Rat's Rant: Stocks that are hot, not and ... Les Norton

By Rat's Rant. Published at Sep 13, 2019, in Market Wrap

Did you know that on 12 September, 1973, West Germany adopted the Deutsche Mark.

The Deutsche Mark replaced the East German Mark and helped complete the economic reunification - part of the union between East and West Germany.

Mid-September also means we are getting closer to Oktoberfest.

I have never been to Oktoberfest, but it's on my list of things to do that's for sure as I don't mind a few frothies.

Oktoberfest is hot, but there are also several stocks that are on the rise.

What's Hot

Fremont Petroleum Limited (ASX:FPL)

Fremont closed up 25% to finish at 1c on $169,000 stock traded. The reason they were up was due to their update on their Vespucci oil and gas well located in Colorado.

The company said that flow-back operations are proceeding to plan on the Amerigo Vespucci #1 well. As previously advised, the well was placed on an artificial lift system to recover the balance of the fluids that were used to stimulate the Amerigo Vespucci # 1 well during a 5 stage stimulation of the Niobrara formation.

In anticipation of hydrocarbon flows in the coming weeks, oil and water collection tanks, flow-lines and flaring facilities are now in-place, so it sounds like they are expecting to find some oil. Hopefully, now it's just a matter of how much.

Fremont also been talking to the market for a long time about a Gas Sales Agreement (feels like an eternity) and to date nothing has eventuated so maybe just maybe that's not too far away either.

I hope so as I own a truckload of these both personally and for plenty of clients. My fingers, toes and legs will all be crossed - for the next few weeks at least.

Some details on today's news are listed below:

Production Equipment Tie-in at Amerigo Vespucci Well

Fremont Petroleum is pleased to advise that flow-back operations are proceeding to plan on the Amerigo Vespucci #1 well. As previously advised, the well was placed on an artificial lift system to recover the balance of the fluids that were used to stimulate the Amerigo Vespucci # 1 well during a 5 stage stimulation of the Niobrara formation.

In anticipation of hydrocarbon flows in the coming weeks, oil and water collection tanks, flow-lines and flaring facilities are now in-place.

The Company will update the market as to material developments when they occur.

Tim Hart, Fremont MD & CEO commented: “Completion operations on the Amerigo Vespucci #1 well are going to plan and the flow back of frack fluids aided by the lift system is now well-advanced. Given this was a much bigger frack when compared to the J.W. Powell well, we are therefore recovering a greater volume of frack fluids before we anticipate hydrocarbons cutting in. The Amerigo Vespucci #1 drill logs look very strong and we expect to report hydrocarbon shows very soon.

“Also, work has commenced on an updated independent Reserves & Resources report for the Pathfinder Field to take into account the productive J.W. Powell well and an anticipated producer in the Vespucci. A material upgrade to Pathfinder’s current P90 450 Bcf resource (90% probability) is likely and we expect this to be published next month.”

I really hope so...

Winchester Energy Limited (ASX:WEL)

Winchester closed up another 24% to finish at 7.9c on $769,000 stock traded. There was no news in the market, but you may read this column on Wednesday and hopefully a few of you bought them yesterday.

If so, lunch, a bottle of grange or even just a long one hour massage would be much appreciated.

On Tuesday, WEL said that they have recovered significant oil following the fracture stimulation of the lower two of four intervals of the Lower Cisco Sand at the recently drilled Arledge 16#2 well, which is located over in sunny Texas.

Following the frac, swabbing initially recovered fluid with a 60 - 70% oil cut.

The fluid level remained at 1,400 feet indicating good permeability and, after 15 runs, the well began to flow 90% oil through a wide open choke at a rate of 30 barrels per hour.

Read the announcement here: Rat's Rant: Stocks that are hot, not and... 'The ASX Guy'

YPB Group Limited (ASX:YPB)

YPB closed up 20% to finish at 0.006c on $330,000 stock traded. The reason they were up was because they announced a major technical breakthrough in the development of its Motif Micro technology.

