Iona Energy (V.INA) advances on North Sea oil update

Elizabeth Walters Elizabeth Walters, Stockhouse
0 Comments| December 16, 2013


Stockhouse Canadian Small and Micro-cap Stock Report for Monday, December 16, 2013 VANCOUVER (SHfn) –  
 
Brigus Gold Corp. (TSX: T.BRD, Stock Forum) was up 33% to 84 cents. The stock is reacting to news that Primero Mining Corp. (TSX: T.P, Stock Forum) will acquire all outstanding common shares of the mining company pursuant to a plan of arrangement to create a diversified, Americas based mid-tier gold producer.  Pursuant to the arrangement, Primero will acquire each outstanding Brigus common share for 0.175 of a Primero common share. In addition, Brigus shareholders will receive 0.1 of a common share in a newly incorporated company (SpinCo) for each Brigus common share as part of the arrangement. SpinCo will hold Brigus' interests in the Goldfields project in Saskatchewan and the Ixhuatán and Huizopa projects in Mexico and will be capitalized with approximately $10 million in cash. Upon completion of the arrangement, Brigus shareholders will hold, in aggregate, a 90.1% interest in SpinCo and Primero will hold the remaining 9.9% interest in SpinCo.

Iona Energy Inc. (TSX: V.INA, Stock Forum) climbed 4.8% to 66 cents after the exploration and development company announced an operational update related to its Huntington Oil Field located in the UK North SeaProduction at Huntington has returned to full capacity of approximately 30,000 barrels per day of oil and 25 million standard cubic feet per day of natural gas (5,265 barrels per day of oil and 4.4 million standard cubic feet per day of gas net to Iona) following the lifting of gas export restrictions at the BP Operated Central Area Transmission System (CATS). Outside of a brief period of disruption during extreme weather conditions between December 5 and 7, the Huntington reservoir and Floating Production Storage and Offloading vessel have continued to perform steadily. Since coming on stream in April of 2013, thirteen cargos have departed Huntington and been sold at average realized oil prices attracting slight premiums to Brent.

Arcan Resources Ltd. (TSX: V.ARN, Stock Forum) slipped 1.4% to 35.5 cents after the oil and gas company completed the disposition of its non-core Virginia Hills asset for gross proceeds of $7.5 million. Proceeds from the sale will be applied directly against the debt on the balance sheet. Arcan also continues to solicit interest for other producing and development properties, which are described in detail in its September 23, 2013, news release.

In other news, Arcan has started drilling the first horizontal well in its winter development drilling program, located in the Swan Hills area of north central Alberta. The corporation anticipates drilling four to five horizontal wells over the winter months including: two wells in Northern Ethel, one well in Deer Mountain Unit #2, one well in west Ethel and possibly one additional location before spring break-up. The winter drilling program is planned to occur on existing producing pad sites to maximize capital efficiencies while minimizing on-stream production delays.
 

Select Canadian Small/Micro-cap Advancers (as of 4:00 PM Eastern)
Brigus Gold Corp. (T.BRD, Stock Forum) 33.33%
Carpathian Gold Inc. (T.CPN, Stock Forum) 33.33%
Stem Cell Therapeutics Corp. (V.SSS, Stock Forum) 25.00%
Karnalyte Resources Inc. (T.KRN, Stock Forum) 19.31%
Alderon Iron Ore Corp. (V.ADV, Stock Forum) 11.18%
Select Canadian Small/Micro-cap Decliners (as of 4:00 PM Eastern)
Fission 3.0 Corp. (V.FUU, Stock Forum) -31.25%
Bear Creek Mining Corporation (V.BCM, Stock Forum) -12.67%
LX Ventures Inc. (V.LXV, Stock Forum) -10.94%
Alaris Royalty Corp. (T.AD, Stock Forum) -8.09%
Xmet Inc. (V.XME, Stock Forum) -6.90%


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