Shares in Empyrean Energy doubled this week after the operator of the Mako gas field off Indonesia completed the sale of a 75 per cent stake to an Indonesian partner, a deal that fully funds the project's development.
Empyrean is a small oil and gas explorer with interests spread across Australia, Indonesia and the United States. For years the Mako field had been its big prize, but investors had worried about how a company of Empyrean's size would ever fund its share of the development. That worry has now lifted, with first gas targeted for the end of 2027 and no need for Empyrean to tap shareholders for further cash.
Empyrean keeps a back-door stake in the project, entitling it to 8.5 per cent of the cash flowing from gas sales once production starts. It also pockets a $4million payment now, with a further $7million to come. The reduced financial risk, combined with the retained upside, helped drive the shares sharply higher.
AIM All-Share falls again
The wider AIM All-Share index dropped 1.5 per cent over the week, as investors continued to retreat from this riskier end of the market. It mirrored a 1.6 per cent decline in the FTSE 100, which fell amid an escalation in hostilities between the United States and Iran.
The UK continued to be what small-cap watchers have called the bargain aisle for private equity. Eleco, a maker of software for the construction industry, became the latest small-cap to be snapped up, with Accel-KKR agreeing to pay just under £208million for the business. The price marked a large premium to Eleco's share price before the recommended deal was announced, and the stock jumped 70 per cent.
EnergyPathways hires Jacobs for MESH project
EnergyPathways, a small energy transition company, saw its shares rise 20 per cent after appointing engineering firm Jacobs to steer planning and regulatory work on MESH, its long-duration storage project in the Irish Sea. The project has been deemed nationally significant by the government.
The work includes a bid for a government scheme that would guarantee MESH a minimum level of revenue. Investors took the appointment of a heavyweight engineer as a stamp of credibility, and a hint at a possible funding path for the project.
Dianomi defies the traffic slump
Dianomi, a digital advertising firm that places financial promotions on sites including CNN, has been defying a traffic slump that has hurt rivals. Revenue growth accelerated to 14 per cent in July and August, helped by new publishers and busier clients.
Broker Panmure Liberum stuck by its "buy" rating on the stock, and investors piled in, sending the shares up 42 per cent.
Kefi Gold and Copper falls after fatal attack
Kefi Gold and Copper was the week's biggest faller, down 42 per cent, after being touched by tragedy. The company suspended work at its Tulu Kapi gold project in Ethiopia following an attack at the site that resulted in the death of one of its employees.
Beowulf races against the clock
Beowulf Mining needs a £4.3million financing round to survive, but the key investment hinges on a ruling from Swedish regulators that could take up to six months. With the deadline looming and cash so tight that staff are deferring their own pay, the money is needed within a month. Investors took fright, and the shares slid 32 per cent.
Cambridge Nutritional Sciences, a maker of food-sensitivity testing kits, served up a disappointing set of full-year figures. Revenue slipped to £7million from £8.3million, and the company sank to a £4.4million loss after writing £3million off the value of past deals. Its cash pile also shrank, and the shares fell 24 per cent.
Bitcoin recruiter Connecting Excellence Group climbs
Connecting Excellence Group, known as XCE, is an unusual business: an executive recruitment firm that also runs a Bitcoin treasury on the side. Recent news gave investors two reasons to warm to it.
First, the company struck its debut acquisition, agreeing to buy a construction and engineering recruiter that turns over £1.79million. The target comes with 8.2 Bitcoin attached, so once the cryptocurrency changing hands is stripped out, the net cash cost of the deal is just £150,000. Chief executive Scott Ellam said he sees it as a template for acquiring the many profitable, family-run recruiters that have no obvious buyer.
Second, the group's flagship arm, Spencer Riley, grew revenue by 20.6 per cent, and its Bitcoin holding has swelled to almost 73 coins, worth £4.2million.
The shares have edged 31 per cent higher over the month, yet still sit some 38 per cent below their year high, suggesting the market has not fully priced in the recent developments.
