing equipment costs, which are expected to total US$8.3 million, are to be covered from initial gold production. Following the payment of these costs, CICP will receive a dividend from Shanba, although shareholders may elect to fund increased oxide gold production at its various gold leases. In addition, CICP is pleased to advise that following visits to its DR Congo gold mine site, land for the site of its operational headquarters has been purchased in Bukavu and construction is due to commence imminently. It is intended that the focus at Shanba will be to increase oxide gold production and commence shipments of oxide gold processing equipment to the DR Congo, a process which is now well underway.

Gold - ↓Trading at $1587, down $2 (-0.11%)

Silver - ↓Trading at $27.25, down 3c (-0.08%)

Copper - ↓Trading at $7681, down $13 (-0.17%)

Zinc - ↓Trading at $1885, down $1 (-0.02%)

WTI Crude - ↑Trading at $89.03, up 60c (+0.68%)

Brent Crude - ↑Trading at $104.46, up $1.12 (+1.16%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Commodity Research Bureau BLS/US Spot All Commodities (CRB CMDT) VS The Dollar Index (DXY)

Today has been a rather active day for trading in the Dollar Index, and as I type the index has started to move in to positive territory once again. The chart below shows exactly how sensitive the CRB Commodity Index is to moves in the Dollar, and we will be watching closely to see if the Dollar breaks its recent highs, as this will have an adverse effect on the commodity basket.

The CRB Commodity Index approximate Weightings:

Energy Crude Oil, Heating Oil, Natural Gas = 17.6%

Grains Wheat, Corn, Soybeans = 17.6%

Industrials Copper, Cotton = 11.8%

Meats Live Cattle, Lean Hogs = 11.8%

Softs Coffee, Cocoa, Sugar, Orange Juice = 23.5%

Precious Metals, Gold, Silver, Platinum = 17.7%

The Dollar Index (Red Line) CRB Commodity Index (White Line)

(Source: Bloomberg)

The Dollar Index (DXY) Intra-Day Chart

The intra-day dollar move spoken about above, is captured in the chart below. The major level we are looking for here is a test of 83.54.

(Source: Bloomberg)

Ascent Resources (LON:AST) initially tried to push forward, trading as high as 2.74p before selling back down to 2.35p after the company said that, through its 48.8% owned subsidiary PetroHungaria kft, it has completed operations to add additional perforations to the PEN-105A gas well in the Peneszlek field of north-eastern Hungary. PEN-105A well result was better than expected because of improved reservoir characteristics at the PEN-105A location as compared to the original PEN-105; now the increased thickness of the proven gas bearing reservoir has further improved the overall results. PEN-105A is a sidetrack of the PEN-105 well and was originally completed in April with 7 meters of perforations. The total perforated interval is now 24 meters of the gross 59 meters of Miocene volcaniclastic reservoir. The additional perforations were made in two stages with a flow test for each stage. The results indicate that the acid stimulation which had originally been considered is not necessary given the strong well response to the newly-perforated sections. The deeper perforated intervals are below the previously defined gas-water contact and this will result in an increase of the gas reserves that can be produced from the PEN-105A well. Production is currently limited to 2 MMscfd due to constraints at the third-party facility into which both the PEN-105A and PEN-101 wells produce. Discussions are on-going with the facility operator to remedy the facility bottleneck that would allow for greater production from the Peneszlek wells.

Afren (LON:AFR) jumped 10% to 115p during afternoon trading after a press report in The Daily Mail suggested the company could be a target for one of the oil majors. Investors jumped aboard, pushing the volumes to well over 3 times the average daily volume for the middle of the afternoon.

Chariot Oil & Gas (LON:CHAR) continued to power forward again today, adding another 6% to 121p before the end of lunch. The market has been getting ready for the spudding of the Kabelijou 2714/6-1 well to test the Nimrod prospect in the Orange Basin on Southern Block 2714A.

Xcite Energy (LON:XEL) slipped 3% again today to trade at 69p despite the company announcing late yesterday that it has successfully completed the final part of the 9/03b-7 and 7z well lateral well construction work program, the installation of twin electrical submersible pumps and a down hole safety valve. On-rig process and control packages have been fully commissioned and linked to the pipeline and in-field dynamically-positioned shuttle tanker, Scott Spirit. Pre-production flow test operations on the 9/03b-7 (B6) lateral well were successfully commenced and the well is currently being cleaned up. Flow test is planned to be up to 90 days in length and to be conducted at a range of different flow rates, to collect additional reservoir and production data, including data with respect to enhanced oil recovery.

Sound Oil (LON:SOU) were active once again today after the company said the Jatayu-1 exploration well on the Citarum production sharing contract area in Indonesia, where it holds a 20% interest, is ready to drill around a section where drill-pipe previously got stuck. The well is currently above a 390-foot gas bearing section, located in the previous drilling attempt, which returned extremely high mud log gas readings and was around 600 pounds per square inch overpressure, it said. The well will now drill to a depth of around 6,000 feet, as gas shows were present at around 5,920 feet when the drill pipe got stuck. Once at the target depth, the well will test the section of interest and depending on logging results, a decision will be taken as to whether to target the Parigi objective, some 1,700 feet deeper, or to stop drilling and test the well. Shares were unchanged at 1.075p.

Centamin (LON:CEY) jumped 6% to 70p during early trading after the company said that total production from the Sukari Gold Mine in Egypt during the second quarter rose by 40% against the year ago quarter. Total gold production for the quarter ended June 30 was 67,422 ounces versus 47,991 ounces in the year ago quarter. Quarterly throughput in the Sukari process plant was 1,269kt, or kilo ton, a 49% increase on the corresponding quarter in 2011. Plant continues to operate at and above the 5 million ton per annum run rate. Open pit delivered total material movement of over 6,579kt and underground ore production for the quarter amounted to 117kt. Stockpile balance increased by 278kt to 497kt by the end of the quarter.

Ferrexpo (LON:FXPO) jumped 6.2% to 212p during early trading after the company said that total iron ore pellet production in the second quarter rose 4.1% from the first quarter, to 2.4 million metric tons. However in total, first half production fell 1.3% to 4.7 million tons due to lower availability of third party concentrate.

African Copper (LON:ACU) slipped 5% to 2.25p at the mid-price during early trading after the company said Shareholders should note the announcements by African Copper PLC ("ACU" or the "Company") (AIM:ACU)(BOTSWANA:AFRICAN COPPER) on 28 February 2012, 16 April 2012 and 30 May 2012, in which ACU stated that it had been notified by its 84.19% controlling shareholder, ZCI Limited ("ZCI"), that ZCI had initiated a process intended to realise value from its investment in ACU, which process may result in the partial or full sale of ZCI's interest in ACU. Shareholders are advised that the process is ongoing and may have a material effect on the price of the Company's securities. Accordingly, shareholders are advised to continue exercising caution when dealing in the Company's securities. A further announcement will be made in due course.

Kenmare Resources (LON:KMR) rebounded 4% after the near 8% drop yesterday. Shares were 1.3p better at 35.55p during afternoon trading, mirroring the rebound in Ilukas share price during the Australian trading day today.

Rare Earth Minerals (LON:REM) surged 24% to 0.155p at the mid-price during afternoon trading, on almost 7 times the average daily volume. The company has been very quiet over the last few months, so it will be interesting to see if anything materialises as the driver behind the move. We will be watching the newswires closely here.

Orosur Mining (LON:OMI) pushed 4% higher to 43p at the mid-price during afternoon trading after the company said that the Uruguayan National Environmental Agency has granted on July 4, the operating license for disposing of tailings at the new Tailings Storage Facility at the San Gregorio mine, Uruguay. The permit has been signed by the Minister of the Environment of Uruguay and is valid for the first phase of tailings disposal. The new facility has been designed to be built in four phases, each phase requiring continued, staged environmental approval. The granting of staged operating licenses is a result of a recent change on the Uruguayan environmental legislation. The Company does not anticipate that the change in the permitting process will cause any issues for Orosur due to the Company's historical high standard of operating performance and compliance with environmental regulations. The construction of phase two of the new storage facility is underway and should be finished in the third quarter of fiscal year 2012-2013.

Gold - ↑Trading at $1599, up $10 (+0.66%)

Silver - ↑Trading at $27.51, up 3c (+0.14%)

Copper - ↓Trading at $7554, down $60 (-0.77%)

Zinc - ↓Trading at $1852, down $1 (-0.02%)

WTI Crude - ↓Trading at $85.32, down 66c (-0.76%)

Brent Crude - ↓Trading at $99.08, down $1.22 (-1.16%)

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com or www.fox-davies.com

Dollar Index (DXY) 

I highlighted the potential bounce off of the 50 day moving average (green line below) in the last note, and the ramifications for global indexes and commodity prices. The index is fast approaching the highs seen on the 1^st of June at 83.54, with the index trading at 83.25 at the time of typing. Any break and close above the recent highs could spark a rally towards the 85 level.

S&P 500 (SPX) versus Dollar index (DXY) 

Another comparison chart I watch closely, is the S&P 500 versus the Dollar index charted below. A couple of weeks ago I highlighted the important level this comparison index was heading towards, and the potential breakout and breakdown. It would appear that the dollar is heading for a breakout, with the S&P 500 heading for a breakdown of the recent trend. As we head into the US earning season tonight, its all to play for.

Gulf Keystone (LON:GKP) continued to keep chins wagging after a report in The Telegraph from the 5^th of July hinted that Kurdistan had begun trucking exports of crude oil across the border to Turkey. Other snippets of speculation that were doing the rounds included chatter that the courts had asked who was bankrolling Excalibur for the upcoming court case expected to begin on October. All speculation and chatter aside, one thing we can be sure of is the markets expecting an update on drilling from Shaikan 6 (SH-6). We would also be expecting an updated CPR report to factor in the recent drilling activity to be hitting the market soon. We are very bullish on the story and have been for some time, we currently have a BUY rating on the stock with a 350p price target. Shares were trading flat at 211p at the time of typing.

Bowleven (LON:BLVN) slipped 9% to 64.5p during early trading as short term speculators jumped ship as the speculated Monday RNS did not materialise. A couple of updates are due over the next few weeks, which are the full year numbers and the long awaited volumetric study. We will be watching the newswires closely over the next few sessions for both. 

SacOil Holdings (LON:SAC) slipped 4% to 2.875p at the mid-price during afternoon trading after the company said that it is still in the process of considering specific potential transactions, which if successfully concluded, may have a material effect on the price of SacOil ordinary shares. The delay in reaching a resolution is due to a revised transaction structure, additional parties, and regulatory/ approval processes which are taking longer than initially anticipated. Shareholders are advised to continue to exercise caution when dealing in their SacOil Shares until a further announcement is made in this regard. 

JKX Oil & Gas (LON:JKX) traded flat at 108.75p during early trading after the company said it has received the final permit to operate its Koshekhablskoye natural gas field in southern Russia, but warned that the anticipated ramping-up of production has been delayed while Well 27 is brought on stream. Well 27 is currently being sidetracked in the reservoir section following a blockage and is now anticipated to be on stream at the end of the third quarter. 

TomCo Energy (LON:TOM) continued to push another 6% to 1.75p at the mid-price during early trading after the company said on Friday it won't to pursue an equity fundraising at the present time given the adverse market conditions and the delay to the issue of Red Leaf Resources Inc's groundwater discharge permit. TomCo will continue to review its funding options, which include the possible sale of its stake in Red Leaf, if appropriate. Red Leaf is undertaking additional voluntary water studies, including some additional drilling to further support its application for a groundwater discharge permit. TomCo believes that this won't affect the Red Leaf timetable of first commercial production from the early production system capsule planned for early 2014. 

Ascent Resources (LON:AST) rebounded from its recent lows during afternoon trading, jumping 11% to 2.5p on twice Fridays volume by the 2pm hour. The shares are still a long way off of the 4p high seen early last year.

EMED Mining (LON:EMED) surged 10% to 12.5p during early trading after the company said it has entered into a 10-million-euro Sale and Purchase Agreement for land needed for waste deposition next to the Rio Tinto Copper Mine in Spain, and added that it raised aggregate proceeds of five million dollars from a share subscription with an existing shareholder. Buys land from Rumbo 5-Cero, S.L., part of an Andalucian investment group. Parties intend to enter into a 50/50 joint venture to test and potentially exploit some tailings and waste dumps; EMED Mining will be the operator of the JV. Acquisition is required to restart production; satisfies almost all of the project's needs for tailings deposition from proposed operations. Major shareholder and cornerstone customer Yanggu Xiangguang Copper Co. Ltd agreed to subscribe for 32.2 million new ordinary shares at 10 pence per share for aggregate proceeds of $5 million. Funds will be partly applied in funding the cash consideration for the acquisition of the Land. 

Centamin (LON:CEY) slipped 10% to 66p on speculation in the Egyptian press suggesting the company was at risk of having its concession agreement with the Cairo government revoked due to accusations of breaches of contract. This speculation forced the company to issue an RNS that said "Centamin notes that an un-named government source was quoted in a local Egyptian paper as stating there were breaches of the concession agreement. Centamin confirms that there have been no such breaches, no notice of breaches have been served and operations at Sukari continue as normal." 

Kenmare Resources (LON:KMR) dropped 8% to 35.2p during early trading after Iluka reduced sales guidance for 2012. The company sold 87kt of zircon in H1 and forecasts full year sales of 200-300kt. Guidance on 8th May was cut be 14%, from 500kt to 430kt. Guidance for rutile and synthetic rutile was also reduced from guidance given in February. Rutile production guidance was cut from 225kt to 140-200kt and synthetic rutile from 310kt to 170-200kt The reduction is attributed to a deteriorating economic outlook and a reduction in indicated demand from customers for H2. 

Berkeley Mineral Resources (LON:BMR) fell 8% to 3.4p at the mid-price during afternoon trading after the company said it hasn't been able to complete due diligence over the two remaining copper tailings dumps at the Chingola area in the north of the country. The company is continuing to negotiate with the directors of the parties concerned, with BMR's exclusive right to carry out due diligence for one cluster extended until at least Aug. 8. Berkeley also noted that its Zambian development team has started negotiations regarding option agreements over further copper clusters in the Ndola area in northern Zambia. 

Pathfinder Minerals (LON:PFP) surged 11% to 1.05p at the mid-price during afternoon trading after the company said that on July 6 it obtained an order from the English High Court striking out the Defence and Counterclaim of ex-director General Veloso, Diogo Cavaco and JV Consultores Internacionais Limitada, the defendants, to the company's claims, on the basis of the Defendants' breaches of the English Court's orders and their stated intention no longer to participate in the English Court proceedings. The Court also ordered that there should be a hearing of the company and its subsidiary, IM Minerals Ltd's, or IMM, application for judgment on their claims on an expedited basis and that the Defendants should pay the Claimants' costs of the strike-out application. 

Aurum Mining (LON:AUM) moved 8% higher to 3.25p at the mid-price during early trading after the company said it has been given approval to exercise its option to acquire five tungsten permits, known as the Morille permits, in Spain. Aurum said it has completed legal, technical and financial due diligence and that the 140,000 euros ($172,000) acquisition cost will be funded from existing cash. The vendor, who is a private individual, will retain a 1.5% net smelter royalty. Aurum is now in the process of incorporating a Spanish subsidiary to hold the Morille permits and as soon as the entity is incorporated it will proceed with the formal acquisition process. The Morille permit area is a brownfield site 15 kilometers southwest of Salamanca, covering an area of 5,796 hectares where there has been a long history high-quality tungsten concentrates production. 

Gold - ↑Trading at $1583, up $2 (+0.13%)

Silver - ↑Trading at $27.21, up 4c (+0.66%)

Copper - ↑Trading at $7541, up $14 (+0.18%)

Zinc - ↓Trading at $1840, down $15 (-0.84%)

WTI Crude - ↑Trading at $84.47, up 1c (+0.02%)

Brent Crude - ↑Trading at $98.38, up 19c (+0.19%)        

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Commodities vs. The Dollar Index (DXY) 

The comparison chart below highlights the direct correlation between the Dollar Index and its ramifications across a number of commodities. The main worry for the short term commodity prices still remains the potential for a Dollar index breakout. You will see from the second chart attached, that the DXY is starting to creep higher once again after a period of decline. We will continue to watch the charts below tick for tick for any potential breakouts or breakdowns. 

Dollar Index (Red line) - Gold (White line) - Copper (Blue line) - Silver (Green Line) - Zinc (Pink line)

(Source = Bloomberg)

The Dollar Index (DXY) 

I highlighted the dollar index a couple of days ago, as an important index to keep a close eye on as any move back toward the top end of the index could cause commodities to sell off once again. The index has started to edge higher once again, and look as if it is on course to test the recent high at 83.542.

(Source = Bloomberg)

Red Emperor Resources (LON:RMP) continued its push higher again today, adding another 5.15% to 22.375p during afternoon trading as the market continued to cheer JP Morgan Chase & Co. taking a 5.15% holding in the company. We (Fox Davies) currently have a BUY recommendation on the stock with a 65p price target. 

Valiant Petroleum (LON:VPP) pushed 3% to 365p during early trading after the company said that its non-executive chairman Kevin Lyon bought 20,000 shares at 360 pence a time and now has 80,000. The shares price did tack a recent turn for the worst after the company said that drilling had been completed on the Tryfan prospect located in U.K. Block 3/17, and the well had been plugged and abandoned. The well encountered both Frigg and Dornoch sandstones on prognosis with a small gas column present at the top of the Frigg formation interpreted to be sub-commercial. 

Afren (LON:AFR) pushed 2% higher to 98p during afternoon trading on the back of Singer Capital Markets placing a BUY rating on the stock with a 160p price target. The shares are a long way off of the recent highs of 140p and the low 90s have now set a decent support level for the company. 

Aminex (LON:AEX) jumped 10% to 4.425p at the mid-price during early trading after the company said that the Ntorya-1 well, its natural-gas discovery in the Ruvuma Basin in southern Tanzania, has been tested and demonstrated strong commercial potential. The well flowed gas at a maximum rate of 20.1 million standard cubic feet a day--the equivalent of 3,350 barrels of oil a day--and an estimated 139 barrels a day of very light gas condensate. Small volumes of formation water were also produced. Aminex said the data gathered during testing indicates an initial reservoir pressure of 5,424 pounds per square inch. The successful testing of this reservoir will be followed by a seismic survey program later in the year to gain a fuller understanding of the extent of this discovery and identify further drilling targets. 

Solo Oil (LON:SOLO) pushed 10% to 0.53p on the back of the Aminex update. The company plans to farm-down, or sell, half of its 25% stake in the Ruvuma basin in Tanzania, in exchange for the cost of its share of the work program, including the drilling of two more exploration wells, some seismic surveys and possibly a well appraising its recent Ntorya-1 gas discovery, the CEO said Thursday. "From a Solo point of view, we've ended up with a bigger share of this than we had originally intended. We've got 25%, and we'd be happier with a smaller share, so we'll use some of the excess equity to farm-down and get someone to carry out some more work for us, and add some value at no cost to us," Chief Executive Neil Ritson told Dow Jones Newswires on a call. "I think we'll probably look to halve our stake back to our original 12.5%. For that we would anticipate getting quite a bit of the forward work program done," the CEO said.  Aminex's subsidiary Ndovu Resources Ltd. is operator of the Ruvuma Basin production sharing agreement, with Solo Oil PLC (SOLO.LN) holding the remaining 25%.

Antrim Energy (LON:AEY) slipped 11% to 32p during afternoon trading after the company announced that in connection with the recently completed transaction with Crown Point Ventures Ltd., involving Antrim's assets in Argentina, Dr. Brian Moss has accepted a position with Crown Point and has resigned his position as an Antrim Board Member and as Executive Vice President, Latin America. Brian was instrumental in adding significant value to the Antrim properties in Argentina and the Board of Antrim wishes to thank Brian for his considerable contribution to the Company.

Aquarius Platinum (LON:AQP) continued its recent bearish form, slipping another 6.5% to 45.55p during early trading. The company has given a number of bearish updates over the last few months, and the market has continued to act accordingly. The 52 week high for the stock is 330p, a long way from the new 52 week low printed today at 45.356p. 

ATH Resources (LON:ATH) dropped 22% to 3.5p at the mid-price during early trading after the company reported a significantly widened pre-tax loss for the first half of the year and said that annual levels of production will be reduced until coal prices recover. Pre-tax loss for the six months ended April 1 was 7.1 million pounds, versus a loss of GBP3.6 million for the year ago period. Adjusted operating loss of GBP3.9 million versus a profit of GBP1.7 million. Revenue of GBP44.6 million versus GBP33.9 million Diluted loss per share 12.8 pence versus a loss of 7.9 pence. Adjusted diluted loss per share of 7.7 pence versus a loss of 0.4 pence. Sales of 796,000 tons versus 706,000 tons. Net borrowings at GBP30.6 million versus GBP31.5 million as at Oct. 2, 2011. Production costs increased due to increased mining ratios and higher gas oil costs. Further measures will be implemented to minimize operating costs and capital expenditure. Exceptional write off of work in progress of GBP2.0 million in respect of increased workings at Muir Dean. Proved and probable reserves of 7 million tons versus 7.9 million tons. Applications for two new sites totalling 1.7 million tons submitted into planning. Trading conditions are expected to remain challenging. 

Noventa (LON:NVTA) slipped another 15% to 1.9p during early trading after the company reported a wider full year pre-tax loss and said that previous fundraising proposals for development have been dropped. Revenue in year ended Dec. 31 $5.61 million (2010: $2.3 million) Pre-tax loss $54.71 million (2010: $10.32 million) Diluted loss per share 95.9 cents (2010: 75 cents) Cash and cash equivalents at year end $7.87 million (2010: $23.4 million) Development will be supported by the current additional funding being sought of $35 million. Board is exploring two options to raise this finance, being either through loan financing from Richmond, the company's largest shareholder, or through an equity offering. Proposals previously announced on May 11, 2012 will now no longer be undertaken. In the event that the company is unable to secure the new funding on acceptable terms, there is a risk that the company may lose its concessions and that it may also become insolvent, not least due to the requirement to repay $7.7 million of short term debt provided by Richmond subsequent to the year-end which falls due on July 31, 2012. 

Noricum Gold (LON:NMG) fell 40% to 1.1p during afternoon trading after the company said that it raised £2.2 million pounds by placing 220 million ordinary shares with new and existing shareholders at 1 pence per share, and said the funds will be used to implement its 2012 exploration program. The Program is across highly prospective Austrian gold and precious metal assets, with a particular focus on its 51 sq. km Rotgulden gold and precious metal licence where results to date have demonstrated the project's exciting regional potential. 

Greatland Gold (LON:GGP) jumped 15% to 0.78p during afternoon trading on the back of its update yesterday that said drilling results for the Ernest Giles project in Australia has confirmed gold mineralization. Four reverse circulation (RC) holes have been completed to date at Ernest Giles, three holes at the Calanchini target area and one hole at the Peterswald target area. Gold mineralization has been intersected at Calanchini. Prospective Archean basement occurred at shallower depths than expected at Calanchini; from 129 meter below surface. Archean basement was not intersected at the Peterswald area hole. 

Sunkar Resources (LON:SKR) eased 11% to 4.2p after the company announced late in the session that its subsidiary, Temir Service LLP has repaid a total of $2.5 million to ATF Bank Kazakhstan scheduled for repayment before July 1 in accordance with the terms of the refinancing announced on May 10.

Gold - ↓Trading at $1570, down $4 (-0.24%)

Silver - ↓Trading at $26.95, down 4c (-0.06%)

Copper - ↓Trading at $7416, down $37 (-0.51%)

Zinc - ↓Trading at $1799, down $4 (-0.19%)

WTI Crude - ↑Trading at $80.61, up 41c (+0.52%)

Brent Crude - ↑Trading at $93.60, up 10c (+0.11%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Borders & Southern (LON:BOR) has been a bullish market over the last few sessions, moving from 66p to 73.5p as the market gets ready for the company to hit Target Depth on drilling at the Stebbing Prospect. We would expect them to be at TD in the early part of next week according to the last update. Shares were 2% easier in-line with the broader market, at 69.5p during afternoon trading.

Clontarf Energy (LON:CLON) were 10% easier at 3.375p at the mid-price during afternoon trading after the company posted a narrowed pretax loss for 2011, and said it is confident of negotiating a joint venture on its Panguana project and a farm-in on the remainder of Block 188. Pretax loss for year ended Dec. 31 GBP870,082 (2010: loss GBP2.23 million) Loss per share 0.52 pence (2010: loss 2.96 pence) Cash GBP491,865 (2010: GBP54,548) Confident of negotiating a joint venture on Panguana and a farm-in on the remainder of Block 188. Leads identified on Block 183 will provide the basis of future joint venture negotiations. Panguana deal being sought will finance Clontarf for the coming year. 

TXO Plc. (LON:TXO) was 12% easier at 0.325p at the mid-price during early trading on huge volume as the market continued to digest yesterday's Interim Management Statement.

New World Oil & Gas (LON:NEW) eased 6% to 11p at the mid-price during afternoon trading after the company said it has received a positive update to the Competent Person's Report ('CPR') from RPS Energy for the Blue Creek Project located in the productive Peten Basin in Northwest Belize. Key findings of the CPR: Third potentially significant lead in the West Gallon Jug ('WGJ') area, identified in addition to two drill ready prospects, A and B Crest Prospects A and B Crest are confirmed as seismic based and drillable with 1 in 5 Probability of Geologic Success - WGJ assigned 1 in 10.

Sirius Petroleum (LON:SRSP) pushed 8% to 3.375p at the mid-price during early trading after the company said it has signed a pre-farm-in agreement with an unnamed party to acquire a minimum 25% interest in an offshore oil block, estimated to contain over 1 billion barrels. The block, located in the offshore Niger Delta Basin, is in water depths between 50 and 100 metres. Sirius will be required to pay a total farm-in fee of $9.0 million, of which an initial amount of $3.5 million is payable on signing the agreement, in aggregate to its partners in the block, the balance of which will be due based on to-be-agreed payments on future milestones. A farm-in agreement normally involves an oil and gas company buying an interest from another company within an existing oil field, often to help finance development and production. A signature bonus of $6.25 million will also be payable to Nigeria's Department for Petroleum Resources, on signing the agreement. In return for its stake, Sirius will fund half of an initial work program, with the partners contributing the balance, though there is a preferential cash flow to Sirius and its farm-in partner of 80% to recover this cost. The balance will be shared according to each party's economic interest.

Ruspetro (LON:RPO) moved 5% higher to 139.5p during afternoon trading after the company was informed on 20 June 2012 that Mr. Christopher Clark, Non-Executive Chairman, has purchased 100,000 ordinary shares of 10p each in the Company at a price of 134p per share. Following this transaction, Mr. Clark will hold a total of 100,000 shares in RusPetro representing 0.03% of the Company's issued share capital.

Serica Energy (LON:SQZ) pushed 4.5% higher to 26.75p as the market continued to cheer the recent seismic update that stated it has finished a seismic survey on its offshore Namibia licence at the central Luderitz Basin and expects the data to reveal new drilling targets. The three-dimensional seismic survey, covering 4,150 square kilometres, was completed in June by BP PLC (BP.LN) as part of a deal in which the oil major will earn a 30% stake in the project. Serica said the data is of good quality, and will be used to identify further drilling prospects. In addition to paying the full cost of the survey, BP has an option to acquire a further 37.5% of the license by funding the drilling and testing of a well.

It was no surprise to see a few sellers show up to the recent rally in JKX Oil & Gas (LON:JKX). The shares have been on a cracking run, pushing from 94p to the recent high of 120p.

Beowulf Mining (LON:BEM) eased 3.5% to 13p during afternoon trading after the company said it is pleased to announce encouraging preliminary results from initial drilling conducted at Kallak North with a second drill rig now in operation. The ongoing initial phase of the Company's 2012 drill programme is currently intended to comprise up to approximately 7,000m of drilling aimed primarily at defining the limits of the extension of the Kallak North deposit, both in terms of breadth and depth. In addition, Beowulf announces the outstanding assay results in respect of its 2011 drill programmes conducted on both Kallak South and Kallak North 2012 drill programme. The "Big Bertha" drill rig initially drilled an extension to the pre-existing drill hole KAL 10 019 at a 45 degree inclination. Strong iron (Fe) mineralisation was encountered at a depth of 79.5m, which continued down to 313.8m, from where weaker mineralisation was noted until reaching the total target length of 374.5m. A second drill rig, "Agnetha", is now also in operation and has commenced drilling at a 45 degree angle to test the North/East boundary of the Kallak project area, as well as seeking to define the depth of the Kallak North deposit. Assay results from the initial holes in the ongoing programme are expected in August 2012. The company announced back on the 29^th of May that drilling has restarted on the northern part--Kallak nr1 license area--of the group's Kallak iron ore project, located in the Jokkmokk municipality in the Norrbotten County in Northern Sweden. Drilling has restarted following due notice of the planned operations having been provided to the local Saami community. Jokkmokk Iron Mines AB, or JIMAB, Beowulf's wholly owned Swedish subsidiary, currently expects to drill 7,000 meters over the coming months. Initially, one rig specifically focused on drilling at depth has started work, which will be joined by another rig in June with the potential use of additional rigs currently under review. JIMAB will seek to ensure that laboratory work is performed in tandem with the drilling operations to facilitate the timely reporting of results.

Noventa (LON:NVTA) slipped 32% to 2.8p during afternoon trading after the company said that following ongoing negotiations with Richmond Capital LLP, it doesn't now expect to be able to finalize the long term refinancing plans under the terms announced May 11. Noventa is exploring other long term refinancing options, including an issue of new equity, while continuing to hold discussions with Richmond. Company's existing 10 million dollar loan facility from Richmond matures on July 31 and the Company will require additional finance in place prior to its expiry.

Premier Gold Resources (LON:PGR) slipped another 10% to 0.33p on no news yet again. The last bit of news from the company hit the wires back on the 18^th of June saying the company had commenced the 2012 exploration programme on the Cholokkaindy licence in Kyrgyzstan. The season has commenced with an extensive soil sampling program and further trenching. Diamond drilling in this season will help establish a geological resource on the licence in 2013. As part of the work program this season the Company expects to drill a total of 1,500 metres in the target area of the Talbaital prospect, as well as the Jarkonush prospect if the season allows. Premier Gold plans to drill a minimum of six holes to depths of up to 250 metres and intends to report initial results from core obtained from these prospects by Q4 2012. Trenching and soil sampling in priority areas has already begun.

Aquarius Platinum (LON:AQP) eased another 11% to 53.3p during early trading after the company said it will halt operations at its Everest mine in South Africa after low metal prices and an ongoing industrial relations dispute rendered the mine uneconomic. The announcement to place the mine "on care and maintenance" from close of business Thursday comes just weeks after the company stopped operations at its Marikana mine, citing sustained weak platinum group metal prices. "The board of Aquarius has concluded that the only defensible strategy for any platinum producer is to cut all non-essential capital expenditure, and place all non-contributing assets on care and maintenance while optimising profitable operations for maximum contribution in the current low price environment," it said in a statement to the Australian stock exchange.

Shanta Gold (LON:SHG) jumped 10% to 22p during afternoon trading after the company said it has successfully completed wet commissioning at the New Luika Gold Mine, which satisfies the final condition for the receipt of the remaining 2.5 million dollars of the $15 million FBN Bank facility, which has now been approved by FBN Bank. Hot commissioning of plant is to start imminently. First gold production is expected by mid-Q3, followed by cash receipts by the end of Q3. Current ore and gravels stockpiles estimated to contain over 22,000 ounces of gold. Q4 2012 production guidance of 13,000-17,500 ounces of gold. As of May 31, Company had a stockpile inventory of 117,000 tons of gold bearing ore; average grade control sampling suggest that the stockpile may contain over 22,000 ounces of gold; approximately $35 million at current gold prices. 

Nyota Minerals (LON:NYO) surged 11% to 5.75p during afternoon trading after the company said it will raise 1.3 million pounds ($1.6 million) via a share sale to International Finance Corporation to finance its flagship Tulu Kapi gold project in Ethiopia. IFC, a member of the World Bank group, will subscribe to 21,727,650 new ordinary shares of Nyota Minerals at 6.0 pence a share. "We are delighted that the IFC has taken this decision, which is a clear demonstration of their support for the Tulu Kapi project and the work that our team is doing in Ethiopia," Chief Executive Richard Chase said. A study released in March estimates Tulu Kapi contains 1.67 million troy ounces of gold. Nyota is currently undertaking drilling at the project to increase its confidence in the estimated resource size, as part of a definitive feasibility study, and expects to apply for a mining license at the end of June.

A few profit takers showed up to the FTSE 100 today, helping push the index 40 points easier to 5583 (-0.37%) on volume of just over 450 million shares by the time the US opening bell had rung. The FSTE AIM All-Share Index was 0.22% easier on volume of 725 million shares.

Gold - ↓Trading at $1584, down $22 (-1.37%)

Silver - ↓Trading at $27.49, down 58c (-2.02%)

Copper - ↓Trading at $7367, down $93 (-1.23%)

Zinc - ↓Trading at $1849, down $1 (-0.01%)

WTI Crude - ↓Trading at $79.91, down $1.52 (-1.87%)

Brent Crude - ↓Trading at $91.54, down $1.20 (-1.29%)        

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Sefton Resources (LON:SER) pushed 10% to 1.8p during early trading after the company said it has signed a 15-million-pound ($23.4 million) equity financing deal with Darwin Strategic Ltd., a subsidiary of fund management group Henderson Global Investors. To further improve its future financing alternatives, Sefton also said it is looking to put in place larger and more flexible debt facilities as well as industry-related financings such as joint venture financing or farm-out deals. "Moving ahead we expect a good news flow as in the coming months Sefton will be announcing the results of the Dr Farouq Ali's steam flood report on Tapia, the first revenues from Kansas and updated Competent Persons Reports on both California and Kansas," said Chairman Jim Ellerton. 

Range Resources (LON:RRL) initially pushed 4% higher to 7.68p before settling back down at 7p after the company said its drilling programme along its Lower Forest trend in the Morne Diablo Block in Trinidad is continuing successfully. Has drilled 15 wells along the trend successfully completed all 15 positioning Range to reach 1,000 bopd in the coming weeks as well-tests and perforations are completed. Sees 60+ well program for the Lower Forest horizon, using shallow capacity rigs, that will look to bridge the gap between the existing wells and the QUN 16 well. Upward revisions to Trinidad P1 and P2 reserves expected to be certified in 3Q. Range will stage-in additional equipment throughout the year as it continues to add rigs with greater operating depth capabilities. First 6,500 ft. well to spud shortly, followed by two Herrera wells. 

Falkland Oil & Gas (LON:FOGL) moved 6% higher to 95p during early trading after the company announced that the execution of a farm out agreement with Edison International S.p.a. ("Edison"). On 20 March 2012, the Board of FOGL announced that it had granted an option to enter into a Farm Out Agreement (FOA) to an industry counterparty. That counterparty was Edison which was unable to conclude the farm out agreement at that time as it was undertaking a corporate reorganisation which led to EDF becoming a controlling shareholder. Summary terms of the Farm Out Agreement - Edison will farm in and earn a 25% interest in FOGL's northern area licences. Edison will contribute its pro-rata share of the costs of the 2012 drilling programme, comprising two exploration wells. Edison will farm in and earn a 12.5% interest in FOGL's southern area licences and will contribute its pro-rata share of the 2012 work programme. Edison will also pay its pro-rata share of certain historical costs incurred by FOGL during 2011 related to the 2012 drilling programme. Edison's share of historical expenditures, together with their share of the 2012 drilling programme costs, are expected to be of the order of $50 million. In addition Edison will make a separate cash contribution to FOGL of $40 million; $20 million on completion of the FOA and a further $20 million in 2013. In order to obtain the option, Edison had already paid a $3 million non-refundable fee. FOGL will retain operatorship of the northern and southern area licences. 

Very strange goings on in Xcite Energy (LON:XEL) during early trading, with the stock going into auction after someone hit the bid side of the book for 10%, to send the stock into a limit down auction. During the auction some very unfortunate punter sold a scrap of stock at 35.84p while there was virtually nothing on the bid side of the book. Shortly after the auction had uncrossed at 71p down 8% the shares started to move slowly better, trading at 74p while I type. This kind of move is a common theme at the moment as people get stopped out of positions at market due to market conditions. 

Salamander Energy (LON:SMDR) eased 3% to 165p during afternoon trading after the company said the Far East well located on the B8/38 license, Gulf of Thailand, has been drilled to a total vertical depth sub-sea (TVDSS) of 1,396 meters and is currently being prepared for a Drill Stem Test (DST). Well encountered a 25 meter section of excellent quality T5 Miocene sandstones. Following the acquisition of a full suite of wireline logs, the sandstones were interpreted to be water-wet, with no evidence of hydrocarbon saturation. Well was then deepened to test the secondary objective. Well penetrated a conglomeratic section overlying the Ratburi carbonates from 1,348 meter TVDSS to current total depth (TD). Oil shows were observed at 1,366 meter TVDSS and severe mud losses were experienced from 1,370 meter TVDSS. Interpretation of logging while drilling data shows zones of potential oil pay in highly porous section from 1,365 meter to current TD. 