YPB has achieved smartphone readability of a high security authentication mark under 'real world' conditions.

YPB believes this to be a world first achievement.

Commercially, it is a major breakthrough as it opens mass consumer goods markets to YPB by offering brands direct consumer engagement powered by assured product authentication.

It reads pretty well to me and sounds exciting, especially as I am a shareholder personally and for clients.

I have known the CEO John Houston for many years now and he has put plenty of his own hard earned cash into this company and many, many years of hard work which hopefully is just about to pay off.

Finfeed covered the announcement in this article: YPB makes major breakthrough - now one step closer to commercialisation and you can read further about YPB in this Next tech Stock article: YPB Secures Vital Pharma Contract: Expects Circa $1M in Revenue.

Alkane Resources Limited (ASX:ALK)

Alkane closed up 15% to finish at 56c on $9.3 million stock traded. The reason they were up yesterday was because I wrote about them on Monday night and Tuesday night and you have all piled in.

Of course, once again I'm kidding about that.

Check out this week's Rat's Rants for more information:

Rat's Rant: Stocks that are hot, not and... Constable Chapman

Rat's Rant: Stocks that are hot, not and... 'The ASX Guy'

Renergen Limited (ASX:RLT)

Renergen closed up 17% to finish at 84.5c on $331,000 stock traded. There was no news in the market, so I would be very surprised if they don't get a tap on the window from Constable Chapman or the ASX.

I am a shareholder myself as well as for a few clients and do like the Helium thematic, which was the reason I took some stock in the 80c listing a few months ago.

It's been very California Hotel like since listing (which for the newer readers means very easy to get in but very hard to get out) until today of course.

Yesterday Renergen announced that the appointment of Bohrmeister Technik Proprietary Limited as the well credentialed drilling contractor to undertake the drilling of a horizontal well in the prospective sandstone contained within the Virginia Gas Project’s production area.

So maybe we saw some Perth buying today as they are always a few hours behind and in this case even days. However, I must admit there is plenty of smart money over on the West Coast and fingers crossed the smart punters are buying it up today as I still hold mine.

Some details on what they do are listed below:

Renergen is an emerging producer of helium and liquefied natural gas (LNG), with existing production and sales of compressed natural gas (CNG). Renergen was listed on Johannesburg’s AltX securities exchange in June 2015 as South Africa’s first listed alternative and renewable energy company. Renergen listed on the Australian Securities Exchange (ASX) on the 6 June 2019, with the code RLT.

Renergen’s principal asset is its 90% shareholding in Tetra4, which holds the first and only onshore petroleum production right in South Africa, giving it first mover advantage on distribution of domestic natural gas. The production right was issued by the DMR and is valid for 23 years. Tetra4’s Virginia Gas Project is located in the Free State, approximately 250 km southwest of Johannesburg. The exploration right covers a large area where gas emitting boreholes were identified through other mineral exploration activities. Several of these boreholes are flowing gas at high production rates, with high concentrations of helium, and have been doing so for decades.

The Virginia Gas Project also benefits from being in operation, with a pilot compressing station producing CNG for use in buses in the area. Following the DMR’s award on 29 September 2017 of an Environmental Authorisation to construct all mid-stream and downstream facilities, Tetra4 has met all regulatory deliverables and contractual award of the New Plant is expected by June 2019, followed by completion and commissioning within 21 months. Tetra4 intends to decommission the compression station and begin exclusively producing LNG and liquid helium once the New Plant is operational. Tetra4’s natural gas offers a less carbon-intensive substitute for South Africa’s existing transport fuel, thermal fuel and power. The gas fields are situated in an energy scarce area, with high customer density and limited competition. The natural gas resource contains one of the richest Helium concentrations recorded globally.

Renergen is listed on Johannesburg’s AltX securities exchange as well as the Australian Securities Exchange (ASX).

Renergen’s principal asset is its 90% shareholding in Tetra4, which holds the first and only onshore petroleum production right (issued by the DMR) in South Africa which is valid for 23 years.

