Resource round-up: Norseman Gold, Max Petroleum, Sound Oil

1st May 2012 10:08

Shares in West Australian miner Norseman Gold jumped almost eight per cent after it said it had dramatically reduced costs in the first quarter of the year and its mill was now working seven days a week and 24 hours a day. The firm said it was on track to become a consistent 100,000 ounce gold producer. Investors seemed unperturbed by its announcement that production during the quarter totalled 6,258 ounces, down 41% on previous three months. Max Petroleum, an oil and gas exploration and production company focused on Kazakhstan, pleased investors with an update showing total production was up 33% during the year to the end of March. The firm averaged 2,807 barrels of oil per day (bopd), up from 2118 bopd the previous year. It also said that it had begun testing at its Asanketken and Sagiz West wells although testing at its East Kyzylzhar I site had been delayed. The company's shares rose 4.5% following the announcement.Sound Oil slipped in early trading after it announced a trading loss of £5.35m. This was £3,421,000 higher than in 2010 principally due to £1,446,000 higher administration costs following two acquisitions in Italy. However, pre-tax losses were considerably better than the previous year at £6.26m, up from £15.97m in 2010. The company's shares dropped 1.5% in morning trading.Red Emperor gave a mixed update on its activities in the first quarter of 2012. It said that its Somali Shabeel 1 well was proving difficult to test and needed cased hole testing to confirm whether it will produce oil. The company also said that progress at its Kursebi 6 Prospect in Georgia had been severely hampered during the quarter due to the severe weather conditions across Europe and Eastern Europe. The firm's shares fell 4.7% in trading following the announcement.UK and Ireland exploration firm Providence Resources announced its Group Financial Controller was to step up and become Chief Financial Officer with immediate effect. Before joining the firm, SImon Brett held senior finance positions with Damovo Ireland Limited and Coca Cola Bottlers Ireland Limited, Providence said. mm