Kea Petroleum (LON:KEA) slipped 8% to 9.375p at the mid-price during afternoon trading after the company said that New Zealand Petroleum and Minerals has extended the duration of its license PEP 381204 for a further five year period and that Kea is in an advanced stage of planning for drilling the Mauku 1 well in the PEP 381204. PEP 381204 straddles the coast line and covers an area of some 252 kilometers in the Northern Taranaki Basin.  Planning is well underway for the drilling of Mauku 1, which is subject to a funding and offtake agreement with Methanex and which is located on the onshore portion of the permit. Engineering and design of the well has been completed and long lead items sourced. Local consents are in the process of being finalized with the local Maori Iwi and Waikato Regional Council having already consented to the well and associated construction works. Kea Petroleum currently has an option for a further well using the NRG rig which it intends to use for the Mauku 1 well. The rig successfully drilled the recent Douglas 1 well for Kea, which was completed ahead of schedule and under budget; Mauku well is anticipated to spud in late 4Q 2012. Jet pumping and swabbing operations have ceased at Douglas-1 and the well is currently suspended for a period of approximately 2 months prior to the recommencement of testing operations. Formation water, from extensive fractures within the Tikorangi, mixed with fluids lost down hole during drilling operations dominated flow during testing. Sourcing of the equipment to commence a longer term production testing of the Puka-1 well to establish production rates and reservoir characteristics continues and significant progress has been made in this regard. Kea anticipates the longer term testing program to start within the coming fortnight.

Bushveld Minerals (LON:BMN) were unchanged on the day at 18p after the company said that drilling is progressing well at its Mokopane iron ore project. Drilling progressing well on the Mokopane Iron Ore Project - 1,522 meters drilled between April 23, 2012 and May 31, 2012 to upgrade inferred resource to indicated resource and to extend resource Work program on the Zaaiplaats tin target making steady progress. High-resolution airborne geophysical survey to commence over both iron and tin licenses in July 2012. Company on track to deliver a revised JORC resource in 4Q 2012 following the current drilling campaign that is underway. Company now on target to deliver the scoping study on the Mokopane iron ore project by 1Q 2013 following the recent appointment of consultants to advise on the work streams. 

Herencia Resources (LON:HER) today we met with management of Herencia Resources who updated us on their Paguanta project in Chile. We like the story a lot. Herencia is progressing a Feasibility Study into the proposed Patricia Mine (zinc, silver, lead) within the Paguanta Project due to be completed towards the end of the year. With Nyrstar International BV - the world's biggest Zinc smelter - on board as a strategic investor and operating in a stable political environment in good proximity to infrastructure, mining services, ports, transport, and water, we believe the company has a nice little project on their hands. The Mineral Resource Estimate Update on Friday (increasing the combined Measured and Indicated Resource categories by 244%) barely moved the share price, despite the company revisiting the possibility of initial production from an open pit which should reduce initial capex costs. At £18million MCap the stock is looking particularly cheap 

Caspian Holdings (LON:CSH) tried to push during afternoon trading after the company said it completed 1,000 meters of a 3,000-meter reverse circulation drilling program at the recently-purchased Portalegre gold exploration licence in Portugal, and said assays from the first 5 of 11 holes yielded good results. Project comprises two adjacent exploration licences - Sao Martinho and Crato-Assumar-Arronches - covering an area of approximately 500 square km. True width has not yet been determined. Program should be completed over next five months. 

Affero Mining (LON:AFF) jumped 6% to 41.625p at the mid-price during early trading after the company said it is pleased to announce the appointment of Mr Ousmane Kane (57) as a Non-Executive Director of the Company with immediate effect. Mr Kane has had an established and diverse career with leading Mauritanian and pan-African public and financial institutions. During pivotal periods over the last few decades, he served as Minister of Finance and Governor of the Central Bank of Mauritania, as Director General of Mauritania's state-owned iron ore company Societe Nationale Industrielle et Miniere ("SNIM"), and as Senior Adviser to Mauritania's Head of State. Whilst holding these positions, Mr Kane initiated and managed major official reform, restructuring and investment programmes, including at SNIM (Africa's second-largest iron ore exporter), with the successful implementation of a $1bn financing for the modernisation and the development of the company, whilst concurrently addressing challenges related to the 2008-09 global economic crisis. 

Continental Coal (LON:COOL) slipped 4% to 6.125p after the company said sales from Penumbra Coal Mine is expected to commence in early fourth quarter. Sales of 500,000 tons per annum of a high quality export thermal coal RB1 specification coal product are forecast to commence in early fourth quarter. Planned production of 750,000 tons per annum of ROM coal will be beneficiated through the existing and adjacent Delta Processing Operations. Mine is forecast to generate annual free cash flow of between 15 million dollars and $20 million. During the month of May 2012, Murray & Roberts advanced the twin decline development a further 98 meters, an increase on the 58 meter achieved in April. As at the end of May, the twin declines had been advanced to a combined total length of 233 meters. Conveyor road has advanced down 126 meters and the travelling road down 107 meter. 

Oracle Coalfields (LON:ORCP) pushed 3% to 4p during early trading after the company said its 80%-owned unit Sindh Carbon Energy Ltd. signed a Joint Development Agreement with Karachi Electric Supply Company Ltd. to provide KESC with a long-term supply of coal and water. Agreement supersedes the MoU signed between the respective parties on December 12 2009. The coal and water will be used initially by a 300MW coal-fired power plant (with potential to be increased to 1,100MW) which will be constructed by KESC adjacent to Oracle's planned coal mine in Block VI of the Thar Coalfield in Pakistan, in an area that will be sub-let by SCEL to KESC as part of the JDA agreement. SCEL reserves the right to enter into discussions with other third parties to supply coal.

Dollar index (DXY - Red Line) Vs. S&P 500 Index (SPX - White Line) (Source = Bloomberg) 

As you can see the dollar index has been edging higher over the last few weeks, and looks to be on course to retest the recent highs. If the DXY breaks out again we could possibly see another 3% to 5% move easier on the S&P 500. We will be watching the DXY very closely over the next few sessions for any clues on the next move.

Dollar Index (DXY) (Source = Bloomberg)

As you can see the DXY did slip a touch to test the support of the 50 day moving average, we will be looking for a retest of the highs seen back on the 1^st of June at 83.54. Any break of this level would not be good for global markets and commodity prices.

Gold - ↓Trading at $1575, down $11 (-0.71%)

Silver - ↓Trading at $27.25, down 28c (-1.04%)

Copper - ↓Trading at $7360, down $43 (-0.58%)

Zinc - ↓Trading at $1795, down $4 (-0.19%)

WTI Crude - ↑Trading at $79.34, up 16c (+0.18%)

Brent Crude - ↑Trading at $92.08, up 99c (+1.13%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Max Petroleum (LON:MXP) tried to push higher during early trading, reaching a high on the day of 5.25p, although the trades that high only went through while the stock was still uncrossing at 8am. The shares did settle around the 4.15p area during afternoon trading. 

Ithaca Energy (LON:IAE) eased 10% to 99p during early trading after the company issued an Athena Operations Update saying the operational programme since start-up has been focused on achieving full and stable production from the four production wells and processing plant on the BW Athena floating production, storage and offloading vessel ("FPSO") and assessing the potential of the wells and the optimal production rates for the maximisation of oil recovery from the field over the coming years. The execution of these operations has progressed as planned. All the production facilities are now fully commissioned and the BW Athena is operating as designed, with continued well optimisation activities ongoing. The first cargo of crude has been transferred from the FPSO to the storage tank at the Ithaca operated Nigg oil terminal using the Betty Knutsen shuttle tanker. Currently only three of the four production wells on the field are flowing as a result of a suspected downhole restriction in one of the wells. Testing has shown that there are no issues with the integrity of the well or performance of the reservoir in the area of the field drained by the well. The changeable flow rates achieved from the well during testing indicate that the restriction is likely attributable to a blockage in the production tubing located within the well. Diagnostic work is ongoing to identify the nature of the blockage and the most effective course of action for eliminating it. Gross production from the field is currently approximately 12,000 barrels of oil per day ("bopd"), 2,700 bopd net to Ithaca with three producing wells. Meanwhile, water injection is online to support the production wells. Based on the data obtained, the gross production potential of the restricted well is approximately 5,000 bopd, 1,125 bopd net to Ithaca. 

Lochard Energy (LON:LHD) slipped 11% to 8.375p at the mid-price during afternoon trading on the back of the Athena operations update. Lochard Energy have a 10% holding in the project, through its ownership of Zeus Petroleum. 

Premier Oil (LON:PMO) moved 4% easier to 327p during afternoon trading after the company said it will plug and abandon the Coaster exploration well on UK Block 28/10 and the Benteng-1 exploration well on the Buton Block in Indonesia. Coaster exploration well has reached a total depth of 5684 feet and is being plugged and abandoned as a dry hole. Total of 17 feet of Tertiary sandstones were encountered, but these were shown to be water wet on logs. Next exploration well to be drilled by Premier in the North Sea is the Spaniards East well on UK block 15/25a, which is due to spud in September. Benteng-1 exploration well has reached a total depth of 12424 feet and is being plugged and abandoned as a small but potentially commercial oil discovery. Good oil shows were encountered over a 111 feet interval from a depth of 2375 feet and initial log analysis indicates a 15 feet oil bearing Tertiary limestone reservoir. Next exploration well to be drilled by Premier in Asia is the Chim Sao Northwest appraisal well, which is due to spud in July.

Valiant Petroleum (LON:VPP) slipped 7% to 355p during early trading after the company said that drilling has completed on the Tryfan prospect (Valiant, 33.33%) located in UK Block 3/17. The well encountered both Frigg and Dornoch sandstones on prognosis with a small gas column present at the top of the Frigg formation interpreted to be sub-commercial. The well will now be plugged and abandoned. 

Serica Energy (LON:SQZ) was active once again today after the company said the Minister of Mines and Energy in Namibia has consented to the assignment by Serica of a 30% interest in Serica's Luderitz Basin Licence 0047 to Exploration (Luderitz Basin) Limited, a wholly owned subsidiary of BP, and the novated Licence has been approved by the Ministry. The assignment results from the farm-in by BP to Serica's Licence offshore Namibia which was announced in March this year. Under the terms of the farm-in, BP has agreed to earn a 30% interest in the Licence by meeting the full cost of a 3D seismic survey over an area of up to 4,150 square kilometres across the Licence. 

Petrel Resources (LON:PET) pushed 5% higher to 4.875p during early trading after the company announced its results for the year ending 31 December 2011. Highlights: Strong cash position of EUR 4.2m (2010; EUR 2.7m) aided by receipt of payments of $2.5m in relation to the Engineering, Procurement and Supervision of Services (EPC) contract on the Subba and Luhais oil field.     Gained two exploration licenses in the Irish Atlantic Margin, Diversified asset portfolio with planned expansion into Africa, Provided further financial comfort to the Ghanaian National Petroleum Company to assist ratification of our signed Petroleum Agreement on Tano 2A Block, Ghana. John Teeling, Chairman of Petrel Resources, said "We have a strong cash position, expertise, data, skills and live operations. But we are not satisfied. We are examining ways in which we can use all of the assets and expertise in Petrel to revitalise interest in the company. In a time of massive economic uncertainty, Petrel, with cash, is in a good position."

Petropavlovsk (LON:POG) moved 3% higher to 468p during early trading after Nomura Upgraded the company to a BUY from neutral and keeps its price target of 735p.

Richland Resources (LON:RLD) were 3% higher during early trading after the company announced its audited results for the year ended 31 December 2011, highlighting EBITDA profit of $3.5 million, 17% improvement from EBIDTA profit of $3.0 million in 2010. Net profit increased by 33% to $0.8 million ($0.6 million in 2010) Revenues increased by 29% to $20.5 million ($15.9 million in 2010). Consolidated bank balance at 31 December of $1.9 million. Trade and other receivables at 31 December of $6.5 million. Tanzanite inventory stock at 31 December of $5.7million (of total inventory of $6.7milion) Total assets of $47.1 million. Total non-current assets of $30.1 million. Total current assets of $17 million. Production levels were increased by 200,000 carats in 2011, up 9% from 2.2 million to 2.4 million carats. Average recovered grade of 58 carats per tonne. Grade decreased 2% compared with 59 carats per tonne achieved in 2010. Maiden Tsavorite JORC Indicated & Inferred Resource established in 2011 of 8.49 - 12.57 million bank cubic metres ("bcm") The Tanzanite Experience sales were 29% higher in 2011 compared to 2010, at $1.8 million. Post-period Highlights, JORC compliant resource upgrade for the Block C tanzanite mine, Total Inferred and Indicated Resource of 105 million carats, Commenting on the results, Chief Executive Officer, Bernard Olivier said: "Our second year of profit is testimony to our continued margin enhancement programme and significantly enhanced production rates. Despite the continuation of the global financial issues the company was able to achieve a total revenue of $20.5million and EBIDTA of $3.5 million. We continue to remain focused on creating shareholder value during 2012 through developing new markets, especially in China, and through the development of our in-house cutting and polishing facilities to maximize margins from extraction operations." 

Centamin Egypt (LON:CEY) pushed 7% higher to 69p during early trading as holders cheered the results of the Egyptian elections. The Muslim Brotherhood's Mohammed Morsi was named as the new Egyptian President. It may be a little too early to realise the intentions of the new chap, but it will be interesting watching this one unfold. 

Nyota Minerals (LON:NYO) slipped 5% to 5.45p at the mid-price during afternoon trading after the company said the latest assay results from drilling at Bendokoro and Tulu Kapi demonstrate the gold mineralization potential that exists at the company's exploration assets. Peak drill assay intercept on the Bendokoro Prospect, in the Northern Block, of 100 g/t Au over 0.64 m; and Assay results for the remaining five holes drilled at the Bendokoro Prospect in the first phase of the drilling campaign expected over the next few weeks. Tulu Kapi: Assay results from diamond drilling campaign confirm strike continuity of deep high grade mineralization Tulu Kapi Definitive Feasibility Study will represent significant milestone but exploration success is fundamental to the future potential of the Company. 

Polo Resources (LON:POL) pushed 3% higher to 2.71p during early trading after the company said it was notified on 22 June 2012 that following a purchase on the same day of 2,000,000 ordinary shares of no par value of the Company ("Ordinary Shares") at an average price of 2.58 pence per share, Neil L. Herbert, Executive Co-Chairman of the Company, is interested in a total of 85,385,625 Ordinary Shares, representing approximately 3.72 per cent. of the issued share capital of the Company.

Another day of selling pressure in the FTSE 100 again today, pushing the main index 43 points easier to 5471 (-0.77%) on painfully thin volume of 270 million shares by the time the US opening bell sounded. The FTSE AIM All-Shares Index was 1% easier on volume of 480 million shares.

Gold - ↓Trading at $1572, down $2 (-0.17%)

Silver - ↓Trading at $26.85, down 5c (-0.23%)

Copper - ↓Trading at $7313, down $18 (-0.25%)

Zinc - ↓Trading at $1798, down $19 (-1.05%)

WTI Crude - ↓Trading at $78.92, down 81c (-1.02%)

Brent Crude - ↓Trading at $90.46, down 53c (-0.58%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Sefton Resources (LON:SER) who we recently raised £2 million via a placing of 114.29 million new common shares at 1.75 pence which will be used to accelerate its plans to expand leasing and recompletion programs in Kansas and continue on-going work in California. The new funds will also finance bolt-on acquisitions in Kansas to add oil and gas reserves and production close to Sefton's pipelines in Kansas. As part of the placing Henderson Global Investors decided to take a 4.5% stake in the company and a letter of intent was agreed for a £10 million three year equity financing facility, or EFF, with Henderson-backed Darwin Strategic Ltd. which, once implemented, would provide future funding flexibility. We (Fox-Davies) have arranged a 2 day NON-DEAL ROADSHOW in London for Jim Ellerton, Chairman of Sefton Resources to introduce or update investors on the story.  If you are interested in meeting management, please contact ir@fox-davies.com

Bahamas Petroleum (LON:BPC) surged 17% to 9.5p during early trading on decent volume as retail investors continued to speculate on bulletin boards as to the reason behind the recent move. We are now back to the levels seen shortly after the Bahamas elections, and it will be interesting to see if the share price can now kick on to the next resistance level at 10p.

Roxi Petroleum (LON:RXP) jumped 17.5% to 4.25p on volume of just under a million shares during early trading. The company did say back on the 29th of May that the NK-13 well was spudded on May 28 and is planned to drill to a total depth of 1400 meters to appraise Jurassic formation in the South East channel of the Galaz Contract Area. Drilling operations are being coordinated by operation partners LGI and are expected to take 30 days.

Ithaca Energy (LON:IAE) pushed 5% to 110p on decent volume during afternoon trading as the market started to wake up to the fact that Ithaca are now potentially looking incredibly cheap based on the template formed from the Nautical Petroleum (LON:NPE) bid from Cairn Energy (LON:CNE).

Haike Chemical (LON:HAIK) eased 15% to 24.5p on almost 10 times the average daily volume after the company said that turnover for the first five months of the year fell by 13% compared to 2011 after sales volumes of key products including diesel, gasoline, dimethyl carbonate and caustic soda fell by between 50% and 70%. Accumulated loss increased for the first five months of this year. Plans to reduce costs by technical innovation and improvement; cut interest cost by introducing alternative financing sources with lower interest rates; evaluate and implement hedging for the price fluctuation of refined products; and improve sales and marketing.

EMED Mining (LON:EMED) surged 20.3% to 9.625p at the mid-price during afternoon trading on decent volume. Possibly one of the reason behind the move could be bulletin board chatter that the Spanish government has publically gazetted approval for the public viewing of the AAU (local equivalent for the EIA, Environmental Impact Assessment). Whilst we haven't received confirmation of this, if that is the case it would tend to suggest the government is comfortable with details in the EIA and now facilitating the mandatory public review. We will be watching the newswires closely over the next few sessions.

Polo Resources (LON:POL) surged 9% to 2.61p on huge volume during early trading after the company said that its independent consultant has raised the gold estimate at one of its leading projects, the Komahun Gold Project in Sierra Leone, by almost five times to 521,000 troy ounces, following analysis of drilling results. Based on the results of 68 holes totalling 11,528 meters, SGS Canada Inc., Polo's independent consultant, raised the indicated resource to 521,000 troy ounces of gold, or 3.528 million tons at a grade of 4.59 grams a ton. Polo said a further 20,000 meters of drilling is now in progress. Co-Chairman Neil Herbert said "Komahun is one of Polo's leading projects, demonstrating gold mineralization with excellent potential for early mine development. A pre-feasibility study is scheduled for completion in the first quarter of 2013 and the pace of drilling is to be increased with the addition of a third rig shortly. The study will be based on an additional 20,000 meters of core drilling designed to infill the inferred resource and extend the indicated resource."

Horizonte Minerals (LON:HZM) jumped 12% to 9.25p at the mid-price during late morning trading as the market continued to back the company after the recent £5.2 million fund raise at 7.25p. Possibly one of the reasons the market continue to get behind the stock is following the Placing, Horizonte will have net cash of approximately £9 million, sufficient to advance the 100% Araguaia Nickel project through to the end of the Pre-Feasibility Stage over the next 12 to 14 months.

Vatukoula Gold Mines (LON:VGM) slipped 16%to 30.375p on huge volume during early trading after the company announced its unaudited preliminary results from its Vatukoula Gold Mine in Fiji for the third quarter ended 31 May 2012. The company mined 114703 tonnes and processed 114091 tonnes of ore at an average grade of 3.55 g/t Au to produce 11390 ounces for the quarter. This is down considerably from the 14315 ounces produce in the previous quarter and 15 684 in the quarter before that. Cash costs for the quarter were US$2034, up from US$1426 in the previous quarter. However the company expects to achieve the previously guided cash costs of approximately US$1,400 per ounce for the remainder of the fiscal year. EBITDA for the year to date is £293000. The company held cash and cash equivalents of £6.58 M at the end of the reporting period.

International Ferro Metals (LON:IFL) slipped 5.3% to 13.25p during afternoon trading on decent volume after the company said that the Bank of China loan facility of 500 million South African rand, which matures on June 25 has been rolled forward by a further one year period at an interest rate of JIBAR +3.50%, subject to completion of final documentation.

Athol Gold and Value Limited (LON:AHG) slipped 17.5% to 0.165p at the mid-price during early trading after the company said that it has decided not to proceed with the acquisition of Oilbarrel.com Limited ("Oilbarrel") and has issued notification to Rivington Street Holdings plc. ("RSH") terminating the acquisition process with immediate effect. Under the terms of the heads of agreement, RSH is due to repay the GBP575,000 deposit plus accrued interest as soon as possible but in any event not later than 18 September 2012. Athol will retain a charge over the shares and the assets of Oilbarrel until such time as the deposit is repaid in full.

Coal of Africa (LON:CZA) have been on a decent run over the last few days, pushing from 34p to the current level of 40.75p at the mid-price. The company did announce yesterday that subsequent to the initial review of the draft definitive feasibility study for the Makhado project by Exxaro, they continue negotiations and the assessment process to finalize the valuation of the Makhado project. Deadline for a formal decision regarding the exercise of Exxaro's right to a 30% equity participation in the Makhado project shall now be Sept. 30. Detailed testing results confirmed the ability to produce a hard coking coal product and the recently announced consolidation of the new order prospecting rights over the adjacent tenements acquired in the Soutpansberg coalfield. Next phase of the evaluation process includes further detailed analysis of several key aspects of the Makhado project. Work has started and both parties remain committed to completing the process in the shortest possible time period, to enable Exxaro to make a final decision under the option by Sept. 30.

Another bullish day for the FTSE 100 index, trading 55 points higher at the time of typing to 5547 (+1.03%) as the bullish trend continues after the Greek elections. Volumes continue to disappoint with a painfully thin 330 million shares changing hands in the main index by the 2pm hour. At the same point in time, the FTSE AIM All-Share Index was 0.59% higher on volume of 430 million shares.

Gold - ↑Trading at $1628, up $2 (+0.08%)
Silver - ↑Trading at $28.73, up 3c (+0.06%)
Copper - ↑Trading at $7516, up $23 (+0.31%)
Zinc - ↑Trading at $1876, up $1 (+0.01%)
WTI Crude - ↑Trading at $83.30, up 13c (+1.22%)
Brent Crude - ↑Trading at $95.83,up 20c (+0.21%)

Nostra Terra Oil & Gas (LON:NTOG) slipped 16% to 0.55p during afternoon trading despite the company saying that the first horizontal well within the Warrior Prospect in Oklahoma has been completed and is on production and current indications are that it should become stable at about 50 barrels of oil equivalent a day. Nostra Terra has a 10% working interest in this prospect, which is operated by Crown Energy Co. The company also noted that drilling is finished on both the first and the second wells in Bale Creek, a prospect it has a 30% stake in, also in Oklahoma. Nostra Terra said the first well is currently undergoing completion operations, while the second well is being logged with completions to follow shortly afterwards. The Bale Creek prospect is operated by Pathfinder Development Capital, LLC. "Throughout the remainder of the year we anticipate adding production and reserves in our growing interests," Chief Executive Matt Lofgran said. Strong support at 0.55p and 0.53p should be a level that long term holders will draw a line in the sand ahead of the Bale Creek update.

Range Resources (LON:RRL) slipped 8% to 8.35p during early trading after the company said it has entered into an economic participation agreement with Petro Caribbean Resources Limited, under which the company will earn a 65% economic interest in Blocks PUT-6 and PUT-7 located in Colombia in return for funding the commitments under the Production Sharing Agreement with the National Hydrocarbons Agency of Colombia. Has option to move to 75% interest. To provide funding for 3D seismic and two wells. Joint venture partners to review opportunity to appraise and potentially re-enter a shut in well on Block PUT-7. Plans to re-enter the well late 2012.

TomCo Energy (LON:TOM) tried to push on during early trading to an intraday high of 2.15p on decent volume after the company said SRK Consulting (U.K.) Limited has upgraded its mineral resource statement for the Holliday Block to 126 million barrels in the measured category from 123 million barrels, after reviewing the work carried out by the company at the block. Upgraded statement based on information from 9 drill holes and 732 assays. Drilling and assaying was coordinated and supervised by SRK and the results are now supported by a program of check assays completed during 2012. Oil shale horizons are continuous across the TomCo license area and dip gently to the northwest.

Roxi Petroleum (LON:RXP) pushed 7% to 3.75p at the mid-price during afternoon trading on decent volume before the lunchtime hour. Holders were cheering the late update from yesterday that said the company is pleased to announce that all the resolutions at the General Meeting, called to approve the BNG farm-out with KNOC and at the Annual General Meeting were carried. The market is also getting ready for another update, which is due over the next couple of weeks on the drilling of the NK-13 well that was spudded back on the 28^th of May.

Quadrise Fuels (LON:QFI) continued its bearish run of form, slipping another 10% to 4.875p during afternoon trading. The shares are now a long way off of the 12p recent high back at the beginning of March this year. They are now back to what looks like a very interesting level here around 4.75p, and a level long term holders have historically made a firm stand. I will be watching closely over the coming sessions to see if the QFI bulls make a stand here once again.

Red Rock Resources (LON:RRR) slipped 12% to 2.1p during afternoon trading after the company said that Jupiter Mines Limited, in which Red Rock has a shareholding of 4.4 per cent., today released an announcement in response to a routine Price and Volume query from ASX Limited, disclosing an acquisition approach for one of its assets. The bearish move does not make much sense at this moment in time, so we will do a little more digging to find out the nuts and bolts of the approach for Jupiter Mines asset.

Highland Gold Mining (LON:HGM) eased another 2% to 97p during early trading as the market continued to sell out of the position in fear of a possible Russian corporation tax hike. Currently the Russians have a very competitive corporation tax rate of 20% compared to 30% in Australia, 28% in Norway and 35% in the US, and with Brent prices continuing to fall, this could possibly affect the Russian budget numbers that rely heavily on tax from the oil industry. Obviously any potential corporation tax hike could be bearish for Russian companies, and could be one of the reasons we are seeing a number of stocks sold down over the last few weeks.

Zincox Resources (LON:ZOX) pushed 4.5% higher to 60p during early trading after the company said that its Korean Recycling Plant has been commissioned and is in production, with recovery rates consistently above 90% and steadily rising. All of the zinc product is being sold to Korea Zinc as part of a 10-year zinc concentrate supply agreement and first revenues have been received. The company said the zinc product quality is better than it had expected having a grade of over 61%, compared with the target of 58%. All the plant's equipment is performing as expected and throughput is being increased. In addition, there has been no evidence of any issues which could potentially reduce plant performance such as the formation of accretions or briquette degradation, ZincOx added. "Throughput of the plant is building steadily towards name plate capacity as teething problems are overcome. We expect zinc recovery to increase over the next few months as the equipment is optimized," said Chairman Andrew Woollett.

Condor Resources (LON:CNR) moved 4% better to 3.5p during afternoon trading after the company said that exploration drilling on the La India Vein Set has demonstrated that wide zones of high-grade gold mineralization were left in the wall rock of the historic mine, supporting its belief that the India-California vein trend has the potential to support open-pit mining. The company said the initial results have demonstrated that the California veins extend to the surface, and therefore are expected to add gold ounces to the Indicated category, the overall mineral resource, and they have returned widths and grades of gold mineralization extending to surface that are expected to prove feasible for open pit mining. In addition to low extraction costs potential, open-pit mining has the additional benefit of exploiting previously discounted mineralized material that has been left in the old mine workings as pillars and sills. These are estimated to contain gold mineralization equivalent to 20% to 25% of historically extracted material. La India Mine produced an estimated 575,000 troy ounces of gold at an estimated 13.4 grams a metric ton head grade before its closure in 1956.

A rather quiet day for updates in the Natural Resources sector today, and in the market all round to be honest. Volumes were very light once again with only 340 million shares changing hand by the lunch time hour. As I type the FTSE 100 is currently 13 points higher at 5445 (+0.24%). The FTSE AIM All-Shares Index was 0.32% easier on volume of 450 million shares.

Gold - ↓Trading at $1589, down $6 (-0.39%)

Silver - ↓Trading at $28.71, down 9c (-0.23%)

Copper - ↓Trading at $7392, down $47 (-0.64%)

Zinc - ↓Trading at $1879, down $2 (-0.08%)

WTI Crude - ↓Trading at $82.59, down 10c (-0.12%)

Brent Crude - ↓Trading at $97.25, down 75c (-0.76%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Nautical Petroleum (LON:NPE) was the talk of the day, surging 55% to 462p during early trading after the company said that the boards of Cairn and Nautical are pleased to announce that they have reached agreement on the terms of a recommended cash offer to be made by Capricorn for the entire issued and to be issued share capital of Nautical (the "Offer"). It is intended that the Offer will be effected by way of a Court sanctioned scheme of arrangement under Part 26 of the Companies Act. Under the terms of the Offer, Nautical Shareholders will be entitled to receive 450 pence in cash for each Nautical Share held. The Offer values the issued and to be issued share capital of Nautical at approximately GBP414 million. (Nautical held cash and deposits of GBP69.9 million at 31 December 2011.) The Offer Price represents a premium of approximately: 51.1% to the closing price of 297.8 pence per Nautical Share on 12 June 2012, the Business Day immediately prior to the date of this announcement; and 45.3% to the average closing price of 309.8 pence per Nautical Share over the three month period ended 12 June 2012.

Sefton Resources (LON:SER) popped 19% to 2.225p during afternoon trading on huge volume of 31 million shares before the end of lunch. That works out at approximately 4 times the recent daily average, just past the half-way point in the trading day.

One of the reasons behind the move could be the market getting ready for this little snippet from the last operations update "Dr Farouq Ali's full field steam flood report on schedule to be received by the Company in June" We will be watching the news wires closely for the report.

Valiant Petroleum (LON:VPP) jumped 8% to 415p after the company said drilling has commenced on the Tryfan prospect located in U.K. Block 3/17 and operated by Apache North Sea Limited. Valiant has 33.33% interest in the Tryfan prospect. Tryfan has gross prospective resources estimated internally by Valiant to be 24 million barrels of oil equivalent, or mmboe, (8 mmboe net to Valiant). Well is estimated to take around 25 days to complete. At the same time Jefferies started coverage of the company with a BUY recommendation and a 560p price target.

Ithaca Energy (LON:IAE) pushed 7% to 113p during early trading on the back of the Nautical Petroleum bid and the possible read across for other north sea plays. The company also said Mike Travis (Chief Production Officer) acquired 50,000 Common Shares at a price of GBP 1.10 per share taking his total beneficial shareholding to 50,000 Common Shares representing 0.02% of the voting rights, and John Woods (Chief Developments Officer) acquired 50,000 Common Shares at a price of GBP 1.10 per share taking his total beneficial shareholding to 102,958 shares representing 0.04% of the voting rights.

Xcite Energy (LON:XEL) pushed 4% higher to 88.25p during early trading after the company said the 9/3b-7z well has reached target depth of 9,646 feet in measured depth on the Bentley Field. Reservoir section in excess of 2,000 feet has been drilled with 100% net pay and sand control screens have been run successfully. Top reservoir, at 3,609 feet true vertical depth, is higher than previously encountered in any part of the field to date, thereby giving an oil column depth of 121 feet. Geo-steering was used successfully in the reservoir section to place nearly 100% of the wellbore in the target range of within 5feet to 12 feet from the roof of the reservoir. Remainder of the planned operations will now be undertaken prior to the production test commencing. The company also announced that it has drawn down 2.29 million British pounds on its Equity Line Agreement with Esousa Holdings to be used as future working capital for the company and to progress towards first oil from the Bentley field. This draw down has been undertaken at a price of 87 pence per share and will result in the issue of 2.58 million ordinary shares to Esousa.

Antrim Energy (LON:AEY) moved 3% higher to 42.5p at the mid-price during afternoon trading after the company said it has been granted an extension for the submission of its field development plan for the Fyne oil field in U.K. Central North Sea license P077, Block 21/28a. The U.K. Department of Energy and Climate Change notified Antrim that it has extended the deadline for submission of a field development plan to January 2013 from June 2012. Antrim said it also anticipates the DECC to transfer the working interests of the other two partners in the license, Premier Oil PLC (PMO.LN) and First Oil Expro Ltd., as well as transfer operatorship to Antrim from Premier. Once DECC approves the transfers, Antrim will be operator and hold 100% working interest in the Fyne license. The company said the target date for first production from Fyne remains the fourth quarter 2014.

Jubilee Platinum (LON:JLP) jumped 10% to 11.375p at the mid-price during afternoon trading after the company said it has been awarded the rights to recover platinum-group elements, or PGE's, from high PGE-bearing dumped chromite tailings and chromite tailings from current and future operations, on the Dilokong Chromite Mine in the Eastern Bushveld of South Africa. Award is subject inter alia to final due diligence, the finalization of contract and related service agreements and relevant regulatory approvals. Dump tailings are believed to assay between 3.5 and 4.0 g/t PGEs and to contain between 90,000 and 100,000 ozs PGEs. PGEs in concentrate production are projected to peak at some 12,900 oz per year when treating dump tailings and mine risings. Average revenue from PGEs over an 11-year project model is projected to be 67 million South African rand per year with revenue expected to peak at ZAR97 million per year when treating both Dump Tailings and Mine Arisings. 

Coal of Africa (LON:CZA) pushed 6% higher to 36.625p during early trading after the company said a new technical statement indicates an increase in estimated coal resources for the Greater Soutpansberg area of more than 1.3 billion mineable tons in situ (MTIS) across the measured, indicated and inferred resource categories. Increase in estimate resources principally due to the additional assets acquired. Estimated gross tons in situ increased to 8.0 billion tons from 1.5 billion tons. Gross tons in situ (GTIS) increased to 7.957 billion tons from 1.505 billion tons. Total tons in situ (TTIS) increased to 6.443 billion tons from 1.279 billion tons. Mineable tons in situ (MTIS) increased to 2.004 billion tons from 0.648 billion tons. Additional exploration drilling and delineation of the resources is underway with further increases in the estimated coal resources anticipated upon completion. Greater Soutpansberg project area is located in the Limpopo Province of South Africa. 

Horizonte Minerals (LON:HZM) slipped 6% to 7.625p at the mid-price during early trading after the company reported a placing of 71.9 million new ordinary shares at a price of 7.25 pence per ordinary share to raise proceeds of 5.2 million british pounds, before expenses. Teck Resources Limited, a major shareholder of Horizonte, has subscribed for 27.3 million shares at the placing price. Teck's holding in the company would be 150.6 million shares, representing 41.8% of the enlarged share capital, following the placing. Jeremy Martin, Chief Executive, has subscribed for 237,337 shares, David Hall, Chairman, has subscribed for 237,337 shares and Jeffrey Karoly, Chief Financial Officer, has subscribed for 118,668 shares. Following the placing, Horizonte will have net cash of GBP9 million, sufficient to advance the 100% Araguaia Nickel project through to the end of the Pre-Feasibility Stage over the next 12 to 14 months. On target to deliver the Preliminary Economic Assessment by the end of second quarter. Work will then start on an infill resource drilling program in second half of 2012, combined with metallurgical pilot test work; To start Pre-Feasibility study in early 2013. Currently completing a geophysical program at the Falcao Gold project to define drill targets to be tested in third quarter of 2012. 

Sunkar Resources (LON:SKR) eased 11% to 3.2p during afternoon trading after the company said yesterday that its subsidiary, Temir Service LLP, as required by Kazakhstan's Subsoil Use Law, has applied to the Ministry of Industry and New Technologies ("MINT") for a waiver (the "Waiver") of the Republic of Kazakhstan's pre-emptive right to acquire the Ordinary Shares of the Company following the investment by Sun Avenue and Partners Corp ("Sun Avenue"), announced on 23 December 2011. The Sun Avenue investment was structured as Convertible Loan Notes so that the Company could receive the US$12.8 million invested in advance of the Waiver being received. Conversion of the loans to ordinary shares will occur within 5 working days of receipt of the Waiver. The investment by Sun Avenue would then convert into a total of 174,476,283 Ordinary Shares, representing 51 per cent. of the fully diluted issued share capital of the Company. It is expected that MINT will have made its decision within 40 working days from the day of application. 

Ariana Resources (LON:AAU) moved 4.5% higher to 3p after the company said it has acquired four new exploration licences in Western Turkey via the licence auctions undertaken by the General Directorate of Mining Affairs in Turkey. Four new prospective licences totalling 4,058.08 hectares acquired via auction in line with the Company's strategy to expand its exploration footprint across western Turkey. Licences identified as highly prospective following the evaluation of geological models and anomalies defined from geochemical exploration datasets. Exploration programmes will be initiated in July to further determine the prospectivity prior to drilling testing in 2013. Further new licence auctions to commence in July; Company is expecting to secure additional licences during H2. 

Orogen Gold (LON:ORE) pushed 4% higher to 0.56p during afternoon trading after the company said it has completed the 55% earn-in to the Deli Jovan Gold exploration project in Serbia, in accordance with its agreement with Reservoir Minerals Inc. (TSX:RSV). The 55% earn-in has been achieved following completion of Orogen's commitment to a total exploration spend of C$1.5 million on the Deli Jovan Gold exploration project. Orogen is now entering phase II of the earn-in agreement with Reservoir Minerals Inc. This involves a further exploration spend of C$2million by Orogen before the end December 2013 to reach a 75% interest in the Deli Jovan project. The Company recently announced the commencement of a 7,500m diamond drilling campaign at Deli Jovan and is continuing the exploration programme which is running to schedule and on budget. 

Regency Mines (LON:RGM) slipped 4% to 1.85p during early trading after the company said it has increased its mineral resource estimate for the Mambare Nickel Laterite Project in Papua New Guinea. 162.5 million tonnes grading 0.94% nickel and 0.09% cobalt. 1.53 million tonnes of contained nickel at a 0.60% nickel cut-off grade. 67% increase in contained nickel on April estimate. Includes significant tonnages of higher grade mineralization. This compares very favourably with the maiden JORC Resource of 95.1Mt at 0.96% nickel 0.08% cobalt, also using a 0.60% nickel cut-off grade, announced April 25.

