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Oil and gas explorer jumps on sale approval update

7/4/2011 6:01:32 PM | Sean Mason

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While a working interest purchase agreement boosted another energy play Monday

Stockhouse Canadian Small and Micro-cap Stock Report for Monday, July 04, 2011

TORONTO (SHfn) – Canadian Overseas Petroleum (TSX: V.XOP, Stock Forum) shares climbed 10% to 50 cents on Monday after the energy junior reported that it has been informed by Peppercoast Petroleum plc that discussions continue with The National Oil Company of Liberia and the Government of Liberia regarding the requisite approval for the closing of the Sale and Purchase Agreement of Block LB-13 offshore Liberia from Peppercoast to COPL. Given the complexities involved in this process, closing of the transaction is anticipated to occur within Q3 2011 assuming the requisite approvals can be obtained.

As well, shares of Armtec Infrastructure (TSX: T.ARF, Stock Forum) shot up 25% to $4.30 as the manufacturer of infrastructure products and engineered construction solutions said it has entered into a committed financing with a Brookfield Asset Management Inc. company to provide a $125 million credit facility. The new facility will allow Armtec to repay in full the lenders under its existing senior facility (in either the third or fourth quarter of this year depending on the availability of the second tranche) and will be available for general corporate purposes.

TransGlobe Energy (TSX: T.TGL, Stock Forum), meanwhile, announced the signing of a sale and purchase agreement to acquire a 50% operated working interest in the South Alamein Concession in the Arab Republic of Egypt from Cepsa Egypt SA B.V. The South Alamein Concession is 2,258 square kilometres and includes an oil discovery well, Boraq-2X, which tested a combined 1,700 Bopd of 38 degrees to 40 degrees API oil from two Cretaceous zones. TransGlobe stock popped 13% to $12.47.

And, Ithaca Energy (TSX: V.IAE, Stock Forum) Monday reported that stable production from the Jacky field in the North Sea has been restored in the J01 well at approximately 3,120 barrels of oil per day (bopd), of which 1,482 bopd is net to Ithaca. Ithaca shares added as much as 12% at $2.32.

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Sean Mason

Sean Mason is a Stockhouse market reporter and editor.

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