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Junior energy stock surges 27% on farm out agreement

12/28/2012 4:43:17 PM | Sean Mason

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While an acquisition boosted shares of an oil and gas producer/explorer Friday

Stockhouse Canadian Small and Micro-cap Stock Report for Friday, December 28, 2012

TORONTO (SHfn) – Sonde Resources (TSX: T.SOQ, Stock Forum) shares climbed 27% to $1.70 on Friday as the energy company announced that it has farmed out 66.67% of its interest in the Joint Oil Block to privately-held Viking Energy North Africa Limited. Viking will pay Sonde a US$3 million signing bonus. In addition, Sonde will receive 20% of the cost recovery and profit share revenue until Sonde recovers US$70 million. After the payout of all Viking expenditures, the revenue will be split 33.33% to Sonde and 66.67% to Viking.

As well, shares of Iona Energy (TSX: V.INA, Stock Forum) added 11% at 51 cents on volume of more than 2.9 million shares as the oil and gas producer/explorer said it has entered into an agreement to purchase a subsidiary of Carrizo Oil & Gas, including its interest in License P1114 of UK North Sea Block 22/14b as well as the near-producing Huntington oil field development, for a cash consideration of $184 million. Initial stabilized gross production rates are estimated to be 4,500 bopd and 4.0 MMscf/d, totaling 5,175 boepd net to Iona.

Aeterna Zentaris (TSX: T.AEZ, Stock Forum), meanwhile, reported that it has reached an agreement with the U.S. Food and Drug Administration on a Special Protocol Assessment for an upcoming Phase 3 registration trial in endometrial cancer with its doxorubicin peptide conjugate, AEZS-108. Aeterna Zentaris stock moved up 15% to $2.49.

Top Canadian Small/Micro-cap Advancers (as of 4:00 PM Eastern)
Thelon Capital Ltd. (V.THC, Stock Forum)	66.67%
Hard Creek Nickel Corporation (T.HNC, Stock Forum)	50.00%
Sagres Energy Inc. (V.SGI, Stock Forum)	50.00%
Sonde Resources Corp. (T.SOQ, Stock Forum)	26.87%
Etrion Corporation (T.ETX, Stock Forum)	23.33%
Top Canadian Small/Micro-cap Decliners (as of 4:00 PM Eastern)
Desert Eagle Resources Ltd. (V.DER, Stock Forum)	-38.46%
Odesia Group Inc. (V.ODS, Stock Forum)	-33.33%
International Samuel Exploration Corp. (V.ISS, Stock Forum)	-27.78%
Rhyolite Resources Ltd. (V.RYE, Stock Forum)	-25.00%
Rodinia Oil Corp. (V.ROZ, Stock Forum)	-25.00%

ABOUT THE AUTHOR

Sean Mason

Sean Mason is a Stockhouse market reporter and editor.

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