The FTSE 100 was in yo-yo mode today, flirting between bullish and bearish territory for the best part of the day, and as I type the main index is 20 points easier at 5453 (-0.37%), albeit on thin volume of 390 million shares traded just before the US opening bell. The FTSE AIM All-Share Index was 0.05% higher on volume of 560 million shares.

Gold - ↑Trading at $1620, up $12 (+0.71%)

Silver - ↑Trading at $28.98, up 7c (+0.29%)

Copper - ↑Trading at $7380, up $18 (+0.24%)

Zinc - ↑Trading at $184, up $4 (+0.16%)

WTI Crude - ↓Trading at $82.29, down $1.02 (-1.22%)

Brent Crude - ↓Trading at $96.93, down 20c (-0.21%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Red Emperor Resources (LON:RMP) and Range Resources (LON:RRL) pushed 8% and 6% higher to 20.75p and 9.2p respectively. Both stocks have been getting attention over the last few days after saying that drilling operations on the Shabeel North well in Puntland, Somalia have commenced, adding that the planned target depth of the well is 2,400 metres and drilling is expected to take 45 to 60 days to complete. The well, the second in the current drilling campaign, is being operated by Joint Venture partner, Horn Petroleum Corp (HRN). Red Emperor holds a 20% working interest in the Dharoor and Nugaal Valley Production Sharing Agreements along with Horn and Range Resources. The Shabeel North well is targeting Upper Cretaceous Jesomma sands, which had good oil and gas shows in the Shabeel-1 well 3.5 kilometres to the south. Petrophysical analysis of downhole electrical logs in the Shabeel-1 well indicated a potential pay zone in the Jesomma of up to 12 to 20 metres with an average porosity of 18 to 20%. It is planned to bring the rig back to the Shabeel-1 location to test these sands to confirm their ability to flow oil once the drilling of the Shabeel North well is completed. Range Resources have also given the market an update that showed a significant increase in Proved [P1] and Probable [P2] reserves for the North Chapman Ranch Project, in which Range holds a 20-25% interest. Range's net attributable interest in proved reserves increased 54%-57%; Range's net attributable interest in probable reserves increased 16%-20%.

Magnolia Petroleum (LON:MAGP) jumped 6% to 2.525p during afternoon trading after the company said that the Brady 17-27-12 1H and Lois Rust 7-27-12 1H wells are now both producing, though initial production rates have not yet been released by the operators. Total number of producing wells in the Bakken/Three Forks Sanish, North Dakota and the Mississippi Lime and Woodford/Hunton formations in Oklahoma now totals 77. The SPS 6-26 well, operated by Paul Gillham & Co, located in Pottawatomie County, Oklahoma and targeting the Hunton Formation has now been spudded and is currently drilling; total number of wells drilling or awaiting completion now stands at two (SPS 2-26 and Henry 2-29). MAGP has rlected to participate in two additional wells (the Montecristo 6-1H and Beebe 24-W1H); total number of wells waiting to be spud now stands at 10. Acquired further 470.39 net mineral acres with average working interest of 16%; total net acreage in Mississippi Lime now stands at 4,011.39.

Kea Petroleum (LON:KEA) pushed 7% to 10.75p during early trading after the company said that work to start production from its recent discovery in the Puka 1 well has been successful, with the well flowing an "excellent quality light oil." The company said that preparations are now underway to start longer-term production testing of the well to establish production rates and reservoir characteristics. Kea has maintained its original estimate of a gross recoverable resource of 1 million barrels of oil with a potential upside of up to 3 million barrels of oil. "These results couldn't be better or more encouraging. If further testing confirms our expectations, Puka-1 will transform Kea into a profitable oil producer," Chairman Ian Gowrie-Smith said.

Gold Oil (LON:GOO) pushed 5.6% higher to 4.3p on decent volume as investors continued to play the range between 4p and 5p while they wait for the update on the potential Farm-In of the Z34 block in Peru.

Nostra Terra Oil & Gas (LON:NTOG) continued its bullish vein of form again today, adding another 14% to 0.67p on decent volume as investors continued to chase the stock higher, in anticipation of further updates from drilling at Bale Creek. The company has always tried to be very vocal when possible to keep investors up to date, so it would not be a surprise to see another update on the horizon. We will continue to watch the newswires and the volume here very closely.

Serica Energy (LON:SQZ) moved 7.6% higher to 24.75p during afternoon trading, albeit on thin volume. Directors have recently their hands in their pockets to buy shares, with Christopher Hearne (Finance Director) acquiring 14,115 ordinary shares at an average price of 23.91 pence per share taking his total beneficial shareholding to 785,263 shares representing 0.44% of the voting rights; and Peter Sadler (Business Development Director) acquiring 14,115 ordinary shares at an average price of 23.91 pence per share taking his total beneficial shareholding to 176,803 shares representing 0.10% of the voting rights.

Aquarius Platinum (LON:AQP) eased 5.5% to 69.5p after the company said that its partners in the Pooling & Sharing Agreement, or P&SA2, for the Marikana mine in South Africa, have agreed in principle to place the P&SA2 operations on care and maintenance, due to low platinum group metals basket prices. This decision has been made in the interests of preserving the P&SA2 ore reserves until an improved economic climate merits their extraction in the future. As a result, Marikana 4 Shaft and the Marikana concentrator plant will be placed on care and maintenance, and the remaining management functions at P&SA2 will be consolidated with those of the P&SA1 at Kroondal. Preparations for these events have been initiated, and the required consultative processes will start Monday. Trading conditions in the platinum industry are expected to remain difficult in the short to medium term and these conditions have rendered the operations at the P&SA2 uneconomic.

Triple Plate Junction (LON:TPJ) slipped 21% to 1.625p at the mid-price after the company said that its joint venture partner Newmont Mining Corp (NEM) has suspended exploration drilling for six months at the Morobe project in Papua New Guinea, following a lack of success at its second exploration target, Gumots. Triple Plate holds a 49% stake in Morobe with Newmont holding the remainder. Gumots is one of 15 prospective drill targets identified across the Morobe joint venture tenements, Triple Plate said. Given the exploration failure, Newmont has decided to suspend active drilling whilst the project focus is directed at additional exploration field work for the purpose of opening up and reducing the risk of future drilling at the numerous additional potential drill targets across the territory, including the Minawa and Pade prospects.

Caspian Holdings (LON:CSH) dropped 10% to 0.38p at the mid-price during afternoon trading on almost 3 times the average daily volume by the end of lunch. The last update from the company back on the 25^th of May that said it had acquired Australian Iron Ore PLC (AIO) and its owned subsidiary Iberian Resources Portugal Recursos Minerais Unipessoal LDA or IRP for a consideration of €1 million. As a result of the acquisition of AIO, Caspian will own/have rights to four tungsten projects and the prospective Portalegre gold exploration property. The company now proposes to acquire the entire issued share capital of AIO for a consideration amounting to EUR1 million to be satisfied by the issue of 269,300,000 Ordinary Shares at 0.30 pence per Ordinary Share. The directors will seek authority to issue such shares at the forthcoming AGM.

ENK Plc. (LON:ENK) jumped 5% to 11.625p during early trading after the company commented on the JORC resource upgrade for its Zambales Chromite Mining Corporation ("Zambales") tenement. The Company, in consultation with its resource consultant Snowden Industry Mining, has determined that the historic Falconbridge test pit data collected in the 1970s, which was used to calculate the previous JORC Inferred resource estimate of 23.5 million tonnes grading 1.18% Ni and 0.05% Co, is of insufficient detail to be used in the calculation of a JORC Indicated resource estimate due to the lack of ancillary elements and detailed logging data that the newer drilling data has provided. As such the Company will now undertake the drilling of additional holes, adjacent to the historic test pits, to collect this missing data. Upon the completion of the current drill programme at Acoje which is expected within the next 2 weeks, the 4 drill rigs will be relocated immediately to the Zambales tenement. A drill programme is now planned which will provide the data required to enable Snowden to provide a JORC Indicated resource estimate for this tenement. The Zambales resource update is now expected to be available by the end of September 2012.

After the Spanish banking bailout over the weekend I think we were all a little surprised to see the futures called up over 100 points early doors, something that the smart money did not believe for more than an hour, as they sold into the overreaction. The market is now getting the jitters as Ireland and Greece may look to seek new terms on their own bailouts as Spain received more favourable terms. As I type the FTSE 100 is only 35 points higher at 5470 (+0.69%) from being up just over 100 points at the high of the day, on volume of 520 million shares just as the US opening bell rang. The FTSE AIM All-Share Index was 0.51% higher on volume of just over 500 million shares, which is actually a pretty dull day of volume compared to recent times.

Gold - ↑Trading at $1595, up $3 (+0.14%)

Silver - ↑Trading at $28.71, up 7c (+0.23%)

Copper - ↑Trading at $7429, up $182 (+2.49%)

Zinc - ↑Trading at $1881, up $2 (+0.08%)

WTI Crude - ↑Trading at $84.86, up 75c (+0.89%)

Brent Crude - ↑Trading at $100.36, up 89c (+0.89%)       

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Ithaca Energy (LON:IAE) jumped 6% to 116p during afternoon trading after the company said initial peak gross oil production rates from the Athena field of 22,000 barrels of oil per day ("bopd") (4,950 bopd net to Ithaca) as metered into the BW Athena's storage tanks. Oil export operations have commenced. The flow from each of the four oil production wells is being supported by electrical submersible pumps, the operating parameters for which are being monitored to stabilise long term production rates. Water injection will be used to support the reservoir pressure of the field and thereby maintain and sustain production rates.  An initial cargo has already been offloaded from the BW Athena to the shuttle tanker "Betty Knutsen". This and future cargoes will be transferred to Ithaca's Nigg oil terminal from where Athena crude will be sold to the market under the Company's marketing contract with BP. At current oil prices, the project is anticipated to achieve payback within twelve months.

Lochard Energy (LON:LHD) pushed 8.5% to 9.625p at the mid-price on the back of the Athena production update. Clive Carver, Non-Executive Chairman of Lochard said "First oil from Athena is a significant milestone for Lochard Energy, particularly as it was a field that was originally generated in-house by the current Lochard geological team led by Mike Rose. We are pleased with the initial peak gross oil production rates from the Athena field of 22,000 barrels of oil per day (2,200 bopd net to Lochard). We have a diversified portfolio of North Sea assets which we believe show similar potential and we look forward to progressing more of these fields to similar successful outcomes."

Tullow Oil (LON:TLW) moved 3.5% better to 1490p after the company said that the Paon-1X exploration well in the CI-103 license offshore Cote d'Ivoire has intersected good quality light oil in a Turonian fan system. Paon-1X is the first deepwater exploration well drilled in the CI-103 license and has encountered 31 meters of net oil pay in a gross interval of 74 meters of turbidite sands. Pressure data indicates that this interval contains a continuous hydrocarbon column and samples show that it is a light oil of 41 degrees API. Further analysis is required to determine reservoir quality and the extent of the fan system. Following completion of logging operations, the well will be suspended for possible future use in appraisal and development operations. The Eirik Raude dynamically positioned semi-submersible rig drilled the Paon-1X well to a final depth of 5,090 meters in water depths of 2,193 meters. Tullow--45% operates the CI-103 license and is partnered by Anadarko Petroleum--40% and the Societe Nationale d'Operations Petrolieres de Cote D'Ivoire-Petroci--15%. The company looks forward to further drilling in CI-103 during 2013.

Volumes in Sefton Resources (LON:SER) have been catching the eye over the last few trading sessions, with over 28 million shares changing hands yesterday, and over 21 million shares trading before the end of lunch today. We will be watching this one closely over the coming sessions to see if it can break the 2p level.

Range Resources (LON:RRL) continued its bullish run of form, adding another 8.5% during early trading to trade at 7p. The shares have been chased higher over the last 24 hours after the company announced that drilling operations on the Shabeel North well in Puntland, Somalia has commenced. adding that the planned target depth of the well is 2,400 meters and drilling is expected to take 45 to 60 days to complete.

Nostra Terra Oil & Gas (LON:NTOG) surged 16% to 0.58p at the mid-price during afternoon trading as investors started to jump back in ahead of another potential update on drilling at Bale Creek. Reading through the last update Alden McCall, Chief Operating Officer of Nostra Terra said "There are three critical stages in the drilling of horizontal wells that can present particular technical challenges. The first of these is to build the curve from the vertical portion into the horizontal leg. The second is to keep the drill bit within the targeted pay zone for 2,000 feet or more of drilling. The challenge of the final stage is the process of "completing" the well to bring it into production. While the first horizontal well in Warrior proceeded according to plan, we encountered delays in drilling the first horizontal well at Bale Creek. The drill string became stuck several times. This required re-drilling of a section of the well just at the beginning of the curve, which inevitably slowed our progress. We learned from this experience and modified the drilling plan accordingly. We are pleased that the first two horizontal wells have been drilled successfully and that the third is underway. We look forward to updating on further progress and announcing the results of all three horizontal wells in the coming weeks."  Now this update was on the 17th of May, so the market should be expecting an additional update any day now. We will be watching the newswires closely.

Magnolia Petroleum (LON:MAGP) have been a fantastic market over the last few week of trading, pushing from 1.2p up to the recent high of 2.775p, so it was no real surprise to see a few traders taking profits today. The shares slipped by 3% to 2.3p during lunch, albeit on very thing volume. Once the volume picks back up it would be no surprise to see the bullish run continue, as for a small oil company to be working alongside ExxonMobil and Chesapeake, should be enough to keep investors glued to the newswires looking for additional updates.

Gulfsands (LON:GPX) jumped 11% to 91.5p during afternoon trading, albeit on very thing volume of just under 100,000 shares. The market as not been the best of friends with this one for some time now, for obvious reasons, as they have major operations in Syria. The company has been diversifying its asset base into Tunisia, and recently said drilling operations at Sidi Dhaher No. 1 (SDHR-1) well is expected to commence on May 31 following the completion of safety and operational audits. ADX Energy Limited, operator of the Chorbane License onshore Tunisia, has completed the final safety and operational audits of the drilling rig and related equipment that will be used during the upcoming production testing program on the well. Testing program is taking place in a well that has previously been cased and suspended in anticipation of a subsequent production test, this will be a multi-stage operation with expected time duration of approximately three weeks. Gulfsands has a 40% interest in the Chorbane permit and in the event of a commercial success with exploration on the Chorbane permit, Gulfsands will be entitled to become the operator of the Chorbane permit.

Cluff Gold (LON:CLF) were pretty much unchanged at 70p after the company reported first quarter results that said it is retaining its 2012 production guidance of 60,000 to 70,000oz. Revenue in three months ended March 31 $23.6 million (2011: $26.4 million) Pretax profit $1.4 million (2011: loss $509,000) Ebitda $5.31 million (2011: $463 million) Operating profit $1.41 million (2011: $563,000) Diluted loss per share $0.89 (2011: $1.10) Cash and cash equivalents at end of period $53.4 million (2011: $22.4 million) 1Q production at Kalsaka in line with management expectations at 12,504oz. Says cash margins sufficient to fund business development.

URU Metals (LON:URU) pushed 13% higher to 5.25p at the mid-price after the company said that it has received positive NI 43-101-compliant preliminary economic assessment of the Zebediela Project, one of two sulphide nickel projects currently part of the South African Nickel joint venture. The preliminary economic assessment or PEA of the Zebediela Project projects a pretax and pre-royalty net present value of $1,018 million, an internal rate of return of 25.7% and a 3.8 year payback period at an 8% discount rate. Indicated resources stand at 485.4 million tons at a grade of 0.245% Ni with additional inferred resources of 1,115.1 million tons at a grade of 0.248% Ni. Using indicated resources only, a proposed open-pit mine is envisioned with a 25 year mine life producing 56,600,000 lbs of recoverable nickel per annum. The project is projected to a lowest-quartile cost nickel producer. Substantial opportunities are available to the South African Nickel Joint Venture (SAN JV) to increase the project value through resource accretion and the addition of a magnetite concentrate revenue stream.

Connemara Mining (LON:CON) jumped 25% to 11.5p during afternoon trading on almost 5 times the average daily volume for the stock. Reading through some of the old updates I found this little snippet from the update on the 16^th of May "that an airborne survey targeting gold deposits over a block of five company licences in the Wicklow/Wexford area of Ireland has been completed, and said the results are expected within six weeks, after which the next stage of exploration will be decided." Possibly the market is expect another update shortly? We will continue to watch this one closely over the next few sessions for any signs of an update.

Red Rock Resources (LON:RRR) surged 25% to 2.2p during afternoon trading, on just over 4 times the average daily volume before the end of lunch. Possibly the market has started to align itself ahead of this little snippet from the last update "A logistical and drilling strategy has been devised to maximise the length of the field season, with drilling expected to proceed from early June to end September."

Caspian Holdings (LON:CSH) pushed 10% to 0.45p at the mid-price during afternoon trading on decent volume. Looking through the last few updates I found this "Caspian is currently drilling hole 4 out of five holes in a 1,500-metre diamond core drilling campaign to appraise extensions to the La Parrilla orebody, which is targeting an open zone to the west of the existing open pit. To date, a total of 1,172.80m has been drilled. Hole 3 has been completed and the Company awaits assay results." Possibly the market is expecting the assay results announcement imminently?

Today the Bank of England held the benchmark interest rate at 0.50% today and that helped push the FTSE 100 Index 107 points higher to 5491 (1.98%) on volume of 480 million as the US bell rang for the open. The FTSE AIM All-Share Index was 0.63% higher on volume of 618 million shares.

Gold - ↑Trading at $1622, up $4 (+0.23%)

Silver - ↑Trading at $29.54, up 12c (+0.37%)

Copper - ↑Trading at $7560, up $67 (+0.88%)

Zinc - ↑Trading at $1898, up $2 (+0.08%)

WTI Crude - ↑Trading at $86.94, up $1.93 (+2.27%)

Brent Crude - ↑Trading at $102.35, up $1.72 (+1.71%)        

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Premier Oil (LON:PMO) jumped 6.5% to 351p during early trading after the company said it is pleased to announce that the Carnaby exploration well 28/09-5A (Premier equity 50 per cent) has reached a total depth of 4,695 feet and encountered oil. Initial analysis indicates that the well encountered 51 feet of net oil in the main Tay sandstone within an estimated 86 feet oil column. A core was taken and confirmed oil in excellent quality sandstones. Pressure data and sampling indicates that the API of the oil is 24 degrees and is of similar quality to that established at the nearby Catcher discoveries. The oil water contact was at the shallower end of expectation; driven by the more complex geology associated with this type of footwall prospect. The well also encountered 51 feet of Cromarty sands but these were shown to be water wet on the logs. The high quality data acquisition from the well will now be used to determine what contribution the Carnaby discovery will make to the overall Catcher development. The well will be plugged and abandoned ahead of the rig moving to drill the high risk Coaster prospect on Block 28/10a, immediately east of the Catcher acreage.

Nautical Petroleum (LON:NPE) who have a 15% equity interest in the same North Sea Block 28/9a, moved 5% higher to 273p during early trading on the back of the Carnaby Oil find.

Afren (LON:AFR) pushed 7% higher to 111p on decent volume during early trading after the company issued a Chairman's Statement that said it has made an excellent start to 2012 drilling campaign and is on track to achieve a net average daily rate of between 42,000 boped (barrels of oil per day) to 46,000 boepd in 2012. The statement also said the operational highlight of 2011 was delivering First Oil at the major Ebok field development offshore Nigeria. Following the successful appraisal drilling in December 2009, after which independently estimated gross 2P reserves were quadrupled to 105.3 mmbbls, the Company and our partner Oriental Energy Resources fast-tracked the development with First Oil achieved in record time in March 2011 (a lead time of less than two and a half years). Comparable development lead times for offshore Nigeria are shown in the table on page 74 of the 2011 Annual Report, showing a mean range of four to six years. This value creation at Ebok has occurred over the full cycle of appraisal, resulting in a significant increase in reserves, through development, production and ultimately cash flow generation.

Range Resources (LON:RRL) moved 4% higher to 6.57p during afternoon trading after the company said that drilling operations on the Shabeel North well in Puntland, Somalia has commenced. adding that the planned target depth of the well is 2,400 meters and drilling is expected to take 45 to 60 days to complete. The well, the second in the current drilling campaign, is being operated by Joint Venture partner, Horn Petroleum Corp (HRN). The Shabeel North well is targeting Upper Cretaceous Jesomma sands, which had good oil and gas shows in the Shabeel-1 well 3.5 kilometres to the south. Petro physical analysis of downhole electrical logs in the Shabeel-1 well indicated a potential pay zone in the Jesomma of up to 12 to 20 meters with an average porosity of 18 to 20%. It is planned to bring the rig back to the Shabeel-1 location to test these sands to confirm their ability to flow oil once the drilling of the Shabeel North well is completed.

Red Emperor Resources (LON:RMP) jumped nearly 6% to 19p on the back of the update on the spudding of the Shabeel North well. The shares are still a long way off of the 50.75p high from late March this year.

Amerisur Resources (LON:AMER) jumped almost 30% from the start of trading to trade at an intraday high of 26.75p, before settling back at around 24.5p around lunch. The shares were active after the company said that Platanillo-3, its first of a six well drilling program in Colombia, has found oil. It said the well flowed medium crude oil with trace water at an average rate of 2,340 barrels a day, over a 24 hour period. "This is an impressive result which underlines the potential of the Platanillo field. Our objective now is to push forward with the next wells, optimizing their costs and operational efficiency to deliver our production targets this year," Chief Executive John Wardle said. The Platanillo-3 well has now been closed-in to perform a pressure build up test. Once the test is completed, Amerisur plans to start commercial production from the well.

Valiant Petroleum (LON:VPP) slipped 3.5% to 396p after the company said that further to its press release on 24 May 2012 regarding the suspension of drilling operations on the Timon exploration well in the UK North Sea, the drilling contract with Awilco Drilling PLC has now been terminated as a consequence of the technical downtime. The well has been suspended for re-entry and the licence partners are currently investigating alternative rig options to complete drilling of the Timon prospect. An update will be provided in due course. The partners in the license are MPX North Sea Limited (operator, 15%), Agora Oil & Gas (UK) Limited (25%), Taqa Bratani Limited (18%), Wintershall E&P Limited (17%), Sorgenia E&P (UK) Ltd (15%) and Valiant Exploration Limited (10%).

TomCo Energy (LON:TOM) jumped 25% to 1.9p on big volume after the company was spoken about fondly in an article by Joanne Hart for This is Money that highlighted "TomCo Energy is a risky business but the rewards for investors could be immense. The company is betting on a new process for extracting oil. If it works, TomCo shares should soar. If it fails, the outcome could be very disappointing." We will continue to watch the newswires here for any potential update from the company.

Magnolia Petroleum (LON:MAGP) soared another 20% to 2.375p at the mid-price during afternoon trading, possibly reacting once again to the news from last week that said initial production rates of 124 bopd, or barrels of oil per day, and 2,032 mcfpd, or thousand cubic feet per day, for the Thomason 10-27-12 H1 well in the Mississippi Lime Formation in Oklahoma. Output is mainly liquids rich gas with an oil equivalent production rate of 441 boepd, or barrels of oil equivalent per day. Magnolia holds a 12.5% working interest and a 9.375% net revenue interest in the Thomason well so the net initial production attributable to Magnolia arising from the Thomason is 41 boepd. Remains on course to increase the number of wells in which it has an interest in to 100 by the end of the year.

African Barrick Gold (LON:ABG) jumped another 10% to 383p during afternoon trading on decent volume, and investors continued to pile back into gold producing stocks as the gold price continued to push firmly back above the $1600 psychological resistance.

Another gold producer that was being chased higher was Cluff Gold (LON:CLF). We are very bullish on Cluff and believe the shares have been overdone to the downside, as investors had fears over the perceived risk of raising finance for construction of Baomahan, and the recent events in the Ivory Coast. For a company that has a cash cost of extracting gold at approximately $805 per oz. a producing asset in Burkina Faso forecast to generate approximately 60,000 to 70,000 ounces in 2012, and cash in the bank of $33 million at the 31^st of December 2011, the shares are starting to look cheap down here sub 70p. As I type they are trading 6.5% higher at 68.5p.

Allied Gold Mining (LON:ALD) was another gold stock that was pushed higher during early trading, moving 7.5% to 105p, as investors jumped all over what looks like, cheap beaten up gold producers. 100p has been a strong support for Allied Gold over the last few weeks, so it was no surprise to seem them getting decent traction down here.

Goldplat Plc. (LON:GDP) moved 8% higher to 12.75p during early trading after the company said it expects to post an increase in fiscal 2012 operating profit, compared with last year, and added that all of the gold recovery operations have performed well in second half of the year. Expects to report an increase in operating profit compared with an operating profit of GBP3.1 million to year ended June 30, 2011. South African and Ghana gold recovery is performing strongly and in line with management's expectations. Establishing a new processing unit in Burkina Faso and has registered a new trading company, Midas Gold SARL. Preparing a feasibility report of setting up a new processing unit - initial designs have been drawn and equipment sourced. Total gold production for 2012 expected to exceed 2011 gold production of 28,185 ounces, or oz.

Centamin Plc. (LON:CEY) jumped 8% to 70p during early trading today, after the company announced that Legal & General had increased its holding slightly to 44,022,059 shares. A close above 70p would be a very bullish sign for any of the chartists among us, and would also be a close above the 50 day moving average for the first time since early February this year.

Sable Mining (LON:SBLM) slipped 4% to 10.75p at the mid-price during afternoon trading after the company said that surface sampling at its Nimba iron ore project in south-east Guinea has confirmed the potential for direct shipping ore. The results were for 57 additional surface samples, taken from the second of the three plateaus, which combined, cover around 35 square kilometres at the base of Mount Nimba. The results indicate an average grade of 61.0% iron and a maximum of 69.1% iron. "These excellent grades of up to 69.1% Fe [iron)], combined with the previously reported depths of up to 31.7 meters, places Nimba amongst some of the most significant iron ore projects being developed globally," Chief Executive Andrew Groves said. "The strong potential for a significant DSO [Direct Shipping Ore] resource, coupled with the presence of infrastructure in the area, provides the potential for Sable Mining to rapidly bring this project forward and into production once a resource is quantified," he added. Reconnaissance drilling continues on plateau two with a second rig having now started operations. Access for drilling on plateau three is well advanced, with drilling due to start shortly.

Patagonia Gold (LON:PGD) pushed 8.5% higher to 30.5p at the mid-price after the company said it is pleased to announce it has raised, gross proceeds of £8.0 million through a placing of 5,769,000 new ordinary shares of 1p each in the Company (the "Placing Shares") and a subscription (the "Subscription") of 26,231,000 new ordinary shares of 1p each in the Company (together with the Placing Shares, the "New Ordinary Shares") each at a price of 25 pence per New Ordinary Share (the "Issue Price"). The net proceeds of the Placing and Subscription will be used to fund the development expenditure for the Lomada de Leiva gold production project, continuing exploration expenditure on the Cap-Oeste project in Argentina and to provide general working capital for the Company.

The FTSE 100 had a very bullish session today, trading as high as 5340 +80 points before settling back down at 5314 +54 points (+1.06%) on volume of just over 500 million shares by the end of lunch. Anyone who was watching the futures over the weekend would have been surprised to see us called up by 50 points early doors, after initially being called down by about that much as the rest of the world started trading on Monday. The FTSE AIM All-Share Index was 0.29% higher on volume of just over 520 million shares at the same point in time.

Gold - ↑Trading at $1635, up $17 (+1.07%)

Silver - ↑Trading at $29.41, up 94c (+3.31%)

Copper - ↑Trading at $7395, up $96 (+1.31%)

Zinc - ↑Trading at $1896, up $44 (+2.37%)

WTI Crude - ↑Trading at $84.99, up 71c (+0.84%)

Brent Crude - ↑Trading at $100.14, up $1.29 (+1.31%)       

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Ithaca Energy (LON:IAE) slipped 32% to 118p during afternoon trading after the company said it has ceased discussions with all potential buyers saying the process was unlikely to produce a transaction that properly reflects the value of the company, particularly in light of the volatility in global markets and the short-term softening in Brent crude prices. Despite the cessation of talks, the company said it is in a position to continue delivering long-term shareholder value through growing the company and maximizing the value of its U.K. North Sea oil and gas assets. It forecasted cash flow from its operations will increase to about $575 million in 2014 from roughly $150 million in 2012, based on Brent crude at $100 a barrel. Ithaca also said it has agreed a threefold increase in its debt facility with BNP Paribas SA (BNP.FR) to $400 million plus a $30 million cost overrun tranche. It has said it will use the facility to fund development activities and acquisitions. The company said it is now delivering value from its portfolio of assets that have been built up in recent years, in particular its Athena and Greater Stella Area developments. As a result, it forecasts that group oil production will rise to more than 20,000 barrels of oil equivalent a day in 2014 from between 7,000 and 8,000 barrels of oil equivalent a day in the second half of 2012. 

DEO Petroleum (LON:DEO) jumped late in the session yesterday after the company said it has reached an agreement on the terms of a recommended offer under which Parkmead (LON:PMG) will acquire the entire issued and to be issued ordinary share capital of DEO for GBP12.7 million. Parkmead will acquire DEO by way of a Court sanctioned scheme. Under the terms of the acquisition, scheme shareholders will be entitled to receive tow Parkmead consideration shares for each Deo share held at the Scheme Record Time. Based on the price of a Parkmead share of 14.75 pence, being the closing price of a Parkmead share on May 25, the acquisition values the entire issued and to be issued share capital of Deo at GBP12.7 million, and each Deo share at 29.5 pence. Deo directors unanimously recommend Deo shareholders to vote in favour of the offer. Parkmead has received total irrevocable undertakings and a letter of intent in respect of 24.3 million Deo shares representing, in aggregate, 56.3% of the existing issued ordinary share capital of Deo. Shares were down 4% to 25.5p at the mid-price during afternoon trading, which is a long way from the IPO price of 45p. 

Parkmead Group (LON:PMG) pushed 8% to 14.125p during early trading after its slip of roughly 10% during afternoon trading yesterday on the announcement of its intentions to buy Deo Petroleum. 

Lochard Energy (LON:LHD) eased 5% to 9p at the mid-price during afternoon trading, possibly on the back of the Ithaca update. This is now starting to look very interesting at these levels as the company said yesterday that it notes the announcement made today by Ithaca Energy Inc. regarding the successful start-up of oil production from the Athena field, with initial performance in line with expectations. As with conventional field start-up procedures, Ithaca is in the process of optimising production from each of the wells and a further announcement is expected to be made when stabilised rates have been established. Lochard has a net 10% interest in this field through its 100% ownership of Zeus Petroleum Limited. Now, with the Parkmead and Deo Petroleum deal that was announced yesterday, could Lochard now be the next company on the radar from the North Sea? One side note to remember is that Ithaca Energy did statein the update, "The Facility, combined with an existing cash balance of US$110.6 million (end Q1-2012) and the Company's projected cash flow from operations profile, means that Ithaca has the financial capacity to continue delivering material growth from both its existing asset portfolio and from new asset additions. More specifically, the enhanced size of the debt facility increases the Company's ability to build upon its track record for completing accretive asset acquisitions and creating long term shareholder value." 

Xcite Energy (LON:XEL) pushed 6% higher to 97p during early trading after the company said that the 9/3b-7 well has reached target depth of 9,377 feet measured depth. A reservoir section in excess of 2,200 feet has been penetrated, with 100% net pay, and sand screens have been run successfully. Remainder of the planned operations, including drilling of the second reservoir section, installation of the down-hole pump and commissioning of the processing equipment will now be undertaken prior to the production test commencing. Two 6" export pipelines from the Rowan Norway have been successfully installed and the installation vessel, Polar Prince, has been released. 

Borders & Southern (LON:BOR) pushed 6.5% to 68.5p during afternoon trading as the market started to get ready for the update on the fluid sample taken from the reservoir at the Darwin East prospect in the South Falkland Basin. We did anticipate approximately 4 to 6 weeks for testing results to be ready, and we are now pushing 6 weeks since the company gave the drilling update back on the 23^rd of April. We will be watching the news wires closely for this update. 

Xtract Energy (LON:XTR) jumped 18% to 0.53p on huge volume during afternoon trading. The shares have been in free fall ever since the company announced that the Luna well didn't encounter hydrocarbons back on the 16^th of March.

Angel Mining (LON:ANGM) jumped 14% higher to 1.6p right from the start of trading, before settling back around the 1.35p level during afternoon trading after the company said a new monthly production record as the total amount of dore poured in May was 40.6kg, or 1,305oz. Due to current gold price hedge of $1,650/oz, this equates to $2.15 million of sale proceeds; this new monthly record adds to the board's belief that the mine will soon attain its intended commercial level of production in excess of 1,500 ounces of saleable gold per month. Future gold pours are planned on a three weekly cycle, although this may vary from time to time to ensure the most efficient use of elution circuit and furnace. During May the Nalunaq mine has constructed a substantial new tailings disposal area, which should last for the remaining life of mine; a few days of production were adversely affected by the work to close off the old tailings disposal area and to switch the pipework and pumps to the new facility. Board continues to explore financing options for the Black Angel project and hopes to be able to provide further updates later this summer. 

Beowulf Mining (LON:BEM) pushed 3% to 13.5p at the mid-price during afternoon trading after the company said drilling has restarted on the northern part--Kallak nr1 license area--of the group's Kallak iron ore project, located in the Jokkmokk municipality in the Norrbotten County in Northern Sweden. Drilling has restarted following due notice of the planned operations having been provided to the local Saami community. Jokkmokk Iron Mines AB, or JIMAB, Beowulf's wholly owned Swedish subsidiary, currently expects to drill 7,000 metres over the coming months. Initially, one rig specifically focused on drilling at depth has started work, which will be joined by another rig in June with the potential use of additional rigs currently under review. JIMAB will seek to ensure that laboratory work is performed in tandem with the drilling operations to facilitate the timely reporting of results. JIMAB will shortly be filing a new work plan in respect of the southern part--Parkijaure nr2 license area--of its Kallak project and plans to hold further meetings with the representatives of the local Saami community in due course. The Company's previously outlined plans for a two phase infill drilling program of up to, in aggregate, 57,000 metres on the Kallak deposits, has now been refined and reduced to 35,000 metres of intended drilling, which will include denser spacing between individual drill sections and drill holes and will cover the entire extension and width of the Kallak deposits. 

Sunkar Resources (LON:SKR) dropped 20% to 3.7p during afternoon trading after the company reported a pre-tax loss of $10.1 million for 2011- slightly narrowed from the previous year- and a loss per share of 6.2 cents in its results for an 'extremely challenging' year in which its shares were temporarily suspended. Pre-tax loss $10.1 million (2010: loss $10.4 million).Loss per share 6.2 cents (2010: 8.4 cents). Group cash at year end $213,000 (2010: $1.65 million). Net assets $74.2 million (2010: $81.1 million). Financial position improved due to the injection of substantial funding from SAPC, whilst costs have been minimised. 

Premier Gold (LON:PGR) slipped 8.5% to 0.375p at the mid-price during afternoon trading even after the company said it has appointed Colonel Bob Stewart Non-executive Chairman with effect from June 1, replacing Gerry Desler who will retire but continue to serve on the board as Finance Director. Following a distinguished career in the British Army, Colonel Stewart was elected to Parliament on 6 May 2010 as the MP for Beckenham. Stewart has extensive knowledge of Kyrgyzstan, where Premier Gold is exploring, having promoted British business interests in the country and authored a report on Kyrgyzstan for the Foreign and Commonwealth Office. 

Hambledon Mining (LON:HMB) slipped 5% to 1.8p during afternoon trading after the company issued its final results late yesterday morning that said it swung to a pre-tax loss in 2011 as a rise in the cost of sales outweighed an increase in revenue, and reported 20,851 oz gold poured in the year, compared 22,802 oz in 2010. Revenue in year ended Dec. 31 $33.3 million (2010: $29.1 million) Pre-tax loss $10.6 million (2010: profit $3.31 million) Operating loss $10.2 million (2010: profit $4.02 million) Diluted loss per share 1.37 cents (2010: EPS 0.59 cents) Cost of sales $29.9 million (2010: $20.5 million) Cash at year-end $1.8 million (2010: $0.9 million) Does not recommend dividend. Sees increased production in FY12 as output of the underground mine is increasing and drilling is on-going. Tailings dam 3 legal action unlikely to be resolved before year-end. Mined ore +2.5 per cent., milled ore +4.5 per cent. Ore grade declined by 7.7 per cent. 

Alecto Minerals (LON:ALO) pushed 8.5% higher to 1.9p during late morning trading as the market continued to get behind the stock after the company announced back on the 21^st of May that it had raised £1.47 million via a placing of 95 million new Ordinary shares at 1.55 pence per share to a new cornerstone investor. Funds raised will primarily be used to advance Alecto's African resource portfolio through implementing systematic drilling and exploration programs. Cornerstone investor Mr Fahad Al-Tamimi is a successful businessman who is the founder and owner of a substantial diversified business group with its head offices in Riyadh, Saudi Arabia. Al-Tamimi also has the option to subscribe for further shares in Alecto in order to acquire a 29.9% stake in Alecto following completion of its current fundraising round. Additionally, Al-Tamini has received warrants in relation to the placing, and retains the right to appoint a director to the board of the Company. 

The FTSE 100 continued its short term bullish run by pushing another 31 points higher to 5387 (+0.61%) albeit on rather thin volume of 370 million shares by the time the US opening bell had rung. The FTSE AIM All-Share Index was 0.09% higher on volume of 835 million shares.