Tetra4’s Virginia Gas Project is located in the Free State, approximately 250 km southwest of Johannesburg. The natural gas contains one of the richest helium concentrations recorded globally. The natural gas is also very pure with an average of over 90% methane, and almost zero higher alkanes, which reduces the complexity of liquefication.

Meteoric Resources Limited (ASX:MEI)

Meteoric Resources closed up 14% to finish at 5.8c on $500,000 stock traded. There was no news in the market, but earlier this week they gave an update on their gold project located in Brazil where the drilling contract has been signed with Brazil's largest driller, GEOSOL. Maiden drilling at Novo Astro will commence in late September.

Meteoric has a planned drill program which consists of 21 holes for 2,500m and will be the first ever time Novo Astro has ever been drilled and I can't wait to see what they come up with as I am a shareholder myself and there are quite a few smart investors on the register (not talking about myself just FYI).

The company recently raised $2.7m @ 3.2c which was done by the good boys and girls over at CPS Capital in Perth and my broking mate, who we will call Dicky Knee Ham to keep him anonymous, was kind enough to get me a few.

So thanks again Dick.

Fingers crossed for Tunksy, Dicky, the rest of the MEI board and all shareholders that we have some success over in Brazil and it's onward and upwards from here.

Some highlights from Tuesday announcement are listed below:

Exploration Program Update, Brazil

Highlights

  • Drilling contract signed with Brazil's largest driller, GEOSOL – maiden drilling at Novo Astro to commence in late September
  • Planned drill program consists of 21 holes for 2,500m and will be the first ever time Novo Astro has ever been drilled
  • Juruena drilling continues with two GEOSOL diamond drill rigs onsite working double shifts
  • Holes JUDD001 to JUDD008 at Dona Maria now complete and being processed
  • Hole JUDD008 intersected visible gold within an 8m wide alteration halo between 147m to 155m depth
    • This follows previously announced visible gold in Hole JUDD001 (ASX Announcement 16/8/19) providing the Company continued confidence in this exciting project

Meteoric Resources NL (ASX:MEI) is pleased to announce that it has signed a contract with GEOSOL to commence the first ever drill program at the Company’s 100% owned Novo Astro Gold Project. The drill rig is expected to mobilise to site within the next two weeks and drilling is expected to commence in late September. Additionally, the Company’s ongoing diamond drilling program at the Juruena Project on the Dona Maria prospect continues, with two rigs now on site working double shifts.

Managing Director Andrew Tunks said, “Our Brazilian Exploration team have been working hard to secure an additional drilling rig from GEOSOL and prepare accommodation and work facilities in the Garimpeiro’s Village at Novo Astro for our expanding team. We expect the rig for Novo Astro to mobilise within the next two weeks and commence drilling in late September. Excitingly, this will be the first drilling ever conducted at Novo Astro and is targeting the depth extensions of gold mineralisation that has been previously mined by Garimpeiro operations over the last 40 years.

“At the same time, drilling at the Dona Maria prospect has progressed well and we have now completed 8 holes. The first 7 sample batches are at ALS Laboratories and we expect results of these batches within the next 10 days. Results will be reported at that time.

“Of great significance, Hole JUDD008 has intersected a wide zone of intense alteration at the expected target depth and Senior Geologist Marcelo Gomes has identified visible gold within the zone. To date all holes completed have intersected the targeted alteration zones and this is the second time we have seen visible gold in the core.”

What's not

iSignthis Limited (ASX:ISX)

iSignthis closed down 34% to finish at 93c on $71 million stock traded. There was no news in the market, so if they don't get a speeding ticket from the ASX or Constable Chapman before the market opens tomorrow - I give up!!!

It's been a wild ride for ISX shareholders for the last year, this time a year ago they were trading around 15c, yesterday they traded as high as $1.66 (hate to have bought that stock) and they were all the way back to 93c yesterday.