Gold - ↑Trading at $1578, up $5 (+0.32%)

Silver - ↑Trading at $28.53, up 12c (+0.41%)

Copper - ↑Trading at $7740, up $30 (+0.39%)

Zinc - ↑Trading at $1905, up $4 (+0.21%)

WTI Crude - ↑Trading at $91.46, up 33c (+0.36%)

Brent Crude - ↑Trading at $107.59, up 49c (+0.46%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Providence Resources (LON:PVR) pushed 2.5% higher during early trading after the company said it has completed further analysis of the 48/24-10z well test data which were acquired by Schlumberger during well testing operations. The data were analysed using a leading wellbore modelling software system to determine the potential Initial Production (IP) rates achievable from a single horizontal development well. This analysis indicates that the tested basal oil bearing sandstone package is of high quality with an average test derived permeability of c. 400 millidarcies, confirming the high productivity potential as demonstrated during the well testing operations. The analysis forecasts that a 1,000' horizontal well could deliver an IP of c. 12,500 BOPD & c. 11 MMSCFD (c. 14,300 BOEPD) through a standard 4.5" outer diameter (OD) production tubing under natural lift. Further well deliverability analysis and optimization studies are on-going to incorporate artificial lift which is expected to form part of the field development plan. Updated oil in place estimates are expected to be finalised during Q3 2012 with the estimated recoverable reserves and associated development concept being available in Q4 2012. 

Lansdowne Oil & Gas (LON:LOGP) jumped 7% to 36.5p on decent volume on the back of the update from Providence Resources. Lansdowne hold a 20% interest in the Barryroe Field. Commenting the  update, Steve Boldy, CEO of Lansdowne said "The results of the Barryroe well test analysis are very encouraging, demonstrating that the Lower Cretaceous Basal Wealden sands have the potential to deliver at high flow rates. This is important not only for Barryroe, but for pursuing this play elsewhere in the North Celtic Sea Basin and in particular in Lansdowne's Amergin Prospect where the basal Wealden sands form one of the key target reservoirs."

San Leon Energy (LON:SLE) moved 3% better to 8.5p during afternoon trading on the back of the Barryroe update. San Leon announced, on 23 December 2011, that the Company has assigned its 30% working interest in Standard Exploration Licence 1/11 to Providence in exchange for a 4.5% NPI on the full field. San Leon Energy will not pay any further appraisal or development costs on the Licence and is not paying any costs towards the 48/24-10 well. We are also waiting for core results from the first 3 drills from San Leon, that should be due shortly.

After yesterday's fantastic run, it was no surprise to see a few profit takers turn up to the Roxi Petroleum (LON:RXP) party. The share were 10% easier at 3.375p, albeit on thin volume. The shares did actually hit an intraday high of 4p, before slipping back into negative territory. 

Aurelian Oil & Gas (LON:AUL) made an interesting move once again today, slipping right back to a new 52 week low of 15.5p before pushing back up to trade at 16.5p during afternoon trading. The shares are a long way off of the 52 week high of 73p, and management are still trying to find a buyer for the company. 

Xcite Energy (LON:XEL) have really been yo-yoing over the last few days, trading at a low of 75p and a high of 115p. The shares were 4% easier at 93p on decent volume. The last update from the company was back on the 8^th of May that said drilling of the 9/3 billion-7 well on the Bentley field in the North Sea is progressing satisfactorily, having reached a total depth of 6684 feet. The 17[1/2]" section has been drilled, 133/8"casing set, cemented and pressure tested. The 12[1/4]" hole has been drilled. After the 10[3/4]" x 95/8" liner has been set, cemented and pressure tested, drilling to the reservoir section will follow. Following the announcement on Dec. 14, the company's 100% subsidiary, Xcite Energy Resources Ltd, has now signed a time charter contract with Teekay Navion Offshore Loading Pte. Ltd., for the provision of the dynamically positioned "Scott Spirit" shuttle tanker vessel. The Scott Spirit is planned to be used as the in-field storage and off take facility for Bentley crude oil during the Phase 1A of the Bentley field development program now being undertaken.

Magnolia Petroleum (LON:MAGP) continued to charge ahead once again today, pushing yet another 17.75% to 1.825p during afternoon trading. It was only the 11^th of April that these were trading a pretty much 1p per share, so a very handsome return for any of the long term holders that have stayed with this one over the last few months.

After the recent fall from 26p to 16.5p it was no surprise to see a few bottom fish buyers showing up in Amerisur Resources (LON:AMER) pushing the shares 6.5% higher during afternoon trading to 18.5p on decent volume.

Arian Silver (LON:AGQ) have slipped to a very interesting level down here at 16.5p a share, which is a fair way from the recent high of almost 30p. The last few times the shares have been down at this level, October last year and January this year, they have jumped rather aggressively. We will be watching for any signs of another bullish turn around in the stock, as I type the share are 3% higher at 16.75p at the mid-price. 

Canada's second-largest copper producer First Quantum (LON:FQM) pushed 9% better to 1161p on renewed bid speculation.  Rio Tinto (LON:RIO) and BHP Billiton (LON:BLT) have been touted as possible bidders but we can't see this happening given they have both stated their intention to focus less on growth and more on managing costs. However, Anglo American has also been talked of as a possible interested party. Anglo should have a war chest on selling interests in Chile and we think they are the most likely suspect should a bid arise. Regardless of a bid we think First Quantum offer good mid-term value. They have strong growth projects and are projected to boost EBITDA by 84% over the next three years, according to analysts' estimates compiled by Bloomberg. It plans to more than triple copper production within five years as it starts up mines in Peru, Finland and Zambia.

ATH Resources (LON:ATH) collapsed 22% to 10.25p at the mid-price during early trading after the company said that reduced coal prices continue to impact its margins resulting in further reductions to trading performance expectations, adding that it will defer the planned Glenmuckloch Eastern extension due to the lower coal prices. While demand for coal generally remains strong, international prices have fallen significantly in the past nine months, especially in the past few months. The Board will either proceed or begin final restoration of the current site towards the end of this calendar year. The deferment will have little impact on production levels in the current financial year, but if the Board decides not to proceed at all, volumes would be reduced by 500,000 tons during the following two years.

Aquarius Platinum (LON:AQP) eased another 4% to 71.75p on decent volume after Morgan Stanley started the company at Underweight. The shares have been under a lot of pressure since they announced the underground fire at its Mimosa mine in South Africa has been extinguished and a damage assessment has been made, adding that mining operations are expected to restart by May 28 and that mining output will be at an average of 70% of normal production for about three weeks.

The rollercoaster ride that is Rare Earths Global (LON:REG) jumped 36% to 450p after hitting a recent low of 330p. The shares are still a long way from the 52 week high of 1250p.

After the recent slip from 5p down to 1.875p it was no real surprise to see a few bargain hunters stepping in on a very bullish day in the markets on Botswana Diamonds (LON:BOD) The shares jumped by 13% to 2.125p at the mid-price during afternoon trading.

Another bullish session in the FTSE 100 today, but the real question is, can we string more than just a one day bonce together before we have another big sell off? As I type the FTSE 100 is 74 points higher at 5340 +1.36% on volume of 437 million shares, which does not show me that people are jumping in feet first believing this rally will continue. The FTSE AIM All-Share Index is 0.29% higher on volume of 487 million shares.

Gold - ↑Trading at $1568, up $8 (+0.56%)

Silver - ↑Trading at $28.29, up 51c (+1.86%)

Copper - ↑Trading at $7572, up $29 (+0.38%)

Zinc - ↓Trading at $1867, down $6 (-0.32%)

WTI Crude - ↑Trading at $90.61, up 71c (+0.79%)

Brent Crude - ↑Trading at $106.19, up 64c (+0.61%)       

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Cove Energy (LON:COV) jumped 11% to 249p on huge volume after PTT Exploration & Production PubliCo Ltd said further to PTTEP's announcement dated 24 February 2012 made under Rule 2.4 of the Code of a proposed cash offer for the entire issued and to be issued share capital of Cove (the "Possible Offer Announcement"), PTTEP and Cove are pleased to announce that they have reached agreement on the terms of a recommended cash offer to be made by PTTEP AI (a wholly-owned subsidiary of PTTEP) for the entire issued and to be issued share capital of Cove. Under the terms of the Acquisition, Cove Shareholders who accept the Offer will be entitled to receive: for each Cove Share held, 240 pence in cash. The Acquisition values the entire issued and to be issued share capital of Cove at approximately GBP1,221.4 million. The market is obviously pricing in yet another counter for the company either from Royal Dutch Shell or possibly another counterparty.

Roxi Petroleum (LON:RXP) jumped 27% to 3.5p at the mid-price during afternoon trading after the company said that the preliminary interpretation from Well NK7 indicates that the well encountered oil bearing zones, in the lower Cretaceous at a depth of 1,288 meters and also in the upper Jurassic sands at a depth of 1,307 meters.  The Well which was spudded on April 25, reached a total depth of 1,360 meters on May 15, after which wireline logging was run. Evaluation work continues and once the interpretation of the wireline logging with coring data has been completed, perforation intervals will be selected and testing will be carried out by work-over rig. 

Falkland Oil & Gas (LON:FOGL) slipped 3% to 87p during early trading pretty much in line with the broader weakness in the Oil & Gas sector. The company did say in the Final Results on the 13^th of April that it plans to spud Loligo, the first well of a contracted two well programme, is expected to be spudded in June 2012. It would be no surprise to see the market start to nibble at these as we get closer to June. 

Bahamas Petroleum (LON:BPC) jumped 8% to 7.45p during afternoon trading on decent volume after the company said Adrian Collins, Non -Executive Chairman of Bahamas Petroleum, acquired 200,000 ordinary shares in the Company at a price of 7.12 pence each. Following the Acquisition, Mr Collins is now interested in 200,000 Ordinary Shares, representing 0.02 per cent. of the Company's issued share capital. In addition, Mr Collins is interested in 1,000,000 options over Ordinary Shares, as previously disclosed. 

Gulfsands Petroleum (LON:GPX) bucked the overall negative trend in the market by pushing 5% higher to 103p during afternoon trading after the company said that Waterford Finance & Investment Limited had acquired 1.2 million shares taking the holding up to 19.29% or 22,734,739 shares. 

SacOil Holdings (LON:SAC) slipped 7% to 3.375p at the mid-price during early trading after the company said that it co-operated fully throughout JSE's investigation, and has accepted the JSE's findings and the matter regarding public censure of the company in respect of a breach of general principle has now been fully concluded. The public censure relates to the disclosure of headline earnings per share in the trading statements referred to in the announcement. SacOil submits that the difference between the information contained in the relevant trading statements referred to, arose from a differential accounting treatment of the group's intangible assets. It was also the first time that SacOil reported on the divestment of an intangible asset. SacOil has taken the steps in order to prevent a recurrence of the events that lead to the JSE's investigation. JSE Ltd Wednesday announced a public censure relating to the disclosure of headline earnings per share in the trading statements of SacOil. 

Another stock that was trying to buck the negative trend of the market was Mediterranean Oil & Gas (LON:MOG) as it pushed 2.5% to 5p, albeit on thin volume. The last update on the 9^th of May said that the Italian Ministry for Economic Development has granted a three year extension until May 5, 2015 to the exploration permit BR269 GC, held by the company's subsidiary Medoilgas Italia SpA.

Magnolia Petroleum (LON:MAGP) continued its bullish vein of form again today, pushing 5% higher to 1.575p at the mid-price during afternoon trading, against the very negative backdrop in the market. The shares have been pushing forward since the company announced its participation in three further wells in proven onshore oil plays in Oklahoma, as part of its expansion strategy to rapidly build production. Magnolia currently has interests in 74 producing properties. A positive update on four wells targeting the Mississippi Lime Formation, Oklahoma, is also provided. Participating in following three wells: * Joan 2-21,Grant County, targeting The Mississippi Lime Formation,(Magnolia 3.75% working interest) operated by Tessera Energy. The total cost of the well has been estimated at US$677,700 with the Company's share estimated at US$25,414. * Bollinger 1-27HHorizontal Well, CanadianCounty, targeting the Woodford /  Hunton Formation, Oklahoma (Magnolia 1.0% working interest) operated by Cimarex. Total drill costs are estimated at US$5.9m with the Company's share estimated at US$59,000. * Sherri#1 Well, Viola / Simpson Formation, Oklahoma (Magnolia 1.4297%  working interest) operated by Steve Nail who has proposed the re-entry of the Sherri#1 well targeting the Viola and Simpson zones. The total estimated cost for the proposed work is US$218,250 with the Company's share estimated at US$3,120. Updateson fourwells targeting the Mississippi Lime * Thomason 10-27-12 1H, (Magnolia 12.5% working interest) has been completed, initial production rates are awaited. * Brady 17-27-12 1H, (Magnolia 0.34375% working interest) has been completed, initial production rates are awaited * Lois Rust 7-27-12 1H (Magnolia 2.3% working interest) has been drilled and is waiting to be fracture stimulated * Redfork 1-25H (Magnolia 1.96% working interest) is waiting on spud.

Bumi Plc. (LON:BUMI) Slipped 8% to 400p at the mid-price during afternoon trading after its cracking run yesterday. It was no surprise to see a few short term traders taking a little profit off of the table as the market continued its slide once again. The next major support line I can see is around the 390p to 400p area, so it will be interesting to see if the long term holders, or the day traders look to jump back in on this dip. 

Aquarius Platinum (LON:AQP) eased 7% to 77.5p during early trading after the company said Mimosa (50% owned by Aquarius) wishes to advise that all employees have now been safely evacuated from the mine. No injuries have been reported. Details concerning the extent of damage and impact on production will be made available in due course. 

Sirius Minerals (LON:SXX) bucked the negative trend in the market today, by pushing 6% higher to 15.625p during early afternoon trading. The company did announce yesterday the appointment of Jason Murray to the board as Finance Director and Chief Financial Officer, adding that Andrew Lindsay has resigned from his executive and board roles but remains a consultant to the company. 

West African Minerals (LON:WAFM) jumped 15% to 66.5% on decent volume after the company announced  late yesterday afternoon that it reached an agreement to acquire the 5% interest not previously in its control in Compagnie Miniere du Cameroun SA, or CMC Cameroon. Following the acquisition, CMC Cameroon will become an indirect wholly-owned subsidiary. On completion of the acquisition WAFM will issue to the vendors a total of 18.5 million new ordinary shares representing approximately 6.7 per cent. of the enlarged share capital. Based on 21 May closing price of 54.75 pence, the shares are valued at approximately £10,128,750. Completion is expected within 10 days. The principal vendor is Colosseum Holdings Ltd. 

Vane Minerals (LON:VML) pushed 10% higher during early trading after the company said it has reached an agreement with the holders of its convertible loan notes over repayment of the notes. Currently has two convertible loan notes outstanding, the first for GBP1 million issued to Geiger Counter Limited; and the second loan, amounting to GBP500,000, issued to City Natural Resources High Yield Trust PLC. Principal points of the agreement are, Will repay GBP500,000 on May 31, out of existing cash resources, to settle the loan with City Natural Resources.  Will carry forward a loan note of GBP1 million, issued to Geiger Counter.  Maturity date for the new loan note is May 31, 2017.  New loan note will continue to attract interest at 8% per annum, payable every six months.  New loan note is convertible by the holder, at any time, into 80 million ordinary shares in Vane at a price of 1.25 pence a share. 

Eurasia Mining (LON:EUA) eased 15% to 0.50p before settling back at 0.60p, down 7.5% by the end of lunch. The company have been slipping ever since the company announced back on the 4^th of April that it issued 288.5 million ordinary shares to Queeld Ventures Limited at a price of 1 pence per share, raising GBP2.9 million. Placing will help the company to take the West Kytlym project to production and to develop other projects. Following the issue of shares, Queeld Ventures will hold 29.9% of the total issued share capital of the company.

Comments from former Greek prime minister Lucas Papademos late last night was the reason for the aggressive market sell of today, pushing the FTSE 100 Index 93 points easier as I type to 5310 (-1.75%) on volume of just over 400 million shares, which is thin volume for this time of day given the move in the market. The FTSE AIM All-Share index was 1.12% easier also on thin volume of just over 450 million shares.

Gold - ↓Trading at $1559, down $8 (-0.49%)

Silver - ↓Trading at $27.66, down 45c (-1.59%)

Copper - ↓Trading at $7595, down $95 (-1.23%)

Zinc - ↓Trading at $1872, down $30 (-1.51%)

WTI Crude - ↓Trading at $91.40, down 43c (-0.47%)

Brent Crude - ↓Trading at $107.10, down $1.30 (-1.21%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Red Emperor Resources (LON:RMP) jumped 17% to 18p during afternoon trading after Greg Bandy announced he had bought 400,000 shares, putting his faith in the recent update from the company on drilling in Puntland, Somalia saying the well had encountered 12 - 20m zone of significant hydrocarbon pay in the Upper Cretaceous Jesomma Formation and Red Emperor believes this zone will be flow tested. Even after the bounce in the share price today, Red Emperor are still down over 40% since the Puntland update on the 17^th of May. 

Sticking with directors backing the company, Range Resources (LON:RRL) surged 19% to 7.8p during afternoon trading on big volume after the company said Peter Landau had bought 750,000 shares, and Marcus Edward-Jones had bought 150,000 shares. Range shares have fallen around 30% since the update on the 17^th of May, before bouncing to the current level of nearly 8p. 

Heritage Oil (LON:HOIL) traded to an intraday high of 128.4p before slipping back to trade flat on the day at 125p around lunchtime. The shares have been in bull mode this week as snippets of news from the two-day conference in Erbil, Kurdistan organised by STEAM, The Strategic Technical Economic Researches Centre, in coordination with the KRG, started to filter through to the market. Dr Ashti Hawrami, the Kurdistan Regional Government (KRG) Minister of Natural Resources, said in his presentation, "Turkey means for us the access route to monetise oil and gas and create benefits for the Iraqi people." He went on to discuss plans for a new gas pipeline to supply Turkeys BOTAS gas grid, to be built through public-private partnership, and in the next 12 months, a million-barrel oil pipeline to connect to the Ceyhan pipeline, where a large new refinery is planned. 

Gold Oil (LON:GOO) surged 42% to 5.82p during afternoon trading on huge volume as the market looks to be positioning itself prior to the farm out update on the Z34 block in Peru. It would appear the market is expecting an update imminently by the way they chased this one higher today. 

A few profit takers showed up in Ithaca Energy (LON:IAE) today after the fantastic run from yesterday. Shares were 5% easier at 165p during lunchtime trading ahead of the Canadian open, after a long bank holiday weekend out there. 

Lochard Energy (LON:LHD) were playing catch up to yesterday's move in Ithaca Energy, pushing 10% higher to 9.25p at the mid-price during afternoon trading. Many holders believe that any bid for Ithaca could be a very bullish sign for Lochard, who own 10% of the Athena field in the north sea with them. 

Max Petroleum (LON:MXP) pushed 3% higher to 10.7p during early trading today, before settling back at 10.25p after the oil and gas exploration and production company focused on Kazakhstan, announced that it has commenced drilling the ASK-J2 development well in the Asanketken Field in Block E. Total depth of the well will be approximately 1,400 metres, targeting Jurassic reservoirs. 

Serica Energy (LON:SQZ), whose shares have been hit along with the rest of the Oil & Gas sector, rebounded nicely today, jumping 10% to 25.5p during afternoon trading on decent volume. Even after the rally today, the shares are still a long way from the 46.5p high back on the 20^th of March this year. 

As the people continued to add a little risk to the portfolio today, Xcite Energy (LON:XEL) pushed 17% to 103p on twice the average daily volume before the end of lunch. Resistance at the 50 day moving average at 105p looks to be the first line of resistance to watch for here.

Bellzone Mining (LON:BZM) surged 24% to 22.5p on huge volume after the company said the government of Guinea has approved the startup of commercial production at its Forecariah iron ore project, a joint venture between Bellzone and China International Fund Ltd. The intention is to mine and export the initial 2 million tons of high grade material identified during the first year of operations, with the aim of achieving the design capacity of 4 million tons annually by the year end. Post the initial 2 million tons of high grade material, the low grade iron oxide will be upgraded to produce a +58% pure iron product, said the company. "Approval for Forecariah is a landmark event for Guinea and the joint venture partners. The ability to bring a greenfield asset into production, build a trans-shipping port and haulage road in under 15 months is a significant achievement," Bellzone chief executive Nik Zuks said. Commercial offtake agreement negotiations are underway, Bellzone added. 

Bumi (LON:BUMI) jumped 13% to 435p on decent volume after Barclays initiated coverage at overweight with a price target of 565p. The group is essentially a highly-levered thermal coal business in Indonesia and has a very large resource base close to the coast, which is regionally well placed to serve the markets of China, India, South Korea and Japan, says Barclays. "We believe that under new management the company can continue to ease its debt burden, push through a strong expansion scheme and improve corporate governance," adds Barclays. 

Premier Gold Resources (LON:PGR) jumped 6% to 0.47p at the mid-price during afternoon trading, after hitting an intraday high of 0.5575p, on huge volume of well over 19 million shares which is over 5 times the average daily volume for the name. Could this volume be a seller finally being cleared? We will be looking for any updated holdings announcements over the coming sessions. 

Ncondezi Coal (LON:NCCL) jumped 8% to 37p during early trading after the company said it is restructuring its senior management team, replacing its non-executive chairman and promoting the current chief operating officer to chief executive officer. Michael Haworth, a non-executive director of Zanaga Iron Ore Co. Ltd. (ZIOC.LN) and a director of Strata Ltd., has been appointed to the Ncondezi board as non-executive chairman. Haworth will replace Richard Stuart, who will remain on the board as a non-executive director. Nigel Walls, currently chief operating officer, has been promoted to CEO and will join the board as an executive director. Walls replaces Graham Mascall, who will become a non-executive director. Paul Venter, a mining, power generation and transport industries veteran of 39 years across Africa, Mongolia, China and Russia, has been appointed as chief operating officer. Ncondezi noted that during his recent tenure as vice president of energy operations at Prophecy Coal Corp. (PCY.T), Venter was instrumental in the successful commissioning of the Ulaan Ovoo coal mine in Mongolia into production within six months after the acquisition of the asset. "With the [definitive feasibility study] progressing well and on track for completion during the third quarter, now is an appropriate time to restructure the management in preparation of the company's next phase, the financing and development of the Ncondezi Project to production," outgoing CEO Mascall said, adding that the feasibility study on a coal fired power plant remains on track for completion during the third quarter. 

Aquarius Platinum (LON:AQP) were active intraday after the company said a fire overnight at the jointly owned Mimosa operation in Zimbabwe has been contained. The majority of the 75 workers stuck in underground due to poor visibility because of the smoke are out and about eight still in there will be out soon, an Impala spokesman said. The fire started when the conveyor belt in the main decline caught alight, but has been contained. Impala said there are two other smaller conveyer belts that can be used while the mining team assesses the overall damage. Impala wouldn't give a figure for how much output will be lost but said some mining is continuing. The Mimosa mine is a 50-50 joint venture between Aquarius and Impala. The mine produced 104,900 troy ounces of platinum in 2011 and employs 1,796 people, including contractors. 

African Copper (LON:ACU) slipped 11% to 1.875p at the mid-price during early trading after the company said it has stopped producing copper concentrate after the failure of a crucial piece of machinery at the milling plant of its flagship Mowana Mine, but noted that all other mining activities, including drilling, load and haul, and ore transportation are expected to continue to plan. The miner said the failure of a pinion shaft--part of the gearing assembly--at the milling facility caused the production halt and said that concentrate production will remain suspended until a replacement is found, but didn't give a timeframe. 

North River Resources (LON:NRRP) eased 4% to 1.125p on decent volume after the company reported a 61% narrowed pretax loss for 2011, and said that it will mainly focus on advancement of the Namib Mine and Malachite Pan during in 2012. Total administrative expenses for the year ended Dec. 31, 2011, GBP1.2 million (2010: GBP6.0 million). Exploration expenditure £1.7m (2010: £1.4m). Pretax loss GBP2.9 million (2010: loss GBP7.4 million). Diluted loss per share 0.43 pence (2010: loss 1.62 pence). Group cash and cash equivalents GBP3.5 million (2010: GBP3.4 million). Directors view the conceptual production rates of 250,000 tons of ore per year from the Namib Mine and production rates of 8,000 tons of copper per year from Malachite Pan as credible target production levels, and planning is progressing on this basis. Scoping Study for the Namib Mine is underway. Similar study on Malachite Pan is planned to commence in 2012, pending further drilling results.

The FTSE 100 continued its bullish vein of form once again today, as a punters headed for a little risk play to try and recapture some of the losses made during last week's bloodbath. The main index was up 63 points (+1.21%) to 5368 on volume of just over 450 million shares going into the US open. The FTSE AIM All-Share Index was 1.47% higher on volume of just over 686 million shares.

Gold - ↓Trading at $1581, down $11 (-0.71%)

Silver - ↓Trading at $28.31, down 14c (-0.54%)

Copper - ↑Trading at $7741, up $38 (+049%)

Zinc - ↓Trading at $1901, down $1 (-0.02%)

WTI Crude - ↑Trading at $91.89, up 2c (+0.04%)

Brent Crude - ↓Trading at $108.72, down 9c (-0.08%)     

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Red Emperor Resources (LON:RMP) jumped as much as 20% to 18.96p during early trading before settling down around the 15p level after the company said that it has, today, exercised its option to participate in the drilling of the Shabeel North well, schedule to be spud in the first week of June. As a result of this decision to participate, Red Emperor maintains its 20% Participating Interest in each of the Dharoor Valley and Nugaal Valley PSAs. The rig is currently moving to the Shabeel North location, 3.5km north of Shabeel-1. The primary objective of this well will be to evaluate the Upper Cretaceous Jesomma Sands that have been oil-bearing at the Shabeel-1 location. Greg Bandy, Managing Director of Red Emperor, commented, "We are delighted to announce that we are participating in the second Puntland exploration well and as a result maintaining our 20% interest in this historical Joint Venture. We were very encouraged by the results of the Shabeel-1 well that have confirmed oil-bearing sands in two zones. This discovery has very positive implications for the prospectivity of the basin. We look forward to the results of the Shabeel North well and to testing the Jesomma sands to confirm the potential of the block." We (Fox Davies) as a shop have a BUY recommendation with a 65p price target. 

Matra Petroleum (LON:MTA) pushed 4% higher to 2.7p during afternoon trading after trading at an intraday high of 3p after the company said Managing Director Peter Hind has resigned with immediate effect to pursue his other interests and that Maxim Barskiy has been appointed Chief Executive. Hind will remain an employee of Matra until May 31, to help effect an orderly handover of his responsibilities, at which point he will leave the Company. Barskiy recently subscribed GBP4.6 million new equity into Matra and on May 14 joined the board as a non-executive director. Board continues to consider its senior management organization. 

Gulf Keystone (LON:GKP) jumped 7% to 207p on decent volume as the long term holders continued to react favourably to the recent announcement from the company that said an individual who spread damaging rumours on message-distribution system Twitter, which were later admitted to be fantasies, would cease to comment publicly on the company's activities. According to court documents, 28-year-old Spencer Freeman posted numerous messages on Twitter about Gulf Keystone between June 2011 and May 2012, culminating in a claim on May 9 that the company was preparing to raise cash by issuing shares at a price of 160 pence, a 22% discount to its closing share price the previous day. Shares in Gulf Keystone plunged by as much as 9% that day and remained down until the company refuted the claims in a regulatory filing May 10. Gulf Keystone was seeking to prevent Freeman "posting untrue and damaging allegations" that prompted a collapse in its share price and took up substantial management time "dealing with disgruntled investors and press inquiries," according to court documents. Freeman will voluntarily abide by Gulf Keystone's demands, in an agreement that will have the same legal force as a court injunction, said Justice David Bean, the presiding judge in the case. Gulf Keystone will take no further proceedings against Freeman, but he could face contempt of court charges if he breaches his undertakings, said Bean. 

Holders of Gold Oil (LON:GOO) continued to be frustrated waiting for the outcome of talks on the Z34 block in Peru, as the shares slipped another 6% to 4.2p during early afternoon trading. The shares are a long way from the 7.75p high only a few weeks ago. The last update on the Z34 block was back on the 8^th of May when the company said it has received expressions of interest from a number of potential farminees in Block Z34, offshore Peru, following the planned date for receiving bids for acquiring equity in the block. Gold Oil will now progress discussions with interested parties with a view to firming up proposals and deciding on the next steps. 

Ithaca Energy (LON:IAE) jumped to an intraday high of 176.89p up 18.7% during early trading today, as speculation surrounding the company once again started to do the round. Ithaca did announce to the market back on the 23^rd of January that it was in talks with potential suitors that may or may not lead to an offer being made. Being a Canadian company, they are not governed by the same takeover code as UK stock would be, so until they announce to the market once and for all, this sort of speculation will continue to swill. All this sort of speculation must be taken with a large pinch of salt until the company says something officially. 

Chariot Oil & Gas (LON:CHAR) moved 8% higher to 78.5p during afternoon trading after the company said that in conjunction with its partners, its subsidiary, Enigma Oil & Gas Ltd, has reached an agreement with Ocean Rig UDW Inc. to use the Ocean Rig Poseidon drill ship to drill the Kabeljou--2714/6-1 well on the Nimrod prospect. The Poseidon, which is currently on a long-term contract with the Operator, is anticipated to arrive on location in July and the drilling operations will commence shortly thereafter. The Nimrod prospect is located in the Orange Basin in Southern Block 2714A where Chariot has a 25% equity interest. The Kabeljou well is expected to take 2 months to drill. This is the second well to be drilled in Chariot's 4 to 5 exploration well program offshore Namibia. Concurrently, the company is processing the 3D seismic data acquired from the recent survey carried out in the Central Blocks with initial results showing that the data quality is very good. Detailed analyses are due to commence on the samples from the Tapir South well shortly and once these evaluations are complete, and the results of the Kabeljou well have been assessed, the company will be in a position to determine the next wells of the drilling program for 2013. 

The bulls were out in full force once again chasing Heritage Oil (LON:HOIL) higher again today, pushing them up 8% to 124.5p to continue the bullish tone set late last week when the company said that production for the first quarter of 2012 averaged 605 bopd, an increase of 40% on the same period in the prior year. Its cash position on March 31 was $154 million, excluding amounts related to the Ugandan tax dispute. Miran East-1 well is currently at a depth of 2,020 metres; operations on Miran East-1 well are on schedule and drilling is expected to take a further five months. 

Top of the pops today in the Oil & Gas sector was Frontera Resources (LON:FRR), jumping 31% to 0.9p during afternoon trading, a touch off of the intraday high of 1p after the company said it expects monthly oil and gas sales to almost double in the third quarter of 2012 as it brings natural gas production wells online that had been delayed by poor weather conditions, a slower-than expected government permitting process and difficulty locating and modifying components. Since January, group oil sales generated average monthly revenue of $760,000. Frontera expects this to increase to $1.2 million with the start of gas sales in the third quarter. As the company looks to further develop its assets in Georgia and expand outside of the country, it said it is looking to utilize alternative funding sources, strategic partnerships, as well as its Standby Equity Distribution Agreement, or SEDA, during the second half of the year. Frontera said that due to downward pressure on its stock price--which has fallen over 44% in the last six months--it has been cautious in utilizing its $35 million SEDA facility in order to accelerate operations. It attributed the fall in its stock price to "significant follow-on sales volumes associated with last year's debt conversion"

Alecto Minerals (LON:ALO) was unchanged on the day at 1.625p at the mid-price after the company said it has raised GBP1.47 million via a placing of 95 million new Ordinary shares at 1.55 pence per share to a new cornerstone investor. Funds raised will primarily be used to advance Alecto's African resource portfolio through implementing systematic drilling and exploration programs. Cornerstone investor Mr Fahad Al-Tamimi is a successful businessman who is the founder and owner of a substantial diversified business group with its head offices in Riyadh, Saudi Arabia. Al-Tamimi also has the option to subscribe for further shares in Alecto in order to acquire a 29.9% stake in Alecto following completion of its current fundraising round. Additionally, Al-Tamini has received warrants in relation to the placing, and retains the right to appoint a director to the board of the Company. Exploration programs are also planned for Alecto's Ethiopian portfolio, which includes the 945 sq km Wayu Boda Gold Project, which has advanced artisanal workings, in the central-southern Adola greenstone belt, and the 1,953 sq km Aysid-Metekel gold license in the Aysid-Metekel region of north-western Ethiopia. Company is currently conducting due diligence at the highly prospective 711 sq km bauxite license 223 in Guinea. 

Serabi Gold (LON:SRB) slipped 6.5% to 9p at the mid-price during afternoon trading, albeit on thin volume. The shares have continued to slide despite the company announcing First Quarter resultshighlighting that assay results from ALS  Minerals confirmed preliminary results issued in December 2011 for drilling undertaken on the Palito South extension and the Piaui prospect. Independent results reported an average upgrade for gold assays of 8% and 14.9% respectively, compared with the preliminary reported results. NCL personnel visited Palito during March 2012 to undertake their field evaluation and gather the required data for the PEA. The Operational Environmental Licence for the Palito Mine was renewed by Secretaria de Estado de Meio Ambiente ("SEMA"), the state Environmental Agency for the State of Para. Corporate Highlights The Company completed a placing of 27,300,000 units on January 24, 2012 raising gross proceeds of UKÂGBP2.73 million Each of the 27,300,000 units were comprised of one ordinary share and one- sixth of one ordinary share purchase warrant of the Company, with each whole warrant being exercisable to acquire one Ordinary Share at an exercise price of UKÂGBP0.15 until January 23, 2014. NCL Ingenieria y Construccion SA  ("NCL") were appointed to undertake an independent Preliminary Economic Assessment (the "PEA") into the viability of re-establishing mining operations at the Palito mine. 

CIC Mining (LON:CICR) slipped 8% to 2.75p at the mid-price after the company said that it has sold shares in CIC Precious Metals Ltd (CICP) and Emulsion Fuel Ltd with attached warrants that have generated initial cash receipts of $300,000 in relation to the CICP transaction and GBP150,000 in relation to the Emulsion transaction to the company. The initial payment represents 10% of the full consideration that might be payable to the company in connection with these transactions. In respect of the CICP transaction, the balance of the purchase price which will not exceed $2.7 million will be payable within 3 years of the IPO of CICP. There is no guarantee that the IPO of CICP will be achieved or that the balance of the purchase price will be paid. Under both the CICP and Emulsion agreements the company has provided certain warranties and indemnities to the purchaser. As a result of these share transactions, the company now holds 31.5% of the issued share capital of Emulsion. CIC's holding in the issued share capital of CICP, however, remains at 48% as the shares which have been sold were new shares which were due to be issued to the company in payment of consulting and advisory services. 

Alexander Mining (LON:AXM) dropped 11% to 3.875p at the mid-price during afternoon trading after the company said that it is proposing a capital re-organization whereby each ordinary share of 10 pence each will be divided into 1 new ordinary share of 0.1 pence each; and 1 deferred share of 9.9 pence each. Therefore, following the Capital Re-organization, the number of New Ordinary Shares held by each existing shareholder will be the same as the number of Existing Ordinary Shares held by them immediately before the Capital Re-organisation. The New Ordinary Shares will have the same rights and benefits of the Existing Ordinary Shares. The number of New Ordinary Shares in issue following the Capital Re-organisation will be unchanged from the number of Existing Ordinary Shares in issue immediately prior to the Capital Re-organization. The deferred Shares will not be admitted to trading on AIM, will have only very limited rights on a return of capital and will be effectively valueless and non-transferable. 

The volume in Regency Mines (LON:RGM) caught the eye once again today, with over 4.5 million shares changing hands before the end of lunch. The shares have been slipping over the last few session, but then there have not been many that have managed to hold up in the current climate. 1.9p to 2p looks to be a very stubborn old support line, and It will be interesting to see if the long term holders draw a line in the sand once again at this level. 

Ariana Resources (LON:AAU) jumped 25% to 3.125p on huge volume after the company reported "bonanza gold and silver grade" drilling results from its exploration program at the Kiziltepe sector of the Red Rabbit Gold Project in Western Turkey. Drilling, which took place on the Arzu South and Arzu North veins at Kiziltepe, returned the highest grades ever recorded from the deposit, including 65.9 grams a metric ton of gold and 760 grams a ton of silver. "The grades and width of mineralization reported are greater than anything we have seen in the seven years that we have been exploring this deposit and importantly prove the high grade vein system extends under cover between the Arzu South and Arzu North structures," Managing Director Kerim Sener said. "The scale of the project continues to grow with further zones being identified that will only improve the economics of the project which we are advancing towards production." A total of 1,995 meters of diamond drilling has been completed at the Kiziltepe deposit since October 2011. The company noted that many of the drilling positions for the current exploration program were constrained by an existing forestry permit. Consequently Ariana will now need to identify optimal drilling positions ahead of obtaining new forestry permits for a deep drilling program in this area. 

Angel Mining (LON:ANGM) pushed 7% to 1.5p on decent volume as long term holders continued to buy hoping for another update on the companies next gold pour. In the last RNS from the company back on the 9^th of May they said that, since the main generator was repaired and processing of ore recommenced on April 5, the mining and processing operations have progressed well at the Nalunaq Gold Mine. Circuit is now well primed with gold and on May 6 Angel completed a gold dore pour of 19.295kg [538oz]. Future gold pours are planned on a three weekly cycle and, following the next gold pour, the mine and plant are expected to settle into a much more consistent period of cash generative production. 

The FTSE 100 finally had a very small relief rally, pushing 21 points higher to 5288 (+0.39%) on volume of 454 million shares by the 3pm hour. We are still a long way from the 5800 high seen only at the beginning of this month. The FTSE AIM All-Share index pushed 0.36% higher on volume of 880 million shares at the strike of the 3pm hour.

Gold - ↓Trading at $1588, down $4 (-0.22%)

Silver - ↓Trading at $28.13, down 62c (-2.14%)

Copper - ↑Trading at $7701, up $48 (+0.62%)

Zinc - ↓Trading at $1902, down $18 (-0.96%)

WTI Crude - ↑Trading at $91.89, up 44c (+0.48%)

Brent Crude - ↑Trading at $108.12, up 99c (+0.92%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Range Resources (LON:RRL) slipped 4% to 8.7p during early trading even after the company said that the report on its North Chapman Ranch field in Texas confirms a significant increase to the company's proved reserves by as much as 50%, while in Trinidad, progress continues to gain pace in the development program of the shallow Lower Forest Horizons within the Morne Diablo field. Company estimates it has: total oil reserves of 19.6 MMbbls, or million barrels, in Trinidad, and 3MMbbls in Texas; 3.2 Bcf, or billion cubic feet, of natural gas in Trinidad and 27.7 Bcf in Texas; and 2.5 MMBBls of natural gas liquids in Texas. If the market was not another 50 odd point off when this update hit the news wires, possibly the market would have reacted more favourably. 

Ophir Energy (LON:OPHR) jumped another 11% to 572p during afternoon trading after the company said that its fifth consecutive Tanzania gas discovery with the Mzia-1 exploration well located in Block 1, offshore southern Tanzania, and said preliminary evaluation of the results indicates 55 meters of natural gas pay in good quality sands. An extensive logging program has been completed, including the acquisition of pressure data and gas samples. Well has de-risked a number of adjacent Cretaceous prospects, which could form part of a future Mzia hub; prospects are expected to be tested in a future appraisal program to be defined following incorporation of data from this new well and 3D seismic. New resources proven by Mzia and the potential of adjacent prospects are currently under evaluation. Prior to drilling Mzia-1, BG Group had estimated mean total gross recoverable resources approaching 7 trillion cubic feet of gas from the four previous discoveries drilled in Tanzania. Following the imminent completion of operations at Mzia, the Deep-sea Metro-1 will relocate to Block 3 for the drilling of the next exploration prospect, Papa-1. BG Group as operator has a 60% interest in Blocks 1, 3 and 4 offshore Tanzania, with Ophir Energy PLC (OPHR.LN) holding 40%. 

Chariot Oil & Gas (LON:CHAR) slipped 2% to 78p during early trading even after a number of directors bought stock yesterday. Adonis Pouroulis, Chariot's Non-Executive Chairman, bought 100,000 ordinary shares in the Company at a price of 74.95 pence per share. Following the purchase, Mr. Pouroulis holds 100,000 ordinary shares, representing 0.05% of the Company. Larry Bottomley, a Non-Executive Director of Chariot, today bought 20,289 ordinary shares in the Company at an average price of 80 pence per share. The Company also announced that Phillippa Bottomley, spouse of Larry Bottomley, purchased 20,104 ordinary shares in Chariot at an average price of 81 pence per share. Following this transaction, Larry Bottomley has a beneficial interest of 40,393 ordinary shares, representing 0.02% of the Company.

Xcite Energy (LON:XEL) slipped 4% to 85p during early trading, along with most of the market. The shares have slipped from just over 180p back in February, down to the current level. The next major support line I can see is 83p, and if that is broken it would appear that 73p would be the next major level to watch for thereafter.

Heritage Oil (LON:HOIL) bucked the overall negative trend in the market by pushing 2% higher to 125p during afternoon trading. The company has continued to buy back shares over the last few months, and the shares are sitting right on the 52 weeks low. We will be watching these closely over the coming sessions for any signs of the turnaround continuing.

Afren (LON:AFR) recently gave the market a bullish update that said first-quarter production has been in line with expectations, over four times higher than the previous year, significantly lifting revenue and profit, and added it is on track to end 2012 with production in line with previous guidance at 42,000 to 46,000 barrels of oil equivalent a day. Net production in the first quarter rose to 41,308 barrels of oil equivalent a day generating $300.2 million of net operating cash flow. The company ended the quarter with $399.0 million cash compared with $333.0 million a year earlier. Due to the increased production, first-quarter pretax profit rose to $143.2 million from $2.0 million a year earlier. Revenue rose to $386.7 million from $73.4 million. "We have made an excellent start to our 2012 exploration campaign with significant discoveries at Okoro East, Ebok North fault Block and Ain Sifni. We look forward to continuing our exploration program, with wells in Nigeria, the Nigeria-Sao Tome & Principe JDZ, Congo, the Kurdistan region of Iraq and East Africa, targeting in excess of 630 million barrels of oil equivalent net to Afren," Chief Executive Osman Shahenshah said. Shares have continued to slip with the overall negative market, and were 2% easier again today at 118p, after hitting an intraday low of 112.108p. The major support level that I can see is around the 110p/113p so it was no surprise to see long term holders drawing a line in the sand down at these levels.

Gulfsands Petroleum (LON:GPX) continued to slide once again today, pushing 3% easier to 110p during afternoon trading. The next major support line I can see here looks to be around 100p to 105p, a level which the shares traded at intra-day today (105.6p). If that level is broken, the next are to watch for would be 90p.

Argos Resources (LON:ARG) fell another 10% to 16.25p during afternoon trading today, and are now trading back at what looks like a decent support level. A number of stocks over the last few sessions have slipped back to major support, and we are now looking to the broader index for answers as to whether these will hold up once again.

Beowulf Mining (LON:BEM) slipped 6% to 13.625 during early trading despite announcing that its subsidiary, Jokkmokk Iron Mines AB or (JIMAB), has now received approval from the Mining Inspectorate at Bergsstaten for the work plan filed and notified in respect of the 2012 drilling campaign on its Kallak nr1 permit area. JIMAB intends to file a new work plan shortly in respect of the Parkijaure nr2 permit area as the timetable set out in the original notified work plan has now expired. The company has, for some considerable time, sought and been in consultations with the Mining Inspectorate and the local Saami community seeking to resolve the Saami's objections to JIMAB's work plans on the grounds that such planned operations could potentially affect the community's seasonal reindeer herding. Further to a request by JIMAB, the Mining Inspector has now duly considered this matter and decided to confirm the work plan for Kallak nr1 subject, inter alia, to the company being required to provide the local Saami community with at least ten days' notice prior to drilling operations commencing setting out the location of the drill rigs, intended equipment utilization, staffing numbers, envisaged routes and estimated duration. The Mining Inspector's decision is effective immediately, even if an appeal is lodged within the requisite three week period. The work plan for Kallak nr1 will remain valid for the remainder of 2012 and, in accordance with the Swedish Minerals Act, JIMAB will deposit an increased sum of GBP54,000 as a bond with the Mining Inspectorate in respect of any damage resulting from its exploration activities prior to works commencing. 

African Minerals (LON:AMI) jumped 7% to 428p during early trading after the company said that, following receipt of relevant regulatory approvals, China Railway Materials Company Limited ("CRM") has completed its subscription for $50m of the Company's 8.5% convertible bonds due 2017 ("the Bonds") through CRM (Hong Kong) Holdings Ltd, its wholly owned subsidiary. These Bonds have been issued today, and are on the same terms as, and form a single series with, the $350m of convertible bonds issued on 10 February 2012. As previously announced, CRM has the right to maintain its shareholding in the Company at up to 12.5% in the event of any future equity issue by AML. CRM's subscription to the Bonds, which represents 12.5% of the enlarged issue of the Bonds, removes any potential dilution of their shareholding if the Bonds convert into fully paid common shares of the Company. The common shares to be issued upon conversion of the Bonds issued to CRM would represent approximately 4.6 million common shares or 1.4% of the current total number of issued and outstanding common shares of the Company. Mr. Liu Guoping, CRM's nominated director on AML's Board, said "We are delighted by African Minerals' achievements in bringing Tonkolili into production in such a short period of time and are committed to working with them as supportive, long-term partners." Frank Timis, Executive Chairman of AML commented: "The subscription by CRM for their full entitlement of AML's convertible bonds underlines their commitment to AML's growth story and also signals the support of China for our long term strategy." 

Hambledon Mining (LON:HMB) slipped 9% to 1.975p during early trading, after pushing yesterday on a drilling update that said 114 drill holes have been completed in the upper levels of the underground ore zones at Sekisovskoye project, Kazakhstan, and the results are consistent and in many areas exceed the previous geological and mineral resource modelling previously carried out. Total over 13,250 meters drilled. Continues to advance underground mine and associated diamond drill program. Received further payments of $420,000 relating to for Ognevka bankruptcy process, making total proceeds received by the company of $1.62 million. 

Caspian Holdings (LON:CSH) pushed 8% higher to 0.37p during early trading today, after the company said that high grade assay results continue at the La Parrilla Tungsten Project in southwest Spain, in which it has an option to buy a 100% interest. Significant intersections from the second hole IP-02 include: 18 meters from 230 meters to 248 meters of 0.97%tungsten VI trioxide, or WO(3); 10 meters from 174 meters to 183 meters of 0.17% WO(3). Caspian -Caspian is currently drilling hole four out of five holes in a 1,500-metre diamond core drilling campaign to appraise extensions to the La Parrilla orebody, which is targeting an open zone to the west of the existing open pit. To date, a total of 1,172.80 meters has been drilled. Hole three has been completed and the Company awaits assay results. Assay results have been received for the second hole, IP-02, which indicate thick high-grade intersections well above the average SRK resource grade of 0.09% tungsten trioxide (WO(3). As with the first hole announced in April, the second hole has intersected visible tungsten mineralization, in particular the deepest intersection which corresponds with the deepest in IP-01. Significant mineralization can be seen in all holes drilled to date. Initial indications suggest strong correlation of mineralized zones between holes. 

URU Metals (LON:URU) eased 17% to 5.375p on just over 10 times the average daily volume. The shares are now back to levels not seen since 2010, and the next major support line I can see looks to be around the 5p level. 

Horizonte Minerals (LON:HZM) slipped 7% to 8.375p during early trading after the company reported Q1 2012 results that highlighted a wider pretax loss for the quarter ended March 31 and said that the preliminary economic assessment for Araguaia asset on track for release at the end of Q2 2012. Pretax loss from continuing operations GBP690,229 (2011: GBP190,358). Loss per share 0.24 pence (2011: 0.07 pence). Capitalized Exploration expenditure GBP586,684 (2011: GBP685,076). Cash at end of period GBP4.87 million (2011: GBP10.78 million). Total assets at period end GBP33.37 million (2011: GBP36.46 million). 

Regency Mines (LON:RGM) slipped 6.8% to 2.05p at the mid-price, although the percentage move was not as bad as it sounds as the spread on the stock was 1.8p to 2.3p, which is wide enough to fit a bus through! 2p looks to be a major support line so it will be interesting to see how the long term holders react now the shares are back to that level once again.

The FTSE 100 continued its bearish run once again today, easing a further 50 points from the start of trading, touching a low of 5354, before bouncing to trade only 14 points down at 5424 (-0.25%) on volume of 600 million shares as the US opening bell sounded. The FTSE AIM All-Share Index was 1.23% easier on volume of 700 million shares.

Gold - ↓Trading at $1540, down $9 (-1.19%)

Silver - ↓Trading at $27.49, down 18c (-0.69%)

Copper - ↓Trading at $7671, down $13 (-1.47%)

Zinc - ↓Trading at $1912, down $8 (-0.52%)

WTI Crude - ↓Trading at $92.84, down $1.12 (-1.21%)

Brent Crude - ↓Trading at $111.67, down 48c (-0.43%)        

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Chariot Oil & Gas (LON:CHAR) jumped 13% to 85p during early trading after UBS said BUY the shares as they do not see a read across from Tapir South to Chariot's other acreage, and they go on to say the door is open for significant upside from here. The company also said that on 14 May 2012 Adonis Pouroulis, Chariot's Non-Executive Chairman, bought 100,000 ordinary shares in the Company at a price of 74.95 pence per share. Following the purchase, Mr. Pouroulis holds 100,000 ordinary shares, representing 0.05% of the Company. Westward Investments Limited, a company which is owned by a discretionary trust of which Mr. Pouroulis is one of a number of beneficiaries, maintains its holding of 21,565,971 ordinary shares, representing 10.75% of the Company. 

Matra Petroleum (LON:MTA) jumped 12% to 2.65p at the mid-price on big volume of 56 million shares before the end of lunch after the company said that exploration director Neil Hodgson has confirmed his intention to resign and step down from the board. Hodgson's resignation will become effective on May 31. Matra is currently considering its senior management organization and said it will announce appointments as they are confirmed. 

Bahamas Petroleum (LON:BPC) slipped another 7% to 7.4p on big volume during early trading today. The shares did enjoy a brief rally following the election victory for the opposition Progressive Liberal Party in the Bahamas, as investors expect the new government to back future oil exploration. The close-run election result followed a campaign between the ousted Free National Movement party and the newly-incumbent Progressive Liberal Party, as they battled over issues such as oil exploration, the lacklustre economy and rising crime rates. 

Range Resources (LON:RRL) slipped 7% to 8.9p during afternoon trading on decent volume. The shares have been battling with the 10p level for the last few sessions, even after what looked like bullish news yesterday, sellers were still pressing the exit buttons during trading today. The update says everything we need to know, the drill bit was at 3,425 meters yesterday, and they announced they were pushing on to the target depth of 3,800 meters. Possibly long term holders here will be looking for the final update over the coming weeks before making any rash decisions. 

Empyrean Energy (LOM:EME) pushed 8% to 8p during early trading after the company said that Aurora Oil and Gas Ltd (AUT.AU), has that they have reached agreement to purchase a 6% non-operated working interest in the Sugarloaf Project for $95 million. Aurora is a partner with Empyrean in the Sugarloaf Project in Texas, U.S. Empyrean holds a 3% working interest in the same project. Commenting today, Empyrean CEO Tom Kelly said "This acquisition by Aurora and the recent offer by Aurora for Eureka, which has been rejected by the board of Eureka in their Target Statement response on ASX as being opportunistic and undervaluing Eureka's assets reinforces the board's view that there is strong interest in Eagle Ford Shale assets in the USA and in particular within our project acreage. The liquids rich nature of the acreage shelters the partners from low gas prices in the USA. The read across valuations from these corporate activities gives the board great comfort that our Sugarloaf Project is progressing successfully and that the fundamental value of the project is robust. The operator of the Sugarloaf Project will be trialling certain initiatives this year aimed at improving production, recoveries and reserves. The board looks forward to the further development of the Sugarloaf Project and our shareholders can expect to see an updated reserve report - likely for the period to 30 June along with news from operations as a substantial and aggressive development program unfolds through this year." 

Exillon Energy (LON:EXI) slipped 2% to 106p during early trading, before the company announced that David Herbert, its Non-Executive Chairman of the Board, bought 42,750 ordinary shares at 115.35 pence each and now has 54,796. Exillon shares have been under a lot of pressure recently, much like a number of other companies in the sector, slipping from 290p at the start of the year, down to the current levels, and seem to have been hitting a new 52 week low virtually every day over the last few sessions. It will be interesting to see how the long term holders react to the psychological 100p level as the stock approaches it. 

JKX Oil & Gas (LON:JKX) jumped 6% to 120p during early trading after the company said it has started delivering gas from its Koshekhablskoye field in southern Russia and will now focus on the next stage of development on the field. The company also said it has been awarded the Giorgievskoye exploration license immediately south of the Koshekhablskoye production license. The company noted that a significant part of Giorgievskoye also runs to the northwest of the Koshekhablskoye field and covers its east and west flanks. It said that mapping and reserves determinations have indicated that most of the oil reserves in the new license area will be recoverable through the existing wells on the Koshekhablskoye field. It also noted that further drilling on the new license could yield another 170 billion to 270 billion cubic feet of gas. 

Gasol Plc. (LON:GAS) jumped another 15% to 0.635p during afternoon trading today, continuing its impressive recent run. The shares have jumped 0.365p to the current level in a little over 4 trading sessions. Even after the near 75% rally the shares are still a long way from the highs of 1.625p back on the 19^th of May last year. Another thing that has caught the eye during the move is the volume traded, the numbers have been increasing steadily and we will continue to monitor this one closely. 

Bayfield Energy (LON:BEH) pushed 5% higher to 31p during early trading before settling back around the 29.5p level after the company said it is pleased to announce the appointment of FirstEnergy Capital LLP as its joint broker alongside the Company's existing broker, Seymour Pierce. The shares slumped yesterday after the company said Well EG7 is drilling ahead, having reached 5,280ft and encountered all the shallow reservoir objectives. In the interval between 1,000ft and 3,000ft, the reservoirs identified as the F,G and H Sands have been found to be predominantly water bearing. Only one reservoir interval was logged as oil bearing and has been sampled and tested with a mini drill stem test (mini-DST). EG7 is planned to drill to a total depth of 6,500ft.

Namakwa Diamonds (LON:NAD) jumped 15% to 4.7p during afternoon trading as speculation from bulletin boards started to do the rounds saying "Fusion Tenders, in cooperation with I. Hennig & Co, is pleased to announce that a 100% sell through of all 64 lots of the KAO Production during the sealed bid tender in Antwerp from the 7th-11th May 2012. Richard Collocott, CEO of Namakwa Diamonds commented: "This has been an important week for Namakwa and Storm Mountain Diamonds to move the sale of the Lesotho's KAO production from South Africa to Antwerp. Antwerp remains, in our opinion, the most important trading centre for rough diamonds and despite challenging market conditions we are pleased to have achieved solid prices." Now as with all speculation this must be taken with a large pinch of salt until the company itself actually updates the market, but the speculation was enough to get the shares moving.

UK Coal (LON:UKC) bucked the overall negative trend in the market today, pushing 5% to 14.75p on decent volume during afternoon trading. The shares have been on a rollercoaster ride recently, jumping from 12p up to almost 25p, before falling back down to 13.5p yesterday, before recovering during trading today. 

Leed Resources (LON:LDP) were very active once again today, with over 110 million shares changing hands before the end of lunch. The shares were 2% higher at 0.38p as holders sit and wait for another update from the company's investment in Manas Coal. The company has been very tight lipped for a while now, so it would be no surprise to see some sort of update materialise over the coming weeks. 

Bellzone Mining (LON:BZM) slipped another 9% to a new all-time low of 18.5p on volume of just over 6 million shares traded just after lunch. The shares have really been underperforming over the last few months, slipping from a high of 98p back in January of last year, to the current levels. 

Another Platinum stock that has really been under a lot of pressure of late is Aquarius Platinum (LON:AQP) and the shares slipped another 9% to 92.5p during afternoon trading today. The shares are a long way from the 345p high back in January of last year, and have been printing a new 52 week low virtually every day throughout May. I will be watching this one closely for any signs of a turnaround. 

Angel Mining (LON:ANGM) hasslipped back to what looks like an very interesting support line at 1.175p, and as I type the shares were bouncing a touch off of that support line to trade at 1.25p at the mid-price on volume of just over 10 million shares. The last update back on the 9^th of May said that, since the main generator was repaired and processing of ore recommenced on April 5, the mining and processing operations have progressed well at the Nalunaq Gold Mine. Circuit is now well primed with gold and on May 6 Angel completed a gold dore pour of 19.295kg [538oz]. Future gold pours are planned on a three weekly cycle and, following the next gold pour, the mine and plant are expected to settle into a much more consistent period of cash generative production. Company has also raised GBP260,000 through the issue of 18.62 million new ordinary shares to YA Global masters SPV Ltd. at 1.40 pence per share under the Standby Equity Distribution Agreement announced July 28. Proceeds will be used to meet the Company's repayment obligations for April under the promissory note facility with Yorkville. 

Metminco (LON:MNC) slipped 11% to 8.55p during afternoon trading and looked to be on course for a retest of major support at 7.75p. The shares have been in free fall since the end of April, slipping from 13p to the current low of the day at 8.29p. It will be interesting to see how the long term holders react as the shares approach this significant support line once again.

The FTSE 100 managed to cling to the major support at 5450 yesterday and closed just above, which gave the green light for a little relief rally first thing this morning as a few bear positions were closed. However, it was not long before the bears regained control and started to sell the market at 5500 down to a low of 5411, just above the next major support line of 5400. This was all done on relatively light volume of 550 million shares, and as I type the main index was down 24 points to 5441 (-0.43%). The FTSE AIM All-Share Index was 0.87% easier on volume of 924 million shares.

Gold - ↓Trading at $1555, down $1 (-0.05%)

Silver - ↓Trading at $28.14, down 2c (-0.04%)

Copper - ↑Trading at $7779, up $13 (+1.05%)

Zinc - ↓Trading at $1918, down $10 (-0.56%)

WTI Crude - ↑Trading at $94.89, up 11c (+0.12%)

Brent Crude - ↑Trading at $112.31, up 74c (+0.66%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Red Emperor Resources (LON:RMP) and Range Resources (LON:RRL) jumped 10% to 33p and 6% to 10p respectively after both companies said the joint venture Shabeel-1 well in Somalia has found oil. The company said it encountered 150 metres of oil, with around 12 to 20 metres of that likely to be productive, but didn't say at what depths. Currently at a depth of around 3,425 metres, the well is planned to be drilled to 3800 metres. Shabeel-1 is the first of a two exploration well drilling programme targeting between 300 and 375 million barrels of oil. A testing programme will be agreed with the operator, Horn Petroleum Corp. (HRN.V), upon the planned depth being reached, the companies said. Red Emperor holds a 20% stake in two licenses in Puntland, Northeast Somalia, with Horn Petroleum acting as operator with a 60% stake and Range Resources Ltd. holding the remainder. 

Sefton Resources (LON:SER) announced today that it has raised £2 million via a placing of 114.29 million new common shares at 1.75 pence which will be used to accelerate its plans to expand leasing and recompletion programs in Kansas and continue on-going work in California. New funds will also finance bolt-on acquisitions in Kansas to add oil and gas reserves and production close to Sefton's pipelines in Kansas. Henderson Global Investors has taken a 4.5% stake in Sefton. A letter of intent agreed on a GBP10 million three year equity financing facility, or EFF, with Henderson-backed Darwin Strategic Ltd. which, once implemented, would provide future funding flexibility. Directors are also in the process of negotiating enlarged debt funding facilities as well as industry-related financings using joint venture financing or farm out deals to add further to the future financing alternatives available to the Company. Shares were 8% easier at 1.9p during late morning trading. 

Chariot Oil & Gas (LON:CHAR) slipped 46% to 80p during lunchtime trading after the company said that its first exploration in Northern Block 1811A offshore Namibia, will be plugged and abandoned having not found commercial quantities of oil or gas:

"Whilst the results of the Tapir South well are disappointing, this is the first well of a longer term drilling campaign within a frontier region and only the second well ever to have been drilled in the Namibe basin. Our understanding of this basin is rapidly improving and we expect this well to provide more information on the character and maturity of the potential source rocks when we carry out detailed analyses on the recovered samples," Chief Executive Paul Welch said. You have to go back to March/April of last year to find support down at these levels, but 80p does look to be a strong support level, followed by 76p. 

On the back of the Chariot Oil & Gas news, it was no surprise to see fellow drillers in the areas Tower Resources (LON:TRP) and Serica Energy (LON:SQZ) slip 14% to 2.9p and 8% to 27p respectively. 

Nostra Terra Oil & Gas (LON:NTOG) slipped 9% to 0.59 during early trading back to what looks like a decent support line. The shares recently enjoyed a fantastic run, jumping from 0.45p to 0.74 in just 5 trading sessions. The company recently said, back on the 16^th of April, that the drilling plan in the Bale Creek prospect located in Oklahoma has been accelerated. The decision had been made to accelerate the drilling of the horizontal wells in Phase I. Three horizontal well locations in Phase I have already been spaced and pooled. While the first horizontal well is being drilled, the pad for the next horizontal well is being constructed and the rig contract has been extended, such that the rig will remain on the lease for the second horizontal well, where drilling will commence immediately following completion of the prior well. Following Phase I, there are four additional potential horizontal well locations in Phase II. The company has a 30% working interest in the Bale Creek prospect, operated by Pathfinder Development Capital, LLC. 

Max Petroleum (LON:MXP) pushed 3% to 12p during early trading after the company said that its ASK-J1 appraisal well in the Asanketken Field has found new, shallower oil reservoirs at depths from 1,069 to 1,090 metres, as well as the previously identified oil-bearing zones. The company said the new reservoirs include a total of nine metres of net oil pay in three zones. The well also encountered high quality oil in five zones at depths ranging from 1,240 to 1,321 metres in the same reservoirs that were proven productive in the first two wells drilled on the field. Max said the quality of the oil reservoirs appears to be excellent and the company is now preparing the well to be put on test production. The drilling rig will now move to start drilling the ASK-J2 appraisal well in the field. It was just a shame that this positive news came out on a day when the market was being aggressively sold into. 

Gulf Keystone (LON:GKP) slipped 7% to 199p during afternoon trading, as the bloodbath in the Oil & Gas sector continued, even though Gulf Keystone announced back on the 11^th of May that the Bakrman-1 exploration well spudded on the Akri-Bijeel block in the Kurdistan Region of Iraq on May 7. Bakrman-1 will target prospective intervals in the Jurassic, with a planned total depth of 3,600 metres in the Lower Jurassic. Gulf Keystone has a 20% working interest in the Akri-Bijeel block, operated by Kalegran Ltd., a 100 per cent subsidiary of MOL Hungarian Oil and Gas PLC, which holds an 80 per cent working interest in the block. The operator's P50 resource estimate for the Bijell discovery is 2.4 billion barrels of oil-in-place, while the on-going 2012/13 exploration and appraisal programme is targeting existing and identified hydrocarbon prospects in the Akri-Bijeel block. 

Enegi Oil (LON:ENEG) jumped 25% to 18.5p during early trading after the company said that the latest results from testing of the PaP no.1-ST no.3 well indicate that the connected oil and gas in place associated with Garden Hill South is in excess of 61.5 million barrels of Stock Tank Oil Initially In Place or STOIIP and 117 BCF Gas Initially In Place or GIIP, with the Absolute Openhole Flow Potential expected to increase from 310 barrels of oil equivalent per day. The Well is in contact with a larger than anticipated reservoir. Despite producing from the Well since commencement of a flow test on Feb. 3, there are no signs of pressure depletion in the reservoir. Had the mean connected oil and gas in place been at or below 61.5 million STOIIP and 117 BCF GIIP, as estimated in Enegi's 2007 Competent Persons Report for the onshore and offshore portion of Garden Hill South, pressure depletion would have been observed. To accurately assess the reserves associated with Garden Hill South, signs of pressure depletion at the reservoir are required. In addition, further testing is required to determine the effect of flowing at lower pressures, which is expected to result in natural gas lift and a declining WOR. Therefore, the Well will be flowed further to provide the required data. The Company intends to move quickly into the production phase once regulatory approval is secured and the testing is complete. 

Bayfield Energy (LON:BEH) slipped 20% to 36p during afternoon trading after the company said that Well EG7 is drilling ahead, having reached 5,280ft and encountered all the shallow reservoir objectives. In the interval between 1,000ft and 3,000ft, the reservoirs identified as the F,G and H Sands have been found to be predominantly water bearing. Only one reservoir interval was logged as oil bearing and has been sampled and tested with a mini drill stem test (mini-DST). EG7 is planned to drill to a total depth of 6,500ft. Vis a vis the EG8 discovery, Bayfield has signed a memorandum of understanding with the operator of the adjacent block, Repsol E&P T&T Limited. The MoU confirms the intention of Bayfield and Repsol to cooperate in establishing a joint technical team to assess and allow for the potential accelerated development of the accumulations of oil and gas identified by EG8 and may ultimately lead to a reclassification of Prospective and Contingent Resources.

Ortac Resources (LON:OTC) pushed 8% to 0.77p at the high of the day, before settling around 0.74p after the company said it has entered into a GBP20 million Equity Financing Facility with Darwin Strategic Ltd. Darwin Strategic is majority owned by funds managed by the Henderson Volantis Capital Team, a subsidiary of Henderson Global Investors, which holds a 11.06% interest in the Ortac Resources. As a result of the Equity Financing Facility and the company's existing cash balance of GBP7.8 million, it is well positioned to progress with its growth strategy including the development of its Turec Project in Slovakia in addition to the evaluation and acquisition of further value enhancing assets. Henderson Global Investors is currently a holder of 256,166,095 ordinary shares in the company. 

Vane Mineral (LON:VML) jumped 12% to 1.15p during afternoon trading after the company said that it generated total revenue of $2.6 million during the first quarter, adding that production continues to meet forecasts. 8,113 tons of ore in total processed by SDA Mill during first quarter compared with 7,802 tons during the fourth quarter of 2011, with average grades of 6.87 grams per ton gold or g/T Au and 156 grams per ton silver or g/T Ag versus 4Q 8.06g/T Au and 4Q 127g/T Ag. Average recovery rate of 80.3% Au and 77.0% Ag versus 78.2% Au and 70.9% Ag. 1,180 oz. Au and 26,164 oz. Ag produced in 1Q at a direct production cost of $582 equivalent per oz. Au; or $10.7 equivalent per oz. Ag versus 4Q 1,352 oz. Au and 19,410 oz. Ag produced at a direct production cost of $585 equivalent per oz. Au; or $10.8 equivalent per oz. Ag. 70.8 tons of concentrate held in inventory at period end versus 68.6 tons. All gold and silver sold unhedged. 

I highlighted the breakout on Hambledon Mining (LON:HMB) last week, after the stock had broken its resistance at 2.22p. The shares rallied to pretty much close the gap in the chart, touching a high of almost 2.5p, before slipping back to major support today at 2p. The shares were 16% easier during afternoon trading at 1.975p. Major support sits around the 2p level, with 1.85p looking to be the next major area of interest to watch for here. 

Regency Mines (LON:RGM) bucked the overall negative trend in the markets today, pushing 4% higher to 2.365p at the mid-price during afternoon trading. 

Friendless Baobab (LON:BAO) continued its move lower once again today, slipping yet another 12% to 7p during early afternoon trading, on almost 4 times the average daily volume by the end of lunch. You will have to go back to the middle of 2010 to find the 7p support line, but it does look like one that has held up strongly in the past, so it will be interesting to see how the long term holders react to this level once again. 

A few profit takers showed up in Sirius Minerals (LON:SXX) today, pushing the company 4.5% easier to 16p during afternoon trading. The shares have been on a rollercoaster ride over the last few sessions, slipping from 23p down to 14p, before bouncing back up to 18p yesterday, before falling again to 16p as I type. 

Anglo Asian (LON:AAZ) pushed 3% to 35p during early trading on decent volume after the company said it has been granted governmental approval to build a second gold mine in the country, Gosha, but will ask to delay the development until the first half of 2013 so it can focus on building a processing facility at its flagship Gedabek gold mine. During the hiatus, the company also plans to implement further drilling campaigns at Gosha. Anglo Asian aims to develop Gosha into a small, profitable, high grade underground gold mine producing gold at an average rate of 10,000 to 15,000 troy ounces a year for up to five years. "Gosha will be our second gold mine, following in the steps of our first, very successful mine, Gedabek, which is expected to produce circa 54,000 ounces this financial year. Another deposit, Ordubad, where we recently announced a Notice of Discovery, is also looking very promising, and will, we hope, be developed into a third mining operation in the future," said Chief Executive Reza Vaziri. 

Allied Gold Mining (LON:ALD) slipped another 9% to 108p, pushing ever closer to the major support at 100p. The shares have slipped from 130p only 6 trading sessions ago, down to the current levels. It will be interesting to see how the line term holders react to this major support line once again.

Another awful trading session in the FTSE 100, with the main index shedding 113 points by 2pm to 5463 (-2.01%) on volume of 423 million shares. The major support lines to watch for at 5450 and 5400, if the first is broken, it would look as though a test of 5400 could happen very quickly. However, 5450 does look to be a strong support line so we could see a little relief rally from here. The FTSE AIM All-Share Index was down 2.46% on volume of 609 million shares.

Gold - ↓Trading at $1560, down $22 (-1.38%)

Silver - ↓Trading at $28.51, down 34c (-1.14%)

Copper - ↓Trading at $7865, down $84 (-1.05%)

Zinc - ↓Trading at $1926, down $20 (-1.02%)

WTI Crude - ↓Trading at $93.92, down $2.19 (-2.28%)

Brent Crude - ↓Trading at $110.45, down $1.81 (-1.61%)        

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com or www.fox-davies.com

Gulf Keystone (LON:GKP) jumped 11% to 210p during early trading after the company said it notes the continued and unfounded speculation on various bulletin boards and other social media sites regarding an alleged planned placing of the Company's shares at 160p per share. Gulf Keystone does not normally comment on such unfounded speculation. However, due to the damaging and misleading nature of these various comments which have been posted on bulletin boards and other social media sites during the past 24 hours, the Company feels it must respond. Accordingly, Gulf Keystone is pleased to confirm categorically that it has no current intention of undertaking an institutional fundraising. The Company is also pleased to confirm that the process regarding the sale of its 20% stake in the Akri-Bijeel block in the Kurdistan Region of Iraq, is continuing and negotiations are on-going with several interested bidders. The Company will issue further updates as appropriate. The Company is currently taking legal advice with regard to the continued and unfounded speculation on various bulletin boards and other social media sites and will be taking all available legal action to prevent further repetition of similar speculative comments on bulletin boards and other social media sites. Todd Kozel, Executive Chairman and Chief Executive Officer, commented: "We are working hard to create shareholder value via the continuing 2012/2013 exploration and appraisal programme on our world-class assets in the Kurdistan Region of Iraq. We will not tolerate malicious attempts to damage the Company's reputation and share price. We have instructed the Company's lawyers to use all means necessary to protect our shareholders from this malicious and unfounded attack." You have to feel for anyone that may have been stopped out during the bloodbath of yesterday, potentially caused by the ridiculous speculation that was doing the rounds.

Desire Petroleum (LON:DES) tried to push on during early trading, moving 4% higher to 25p after the company said that there remains significant exploration potential in the basin and a full CPR update will be published based on all prospects and discoveries. Desire share of Sea Lion (unrisked) at $85/bbl (NPV 10%) is estimated at $173 million. Assuming Desire share of Sea Lion unit is 4%. Assuming 320 MMstb full-field case. Desire share of adjacent discoveries (unrisked) at 85$/bbl (NPV 10%) is estimated at $727 million. Assuming Casper and Casper South (Shona) development. Based on net Desire 2C resources from Senergy April 2012 CPR update. Initial indications for new prospectivity in the East Flank play fairway are encouraging, with confirmation of the potential of the Elaine fan and a major new fan system identified (Isobel). The shares did slip back after the brief rally, trading flat 24.25p around lunchtime. 

After the last few days of aggressive selling, it was no surprise to see Gulfsands Petroleum (LON:GPX) trading higher. Shares were up 14% to 120p during afternoon trading, after reaching a new 52 week low of 105.5p only yesterday. The last time the company traded at these levels was back in 2008! 

Providence Resources (LON:PVR) pushed 3% to 515p during early trading after the company said seismic survey confirms significant areal reservoir potential at the Barryroe oil discovery in the North Celtic Sea Basin, offshore Ireland. Seismic evaluation has confirmed that the basal reservoir sandstone package has a defined seismic response which can be detected clearly within the inverted 3D seismic volume. Preliminary review of the inverted 3D seismic volume indicates that the reservoir sequence is widely developed in the Barryroe area. Providence (80%) operates Barryroe on behalf of partner Lansdowne Oil and Gas PLC (LOGP.LN).

San Leon Energy (LON:SLE) San Leon, noted this morning's announcement from Providence Resources of the technical update by Providence on the Barryroe Seismic Inversion Study. San Leon announced, on 23 December 2011, that the Company has assigned its 30% working interest in Standard Exploration Licence 1/11 to Providence in exchange for a 4.5% NPI on the full field. San Leon Energy will not pay any further appraisal or development costs on the Licence and is not paying any costs towards the 48/24-10 well. Shares were flat during afternoon trading at 9p, albeit on very thin volume of just over 2 million shares. 

Gasol Plc. (LON:GAS) jumped 9.5% to 0.40p at the mid-price during afternoon trading after the company announced a strategy update and management appointment that said it is pleased to announce the appointment of David Shipway as Head of Upstream Gas Projects and Michael Kunz as Head of Power Project Development. Strategy update - Gasol's strategy is to develop its own gas reserves in the Gulf of Guinea and to supply this gas to power projects in West Africa. The Company is currently working to develop its projects and the necessary infrastructure in pursuit of this objective, in conjunction with its partners. Until natural gas reserves become available, Gasol is working on plans that will secure availability of regasified LNG as an interim fuel supply to support current power generation requirements in the West African region. Regasified LNG is used in Europe, the Middle East, China and Latin America as a cost effective means of delivering gas where pipeline gas is not available or shortages prevail. Gasol's regasification orientated supply activities to the West African region are intended as a shorter term measure, which will allow for more cost effective and environmentally friendly gas-fired power generation until such time as they can be replaced with secure supplies of low-cost pipeline gas. The interim supply measures will involve Gasol installing a Floating Storage and Regasification Unit in a port in the region and supplying regasified LNG from that vessel to pipelines for transmission to power hubs. In cases where it is a gas supplier to power projects, Gasol will also aim, in due course, to acquire minority equity positions in those power supply facilities. 