I do note that management were recently issued with some performance shares that were outlined in the notice of meeting in April this year.

Not sure what the milestones were but if my stock goes from 15c odd and is trading at around $1, surely they have done something right to be entitled to these performance shares.

It's not one I follow very closely even though my broking mate from downstairs 'Scotty Too Hotty' has been telling me to buy them since they were 30c - which wasn't that long ago.

I hope you got a few out at $1.66 yesterday Scotty and haven't lost too many bags after this dramatic fall.

Some details on what they do are listed below:

Australian Securities and Frankfurt Stock Exchange listed iSignthis Ltd (ASX: ISX | FRA: TA8) delivers remote identity verification and payment authentication coupled with e-money, transactional banking, IBAN issue and payment processing capability. iSignthis provides an end-to-end onboarding service for merchants, with a unified payment and identity service via our PaydentityTM and ISXPay® solutions.

By converging payments and identity, iSignthis delivers regulatory compliance to an enhanced customer due diligence standard, offering global reach to any of the world’s 4.2Bn ‘bank verified’ card or account holders, that can be remotely on-boarded to meet the Customer Due Diligence requirements of AML regulated merchants in as little as 3 to 5 minutes. PaydentityTM has now onboarded and verified more than 1.65m persons to an AML KYC standard.

  • iSignthis PaydentityTM service is the trusted back office solution for regulated entities, allowing merchants to stay ahead of the regulatory curve, and focus on growing their core business. iSignthis’ subsidiary, iSignthis eMoney Ltd, trades as ISXPay®, and is an EEA authorised eMoney Monetary Financial Institution, offering card acquiring in the EEA, and Australia.
  • ISXPay® is a principal member of Visa Inc, Mastercard Inc, Diners, Discover, (China) Union Pay International and JCB International, an American Express aggregator, and provides merchants with access to payments via alternative methods including SEPA, Poli Payments, Sofort, Trustly, WeChat, AliPay and others.
  • UAB Baltic Banking Service, (“BBS”) a wholly owned subsidiary of iSignthis Ltd, provides API based access to SEPA Core, SEPA Instant and SEPA business schemes (“CoreConnect”), for neobanks, banks, credit unions and emoney institutions, and provides a bridge to the Central Bank of Lithuania’s CENTROLink service. suite, with BBS contracted to deliver these services to a number of regulated entities.
  • Probanx Information Systems Ltd (Probanx®), a wholly owned subsidiary of iSignthis Ltd, is an international banking software company which has been serving the banking industry since the year 2000 by developing comprehensive banking software solutions to financial institutions around the globe. Probanx offers web-based banking solutions using the latest technology and international standard business rules. Our customers are located on five continents and supported from our technical centres in Europe and Australia. iSignthis’ Probanx delivers core banking software, including a fully comprehensive and versatile banking solution for retail, corporate and private banks, e-money and payment institutions, offering capabilities that up until now were affordable only by large commercial banks.
The great Constable looks pretty tired as there have been plenty of speeding tickets issued to ASX companies this week.

What's doing

It is unlikely there will be any further reports until Tuesday as it is semi-final time in the NRL. My team, the mighty South Sydney Rabbitohs aka The Pride of the League, is coming up against their arch nemesis and cross town rivals the Salary Cap Rorters aka The Roosters.

That's where you will find me tomorrow night and you never know you may or may not even see me on the Channel 9 broadcast after the game - strange things always happen to me.

A bit like my old mate Les Norton (ABC TV show), who I have just been introduced to by my broking mate the Blue Diamond dealer. I tell you what, it's a bloody good Australian show and they are even better books.

Caution I've only watched the show and I don't normally read books, but I have heard from a few sources they are pretty good.

I reckon I have got a bit of Les Norton in me for sure......

Anyway enough jibber from me, enjoy your weekend. Hopefully I will be enjoying a bunnies win tomorrow night and the Roosters go out in straight sets.

That would really make my year complete, but dare say it won't happen!

Go hard.

The Rat.

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