Another stock that rebounded from the recent aggressive selloff was Gold Oil (LON:GOO). Shares were 12% higher at 5.5p during afternoon trading, after the last few days of selling that knocked the shares from 7.75p down to the low of 4.55p yesterday. 

Matra Petroleum (LON:MTA) paused for a little breath during early trading today, slipping 10% to 2.3p on decent volume. The shares did touch a low on the day of 2.13p before the Company was informed that on the same date, James William Guest, Non-Executive Director, bought 555,555 ordinary shares of 0.1 pence each in the share capital of Matra ("Ordinary Shares") at a price of 2.664p per share. Following this transaction, Mr Guest now holds 555,555 Ordinary Shares.

Hambledon Mining (LON:HMB) continued its impressive rebound again today, pushing 16% to 2.5p on just over 3 times the average daily volume. As I highlighted in yesterday's note, if the stock broke the resistance at 2.25p there was a technical gap to fill back up towards the 2.55p area, which the shares did actually trade through and fill during trading today, printing an intraday high of 2.61p. If the shares can close above that 2.55p area, a test of 3p would look to be the next area of interest to watch out for. 

Beowulf Mining (LON:BEM) continued to push in trading today, moving 13% to 14.5p at the mid-price on decent volume. The company did say back on the 4^th of May that the Mining Inspector at Bergsstaten said it will not be taking any action or conducting further investigation following Beowulf's technical infringement of the Swedish Minerals Act. Infringement was during drilling conducted on its Kallak Project areas without valid work plans being in place. The Mining Inspector has formally reminded the company's wholly owned subsidiaries, Jokkmokk Iron Mines AB and Iron of Sweden Limited, of the provisions and requirements of the Swedish Minerals Act and the potential consequences of any future breaches. Beowulf continues to consult with the Mining Inspector and the local Saami community to seek to resolve the objections raised to its work plans filed and notified in respect of the Company's 2012 drilling campaign on its Kallak nr 1 and Parkijaure nr 2 permit areas. Drilling operations at both Kallak North and Kallak South will therefore remain suspended until this matter is resolved. 

Sunkar Resources (LON:SKR) jumped 8% to 5.75p at the mid-price during afternoon trading after the company said it has agreed to a refinancing of loans of its subsidiary Temir Service LLP by ATF Bank Kazakhstan. Loan agreements were signed with ATF in November 2010 of which $5 million were drawn down. In November 2011, the company defaulted on repayments due on these loans and subsequently has been negotiating a settlement with ATF. Under the terms of the refinancing, Sunkar will pay $1.5 million on May 11 and $1 million by July 1 with remaining payments due in monthly instalments until Dec. 31, 2014. New facility will be secured on Group physical assets. 

Another stock that was rebounding from the recent aggressive selloff was Sirius Minerals (LON:SXX). The shares moved 10% higher to 16.25p on decent volume, bouncing from the lows of yesterday at 13.75p. 

Amur Minerals (LON:AMC) added 8% to 5.5p at the mid-price during afternoon trading after the company said metallurgical test work results indicate that there is substantial potential to increase metal recovery into concentrate, possibly improve the concentrate grades and ultimately improve the 2007 SRK pre-feasibility cash flow model results for the Kun-Manie license area. Flotation test work, based on an average life of mine production grade, predicts increased nickel recovery up from the 2007 SRK Consulting prefeasibility study figure of 75.9% to 77.8%. Copper recovery has also increased significantly to 90.4% from 72.9%. Cobalt recovery is up to 68.6% from 57.0%. Locked cycle tests indicate substantially higher recoveries for platinum and palladium, 73.9% and 82.4% respectively, compared to SRK's study recovery projections which were not included in the SRK study cash flow model. Previous recoveries for platinum and palladium were 51.1% and 40.8%, respectively. Test work also indicates the potential to reduce the amount of contained MgO reporting to the concentrate and directly any penalties payable to the smelter. Achieving the combined increase in metal recovery and reduced penalties would ultimately result in a lower cost per pound of metal produced. 

Horizonte Minerals (LON:HZM) slipped 5% to 9.625p during early trading today, breaking the psychological support at 10 for the first time this year. The main support line I can see here would be the 9.5p to 9.6p area, if that breaks possibly the next area of support could be 8p. We will be watching this one closely for any updates over the coming sessions.

The FTSE 100 rebounded from the bloodbath that has been the past few days of trading, pushing 25 points high to 5556 (+0.48%) at the 3pm hour. Volumes were a little on the light side, with the main index trading only 445 million shares as I type. The FTSE AIM All-Share Index was 1.58% higher on very thin volume of 690 million shares at the same moment in time. 

Gold - ↑Trading at $1600, up $11 (+0.69%)

Silver - ↑Trading at $29.48, up 22c (+0.74%)

Copper - ↑Trading at $8148, up $10 (+0.13%)

Zinc - ↓Trading at $1946, down $10 (-0.55%)

WTI Crude - ↑Trading at $97.30, up 51c (+0.53%)

Brent Crude - ↓Trading at $113.04, down 16c (-0.14%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

The main talking point of the Oil & Gas sector today was the ratings adjustment by Goldman Sachs. Michele Maatouk at Dow Jones news wires posted a report saying, Goldman Sachs takes a look at UK E&P stocks. Upgrades Genel Energy (GENL.LN), Soco International (SIA.LN), Global Energy Development (GED.LN), Serica Energy (SQZ.T) and Falkland Oil & Gas (FOGL.LN) to buy from neutral. Cuts Afren (AFR.LN), Chariot Oil & Gas (CHAR.LN), Valiant Petroleum (VPP.LN), Nautical Petroleum (NPE.LN), and Aurelian Oil & Gas (AUL.LN) to neutral from buy. Cuts Aminex (AEX.LN) to sell from neutral, saying the near-term valuation is challenging, although long-term potential exists; raises Desire Petroleum (DES.LN) to neutral from sell. Says Falkland Oil offers cheap exposure to the South Falklands, while Serica has strong core value with long-term re-rating potential. The downgrade of Chariot, Valiant and Afren comes after recent strong share price performances, while the upgrade of Global Energy Development follows weak performance. 

Possibly Gulf Keystone (LON:GKP) got caught up in the bloodbath of the Oil sector today rather than anything stock specific, as the shares slipped 5% easier to 195p during afternoon trading on big volume. As soon as the shares broke the psychological 200p level, it looked as if a number of stop loss orders may have been triggered as the shares slipped aggressively thereafter to a low of 183p on the day. The shares quickly recovered to test the 200p level, before settling down around the 195p area. 

Gold Oil (LON:GOO) looked to be another caught in the tail wind of the "risk off" mantra of the day, slipping another 17% to 4.6p, making it a fall of just over 40% from the highs only a few sessions ago. After yesterday's update it would appear the market is expecting another update shortly. The RNS said "Gold Oil, the AIM-listed oil and gas exploration and production company, (AIM: GOO), with a primary focus on opportunities in Latin America, is pleased to provide the following update to its plans to seek a farm out partner(s), for its interest in Block Z34, offshore Peru. Gold Oil has received expressions of interest from a number of potential farminees following the planned date for receiving bids for acquiring equity in the block. The Company will now progress discussions with interested parties with a view to firming up proposals and deciding on the next steps." 

Tullow Oil (LON:TLW) Gave up everything it made yesterday, and a little more. The shares slipped 5% to 1441p during afternoon trading, albeit on thin volume. The shares were easier despite Credit Suisse upping the price target 1670p from 1600p based on the latest update. 

Red Emperor Resources (LON:RMP) and Range Resources (LON:RRL) slipped 8.5% and 5% respectively after both companies said they have revised their exploration strategy in Georgia to focus on coal bed methane gas that could generate revenue within 18 months of drilling. The two oil companies, dual-listed in Australia and England, said they will focus on low-cost, shallow appraisal drilling around the Tkibuli-Shaori coal bed methane field. The Tkibuli field has been estimated to contain around 0.4 trillion cubic feet of coal-bed methane gas. By prioritizing exploration around the productive coal seams, the companies have the opportunity to make early discoveries, add proven reserves and look to provide revenue potential from the Tkibuli coal bed methane field within 18 months from the start of drilling. The partners have also executed a conditional agreement with the Georgian Industrial Group regarding the joint development of the project and providing a commercial offtake for 100% of the gas produced. Georgia remains almost entirely dependent on imports of foreign natural gas and gas production from Tkibuli, and therefore, could immediately be fed into the local energy market. Range holds a 40% stake in Blocks 6a and 6b, where the Tkibuli field is located, Red Emperor has a 20% stake and Strait Oil holds the remainder. The next snippet of news from both companies should be another update from drilling at the joint asset in Puntland Somalia. 

Petrel Resources (LON:PET) was another that took an almighty whack today, slipping 17% to 4.875p at the mid-price just after lunch. It would appear a block of about 234,000 shares came into the market at a price of 4p, hence the violent sell off from the closing price of 5.875p yesterday on no news. 

Exillon Energy (LON:EXI) slipped 9% to 114p during afternoon trading today, making another new 52 week and all-time low. Making the percentage loss since the start of the year of just over 60%. The shares have steadily fallen from 290p, down to today's low of 111.22p. 

Wentworth Resources (LON:WRL) slipped another 16% to 43p at the mid-price during early trading today after the company said its Ziwani-1 well in Tanzania has been plugged and abandoned after analysis of the test data indicated that the potential resource volumes of the well were sub-commercial. The rig will now be moved to the Mnazi Bay gas field, where it will commence a Workover program of three wells (MB-2, MB-3 and MS-1X). An extended well test is expected to be conducted on each of these wells in order to establish the long term productibility of the Mnazi Bay and Msimbati gas fields. Company remains committed to its exploration program on the block and to the second well, which is expected to be drilled later this year.

Kryso Resources (LON:KYS) Pushed 3.3% to 31p on just over 3 times the average daily volume after the company said that an updated study, based on new drilling results, has increased the estimated amount of gold at its Pakrut gold prospect by 40%. Pakrut, around 112 kilometres northeast of the capital city Dushanbe, is now estimated to contain around 5.0 million troy ounces of gold, a 40% increase from the estimate last year. The study also gave a maiden estimate for Kryso's Eastern Pakrut prospect, five kilometres up the valley from Pakrut, which is now thought to contain around 465,000 ounces of gold. "The updated resource estimate further supports our belief that Pakrut will develop into a significant underground gold mining operation," Managing Director Craig Brown said.

UK Coal (LON:UKC) bucked the overall negative trend of the market today, pushing 3% higher to 17p. The shares have fallen a long way from the recent high of 25p to yesterday's low of 16p. The 15p/16p level does look to be an interesting support line, so it was no surprise to see the long term holders making a stand at that level once again. 

Chaarat Gold (LON:CGH) was another stock that decided to go the other way to the market, pushing 5% higher to 21p at the mid-price during early trading. The 20p level has been a fantastic support for these over the last year or so, and holders here decide to draw a line in the sand once again. 

Hambledon Mining (LON:HMB) nudged through the resistance at 2p during afternoon trading today, trading 3.5% higher at 2.075p at the mid-price. A close above this resistance could give the green light to the buyers once again to test the resistance at 2.25p. If this level is broken, then for the chartists among us will see the gap fill to 2.55p as the next level of interest to watch out for. 

Rare Earths Global (LON:REG) slipped 11% to 380p on a poultry 4800 shares traded by the 3pm hour. The shares are now some 63% off of its recent 52 week high of 1050p. The shares did find a little support at 330p intraday, which helped them push back up to the current level of 380p as I type. 

The aggressive selling continued once again today in Sirius Minerals (LON:SXX) knocking the shares price by another 9% to 14p. It did look as if the selling pressure was easing off later in the sessions, as the share price held the 14p level for most of the afternoon. It will be an interesting session for the stock tomorrow, as if the selling pressure has finally subsided, the price could make a decent move higher as the shares have fallen from a high of 23p only last week, to today's low of 13.75p, That's a drop of nearly 40% in less than two weeks of trading! 

Rare Earth Minerals (LON:REM) not to be mistaken with the other stock mentioned above, slipped 14% to 0.155p at the mid-price during early trading today. The shares have been very quiet recently, and that could be the reason for the selling today, as holders finally lose patience with the stock. The shares are now lower than the level where Camelot Trust bought 250 million shares back in January of this year.

Another bloodbath for the FTSE 100 today, with the main index slipping another 67 points (-1.21%) to 5487 on volume of just under 600 million shares. Continued fears Surrounding the Eurozone have continued to keep people pressing the sell buttons, and every time the market tried to rally, the sellers got more aggressive. The FTSE AIM All-Share Index slipped 2.27% on volume of 840 million shares.

Gold - ↓Trading at $1583, down $21 (-1.33%)

Silver - ↓Trading at $28.86, down 58c (-2.04%)

Copper - ↓Trading at $7989, down $16 (-0.22%)

Zinc - ↓Trading at $1956, down $50 (-2.55%)

WTI Crude - ↓Trading at $95.86, down $1.15 (-1.19%)

Brent Crude - ↓Trading at $111.88, down 85c (-0.75%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Bahamas Petroleum (LON:BPC) jumped 24% to 10.2p on huge volume after reports started to do the rounds on the Dow Jones newswires (Iain Packham) that said following Monday's election victory for the opposition Progressive Liberal Party in the Bahamas, as investors expect the new government to back future oil exploration. The close-run election result followed a campaign between the ousted Free National Movement party and the newly-incumbent Progressive Liberal Party, as they battled over issues such as oil exploration, the lacklustre economy and rising crime rates. The Bahamas is heavily reliant on tourism, accounting for over 60% of its gross domestic product, but is also estimated by some analysts to hold over 1 billion barrels in oil reserves. However, concerns are that the search for oil could impact tourism revenues in the idyllic, blue-watered island chain. In a statement, Progressive Liberal Party leader Perry Christie, who has returned to the post of prime minister held from 2002 to 2007, said he supports oil exploration but also promised to protect the tourism sector. 

Tullow Oil (LON:TLW) jumped 5% to 1545p during early trading after the company said that the Ngamia-1 exploration well onshore Kenya in Block 10BB has now been drilled to an intermediate depth of 1,515 metres and the total net oil pay encountered so far has increased to in excess of 100 metres across multiple reservoir zones. Following the initial announcement on 26 March 2012, that Ngamia-1 had encountered in excess of 20 metres of net oil pay, the well has now been deepened from 1,041 metres to 1,515 metres. A sidetrack was required in this section and following completion of logging and sampling in difficult hole conditions, a total pay count greater than 100 metres has now been discovered over a gross oil bearing interval of 650 metres. Oil samples with an API greater than 30 degrees have been recovered to surface from the newly drilled section with similar properties to the light waxy crude encountered in the upper reservoir zone. The Ngamia structure is the first prospect to be tested as part of a multi-well drilling campaign in Kenya and Ethiopia. Many leads and prospects similar to Ngamia have been identified and following this discovery the outlook for further success has significantly improved. Tullow has proposed to the Government an increase in 2D seismic acquisition and the sourcing of an additional rig to increase drilling activities. 

Sound Oil (LON:SOU) pushed 2% higher to 1.3p during afternoon trading after the company said it has formally applied to the Italian authorities for the San Lorenzo Production Concession, with the target to develop and produce the Casa Tiberi gas discovery. Proposed development plan contemplates an initial gas production phase followed by the generation of electricity for the local network. Once awarded the first phase of development requires the fast-track installation of a processing plant which will utilize a number of the Marciano production facilities. Overall the phased development is designed to maximize the recovery of gas reserves. 

Gold Oil (LON:GOO) slipped 15% to 5.6p during afternoon trading after the company said it is pleased to provide the following update to its plans to seek a farm out partner(s), for its interest in Block Z34, offshore Peru. Gold Oil has received expressions of interest from a number of potential farminees following the planned date for receiving bids for acquiring equity in the block. The Company will now progress discussions with interested parties with a view to firming up proposals and deciding on the next steps. We see this as a positive step for the company, so it was a surprise to see the share price slip. Possibly some of the day traders were hoping for a little more meat on the bones of the update, as in names and cash input etc. We will continue to watch the news wires for the next update from the company. 

Roxi Petroleum (LON:RXP) pushed 9% to 3.125p after the company reported a narrowing full year 2011 pre-tax loss and said no dividend has been paid. Revenue for the year ended Dec.31 2011 $186,000 (2010: $123,000). Operating loss $10.34 million (2010: $48.15 million). Pre-tax loss $10.29 million (2010: $48.81 million). Earnings per share diluted 0.3 cents (2010: loss per share 12.3 cents). Cash $1.07 million (2010: $2.19 million). No interim or final dividend has been paid or proposed during the year. In a stronger position now than the Company has been at any time over the past few years. As production increases across its asset portfolio, funding options should widen. Will look to leverage on the operational and financial strengths of its farm-out partners KNOC and LGI to increase shareholder value and to report further operational successes as they arise. 

Xtract Energy (LON:XTR) slipped yet another 15% to 0.43p after the company reported a pre-tax loss of GBP4.4 million for 2011, but said that its board remains confident for the future. Administrative and operating expenses for the year ended Dec. 31, 2011, GBP4.2 million. Diluted loss per share 0.36 pence. Net cash GBP4.5 million. Optimistic for the outcome of the Chevron well in the Netherlands, and is evaluating other opportunities in the Netherlands. 

Oilex (LON:OEX) slipped 25% to 11.75p after the company said it has decided to suspend operations at the Cambay-76H horizontal well in the Cambay Field located in Gujarat, India, due to poor integrity of the drill pipe. Operations suspended until a better understanding is reached and the condition of the well bore is reviewed. Has been conducting operations to recover and replace damaged drill pipe and recovering milling assemblies from down hole. While attempting to pull out of the well with the milling assembly, the drill pipe has parted on three separate occasions at 282 meters, 2,294 meters and, most recently, at 977 meters. Latest failure at 977 meters brings into question the fundamental condition of the drill pipe. Investigation including laboratory testing of drill pipe material is being undertaken to determine the cause of these failures. Participating interests in the Cambay PSC are: Oilex (Operator) 30%; Oilex NL Holdings (India) Limited 15%; and Gujarat State Petroleum Corporation Ltd 55%.

CIC Mining Resources (LON:CICR) jumped 60% to 3p during early afternoon trading on almost 4 times the average daily volume by the end of lunch. The last update from the company back on the 26^th of April said "CIC Precious Metals Limited (CICP) - China - The Company is pleased to report that heap leaching of oxide gold will commence in May 2012 as planned at the ShangBa mine in Gansu, China in which CICP owns a 33% interest. CIC hold a 48% equity interest in CICP. Installation of crushing circuit, heap leach pad preparation, mining equipment and processing equipment have all been completed. The oxide mining to starting next month will see heap leaches of approximately 30,000 tonnes each completed late June 2012. There will then be normal leaching for 48 days before gold recovery will commence. ShangBa is targeting production of 30K to 50K oz. gold in its first year. Mr. Su, China's leading oxide gold miner and Stuart J. Bromley of CIC are the Technical Directors of the company. Congo - The CICP owns 48% of CIC Congo which now holds four gold mining leases next to Banro Corporation (now in production) having recently received its final mining permits to facilitate oxide gold mining on all four leases. Mr. Su and a technical team will arrive in May 2012 to establish base camp and other logistics to start the process of future oxide gold mining operations planned for 2013. Initial bulk testing for oxide gold mining has been completed." So possibly the market is expecting another update on the companies interests in China.

Hambledon Mining (LON:HMB) jumped 10% to 2p on big volume during early trading today. The shares have been under pressure ever since the company announced a fine amounting to KZT272 million (GBP1.17 million) regarding an administrative offence arising from environmental damage caused by a rupture to the liner in tailings dam No. 3. It would appear that some of the selling pressure has been lifted, and as 2p has been a big resistance level over the last few weeks, it will be interesting to see how the share price reacts to this level once again.

Toledo Mining (LON:TMC) pushed 7% higher during afternoon trading after the company announced that ENK (LON:ENK) had sold its holding of just over 2.5 million shares, or 5.02%. It will be interesting to see who the buyer was, and I am sure we will get the new holding update over the coming sessions.

Kryso Resources (LON:KYS) pushed 6.5% to 30.5p on decent volume during early trading. The last update on the 2^nd  of April said further encouraging assay results from drilling completed during 2011 at its Pakrut gold deposit and its exploration projects at Eastern Pakrut and in the Rufigar area. At Eastern Pakrut, Central Rufigar and Upper Rufigar, while only moderate gold grades were intersected, Kryso is encouraged that every drill hole intersected mineralization. It is anticipated that grades and thickness will increase at deeper levels as they did at Pakrut. At Pakrut, Ore Zone 1, which from previous drilling indicated a strike length of 100 meters from west to east, was found to be continuing eastwards at deeper levels in 2010. Two deeper holes in 2011 now show that mineralization is still plunging downwards and to the east, and the intersections highlighted above are 650 meters below adit level. Intersections in Ore Zone 3 and 6 are very encouraging, where nearly 19 meters at 7.47g/t Au is the best intersection to date for Ore Zone 3. Total metrage drilled in 2011 was 8,895 meters of which 5,240 meters was at Pakrut. Kryso has recently purchased two additional powerful diamond drilling rigs, making a total of seven diamond drill rigs and one RC rig on site. During 2012 it is planned to drill 10,000 meters at Pakrut of which 8,000 meters will be at the deeper levels and 2,500 million each at Eastern Pakrut and in the Rufigar area. Possibly the market is getting ready for another update from the company? 

Forte Energy (LON:FTE) slipped another 5% to 2.4p on decent volume during afternoon trading. The last update from the company back on the 1^st of May did nothing to stop the bleeding, as the shares have continued to slip from the highs of almost 5p back in January of this year, to the lows of today at 2.32p. First line support looks to be around 2.25p here.

Ferrex (LON:FRX) slipped 4% to 3.1p during early trading after the company said it has strengthened its senior management team through the appointment of Justin Longley as General Manager focused on West Africa. Longley's extensive experience evaluating and developing commercial mining and processing operations in Africa will be highly beneficial as the Company continues to fast-track its Nayega manganese project in northern Togo, towards the publication of a maiden resource in Q2 2012, with the view of advancing it into production in the near term.

With all the worries of the Eurozone possible break up, French elections, and a failed attempt at putting a Greek government together, it was a big surprise to see the FTSE 100 in any sort of positive territory first thing, but it was. Although the bulls did not have the light for too long before the sellers came out in full force, dropping the main index by 53 points (-0.95%) to 5601 as I type on volume of just over 600 million shares. The FTSE AIM All-Share Index was 1.25% easier on volume of 850 million shares.

Gold - ↓Trading at $1603, down $34 (-2.09%)

Silver - ↓Trading at $29.35, down 70c (-2.31%)

Copper - ↓Trading at $8075, down $53 (-0.65%)

Zinc - ↓Trading at $1986, down $21 (-1.04%)

WTI Crude - ↓Trading at $96.30, down $1.62 (-1.65%)

Brent Crude - ↓Trading at $111.26, down $1.89 (-1.67%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Bahamas Petroleum (LON:BPC) slipped 15% to 7.4p during early trading on huge volume after a report hit the bulletin boards from the Nassau Guardian (Jeffrey Todd) that said "The government says it will return "rental fees" paid by the Bahamas Petroleum Company (BPC) and suspend the company's bid to pursue oil drilling in The Bahamas. The statement from the Ministry of the Environment stands in contrast to news on BPC's website announcing its five licenses have been renewed up until April 2015."Upon legal advice, this Ministry advised BPC that it is presently unable to accept rental fees for the year April 2012 - 2013 as the government has yet to determine its course of action in connection with license renewal," the government said in a statement. According to senior officials, the government will return the nearly $300,000 paid by BPC on April 25 2012.This latest twist in the oil drilling saga comes as the country enters the home stretch of the election. Prime Minister Hubert Ingraham declared two weeks ago that oil drilling will not occur under his administration, sending the company's share price on the London Stock Exchange into a sharp decline. He later said he would consider drilling based on certain conditions. The issue once more entered the political arena when Perry Christie, the leader of the opposition, admitted that he had provided legal advice to the oil firm through Davis & Co, a law firm run by PLP deputy leader Philip "Brave" Davis. Meanwhile, BPC has insisted that it has "significantly exceeded" the commitments and obligations entitling it to a license renewal. This criteria included seismic testing and performing an environment impact assessment. The company has invested more than $50 million in the project. Under the renewal terms, BPC committed to drilling an exploratory well in Bahamian waters by this time next year. "The current exploration licenses are in their second (of four) renewal period," BPC said in a statement this week. "Under the terms of this renewal, which became effective on April 27, 2012, the company has committed to spud an exploration well by April 26 2013." 

Gold Oil (LON:GOO) continued its bullish vein of form again today, pushing another 15% to 7.4p on decent volume. Holders here are still waiting on an update from the company on the interest in its Z34 asset in Peru. The shares have been on a cracking run over the last few sessions, as the market continues to speculate on the outcome of the update. 

Roxi Petroleum (LON:RXP) slipped another 8% to 2.875p during afternoon trading today, albeit on thin volume once again. The last update from the company said that the NK-7 well, the first of six wells expected to be drilled across the groups assets this year, was spudded at 0000 local time on April 25. Appraisal well is planned to drill to 1400 metres and is targeted to encounter Jurassic sands and Conglomerate in the North Channel of NW Konys. Drilling operations coordinated by Roxi's operating partners LGI, and are expected to take 30 days. Well NK-6 achieving a production rate of approximately 155 barrels of oil per day from NW Konys field. So we should be looking for an update around the week commencing the 21^st of May. 

A few profit takers showed up to the Sefton Resources (LON:SER) party today, which was no real surprise after the fantastic run the shares had yesterday on the back of a very bullish operations update. Interestingly enough, the shares jumped up on volume of just over 30 million shares, and slipped 3% to 2.3p on just over 4 million by the end of lunch today. 

Tower Resources (LON:TRP) jumped 6% to 3.15p at the mid-price during lunchtime trading after the company said although the Mvule-1 well in Uganda, drilled post year- end, was disappointing, it has made considerable progress with the company's Namibian license The company widened pretax $30.6 million during the year ended Dec. 31, 2011, compared with $1.3 million a year earlier. Gross operating loss $30.7 million versus $1.4 million. Basic and diluted loss per share 2.78 cents versus 0.13 cents. Arcadia advises that farm-out discussions now at advanced stage. The really interesting part of the Final Results was this little snippet about half way through the it "The Competent Person's Report completed during the first half of 2011 was particularly positive for Tower, identifying two prospects and 3 leads in the large Delta structure. We believe that these can be targeted with one well and according to the CPR, if successful, could potentially contain 9.3 billion barrels of recoverable oil and 14.5 TCF of gas. The report estimated Tower's risked prospective EMV10 for the Delta targets alone at $1,866 million, which corresponds to around 80 pence per Tower share." Now that is a punchy paragraph with the share price sitting at 3.15p, so we will keep a very close eye on this one over the coming weeks. 

Nostra Terra Oil & Gas (LON:NTOG) jumped 25% to o0.72p during early afternoon trading on huge volume of well over 200 million shares, which is just over 15 times the recent average daily volume. The company did say in the last update back on the 16th of April "A decision has been made to accelerate the drilling of the horizontal wells in Phase I. The three horizontal well locations in Phase I have already been spaced and pooled. While the first horizontal well is being drilled, the pad for the next horizontal well is being constructed and the rig contract has been extended, such that the rig will remain on the lease for the second horizontal well, where drilling will commence immediately following completion of the prior well. Following Phase I, there are four additional potential horizontal well locations in Phase II" Possibly the market is expecting another update from the company?  Or possibly an update on the $1.3 million secured loan note with Richfield Oil & Gas Company, formerly Hewitt Petroleum, Inc. The last update on this was back on the 1st of February that said To date, no funds have been received from Richfield in respect of the Loan Note. Richfield has been notified that it is in default, and Nostra Terra has begun the process of recovering against the collateral. The Loan Note is secured against producing leases located in Kansas and non-producing leases located in Utah. Nostra Terra is in the process of assuming temporary control to operate the producing leases in Kansas during the foreclosure process. We will keep our eye out for any further information on the company.

Hardy Oil & Gas (LON:HDY) slipped another 5% to 140p breaking its recent lows, albeit on very thin volume. The shares have been in a bearish market since the last update from the company back on the 24^th of April that said it consented to relinquishment of the KG-DWN-2001/1 (D9) exploration license. The company received a proposal from Reliance Industries Ltd, the operator of Hardy's D9 block, in which the company holds a 10%, for the relinquishment of the block. The proposal set out that following the integration of all geoscientific data and the results of the three exploration wells, including the KG-D9-A2 natural gas discovery, that the block's hydrocarbon potential is low and further exploration or appraisal activity is unwarranted. -Subsequently, Hardy has provided its consent to the relinquishment of the D9 block. The company's D3 exploration license, located in the Krishna Godavari Basin, remains the main focus for organic growth potential. Hardy Oil will continue to collaborate actively with partners Reliance and BP to optimize the exploration program for this highly prospective block.

Leed Resources (LON:LDP) slipped another 2% to 0.415p during afternoon trading, which has been a very strong support level since the turn of the year. Holders here are still waiting for an update from the company on its investment in Manas Coal, and possibly a few have decided to jump ship to use the cash for other positions, as the volumes were nothing to really shout home about. It will be interesting to see how the share react to this historical support level. 

Sellers continued to hit Sirius Minerals (LON:SXX) once again today, pushing the share price 7% easier to 17.5p just before lunch on decent volume. The shares have been weak even though the company recently said that assay results of the third new hole of the York Potash drilling program have delivered a thick intersection of high-grade polyhalite in the Shelf Seam. Preliminary visual interpretation of intersected Shelf Seam confirmed. 25.2 metres of 87.5% polyhalite including 16.2 metres of high grade 95.9% polyhalite. SM3 deflection drilling completed showing a consistent overall seam thickness compared to the "mother" hole with approximately 50 million total polyhalite mineralization. SM6 drilling progressing well with new rig, preliminary results expected in the next few weeks. One of the main fears in the stock at the moment seems to be how they will fund the York Project that could cost up to $2.7 billion. 

African Copper (LON:ACU) pushed 10% to 2.625p at the mid-price during afternoon trading on decent volume. The last update from the company on the 16^th of April said the strategic review process undertaken by majority shareholder ZCI Limited (ZCI.JO) is ongoing and may have a material effect on the price of the company's securities. ZCI, which has 84.19% stake African Copper, has initiated a process intended to realise value from its investment in African Copper, which may result in the partial or full sale of ZCI's interest in the company. 

Namakwa Diamonds (LON:NAD) jumped 6% to 4.3p during afternoon trading after the company said that Gerard Holden, non-executive director and chairman of the Audit, Risk & Compliance Committee of Namakwa Diamonds, has been appointed as an independent non-executive director of AIM listed West African Minerals Corporation.

Orogen Gold (LON:ORE) slipped another 11% to 0.64p during afternoon trading on huge volume. The company recently highlighted that Subsequent to the transfer noted above, on 30 April 2012, Adam Reynolds sold 10,000,000 ordinary shares of 0.1p each at a price of 0.95 pence per share and Paul Foulger sold 10,000,000 ordinary shares of 0.1p at a price of 0.95 pence per share. 

Thor Mining (LON:THR) jumped 12% to 1.7p during early trading on decent volume as the shares finally started to rebound from the recent aggressive sell off. The trigger for the selloff was the announcement that the completion of an enhanced ore reserve calculation and detailed mining schedule for Molyhil, is now expected late in May or early June. On that basis, the issue the Molyhil feasibility study is not expected before June 2012.

A rebound across the pond toward the end of trading last night set the tone for us from the start of trading today. As I type the FTSE 100 is 30 points better at 5788 (+0.51%) on volume of 435 million shares. The FTSE AIM All-Share Index was 0.16% easier on volume of just under 1 billion shares as we approached the 3pm hour.

Gold - ↓Trading at $1636, down $17 (-1.01%)

Silver - ↓Trading at $30.26, down 29c (-0.91%)

Copper - ↓Trading at $8262, down $13 (-0.16%)

Zinc - ↓Trading at $2000, down $29 (-1.33%)

WTI Crude - ↓Trading at $103.66, down $1.55 (-0.1.39%)

Brent Crude - ↓Trading at $117.28, down 86c (-0.73%)       

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Borders & Southern (LON:BOR) jumped 5% to 90p during afternoon trading today, as the market started to speculate about the outcome of testing. After speaking with the PR firm it would appear that a High Pressure Transportation Canister was not on site so one would need to be flown in. If this is proven to be true, we would anticipate approximately 6 weeks for the outcome of the testing from the time of the last RNS. 

The pairs trade highlighted from yesterday of Long Borders & Southern and Short Falkland Oil & Gas (LON:FOGL) was working nicely as Falkland Oil & Gas slipped 5% to 94p during early trading while Borders & Southern (LON:BOR) were up 5%. This is a trend that we would expect to continue in the short term as the market aligns itself to be ready for the outcome of testing. 

Sefton Resources (LON:SER) jumped 20% to 2.7p during early trading on huge volume after the company said it expects a raft of developments, scheduled for around midyear, to boost its oil production, reserves and cashflow. The company, which has assets in Kansas and California, said the activation of two of its Leavenworth County pipelines in Kansas-connecting them to an interstate pipeline-is scheduled "to flow first gas in the summer" and will boost its reserves and cashflow. To boost its input into the pipeline, Sefton's re-completion programme, which brings old wells back into production, has identified and leased a further 40 to 50 suitable wells. To further boost pipeline input, Sefton is also talking to owners of acreage and wells in the vicinity of the pipelines and expects a number of small bolt-on acquisitions. It said the possible acquisitions have the potential for oil, conventional natural gas as well as coal bed methane gas production. In California, the company has seen an increase in production after a shortage of equipment and drill rigs delayed the start of its workover program. The program, replacing and improving ageing infrastructure, has replaced pumps on five wells so far, boosting production on its Tapia Canyon oil field to as much as 220 barrels of oil a day in recent days, but averaging around 142 barrels a day. The company has another four wells planned for workover and expects a further uplift in production. Sefton's plans to use steam injection to increase production further is also progressing well, having already doubled production rates on the Yule 5 well to around 18 barrels a day. The company has also been steaming the Hartje 12 well in the central area of the Tapia oilfield. Once around 10,000 to 12,000 barrels of steam have been injected, the well will be brought back into production, following a 10 day heat soak period. The steam generator will then be moved to the Yule well pad and will stimulate the two new Yule wells that were drilled toward the end of 2011. Sefton didn't give a timeframe for the work. Further development of the Tapia Oilfield using steam injection is awaiting geological analysis. Well cores must be analysed, results integrated into a geological model that will then be used by the company's expert to run simulation analysis. A final report is scheduled for June.

The Gulf Keystone (LON:GKP) analyst visit to Kurdistan looks to be in full swing, and I am surprised the shares have not been more active over the last 24 hours as snippets of news start to make their way back to the market. The scribblers will be very busy once they return I am sure, and we will be watching the newswires for any new or updated views from the followers. Shares were flat during afternoon trading at 235p.

Andes Energia (LON:AEN) slipped 5% to 39p during early trading, albeit on thin volume. The shares were recently knocked down after the Argentinian government stepped in to take control of Repsol YPFs Argentinian assets. The shares have rebounded over the last few weeks, jumping from almost 30p back up to a recent high of 41.5p, but still a little way off of the 50p level traded prior to the government's actions. The company did come out and say Following the announcement made on Monday by the Argentinean Government of its decision to acquire 51% of the shares of YPF S.A., the Board of Andes Energia PLC (AIM:AEN; BCBA:AEN), the Latin American energy group, (the "Board") comments as follows: Andes is prepared to continue to work with YPF in the same cooperative manner it has over the last 12 months; The legislation drafted by the Argentinean Government provides that YPF will continue as a "sociedad anonima" or legal corporation, regulated by the Comision Nacional de Valores ("CNV"); The proposed legislation encourages Joint Ventures and strategic alliances between YPF and other parties for exploration and production, with the mutually beneficial objective of satisfying the country's hydrocarbon needs and generating exportable stocks; The Board considers the Argentinean oil and gas market as one of the biggest opportunities in the world today; this is supported by the enormous interest shown by most of the major oil companies to invest in Argentina to develop conventional and unconventional resources. Neil Bleasdale, Chairman of Andes, commented: "The Board notes the Government's desire to increase Argentinean oil and gas production. We look forward to continuing working to achieve this goal. Overall we remain very optimistic over Argentina long term prospects."

Nostra Terra (LON:NTOG) jumped 14% to 0.56p during early trading on almost 5 times the average daily volume. I have been a big fan of the Nostra Terra story over the last few months, the last update only added weight to that view. The RNS said that the drilling plan in the Bale Creek prospect located in Oklahoma has been accelerated. A decision has been made to accelerate the drilling of the horizontal wells in Phase I. Three horizontal well locations in Phase I have already been spaced and pooled. While the first horizontal well is being drilled, the pad for the next horizontal well is being constructed and the rig contract has been extended, such that the rig will remain on the lease for the second horizontal well, where drilling will commence immediately following completion of the prior well. Following Phase I, there are four additional potential horizontal well locations in Phase II. Company has a 30% working interest in the Bale Creek prospect, operated by Pathfinder Development Capital, LLC.

Magnolia Petroleum (LON:MAGP) slipped another 4% to 1.225p during early trading on decent volume. The shares have continued to slip over the last few months, even though the company looks to be putting out lots of bullish news. The last update said it has bought higher-than-usual stakes in additional acreage in Oklahoma as it seeks to become a significant onshore oil and gas company. The company said that in the second quarter it has acquired 1,191 net mineral acres in the proven Mississippi Formation in Oklahoma, with an average 31% working interest and a 24.8% net revenue interest. The acquisitions also include the opportunity to participate in six potential wells, it added. It has also acquired an additional 245 net mineral acres in the Woodford and Mississippi oil regions in Oklahoma as part of ongoing leasing activity.

Premier Gold Resources (LON:PGR) slipped 15% to 0.575p on big volume after the company said that it has raised gross funds of GBP350,000 through a placing of 70,000,000 new ordinary shares at 0.5 pence per share, predominantly with institutional investors. The funds will be used to advance exploration work at the Cholokkaindy gold project in Kyrgyzstan. This work will include further geochemistry, conventional trenching as well as continuous profiling using a bulldozer, which also is needed to prepare sites for diamond drilling. Richard Nolan, Chief Operating Officer, commented: "The board recognises the support of existing shareholders and the willingness shown by new investors in the recent fundraise, the proceeds of which will be utilised on an aggressive exploration programme on the Cholokkaindy licence to include diamond drilling on two of the four gold prospects already identified within the licence." It's the last few lines of this update that really caught my eye, as the company looks to embark on an "aggressive" exploration programme. We will continue to monitor this one closely. 

It was no surprise to see a few profit takers show up in Atlantic Coal (LON:ATC) after the recent rally up from 0.3p to 0.48p. The shares were 8% to 0.42p easier during afternoon trading on decent volume. The shares have been in bull mode  since the company started to say all the right things to the market, with the most recent update highlighting production from its Stockton Colliery in Pennsylvania for the first three months ended March 31 increased 12% compared to the same period last year. Production at Stockton for the first quarter increased 12% to 31,729 tons of clean coal during Q1 2012 compared to the equivalent period in 2011 (2011: 28,376 tons). During the period the Company removed 715,691 bank cubic yards ("BCY") of overburden (2011: 658,785); 85,911 tons of run of mine coal was washed (Q1 2011: 62,000). Demand for Stockton's high quality anthracite remains strong with production from Pennsylvanian anthracite mines struggling to meet demand; as a result there has been a substantial increase in the average sale price of Pennsylvanian anthracite with a 1Q average price of $166.30 per ton compared with a 1Q 2011 price of $134.25, an increase of 24%. Railroad diversion is now complete allowing the working of over approximately 1.0 million tons of coal of previously unworkable reserves, which will enable the Company to increase production at the mine over the coming months. 

Berkeley Minerals (LON:BMR) pushed 5% to 4.15p on decent volume after the company said that it has received the official large-scale Mining License 6990-HQ-LML. This follows clearance by the Zambian Competition and Consumer Protection Commission, of the acquisition of the underground un-mined or partly-mined ore bodies and other above-ground assets of Alberg Mining and Mineral Exploration Ltd at Kabwe, Zambia, by Berkeley Mineral's subsidiary Enviro Processing Ltd (EPL). The registration has now been endorsed to EPL and Berkeley Mineral has lodged the endorsed license at Zambia's Mining Cadastre. The License covers a mapped area of 703 hectares. As the license holder, Berkeley Mineral now intends to activate a Zambian government survey to peg and verify the land areas concerned, obtain an official pegging certificate, submit its revised Environmental Management Plan and then make an application to extend the license for a further 25 years. 

Edenville Energy (LON:EDL) continued its recent rally again today, pushing another 5% higher to 0.31p on big volume once mre. The shares have been slowly rising ever since the company said it is making preparations for the upcoming field season at the Mkomolo Basin on the Rukwa Coalfield Project in South Western Tanzania, and new site vehicles have been purchased. Camp is being up-graded and additional geological staff recruited in preparation for the 2012 work program. Focus of the 2012 drill campaign will be on the Rukwa Coalfield Project and the nearby properties of Namwele and Muze. Drill contractor is expected to mobilize during May as is the geophysical contractor. Company is fully funded to undertake the planned 2012 work program. I think the company highlighting they are fully funded to undertake the planned 2012 programme really got the attention of the retail market, as they can relax thinking they would be diluted once again. 

Arian Silver Corp (LON:AGQ) slipped 6% to 22.25p as profit takers showed up to the recent rally in the stock. The shares have moved from 18p up to nearly 25p over the last few trading sessions, so it was no real surprise to see a few people taking a little off of the table at the historical resistance at 25p.

Another red day in the FTSE 100 today, with the major index slipping 50 points to 5762 (-0.86%) by the time the US opening bell had sounded. Volumes were a little better than the last few sessions, with 500 million shares changing hands before the US open. The weak sentiment was done no favours by the weak US ADP Employment report that came in a lot weaker that the 170k expected, with the actual number hitting the wires at 119k. The FTSE AIM All-Shares Index was 0.07% higher on volume of 850 million shares.

Gold - ↓Trading at $1647, down $15 (-0.91%)

Silver - ↓Trading at $31.45, down 50c (-0.51%)

Copper - ↓Trading at $8297, down $37 (-0.44%)

Zinc - ↓Trading at $2029, down $20 (-1.01%)

WTI Crude - ↓Trading at $105.66, down 48c (-0.45%)

Brent Crude - ↓Trading at $119.09, down 56c (-0.47%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Max Petroleum (LON:MXP) pushed 3.4% higher to 11.4p during early trading on a decent slab of volume after the company said that for the six months ended March 31, production averaged 3,250 bopd, an increase of 54% from average production of 2,105 bopd a year earlier. Total production during the fiscal year ended March 31, averaged 2,807 bopd, an increase of 33% from average production of 2,118 bopd in the prior year. The company is currently producing 5,000 bopd from a total of 28 producing wells. 2,200 bopd of this production is from the Zhana Makat Field, which was recently granted full field development status by the Kazakh regulatory authorities, allowing the company to sell 80% of Zhana Makat's production on the export market. Company estimates annual production from existing discoveries will be 4,500 bopd for the fiscal year ending March 31 and more than 7,500 bopd for the year ending March 31, 2014. The ASK-2 well in the Asanketken Field has begun testing in a Jurassic reservoir from depths between 1,302 and 1,305 meters, producing at a stable rate of 616 bopd, with 3% water. The SAGW-3 well, the second producing well in the Sagiz West Field, has begun testing in a Triassic reservoir from depths between 1,213 and 1,222 meters, producing 44 API gravity crude at a stable rate of 805 bopd, with no water. Testing of the KZIE-2 well in the East Kyzylzhar I Field has been delayed due to mechanical difficulties and weather related issues in the field. The Company is moving a workover rig onto the KZIE-2 location and will announce test results from the well as soon as possible. I highlighted the major support level of 10/10.5p last week, and the stock has not looked back since. 

Serica Energy (LON:SQZ) pushed 4% higher to 33p during early trading before settling back at the 32p level, after the company said that it will begin a 3D seismic survey in Luderitz Basin, offshore Namibia, which will provide detail as to when the company can start drilling. Polarcus Nadia, a 10-streamer seismic vessel under contract with Polarcus Seismic Ltd., has arrived on station in Serica's Luderitz Basin Blocks 2512A, 2513A, 2513B and 2612A (part). Area to be surveyed amounts to up to 4,150 square kilometres; planned to take three months Aims to delineate a large four-way dip closed structure which underlies the survey area; map potential pinch out prospects which are expected to have been formed in conjunction with a large channel sand feature crossing the survey area; and demonstrate hydrocarbon potential through the presence of hydrocarbon indicators. Cost of the survey is to be met by B.P. which will earn a 30% interest in the Licence under a farm-out agreement. 

Falkland Oil & Gas (LON:FOGL) pushed 5% to 98p during afternoon trading, albeit on thin volume, but it was still enough to push the stock to a new 52 week high. The company is not due to start drilling on its Loligo licence until June, so the move higher today is a little puzzling. The next snippet of news from the troubled waters is expected from Borders & Southern (LON:BOR) on the testing of a sample from its recent drilling. If they had a High Pressure Transport Canister on site this could take as little as 3 weeks, if on the other hand they had to fly one in, we could be looking at up to 6 weeks for results. 

Wessex Exploration (LON:WSX) moved 55% higher to 10p after a story hit the press that a possible suitor could be willing to pay up to 15p per share for the company. The shares recently took a tumble after Total walked away from its 10p per share offer. 

TomCo Energy (LON:TMC) moved 4.4% higher to 1.8p during afternoon trading after the Company was notified on 30 April 2012 that on 29 April 2012 Miikka Haromo, Finance Director, purchased for GBP1 a call option to acquire 15 million Ordinary Shares in the Company at a price of 3 pence per Ordinary Share from Kenglo One Limited. The option period commences on 21 July 2012 and ends on 31 December 2014. 

Salamander Energy (LON:SMDR) slipped 20% to 200p after the company went Ex-Rights today. The company announced back on the 27^th of April a fully-underwritten 13 for 20 rights issue to raise net GBP124 million to further develop its assets in the Gulf of Thailand and explore in Indonesia. Salamander will issue up to 100,654,935 new shares at 130 pence each, representing a discount of 49% to the closing price of 256.1 pence a share on April 26. The proceeds will be used to enhance its Bualuang oil field with the addition of platform-based oil processing facilities which are expected to reduce operating costs, extend the economic field life and potentially increase the amount of recoverable oil. Salamander is looking to contract a second rig in the Gulf of Thailand to accelerate exploration and appraisal drilling. It plans to drill at least six exploration wells in parallel to the development drilling program. The company is also mulling an investment in a potentially transformative exploration drilling campaign in the North Kutei Basin, in Indonesia, it added. 

Lochard Energy (LON:LHD) slipped 5% to 10.875p at the mid-price, albeit on thin volume. The move is a little puzzling as the company announced back on the 19^th of April, the arrival of the BW Athena floating production, storage and offloading (FPSO) vessel on location at the Athena field. The FPSO has been connected to the "STP" mooring buoy. Hook-up and infield commissioning activities are on-going and a further announcement will be made upon delivery of first oil from the field." So holders here should be looking for an update on first oil production shortly. 

Gold Oil (LON:GOO) slipped 6% to 6.5p as a few profit takers showed up after the recent rally. Holders here are waiting for an update from the company regarding the interest in BlockZ34 in Peru. The company has set a deadline of "Early May" so they could be updating the market any day. We will be watching the newswires closely here.

African Minerals (LON:AMI) slipped 5% to 491p on almost 3 times the average daily volume by the end of lunch after the company said Alan Watling has notified the board of his intention to retire and resigned as chief executive with immediate effect. The company said it has begun searching for a new CEO. Executive Chairman Frank Timis will assume Watling's responsibilities until a replacement has been appointed. 

UK Coal (LON:UKC) continued its rich vein of form again today, pushing 14% higher to 23p before the end of lunch. Even after the recent rally up from 13.5p to the current level of 23p, the shares are still a long way off of the 52 week high of close to 48p. 

Norseman Gold (LON:NGL) jumped 10% to 3.9p after the company said gold production for the quarter ended March 31, at 6,258 ounces, down 41% on the December 2011 quarter, but said it expects an improvement in the production profile for the next quarter. Gold production since the end of the quarter has increased and the mill is currently operating 24 hours a day, 7 days a week. Cash balances at the end of the quarter totalled A$11.4 million. A$6.1 million of this cash balance is committed to cash-backed environmental bonds. Pre-strip at North Royal is now well advanced with higher grade hard rock now exposed. Harlequin underground mine has consistent gold production with a new mine plan and schedule being undertaken with the objective to increase gold production. Pit Optimization for potential near term future production from other historical open pit mines is soon to commence. To ensure working capital is sufficient for all aspects of the operations, Norseman Gold agreed to place a total of 64 million shares at 6 cents (or 4 pence) per share and 32 million warrants exercisable at 12 cents each on or before 27/4/2015 to Tulla Group to raise A$3.84 million. The Tulla Group interest will increase from 7.15% to 18.93%. The warrants will be subject to shareholder approval. 

Another stock that has been on a fantastic run over the last few sessions is Atlantic Coal (LON:ATC). The shares have been full steam ahead ever since the company said that it has completed the Norfolk and Southern railroad diversion at its Stockton colliery together with an operational update at Stockton, adding that an independent mining report says that with the diversion complete, production of 160,000 tons of clean coal per annum is achievable in 2012. The shares were another 8% high to 0.48p during afternoon trading today. 

Thor Mining (LON:THR) continued to slide once again today, trading 8.4% easier to 1.5p by the end of lunch. The shares have been out of favour since the company said back on the 27^th of April that the release of the feasibility study assessment of its Molyhil tungsten and molybdenum project in Australia's Northern Territory has been delayed by administrative issues and won't be ready before June. The full report will include a total ore reserve calculation and mining schedule. Executive Chairman Mick Billing said: "We are obviously disappointed by this further delay, which is administrative in nature and is not a result of any adverse findings for the prospects for Molyhil." 

Metal-Tech (LON:MTT) jumped another 27% to 13p at the mid-price during afternoon trading, which was a massive surprise seeing as the company said on Friday that The Board of Metal-Tech acknowledges the recent rise in the share price of the Company. It can confirm that it is unaware of any reason for such movements and consequently does not believe there is a need to make an announcement in relation to this rise. The price had jumped from just over 8p to almost 15p before they issued that statement, but the shares started to heat up again today. If the companies own board said on Friday it knew of no reason for the move, it would seem ludicrous to think there can be anything behind this move once again.

Orogen Gold (LON:ORE) slipped another 8% to 0.77p at the mid-price during afternoon trading, continuing its bearish move since the company updated the market yesterday on progress. The update said it completed its geological and structural mapping campaign at the Gindusa and Rusman gold mines, adding that high gold grades have been confirmed from sampling at Gindusa mine. The company has received gold assay results from its underground channel and grab sample program. Very high gold grades up to 1 meter at 63.4g/t Au confirmed from underground channel sampling at the Gindusa mine. Four gold-bearing mineralized structures identified at Gindusa in an 80 meter wide shear corridor, including one not previously known. Selected chip samples at Gindusa as high as 133g/t Au. Mineralized zones at Gindusa remain open along strike and down dip. Two gold target zones identified at Rusman, with underground grab samples assaying up to 82.5g/t Au. Targets at both historic mines untested by drilling to date, leaving scope for discovery of significant extensions to the previously mined zones. Drilling contract due to be signed imminently.

The FTSE 100 was trading 20 points higher at 5758 (+0.36%) just after the 2 o'clock hour, albeit on painfully thin volume of 270 million shares. The FTSE AIM All-Share Index was trading 0.54% easier on volume of just over 730 million shares.

An interesting pairs trade that has caught the eye based on the above snippet in the Oil & Gas Section, is Long Borders & Southern (LON:BOR) and Short Falkland Oil & Gas (LON:FOGL). 

As you can see from the chart below, the pair have traded very closely historically. That was until the speculation that Borders had struck oil started to do the rounds and sent the shares moon bound. To us this would seem like odd price action as Falkland Oil & Gas will not be drilling until June and that is likely to take at least 30 days to drill, while Borders are due updates on the testing over the coming weeks. Of course the testing might not show positive results, but that would in turn hit all the Falkland plays. The view is that FOGL should edge back down to trade more in line with BOR. An interesting pair to watch nonetheless. 

Borders & Southern (White Line) - Falkland Oil & Gas (Red Line)

Gold - ↑Trading at $1669, up $4 (+0.23%)

Silver - ↑Trading at $31.21, up 15c (+0.51%)

Copper - ↑Trading at $8398, up $4 (+0.05%)

Zinc - ↑Trading at $2049, up $20 (+1.01%)

WTI Crude - ↓Trading at $104.66, down 21c (-0.22%)

Brent Crude - ↓Trading at $118.93, down 55c (-0.46%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Gulf Keystone (LON:GKP) jumped 6% to 240p during early trading and our very own Zac Phillips (Oil & Gas Analyst) said - Ahead of the analysts' visit this week, the update to the wider market is timely. Of most note in the update is the results for the Shaikan-6 appraisal well, which has potentially deepened the oil-water contact ("OWC") on Shaikan. While further testing will be required, it is notable as this could increase the resources and reserves on the block, unlike the other wells which are more likely to affect the reserves classification. Baghdad continues to be an issue, but we believe that given time this will resolve itself, at which point all the Kurdistan players will be in play, and the likes of Exxon, BP, Shell and Total will all swoop to take out the Kurdistan incumbents; GKP along with a handful of others will be at the top end of this list. With the shares trading at the bottom of their range and the analysts' visit for the remainder of the week, we believe that this news, along with these other factors, will start to push the shares towards the top end of the trading range, and towards out 350p price target. In this news:

• Shaikan-4 Appraisal Well
• • Drilled 6km to the west of the Shaikan-1 discovery well
  • will be completed as a producer and tied to the Shaikan-1 and Shaikan-3 Extended Well Test facility.
• Shaikan-5 Appraisal Well
• • Drilled 6 km to the north-east of the Shaikan-2 appraisal well
  • sidetracked (Shaikan-5B) and casing has been set at the depth below 3,400m in the Kurre Chine-B formation in the Triassic.
  • Preliminary well logs indicate a continuous oil column in the Jurassic and hydrocarbon presence in the Triassic Kurre Chine-A and Kurre Chine-B
  • consistent with results obtained elsewhere in the field, most recently with the Shaikan-4 appraisal well.
• Shaikan-6 Appraisal Well
• • 9km to the east of the Shaikan-2 appraisal well
  • Drilled to the depth of 3,455m in the Kurre Chine-B formation in the Triassic where casing has been set.
  • Preliminary evaluation indicates a continuous oil column in the Jurassic Barsarin, Sargelu, Alan and Mus formations and extending into the Butmah formation.
  • Well logs from the Triassic indicate the hydrocarbon presence in both the Kurre Chine-A and Kurre Chine-B formations.
  • Shaikan-6 has recorded the deepest oil shows so far as indicated by both logs and core samples obtained by the Company.
  • Oil shows have been recorded below the Company's originally prognosed Jurassic OWC
  • A testing programme is planned to verify the deeper oil potential.
• Shaikan Field Export Pipeline Project
• • Technical evaluation underway
  • Bids currently being received as part of the on-going tendering process for the export pipeline site construction and installation
• Sheikh Adi-2 Exploration Well
• • Second exploration well on the Sheikh Adi block, north of the Sheikh Adi-1 exploration well
  • Sheikh Adi-2 is expected to spud June 2012
• Akri-Bijeel Block: Aqra-1 Appraisal Well
• • Appraisal well to assess the Bijell discovery on the Akri-Bijeel
  • Drilled 8 km to the north-west of the Bijell 1 discovery well.
  • Aqra-1 is at a depth of 2,273m (TD of 4,700m)
• Ber Bahr-1 Exploration Well
• • A well testing programme commenced
  • Results expected in summer 2012.

Max Petroleum (LON:MXP) bucked the overall negative market trend to push 2% higher during early trading to 11p after the Company said it has successfully sidetracked the NUR-1 pre-salt well at the Emba B prospect on Block E around drilling tools that became stuck in early April. After setting intermediate casing at a depth of 5,683 metres, the Company will drill ahead through a thin layer of salt using high density drilling mud designed to handle the high pressure transition in the salt window. Once through the salt, the Company will set another short section of casing prior to the well penetrating the exploration objectives in the Carboniferous and Devonian. The Company expects the well to reach total depth of 7,250 metres in June 2012. The shares have continued to bounce nicely off of the major support I highlighted at 10p.

Another stock that has been slowly ticking better is San Leon Energy (LON:SLE). The shares were 2% higher during early trading at 10.875p as it would appear the Canadian sellers that had almost 28% of the Company after the Realm Energy deal may only have about 4% left. We are also looking for the Company to update over the coming weeks on its joint drilling with Talisman Energy. Possibly this update could be the shot in the arm the shares need to get back over the 11p hump? 

Nighthawk Energy (LON:HAWK) jumped another 25% to 4.5p during early trading, continuing on from its bullish move on Friday when the Company said in an update on its 75% owned and operated project at Jolly Ranch in the Denver-Julesburg Basin, Colorado, that work-over and geo-science programmes continue on schedule and that early results show increased potential for multi-zone production without hydraulic fracture stimulation. Plans for drilling of new wells are now being accelerated. Down-hole work completed on eleven wells. Further top-side work now required to facilitate production increase. Production from Jolly Ranch during the first quarter of 2012 was affected: average production was 33 barrels a day. The Company expects the second quarter to be a better guide to the level and consistency of production from existing wells, whilst the third quarter should see the impact of new drilling. 

Essar Energy (LON:ESSR) jumped 10% to 148p during afternoon trading on decent volume following on from the bullish move towards the back end of last week. On Thursday of last week the Company said it has renewed a pact with state-run Bharat Petroleum Corp. (500547.BY) to sell and buy refined fuel products until 2016. Mumbai-based Essar said in a statement it also has similar trade deals with other state-run refiners Indian Oil Corp. and Hindustan Petroleum Corp. Essar owns a 360,000-barrel-a-day refinery at Vadinar in western Gujarat state, and plans to expand it to 400,000 barrels a day by September. 

Gold Oil (LON:GOO) jumped another 10% to 7.2p on big volume as investors continued to jump aboard the bullish view from Faraday Investments. The Company did say back on the 15^th of March, "The farm out process is progressing well with the data room open and available to prospective partners from early February. Considerable interest in the opportunity has been shown by a large number of major international oil companies and in order to accommodate the level of interest and at the wishes of some potential farminees the bid deadline has now been extended to early May 2012." Possibly the market is getting ready for another update on the interest in this block as we push in to May. 

Empyrean Energy (LON:EME) jumped 11% to 8p during early trading after the Company said "Aurora launched an on market takeover offer for Eureka today at A$0.45 per share valuing Eureka at A$107 million. Both Aurora and Eureka are partners with Empyrean in the Sugarloaf Project in Texas, USA. Commenting today, Empyrean CEO Tom Kelly said "The offer by Aurora for Eureka indicates that there is strong interest in Eagle Ford Shale assets in Texas." 

Wessex Exploration (LON:WSX) pushed 15% to 10p during early afternoon trading after the Company said total production from the two Eagle Ford horizontal wells in which the Company has a 7.9% interest was 482 barrels of oil equivalent per day for the period ending March 31. Total combined production from the nine producing Olmos vertical wells in the Olmos reservoir, in which Global had a 15% working interest, during the March quarter until the effective date of the sale of the Olmos wells on Feb 1 was 479 barrels of oil equivalent per day. During the quarter the Company appointed Albrecht and Associates and RBS Morgans Limited to seek buyers for the Company's interest in the Eagle Ford; the buyer identification aspect of the sale process continued during the quarter. Work continued on the processing and interpretation of the data from the high resolution 2D seismic survey undertaken during the September quarter in Global's offshore Namibian exploration blocks. Work continued during the quarter, in conjunction with Wessex Exploration, in identifying suitable parties to farm into the Juan de Nova Est. Permit as well as continuing an assessment of available data and an extensive review of literature on the North Morondava Basin in which the permit lies. Board continues to review opportunities for acquisitions, joint ventures, or investments in the resources sector, both domestic and overseas, which may enhance shareholder value. A number of new opportunities were assessed during the quarter and the Company will continue to evaluate these opportunities as they are presented.

Sirius Minerals (LON:SXX) slipped 8% to 20.5p after initially rallying to 23p during early trading. The move came after the Company reported the completion of the Detailed Scoping Study for the York Potash Project, and said that the study confirms technical and economic viability of the project. Phased approach to development with three year initial construction period, targeting first production in early 2017. Estimated Phase 1 start-up capital cost of $2.7 billion for mining and processing of 5 mtpa of Polyhalite ore to produce 1.4 mtpa of Sulphate of Potash, or SOP. Phase 2 expansion to produce 4.1 mtpa of SOP by 2024 or earlier. 

Aquarius Platinum (LON:AQP) slipped 13% to 126p after the company reported a pre-tax loss for the three months ended March 31 and said thCt attributable production decreased by 7% quarter-on-quarter to 97,802 ounces. Revenue $124.76 million. Pre-tax loss $11.38 million. Basic loss per share 139 cents. Average PGM Dollar prices increased in the quarter - platinum and palladium rose 5% and 8% respectively while rhodium fell 8%. Attributable production for the third quarter decreased by 7% quarter-on-quarter to 97,802 ounces. Net loss of U.S.$9.4 million recorded on reduced production. Cash balance at quarter end U.S.$207 million. 

UK Coal (LON:UKC) jumped 30% to 19p during afternoon trading on decent volume following on from Fridays bullish Annual Financial Report. The Company was subject of a lot of press over the weekend, and most highlighted the fact the company still has a vast property and land portfolio that it may look to sell off or spin out to release potential value to shareholders. 

Atlantic Coal (LON:ATC) moved 11% higher to 0.47p during early afternoon trading. The shares have been on a fantastic run from 0.30p to the current level of 0.47p, during that time the company have said production from its Stockton Colliery in Pennsylvania for the first three months ended March 31 increased 12% compared to the same period last year. Production at Stockton for the first quarter increased 12% to 31,729 tons of clean coal during Q1 2012 compared to the equivalent period in 2011 (2011: 28,376 tons). During the period the Company removed 715,691 bank cubic yards ("BCY") of overburden (2011: 658,785); 85,911 tons of run of mine coal was washed (Q1 2011: 62,000). Demand for Stockton's high quality anthracite remains strong with production from Pennsylvanian anthracite mines struggling to meet demand; as a result there has been a substantial increase in the average sale price of Pennsylvanian anthracite with a 1Q average price of $166.30 per ton compared with a 1Q 2011 price of $134.25, an increase of 24%. Railroad diversion is now complete allowing the working of over approximately 1.0 million tons of coal of previously unworkable reserves, which will enable the Company to increase production at the mine over the coming months. 

Sylvania Platinum (LON:SLP) moved 7% better during early trading after the Company announced an update of its production and development operations in the Bushveld complex of South Africa. The Sylvania strategy is to realise profitable metal production from a series of PGM tailings and near surface mining development projects that do not require the high costs of deep reef mining. Sylvania Platinum Limited and Aquarius Platinum South Africa (SA) (Pty) Ltd ("AQPSA") have reviewed the study compiled by Dowding, Reynaard and Associates ("DRA") that indicates the economic viability of the Everest North Project. The Everest North project mining right application ("MRA") has been submitted and accepted by the Department of Minerals Resources ("DMR"). Everest North Joint Venture between Sylvania with Aquarius Platinum (SA) (Pty) Ltd ("Joint Venture"). During the past 3 months, Sylvania and AQPSA, a wholly owned subsidiary of Aquarius Platinum Limited ("Aquarius Platinum") have reviewed the DRA study on the Everest North Project (formerly the Vygenhoek prospecting area) which was prepared as contemplated by the agreement announced on 3(rd) June 2011. It was found that the study has successfully demonstrated the viability of mining for PGMs at Everest North and thereafter treating and concentrating the PGMs at the Everest South Metallurgical Plant to produce saleable PGM concentrate. 

Firestone Diamonds (LON:FDI) finally woke up during early trading today, moving 7% higher to 7.6p on decent volume. The shares have slipped from just over 30p this time last year, to a recent low of 6.875p. The Company recently did a raise of £14.69 million at 8.5p, so this would be the next area of interest for me. We will be watching how the market reacts as they approach the placing level once again, as the investors that backed the company up at 8.5p may continue to back them sub the placing level. 

Central Asia Metals (LON:CAML) moved 5% better during afternoon trading after the Company announced commencement of the first production of cathode copper at its 10,000 tonne per annum Solvent Extraction - Electro Winning ("SX-EW") plant at Kounrad, Kazakhstan. In a short timeframe, of just over 18 months, CAML has completed the construction phase of the SX-EW plant for less than the budgeted capital expenditure and has now commenced first copper production on site. Processing of the pregnant leach solution ("PLS") from the tailings dumps and solution ponds in the SX plant commenced on 20 April and the copper content was gradually increased until it reached a suitable level for electro-winning. The EW cells were then energised and plating of the copper in solution onto stainless steel cathodes commenced. The amount of copper being plated reached 20 tonnes per day by 24 April and, on 29 April, the Company harvested a total of 25 tonnes of copper cathodes. The harvesting of cathodes will be undertaken daily and the first sale and shipment of 300 tonnes of copper is expected in May 2012. 

Strategic Natural Resources (LON:SNRP) continued its very impressive rally again today, pushing another 6.6% to 32p. Looking through the last few updates I found this interesting little snippet "The Board of SNR is pleased to report on progress being made in South Africa by its 74% owned subsidiary, Elitheni Coal (Pty) Ltd ("Elitheni"). The Company has completed its internal assessment of the resource update based on the 2011 drilling season on Elitheni's Phase 1-4 exploration areas. The Company is pleased to report that it has identified an additional circa 53 million tonnes of coal resource which will be added to the existing 150 million tonnes modelled and independently verified by Golder Associates in 2010. The additional 53 million tonnes of coal based on the 2011 drilling season comprises approximately 883,000 tonnes on a measured basis, 21 million tonnes on an indicated basis and 31.8 million tonnes on an inferred basis. Although this resource update comprises an internal assessment, the Company has engaged Golder Associates to update the Competent Persons Report ("CPR") accordingly and expect these numbers to be verified during the second quarter of this year." Could the market be getting itself ready for the CPR report mentioned  here? 

Orogen Gold (LON:ORE) slipped 7% to 0.89p during afternoon trading after the company said that high gold grades have been confirmed from sampling at Gindusa mine. The company has received gold assay results from its underground channel and grab sample program. Very high gold grades up to 1 meter at 63.4g/t Au confirmed from underground channel sampling at the Gindusa mine. Four gold-bearing mineralized structures identified at Gindusa in an 80 meter wide shear corridor, including one not previously known. Selected chip samples at Gindusa as high as 133g/t Au. Mineralized zones at Gindusa remain open along strike and down dip. Two gold target zones identified at Rusman, with underground grab samples assaying up to 82.5g/t Au. Targets at both historic mines untested by drilling to date, leaving scope for discovery of significant extensions to the previously mined zones. Drilling contract due to be signed imminently.

The FTSE 100 continued is bearish form once again today, as fears over the Spanish economy continue to weigh on traders' minds. A report over the weekend suggested that almost 1 in 4 are out of work in Spain. As I type the FTSE 100 is 25 points easier at 5753 (-0.42%) on painfully thin volume of just over 300 million shares half an hour before the US opening bell. The FTSE AIM All-Share Index was actually bucking the overall negative trend, pushing 0.15% higher on volume on 685 million shares by the 2pm hour.

African Barrick Gold (LON:ABG) 

As you will see from the chart below, the stock is currently trading at a very interesting technical level, and has recently broken its short term down trend.

The gold sector on the whole has seen a sell off during Q1 2012. This was to be expected considering the impressive run the price of gold had in H2 2011.However, at the current share price of 358p I believe ABG has been oversold, is fundamentally cheap and presents both an attractive long term investment opportunity and trading opportunity for those clients with a shorter investment time frame. Our Fox-Davies target price is £4.59. Important to note is that our model is at the very bottom end of ABG production forecasts and at the top end of costs. In addition, most gold stocks trade at a premium to their NAV, whilst our model has no premium built in whatsoever. The 123.6% Fibonacci retracement level sits around the 326p area, so we could well see a test of this if the 350p support level breaks. I believe the share price will bounce off these levels with a short term target of 439.8p. 

The Q1 results on 19^th April were slightly below our expectations but there is plenty of upside in the pipeline. 

The main issues ABG faced in Q1 were:

-          Power shortages. To date ABG has relied on grid power which has been unreliable in recent times and resulted in unplanned maintenance shutdowns.

-          At Buzwagi, recoveries suffered as a result of a higher component of talc in the ore. Thus tonnes mined were down due to reduced excavator and haul truck availability.

However, we believe there are plenty of positives in the near term that should bode well:

-          We expect the power supply issues to completely disappear by the next quarter as diesel power back up is fully implemented

-          At Buzwagi, the talc issue is expected to have been resolved by adding a Talc suppressant. We anticipate this will lead to an increase in production of at least 10%.

-          At Bulyanhulu, enhancements to the flotation plant during Q1 should result in higher recoveries from Q2. We also expect higher mill throughput at Bulyanhulu in Q2 as increased maintenance in Q1 meant critical components were replaced. This should help to increase recovery.

-          The first quarter was always expected to be the worst quarter, followed by steady improvements quarter-on-quarter as the grades improve at North Mara

-          We believe as a house that the gold price will increase in H2 to around the US$1,800 - $2,000 level which will reduce cash costs and increase revenues.

In addition, with work progressing on the Gokona-Nyabigena underground extensions and a fourfold increase in the previously declared resource at its Nyanzaga project announced in January 2012 (now over 4Moz)

Gold - ↓Trading at $1652, down $9 (-0.57%)

Silver - ↓Trading at $30.81, down 51c (-1.64%)

Copper - ↑Trading at $8388, up $43 (+0.71%)

Zinc - ↑Trading at $2039, up $40 (+2.01%)

WTI Crude - ↓Trading at $104.20, down 69c (-0.66%)

Brent Crude - ↓Trading at $119.30, down 52c (-0.43%)   

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Red Emperor Resources (LON:RMP) slipped 3% to 34p after the company said that it is placing, 19.5 million new ordinary shares at 32 pence per share to raise GBP6.24 million before expenses. The funds raised under the placing will be used for exploration activities at the company's high impact exploration projects in Puntland and in the Republic of Georgia. We (Fox Davies) as a shop were also announced as joint broker to the company. We currently have a BUY recommendation on the stock, with a 65p price target. Copies of the note are available on the web site. 

Range Resources (LON:RRL) slipped 5% to 10p which has historically been a strong support level for the company. Range have a 20% joint ownership of the Puntland well in Somalia, along with Red Emperor (20%) and Horn Petroleum (60%).

Borders & Southern (LON:BOR) pushed 2% to 86p on decent volume after the company said it has raised GBP46.5 million in a share placing to fund further exploration and appraisal work around the Falkland Islands, after announcing a large condensate gas find on Monday. "The proceeds of the placing will strengthen our already robust balance sheet and allow Borders & Southern to complete additional work including additional seismic and analysis to better understand the recent drilling results," Chief Executive Howard Obee said. The funds will be used to acquire additional three-dimensional seismic surveys within its existing acreage, to enable further analysis of the results of the Darwin East well, where it made the gas find. the funds will also be used for general working capital purposes, including further contingency funds for the upcoming exploration well, it said. The company placed 55.3 million shares at 84 pence each with institutional shareholders. Now to raise that amount of cash in the current economic climate I think was a job well done! 

Forum Energy (LON:FEP) slipped 15% to 197p during afternoon trading after jumping well over 100% yesterday. The shares have been full steam ahead since the company issued a report by Weatherford Petroleum Consultants on the interpretation of new 3D and 2D data acquired over the service contract 72 license area, or SC72, in 2011 shows an improvement in the resources previously known and supports the case to proceed with the drilling program. Forum will continue discussions with major shareholders, joint venture partner and advisors to determine how the SC72 drilling program, which it anticipates will cost a total of $75 million, will be funded. The bulletin boards are alight with many bits of speculation, all of which must be taken with a large pinch of salt until the company gives another update. 

Enquest Plc. (LON:ENQ) pushed 2% higher during afternoon trading after the company said it has agreed to buy a 15% interest in the Kraken oil discovery from privately owned First Oil PLC for up to $144 million, raising its stake to 60%. Following the deal, which is subject to regulatory, partner and shareholder approval, First Oil will hold a 15% stake in Kraken, Nautical Petroleum PLC (NPE.LN) will hold 25% and EnQuest will hold the remainder. EnQuest proposes to pay First Oil between $90 million and $144 million, to fund the associated costs of developing the oil find, in relation to First Oil's remaining 15% interest in Kraken. The amount payable depends on the gross 2P reserves (reserves with a 50% chance of production) in Kraken. If below or equal to 100 million barrels of oil equivalent, EnQuest will pay only $90 million. If between 100 and 166 million barrels, EnQuest will pay up to an additional $54 million. If the reserves are above 166 million barrels, EnQuest will pay the maximum $144 million. EnQuest said the cash payments will be deferred and noted it will still be entitled to receive the capital tax allowances normally available for investment in such a development project. 

Roxi Petroleum (LON:RXP) jumped 9% during afternoon trading after the company said that the NK-7 well, the first of six wells expected to be drilled across the groups assets this year, was spudded at 0000 local time on April 25. Appraisal well is planned to drill to 1400 metres and is targeted to encounter Jurassic sands and Conglomerate in the North Channel of NW Konys. Drilling operations coordinated by Roxi's operating partners LGI, and are expected to take 30 days. Well NK-6 achieving a production rate of approximately 155 barrels of oil per day from NW Konys field. We will keep our eyes firmly on the news wires towards the end of that 30 day timeframe. 

Kea Petroleum (LON:KEA) slipped 2% to 9p on big volume after the company said it was informed, on 25 April 2012, that Thornaby Limited, a company wholly owned by the trustees of the I R Gowrie-Smith Family Settlement, of which I R Gowrie-Smith, the Chairman of Kea Petroleum, is a beneficiary, purchased 300,000 Ordinary Shares of 1p each in Kea at a price of 8.5p per share on 24 April 2012. Following this transaction Thornaby Limited's total beneficial interest in Kea is 69,300,000 Ordinary Shares, representing approximately 13.61% of its issued share capital.

Gold Oil (LON:GOO) jumped 30% during afternoon trading on huge volume of 22 million shares, which is almost 5 times the average daily volume. The last update from the company was back on the 15^th of March that said it has now completed the processing and interpretation of the 3D marine seismic Erika North and South surveys on Block Z34 offshore Talara Basin, Peru. Receives Competent Person's Report from DeGolyer and MacNaughton for 12 prospects identified by Gold Oil on the block. -Mean prospective resources certified by DeGolyer and MacNaughton total a combined 2.02 billion barrels of oil with a mean potential net present value of $ 2.6 billion. Farm out process is progressing well with the data room open and available to prospective partners from early February. Considerable interest in the opportunity has been shown by a large number of oil companies and in order to accommodate the level of interest, the bid deadline has been extended to early May. As we approach the bid deadline, I guess the speculation will start to make its way around the market, hence the move today. 

Aminex (LON:AEX) pushed 11% to 5.1p at the mid-price on a decent slab of volume. The shares have been very bullish over the last few sessions, and reading through the last update I found this "The company said it has not found gas reservoir potential at its Ntorya-1 exploration well in the Ruvuma Basin onshore in Tanzania after deepening it to 3,000 meters. The well will now be plugged back to the base of the 7-inch liner and completed for testing the gas pay interval. A test program will be carried out after the rig has been moved off location. On Feb. 27 Aminex reported that a gas discovery had been made in a 25 meter gross sand interval between 2,660 meters and 2,685 meters with a 3 meter net gas bearing pay zone in sandstones having 20% porosity at the top and a 16.5 meter thick lower sandstone interval with further possible gas pay. Aminex owns 75% of the project and Solo Oil PLC (LON:SOLO) 25%." Possibly the market is getting ready for an update on the testing of the gas pay zone? 

Oak Holdings (LON:OAH) the relisted cash shell investing company announced today that its name has changed from Oak Holdings PLC to "Pires Investments PLC". The Company's TIDM will change to (LON:PIRI) from 27 April 2012 to reflect its new name. The company also announced that Gledhow Investments PLC is now interested in 200 million Ordinary shares, representing 11.39%. Gledhow didn't previously have a notifiable interest in Oak Holdings.

Bushveld Minerals (LON:BMN) pushed 2.2% higher during early trading after the company said that it has commenced its drilling program on the Mokopane Tin Project, in South Africa. Commencement of its drilling and metallurgical testwork program starting on April 30. Bushveld has appointed Drillcorp Africa and has hired an additional geologist to complement the existing technical team. Assaying of the drill core will be carried out by Setpoint Laboratories, which has been appointed to carry out the analysis of the drilling assays. Initial assays results are expected in Q2 2012. 

Herencia Resources (LON:HER) pushed 3% higher to 1.9p on big volume after the company said that the final results of its 2011 drilling program have returned some of the highest zinc, silver and lead grades ever achieved at its flagship Paguanta project. Managing Director Michael Bohm said some of the grades were outstanding, especially near-surface. "Grades of plus 20% zinc, plus 30% lead and plus 1,400 grams per [metric] ton silver are a positive way to round out the 2011 program", he said. All of the assays will be included in an upgraded mineral resource estimate, planned to be undertaken in May or June. The company also said that some of the mineralized vein structures it has found could be larger than originally anticipated as they remain open at length and depth. There is also further potential for more veins to be discovered as geophysical tests have returned strong anomalies, the company said. 

Edenville Energy (LON:EDL) pushed 9% to 0.3p during afternoon trading after the company recently announced that it is making preparations for the upcoming field season at the Mkomolo Basin on the Rukwa Coalfield Project in South Western Tanzania, and new site vehicles have been purchased. Camp is being up-graded and additional geological staff recruited in preparation for the 2012 work program. Focus of the 2012 drill campaign will be on the Rukwa Coalfield Project and the nearby properties of Namwele and Muze. Drill contractor is expected to mobilize during May as is the geophysical contractor. Company is fully funded to undertake the planned 2012 work program. 

Sunrise Resources (LON:SRES) slipped 13% to 1p after the company said that following geological modeling at its Derryginagh barite project in Ireland it is satisfied that its internal estimates of tonnage and grade potential are sufficient to justify a preliminary economic evaluation of the project. Consultants have been selected to tender for the scoping study, which is expected to be awarded in the near future. Field work has now also started on the Cue diamond project in preparation for drilling of the Cue 1 and Soapy Bore kimberlites; before drilling can start, an Aboriginal Heritage Survey needs to be carried out. At the Long Lake project, Canada, company has given notice to the project claim owner that it will not be electing to extend its option to purchase the project. I highlighted yesterday that the major support was at 1p, now the shares have slipped back to that level, it will be very interesting to see how these react to this level once again. 

Ncondezi Coal Coal (LON:NCCL) pushed 5% to 57p during afternoon trading after the company said that it has embarked on an initiative to identify potential strategic partner to further enhance long term value for and to participate in the development of the company's flagship Ncondezi Coal Project licenses 804L & 805L in Mozambique. It is envisaged that potential participation could include one or all of the following: corporate and/or project equity; offtake; financing and construction capability. The company has appointed Standard Chartered Bank to act as financial advisor in relation to the partner search initiative. Given the company's expectation that its export thermal coal project will be of significant interest to a number of potential partners, together with the expected completion of the Definitive Feasibility Study on the project in September, timing to launch the strategic partner initiative is now opportune. 

Metminco (LON:MNC) slipped 6% to 11.75p during afternoon trading after the company said that the Los Calatos resource increased by 170% to 9.4 million tonnes contained copper. With the completion of the Company's Phase 4a drilling program at the Los Calatos Project, Metminco Limited commissioned SRK Consulting, Chile S.A. ("SRK") to model, and calculate, an interim mineral resource estimate for its 100% owned copper - molybdenum project in southern Peru. The new resource model incorporates the drilling results from 113 drill holes totalling 90,403 metres, of which 31,550 metres1 were used in estimating the mineral resource associated with the Los Calatos mineralised envelope. 

CIC Mining Resources (LON:CICR) jumped 10% to 1.85p after the company said it is pleased to provide a further update following the recent visit by shareholders and investors to certain of CIC's interests. Emulsion Fuel Limited (Emulsion) Emulsion, in which CIC holds a 33% interest, focuses on world leading heavy oil emulsion fuel technologies specifically in heavy industry, mining and shipping. The directors believe that emulsion fuel can afford significant direct cost savings on heavy fuel of up to 50% as well as indirect saving in heavy fuel supply logistics. Emulsion has recently entered into an agreement with a Chinese shipping group to field test Emulsion fuels in their large container shipping fleet within the next six months for which Emulsion will earn a percentage of the cost of fuel saved using its technology. CIC Precious Metals Limited (CICP) China, The Company is pleased to report that heap leaching of oxide gold will commence in May 2012 as planned at the ShangBa mine in Gansu, China in which CICP owns a 33% interest. CIC hold a 48% equity interest in CICP. Installation of crushing circuit, heap leach pad preparation, mining equipment and processing equipment have all been completed. The oxide mining to starting next month will see heap leaches of approximately 30,000 tonnes each completed late June 2012. There will then be normal leaching for 48 days before gold recovery will commence. ShangBa is targeting production of 30K to 50K oz. gold in its first year. Mr. Su, China's leading oxide gold miner and Stuart J. Bromley of CIC are the Technical Directors of the company. Congo, The CICP owns 48% of CIC Congo which now holds four gold mining leases next to Banro Corporation (now in production) having recently received its final mining permits to facilitate oxide gold mining on all four leases. Mr. Su and a technical team will arrive in May 2012 to establish base camp and other logistics to start the process of future oxide gold mining operations planned for 2013. Initial bulk testing for oxide gold mining has been completed. 

Forte Energy (LON:FTE) slipped 2% to 2.4p after the company announced is pleased to announce the appointment of Mr. James Leahy as a Non-Executive Director with effect from 26 April 2012. Mr.  Leahy  has  more than 26 year's experience in the mining sector as a senior mining  analyst  and  as  a specialist corporate broker with expertise in international institutional and hedge funds, foreign  capital and private equity markets. As  a  founding partner of the natural resources team at Mirabaud Securities, one of the leading  UK  based stockbroking  firms, offering specialised and quality stockbroking to corporate and institutional  clients, Mr.  Leahy has advised a number of natural resource focused funds in the UK, raised more than US$2  billion in equity for resource companies and participated in over 30 IPO's. Mr.  Leahy  is  also  a non-executive director of ASX/AIM listed Continental Coal Ltd and  a  non-executive director of TSX-V listed Bacanora Minerals Ltd The  Company  also  advises  that  Lady Barbara Judge and Mr. Bosse Gustafsson  have  resigned  from  their positions  as  directors, effective 30 April 2012. They will continue to be involved with  the  Company  as external consultants. 

Volumes in Premier Gold Resources (LON:PGR) have slowly started to improve, but the shares slipped 7% to 0.625p at the mid-price. This is a puzzling move, as I saw the relisting, and the following snippet as bullish news "In line with the Company's new strategy Shareholders approved the acquisition of the entire issued share capital of Central Asia Resources Limited (the "Acquisition") which brings with it the Company's first major gold exploration project, the Cholokkaindy licence, situated on the highly prospective Tien Shan Gold Belt in Kyrgyzstan." The shares have trounced 0.6p a few times recently and bounced, so we will continue to watch this one closely for potential updates. 

Berkeley Resources (LON:BKY) jumped 8% to 24.5p during afternoon trading after the company said it has appointed Ian Middlemas non-executive Chairman of the Company and Robert Behets non-executive Director effective April 27, and will undertake a placing of shares to them raising $1.5 million for the Company. Placing 5.0 million shares at $0.30 per share to raise $1.5 million; each share will have a free attaching option exercisable at $0.45 any time before June 30, 2016. It is proposed that Middlemas will acquire 4 million shares through Arredo Pty Ltd, a company associated with Ian Middlemas; and Behets will acquire 1 million shares.

The FTSE 100 pushed 11 points to 5732 (+0.25%) on volume of just over 512 million shares. It does feel like the steam is starting to running out of a few names over the last few sessions. The FTSE AIM All-Share Index was 0.33% easier on just under 1.1 billion shares.

Gold - ↑Trading at $1650, up $7 (+0.41%)

Silver - ↑Trading at $30.73, up 4c (+0.01%)

Copper - ↑Trading at $8261, up $52 (+063%)

Zinc - ↑Trading at $2012, up $22 (+1.01%)

WTI Crude - ↑Trading at $104.21, up 15c (+0.14%)

Brent Crude - ↑Trading at $119.67, up 55c (+0.46%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Afren Plc. (LON:AFR) slipped 4.5% to 136p during afternoon trading after the company said the Nunya-1x exploration well in the Keta block offshore Ghana has encountered thick and high quality water bearing reservoirs. Objective of the Nunya-1x exploration well was to explore a large four-way dip closed Upper Cretaceous prospect in the Keta block, located offshore Ghana. Well intersected 153 meters of very good quality sandstone reservoirs, however they were interpreted as water bearing. Well was drilled with the Marianas semi-submersible drilling rig to a total depth of 4,550 meters in a water depth of 1,687 meters. Afren has a 35% carried interest in the Keta Block and is partnered by Eni SA (ENI.MI)-35% and operator; Mitsui-20%; and GNPC-10%. Afren continues to make excellent progress with wider exploration program, which has already yielded two significant discoveries year to date. Ebok North Fault Block exploration well has been spudded in Nigeria and is drilling ahead towards target. First line support looks to be around the 135p area, so it will be interesting to see how the long term holders react to that level. 

Providence Resources (LON:PVR) pushed 3% to 550p during early trading today. The oil and gas exploration and production company, recently said that initial technical evaluation of Licensing Option 11/12 located in the Slyne Basin, Ireland, has revealed the presence of the "Kylemore" and "Shannon" prospects which are similar in age to the nearby Corrib gas field. Kylemore prospect is interpreted as a mid-basinal inverted four way dip-closed anticline based on a combination of 2D and 3D seismic data. Most recent mapping of the Kylemore prospect indicates that it is structurally directly analogous to the Corrib gas field. Volumetric analysis based on available Kylemore prospect maps indicates a potential gas in place of up to 228 BSCF. Shannon structure, which is fully covered by 3D seismic data, warrants a complete re-evaluation in the context of any remaining resource potential. Providence (66.66%) operates LO 11/12 on behalf of its partner First Oil Expro Limited (33.33%). The shares bounced nicely off of the support at 530p during early trading, and with volumes steadily increasing once again, they could be on course for a retest of the 52 week high at 581p. 

Sefton Resources (LON:SER) are sitting right on long term major support at 2.2p. The last few times the company have hit this major support we have seen a small bounce. The next line of support behind this would be the 2p area. The last update on the 12 of March said that the findings of an Independent Competent Persons Report produced by Dr. Nafi Onat which assesses and values the company's potential oil and gas resources in Kansas and said the report gives an updated estimated valuation of the group's interests in Kansas. Report estimates the PV10 value of Sefton's potential oil and gas resources in Kansas and anticipated pipeline revenues at this time of $140.0 million; This is a 40% increase on the valuation reported in May 2011. The report includes Mississippian related prospective oil resources of 1.97 million barrels; shallow CBM related possible, contingent and prospective gas resources of 55.78BCF; and assumes an anticipated pipeline revenue with flow rates of 10MMCF/d of gas over a 20 year period. The evaluation excludes the prolific Mississippian related McClouth and Burgess sand producing areas, until a more comprehensive geologic/engineering study has been completed. 

Aminex Plc. (LON:AEX) jumped 12% to 4.55p on almost 3 times the average daily volume. The last update back on the 11^th of April said the company had not found gas reservoir potential at its Ntorya-1 exploration well in the Ruvuma Basin onshore in Tanzania after deepening it to 3,000 meters. The well will now be plugged back to the base of the 7-inch liner and completed for testing the gas pay interval. A test program will be carried out after the rig has been moved off location. On Feb. 27 Aminex reported that a gas discovery had been made in a 25 meter gross sand interval between 2,660 meters and 2,685 meters with a 3 meter net gas bearing pay zone in sandstones having 20% porosity at the top and a 16.5 meter thick lower sandstone interval with further possible gas pay. Aminex owns 75% of the project and Solo Oil PLC (SOLO.LN) 25%. Aminex sees significant further exploration potential for the Ruvuma block, in particular the offshore portion of the PSA which is largely unexplored. Possibly the market is getting ready for another update from the company on testing of the gas pay interval. 

Zoltav Resources (LON:ZOL) jumped 8% to 3.35p at the mid-price during afternoon trading today. Holders here are sitting waiting for an update from the company regarding the purchase of assets in the Former Soviet Union (FSU). The last time the company gave any sort of update on assets was back on the 18^th of January when they said they had sold its holdings in the following companies: Rosneft - US$ 271,994.76 - Gazprom ADRs US$ 259,997.63 - Lukoil OAO ADRs US$ 165,892.39. The proceeds of these investment sales will be used to fund future investments and for general working capital purposes. Following these realisations the Company holds investments in three natural resources companies. The Company continues to actively manage its portfolio in accordance with its investing policy. Possible the market is getting ready for another update, or possibly this was nothing more than a bounce off of strong support at 3p. Big brother is watching! 

HaiKe Chemical (LON:HAIK) pushed another 10% to 40p at the mid-price today. Possibly the market is running the stock into the final results that are due in early May. An interesting point to remember here is that Zhang Zaizhong, the chief executive officer and director of the company, purchased 15,000 shares in the company at a price of 38 pence per share on Jan 20. Only a small purchase in the grand scheme of things, but it is always interesting to see the directors buying shares. 

In yesterday's note, I highlighted the fact that Serica Energy (LON:SQZ) were back at the major support at 29p, and today holders decided to continue to back the company at that level and pushed them to trade as high as 32p during early trading. We will continue to watch these closely, as they are back to the level they were trading at prior to the BP Farm-In announcement. 

Volumes in Leni Gas & Oil (LON:LGO) jumped considerably today, with well over 11 million shares changing hands before the end of lunch. The last update on the 26^th of March said "The A2ST01 sidetrack was designed to test the Cranberry Creek prospect at the Tex-X2 reservoir level at a depth of approximately 13,000 feet subsea. The Tex-X2 reservoir was encountered slightly high to prognosis and was found to be water wet. Logging while drilling results show a 5 foot thick hydrocarbon pay zone at a different level within the well, however, this is not considered by the operator to be sufficient to justify installation of a production completion. This sidetrack from the A2 well is being plugged. With the new data obtained, which will require study and integration with the existing well and seismic data, and the need to release the rig due to its sale by Diamond Offshore to Hercules the operator Marlin Energy LLC ("Marlin") was not able to drill and complete the second well and has therefore released the rig back to the owners. When a suitable rig is located the operator will commence drilling of the planned 2(nd) well." Possibly the market is expecting an update on the location of a suitable rig? We will be watching the newswires for any updates. 

A lot of people have been commenting on cash shells recently, as a number of them have finally started to roll assets into them. The two that have caught the eye recently are Creon Resources (LON:CRO) and Oak Holdings (LON:OAH). Creon Resources are sitting at 2.95p at the mid-price as holders await news on any potential assets purchases or reverse takeovers. Oak Holdings are sat at 0.2p at the mid-prices and have only recently relisted after the company raised £1 million and has disposed of all of its assets. The company also raised an additional £700,000 by way of a placing due to further demand from professional and institutional investors. The interesting similarity between Creon and Oak Holdings is the Non-Executive director Aamir Quraishi who's CV looks pretty impressive, and is a non-exec at both companies. Peter Redmond is also a Non-Executive director at Oak Holdings, and this chap also has his fingers in a number of pies, including Leed Resources (LON:LDP) and IGAS (LON:IGAS). Both of these chaps look like interesting characters, so holders will sit patiently waiting to see how both of these cash shells play out.

International Ferro Metals (LON:IFL) jumped 10% to 16.5p during early trading today after the company said that it achieved alloy sales of 52,930 tons in the quarter ended March 31, down 9% from the previous quarter but up 9% on prior year corresponding period. Moved back into overall profitability on a monthly basis for March, operations cash generative. Eskom-related furnace shutdowns reduced ferrochrome production to 48,762 tons for the quarter, down 10% on previous quarter and down 5% on prior year corresponding period. Sky Chrome mining operations produced 122,000 tons run-of-mine ore for the quarter, flat on previous quarter. Co-generation plant produced 7.6GWh, or gigawatts, of electricity for the quarter, 3.8% of total requirement ramping up to 10% in March. UG2 Chrome Recovery Plant delivered 10,000 tons of concentrate in March. 

With the recent goings on surrounding Zambian mining licences Berkeley Mineral Resources (LON:BMR) has been hit from just over 5p to the current level of 4p in just over a week. Historically the 4p level has been a very strong support line, so we will be watching closely to see how the long term holders react to the stock being back down at this important level once again. 

Ortac Resources (LON:OTC) has started to rebound after its recent slip from 0.94p to 0.69p, and volumes have slowly started to increase once again. The last update from the company was back on the 21^st of February that said "the company is pleased to report further encouraging drill results from its turec gold-silver project located in central Slovakia, with consistent high grade intercepts and encouraging widths. All holes reached targeted depth with good overall core recovery. Borehole STOR-3.11 demonstrates that there are significant high grade structures present that haven't been extracted during previous underground mining activities; considerable potential to follow these high grade structures to the south and deeper into previously unexplored areas. Turec deposit suitable for modern open pit mining with low strip ratios. Preparation of an updated geological model incorporating the 2011 drill results and the findings of the Scoping Study will start; anticipated that the updated model will be completed during Q2 2012." Possibly the market is getting ready for another update on the last line of that statement. 

Toledo Mining (LON:TMC) jumped 7% to 20.75p on just over 3 times the average daily volume during early trading today. The market seems to be trying to bottom fish on this one as the share prices has been in free fall since the end of February, falling from a high of 30p to the recent low of 18.5p. 

West African Minerals (LON:WAFM) pushed almost 11% higher to 28p during afternoon trading after the company reported Positive results from Aeromagnetic Survey, highlighting 27,000 line km of aeromagnetic surveys targeting potentially high tonnage, 60-65% Fe content, hematite-rich mineralisation completed on WAFM's six exploration properties in Cameroon. 30 discrete demagnetised zones covering over 100km(2) in total area have been initially identified as potential DSO targets. Seven of the anomalies on the south-eastern permits have geophysical signatures similar to other major DSO deposits in the region. Board approval given to Phase Two of the exploration programme which will comprise of approximately 400 fifty metre holes (20,000 metres in total) to target DSO material overlying magnetite banded iron formation (BIF) bedrock. Government assurances given that the Company will be given equal access to proposed new port and rail infrastructure being built in the country. 

It was no surprise to see a few profit takers show up to the recent rally on Athol Gold and Value (LON:AHG) today, with the shares lipping 10% to 0.2p during early trading. Holders here are waiting on a couple of snippets of news from the company, including an updates Net Asset Value (NAV) for the company. The last NAV update was back on the 1^st of February where the company highlighted that as of the 25^th of January the NAV for the company was 0.33p. 

Another stock that has slipped right back to the long term support is Sunrise Resources (LON:SRES). The shares have slipped from a high of 2.55p back towards the end of January to the current level of 1.1p. Major support for the company has historically been around the 1p area, so it will be interesting to see how the long term holders react to this level once again. 

Nyota Minerals (LON:NYO) slipped another 8% to 5.45p during afternoon trading today, and are now sitting right back at levels not seen since the end of last year. The 5p level has historically been a decent enough support line, so we will continue to watch these closely as the shares slip closer to that support.

The FTSE 100 somehow managed to rally by 13 points to 5722 (+0.22%) by the time the US market had opened, even though the GDP data out in the UK today showed we were officially in a double dip recession, not seen since the 1970s. Volumes were a little on the light side with only 450 million shares changing hands before the US opening bell. The FTSE AIM All-Share Index was 0.35% higher on volume of 682 million shares.

Gold - ↑Trading at $1642, up $2 (+0.09%)

Silver - ↑Trading at $30.85, up 3c (+0.05%)

Copper - ↑Trading at $8210, up $62 (+076%)

Zinc - ↑Trading at $1991, up $1 (+0.11%)

WTI Crude - ↑Trading at $103.81, up 28c (+0.27%)

Brent Crude - ↑Trading at $118.46, up 29c (+0.25%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com

Cove Energy (LON:COV) pushed 4.5% to 227p on huge volume of 85 million shares before lunch, after the company said that they have reached agreement on the terms of a recommended cash offer to be made by Shell Bidco for the entire issued and to be issued share capital of Cove. Cove Shareholders who accept the offer will be entitled to receive 220 pence in cash for each Cove share. The offer values the entire issued and to be issued share capital of Cove at GBP1.12 billion million. Cove directors intend to recommend unanimously that Cove shareholders accept the offer. The offer is conditional upon, amongst other things: *The receipt of written consent of the Republic of Mozambique's Minister of Mineral Resources or through one or more delegated representatives required as a result of the indirect change of control of Cove Mozambique and the Rovuma Area 1 Interest, such consent to be in a form satisfactory to Shell Bidco and such consent, once given, not having been revoked or withdrawn or otherwise having lapsed; and *Cove Mozambique being the owner of the entire legal and beneficial interest in the Rovuma Area 1 Interest and, following the release of this announcement, no circumstances having arisen which might reasonably be expected to result in Cove Mozambique no longer being the owner of the entire legal and beneficial interest in the Rovuma Area 1 Interest. The bit of news that really pushed them over the bid price was the announcement from PTT Exploration that said, In connection with PTTEP's announcement dated 24 February 2012 of a proposed cash offer for Cove, PTTEP notes today's announcement by Shell Exploration and Production (XL) B.V. ("Shell") of its firm intention to make an offer for Cove at a price of 220 pence in cash for each Cove share, on and subject to the terms and conditions set out in that announcement. PTTEP is currently considering its options and will make a further announcement as and when appropriate. 

Gulfsands Petroleum (LON:GPX) slipped 1% to 125p, back towards its major support at 122p/125p. Volumes have not really been catching the eye of late, and news reports that Syrian forces have killed dozens of civilians in the past two days will not do anything to help restore the already battered confidence in the stock. This news raises fresh concerns about the potential of success for the United Nations (UN) peace plan. 

A few profit takers showed up to the Matra Petroleum (LON:MTA) party today, knocking the shares for 5%  to 2.75p during early afternoon trading, after the shares had pushed on yet another 12% to a traded high of 3.25p. The shares had been on a fantastic run over the last few sessions, so it was no surprise to see a little profit coming off of the table up around the 3p area, but as I type the shares are starting to edge up once again. 

Xtract Energy (LON:XTR) pushed on 8% to 0.67p during afternoon trading as the shares slowly started to rebound from the recent fall. The shares have dropped from just over 2p to a recent low of 0.6p, after the company said that they found no hydrocarbons at its Luna well, and that they would be looking for new opportunities in the Netherlands. Possibly one of the reasons for the additional fall was the market wondering if the company has enough cash to expand its opportunities in the country, or if it would need to raise additional funds. 

Nighthawk Energy (LON:HAWK) jumped nearly 9% to 3.3p at the mid-price, albeit on very thin volume. The shares have slipped from just over 5p back down to 3.1p over the last few months, and the most recent update that read bullish enough could not get them moving positive again either. The update on the 26^th of March said that its 2012 work-over program at its Jolly Ranch project in Colorado is on schedule and that its preparation and data gathering is complete on seven wells. Second work-over rig will be on location shortly. The company now anticipates that additional down-hole work will be required above original estimates, and consequently the company has budgeted for an additional net spend of $300,000 to $600,000, which is fully funded. Nighthawk is undertaking substantial overhaul of topside facilities including cleaning of tanks, improvement of well-pads; better environmental protection; and improved infrastructure. Data-gathering process has proved very successful with check-shot data obtained from three wells and additional logging data from the out-lying Williams 10-27 well. Over the past week recompletion work to bring three additional wells into production has been underway and an update on production will be released in April 2012. Now the last line of that update is the one I think could be the main driver behind the bounce. So possibly the market is getting ready for a production update. 

Bowleven (LON:BLVN) jumped 5% to 85p during afternoon trading after the company said that its wholly-owned Cameroon operating subsidiary, Euroil Limited ("Euroil"), has signed a memorandum of understanding (MOU) relating to the supply of gas from the Etinde Permit. The following release was made by SNH in Cameroon today. Signing of a Memorandum of Understanding between SNH, German company Ferrostaal GmbH and EurOil Ltd with a view to supplying natural gas to the chemical fertilizer plant. The Executive General Manager of the National Hydrocarbons Corporation (SNH), Mr Adolphe MOUDIKI, the Senior Vice-President of German company FERROSTAAL GmbH (FERROSTAAL), Mister Kaspar EVERTZ, and the Chairman of EurOil Limited (EUROIL), Chief TABETANDO, inform the public of the signing on 24 April 2012 at the head office of SNH in Yaounde, of a Memorandum of Understanding for the supply of natural gas to the chemical fertilizer production plant due to be constructed in Limbe, Cameroon. Under the Memorandum of Understanding, the three companies intend to cooperate towards the evaluation, development and putting on production of the gas fields in the EurOil operated Etinde permit, within a time limit compatible with the construction of the plant, in order to ensure that it is supplied with natural gas as from year-end 2015. The estimated gas requirements of the fertilizer plant stand at 70 million cubic feet per day, for a minimum period of ten years which the parties wish to extend to 20 years, with the contribution of other potential or identified gas fields on the EurOil operated ETINDE permit. 

HaiKe Chemical (LON:HAIK) jumped 21% to 35.5p on almost 4 times the average daily volume. The last RNS from the company on the 23^rd of April said "HaiKe Chemical Group Limited the AIM quoted (AIM: HAIK) petrochemical, specialty chemical and biochemical business based in China will announce final results for the year ended 31 December 2011 in early May 2012." So possibly the market is getting ready for the final results which should be over the next few weeks. 

Serica Energy (LON:SQZ) slipped 1.5% to 29p during early trading, albeit on thin volume. The shares have slipped from the high of just over 45p back toward the end of March, to the current level of 29p that has historically acted as a major support line. It will be very interesting to see how the holders react to the shares now they are back to the major support. The shares jumped initially after the company said that BP PLC (BP.LN) has agreed to earn a minority stake in its offshore Namibia exploration license by covering past costs and paying for an extensive three-dimensional seismic survey. Serica currently holds an 85% stake in exploration license 0047 and has agreed to farm out 30% to BP. The National Petroleum Corporation of Namibia Ltd. holds a 10% stake and Indigenous Energy Ltd. holds the remaining 5%. The deep water geological basins offshore Namibia, including the Luderitz Basin, are at the early frontier stage of exploration and having a major like BP on board, should reduce the financial and technical risk to the minnow. 

We (Fox Davies) put out a BUY note on Melrose Resources (LON:MRS) today, with a price target of 175p. The note highlighted that Melrose Resources has demonstrated its ability to execute a cost competitive exploration, appraisal and development strategy. With an already strong balance sheet and improving cash flow, alongside a balanced exploration portfolio, all the elements exist for a robust growth model. Against this we temper the additional risks associated with operating in Egypt. We initiate coverage on Melrose Resources with a BUY recommendation and a target price of 175p.

• Egyptian risk overdone: While there are some short term risks with respect to payment terms, we do not believe the risks associated with nationalisation to be too excessive. Nevertheless, although the termination of the Egyptian / Israeli gas deal has been presented as a commercial issue, there is the fear that this is just the mask covering more clandestine motivations, all of which will only serve to stoke regional tensions. 

• Balanced portfolio: Melrose has a well-balanced portfolio of assets with established producing assets in Egypt and Bulgaria, frontier exploration potential in France, Egypt and Turkey, and further exploration in Romania. Its CapEx spend has averaged $114mm pa over the last 3 years, with a ~50:50 split between development and exploration.

• Attractive project economics: Melrose pursued an aggressive development strategy in Egypt and Bulgaria, bringing its discoveries on line quickly by leveraging off of its existing infrastructure. This in turn has kept F&D costs to a minimum and resulted in rapid paybacks; the operating cost for the producing fields in Egypt and Bulgaria averages at just $2.1/boe. The expertise it has developed can be applied across its portfolio. The unit development cost ranges between $2-9/boe for the Egypt fields and $7-9/boe for the Bulgaria fields. The 2P reserves of 35.6mm boe ensure cash flow to the Company for the minimum period of six years.

• Significant cash built up: Melrose has established a strong cash flow platform in Egypt and Bulgaria. We estimate free cash flow generation of $394mm over the next three years which places the Company in a strong position of being able to fully fund its exploration and development programmes and retain sufficient financial flexibility to pursue acquisitions.

• Initiate with a BUY recommendation and a target price of 175p: With opportunities in the near medium and longer term, the stock is keenly priced. However, this is offset by its exposure to the turbulent Egyptian region. (A full copy of the note can be found on our web site) 

Nostra Terra Oil & Gas (LON:NTOG) slipped 4.4% to 0.435p at the mid-price today, albeit on thin volume. The shares are now back to what looks like an interesting support line along the uptrend. In the last update on the 16^th of April the company said that the drilling plan in the Bale Creek prospect has been accelerated. The Company has a 30% working interest in the Bale Creek prospect, located in Oklahoma. A decision has been made to accelerate the drilling of the horizontal wells in Phase I. The three horizontal well locations in Phase I have already been spaced and pooled. While the first horizontal well is being drilled, the pad for the next horizontal well is being constructed and the rig contract has been extended, such that the rig will remain on the lease for the second horizontal well, where drilling will commence immediately following completion of the prior well. Following Phase I, there are four additional potential horizontal well locations in Phase II. Matt Lofgran, Chief Executive Officer of Nostra Terra, commented: "Things are really picking up here. The back to back well drilling programme not only saves money but, more importantly, should allow us to bring on production much more quickly." Nostra Terra said they will make further announcements as the operations progress.

Vatukoula Gold Mines (LON:VGM) jumped 6% to 55p after the company said it has raised GBP5.4 million through a subscription agreement with Zhongrun International Mining Co. Ltd. Zhongrun International Mining Co. Ltd. purchased 9 million new ordinary shares in the Company at a price of GBP0.60 per share. In addition, under the Subscription Agreement, the Company has agreed to grant to Zhongrun an option to acquire an additional 9,000,000 ordinary shares in the Company. The Option will be exercisable at a subscription price of GBP0.77 per share and is exercisable any time on and before July 23, 2012.  The funds raised will be added to working capital and also used towards a number of purposes, including drilling to convert current Inferred resources to Measured and Indicated Resource categories, as well as longer term capital and development projects. Underground mining operations at the Vatukoula mine were disrupted following extensive rainfall in the Northern area of Fiji which caused some flooding on the lower levels of the mine and an accident in the Smith shaft. It is expected that the disruption will reduce anticipated gold production for the current quarter by about 2,000 to 3000 ounces. 

Red Rock Resources (LON:RRR) slipped 5% to 2.21p at the mid-price during early trading, albeit on thin volume. The shares have continued to slide despite the company announcing on the 19^th of April that it appointed Ariel Partners LLP for an initial period of four months to assist the company in restructuring its directly and indirectly held interests in the Migori Project. The Migori Project has a NI 43-101-compliant Indicated Mineral Resource of 1.172 million oz. of gold. Mid Migori Mining Ltd, a Kenyan company which is the owner of the Migori Project, is 15% owned by Red Rock and the balance is held by Kansai Mining Corporation, a Canadian company. Red Rock has the right to farm in to a majority position in Mid Migori Mining Limited by performing exploration work, and is manager of the Migori Project with certain additional rights. As announced on Feb. 2, Red Rock now owns and controls, or has the option to own and control, 45,552,237 common shares of Kansai representing it believes 37.96% of the total issued and outstanding common shares of Kansai. Kansai has also entered into an exclusivity agreement with Ariel under which for a period of three months it will deal exclusively with Ariel in relation to possible transactions relating to the Migori project and assets.

Regency Mines (LON:RGM) which owns just under 16.5% of RRR skipped 2% to 2.2p. The company recently took part in a small raise for Alba Minerals (LON:ALBA) which said it will raise GBP90,000, before expenses, via share placing and added that it will reduce its debt by GBP47,250. Starvest PLC (LON:SVE) and Regency Mines PLC (LON:RGM), two major shareholders in Alba, have agreed to subscribe for 10 million and 8 million Alba shares respectively at 0.5 pence share to raise GBP90,000. Funds are to be used to fund fieldwork and for working capital purposes. To issue 9.5 million ordinary shares following the capitalization of GBP47,250 of outstanding loans.

Premier Gold Resources (LON:PGR) which may be a new name for many of you, pushed 4% to 0.675p at the mid-price during afternoon trading. The shares recently relisted to trading on the AIM market of the London Stock Exchange. Premier Gold has completed the acquisition of Central Asia Resources Ltd bringing with it the Company's first major gold exploration project, the Cholokkaindy licence, in Kyrgyzstan. The Company's name change to Premier Gold Resources plc. from Premier Management Holdings. Premier Gold's initial focus is on gold projects on the highly prospective Tien Shan gold belt, running through Kyrgyzstan which is the third largest gold producer of the CIS countries. Kyrgyzstan has a well-developed mining industry with good support services. Many investment incentives have been established to use mining as a starting point for economic development in the country. Premier Gold has a highly experienced board and management team with a combination of precious metal mining expertise, local political knowledge and corporate finance experience positioning the Company optimally to gain access to and develop further gold projects in the region. The relisting document is a very detailed one, and after reading through the fine print it looks like the company could be very vocal over the coming months with regards to news flow. We will be watching this one closely over the coming weeks for any additional updates.

Toledo Mining (LON:TMC) slipped another 4% during early trading to hit a low of 18.85p. The shares are now back to what looks like a very interesting level, and we will be keeping a close eye on them over the coming sessions. The last update from the company on the 14^th of March said "that the shipping window for 2012 is now open, adding that the MV Jin Rong has now sailed for China with 48,700 wet metric tons of nickel ore representing this year's first shipment of high grade material from the Berong mine."

Rare Earths Global (REG LN) slipped another 10% to 550p at the mid-price during afternoon trading. The shares have been on a real rollercoaster over the last few weeks, jumping from 250p up to a high of 1075p, then back down to the current price of 550p.

GCM Resources (LON:GCM) continued its rebound again today pushing 8% higher to 75p during afternoon trading. One of the reasons for the move could be this little snippet from yesterday's update "The Government is determined to improve the country's power generation situation. It has recently called tenders for numerous coal-fired power stations based on imported coal and many more are planned. Discussions with the Government will now be particularly focused on four key areas: The Phulbari mine could produce coal sufficient to support up to 4000MW of power generation; The Power produced using Phulbari coal would be cheaper than imported coal; Positioning power station(s) at the mine site would make power generation simpler and more reliable, obviating the need for shipping and associated coal handling and inland transport infrastructure; and Utilisation of locally produced coal would create many thousands of Bangladeshi jobs as well as deliver foreign exchange and balance of payments benefits for Bangladesh.

CIC Mining (LON:CICR) jumped another 21% to 1.675p on decent volume, continuing on from yesterday's push. It will be interesting to see if the company have anything to say regarding the recent jump from 1.12p to the high of 1.75p in trading today.

The FTSE 100 pushed on by 15 points this afternoon to 5679 (+0.25%) on volume of just over 430 million shares. It was no surprise to see the market rebounding after the aggressive sell off in equities yesterday afternoon. The FTSE AIM All-Share Index was up by 0.08% on volume of just over 1 billion shares.

Gold - ↑Trading at $1643, up $5 (+0.32%)

Silver - ↑Trading at $30.99, up 20c (+0.69%)

Copper - ↑Trading at $8124, up $62 (+0.77%)

Zinc - ↑Trading at $1988, up $4 (-0.23%)

WTI Crude - ↑Trading at $103.88, up 79c (+0.76%)

Brent Crude - ↓Trading at $118.61, down 8c (-0.08%)         

Any questions please don't hesitate to contact me at steve.asfour@fox-davies.com or visit www.viewsfromthetradingfloor.com  or www.fox-davies.com