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17th Feb: Trader Tim’s Penny Stock Post – #XTR #JOG #MTR

Today we’ll be looking at Metal Tiger and Jersey Oil and Gas.

Xtract Resources XTR 0.03 +0.00 +11.11%

But first, spare a thought for Xtract holders yesterday.

The company undercut investors with a horrible placing. The company issues 10,156,398,001 new Ordinary Shares – that’s right, 10 billion! I literally spat my tea out when I read that, major dilution. These share were issued at a strike price 0.0185p – a discount of 63%! Ridiculous stuff. The shares were seemingly rallying – until the news hit late in the day yesterday. The share were up for 5 consecutive days and the share price had risen from 0.015p to 0.055 – over 300% – encouraging investors to flock into the stock thinking news was afoot. News of the placing hit and the share price plummeted closing at 0.0225p. A painful one for investors to take.

Jersey Oil and Gas JOG 217.00 +22.50 +11.57%

Market Cap: £20.97m
Price: 206.5p
Spread: 2.5%

I hold stock in this company – it was brought to my attention by Malcy, who writes, he has included it in his 2017 Bucket List. As a small cap play, I was naturally intrigued.

Jersey Oil and Gas are a relatively new player in the North Sea – the company completed a business combination in August 2015 with an AIM quoted company called Trapoil, which was brought under Jersey Oil and Gas name, but kept on the AIM market.

The company are planning to drill their prospective asset, Verbier, later this year. In November 2016, they raised £1.6 million at 110p. This was at a 6.8% discount to the trading price at the time. The placing was oversubscribe. Funds will be used for the technical studies required to proceed with the Verbier drill in the summer. Jersey have farmed-in the help of Statoil, who now own 18% interest, one of the world’s largest offshore operators. A major plus for the company. Based on Jersey’s pre-drill estimates, a successful exploration well at Verbier would discover 113 mmboe of recoverable oil (gross), which would have a value net to Jersey of $134.4M. Given the current market cap of £20 million, there seems huge potential here.

Today, the company provide a corporate and operational update.

Statoil is undertaking a tender process for a drilling rig, which is due to be awarded in the near future. Statoil is funding all costs up to US$25 million in respect to the drilling of the first exploration well on the licence. A significant de-risking of the operation on JOG’s part.

The company also have an agreement in place with CIECO, where Jersey will receive a 10% carry, effectively a cash payment, in relation to the reimbursement of the well programme related costs. Jersey confirm that they are now benefitting from this.

On a separate asset – Partridge – which has been farmed out to Azinor, Azinor has announced its intention to drilling this well later in 2017. If a discovery is made, which satisfies certain technical criteria, Jersey are owed $2 million.


The Company continues to be involved in multiple sales processes, and the Board remains confident that the management team’s experience, knowledge and expertise, in particular the foundations and processes established over the course of the past 18 months, puts the Company in a strong position to deliver shareholder value from its stated production acquisition strategy

Metal Tiger MTR 2.24 -0.53 -19.14%

Market Cap: £18.79m
Price: 2.5p
Spread: 6%

Metal Tiger relay MOD Resources announcement. MOD Resources, which Metal Tiger has a 30% holding in a JV with MOD, halted trading two days ago amid a pending announcement regarding significant drilling results. Metal Tiger’s share price has been in flux since – rising over 50% in the past 2 days, though it is down 15% this morning.


  • New mineralised zone below the T3 Resource confirmed by infill diamond drilling
  • Diamond drill hole MO-G-65D intersected ~75m zone with multiple intervals of copper sulphides
  • New mineralisation bears important similarities to the T3 Resource sequence
  • Existing drill holes in the area are being deepened to test for lateral extensions of the new mineralisation zone
  • Drilling also underway at new targets identified by IP geophysics

Next Steps

Shareholders should note that assay results are required before precise copper grades can be determined. We expect to provide a further update once the assay results become available

The share price has taken a hit today. Presumably, this is because a chunk of investors were simply riding the wave of optimism between Wednesday and today. The hope that others will euphorically get ahead of themselves before the RNS drops. Buy on hype, sell on news mentality. The RNS looks okay, not great. Having said all of that, there is very little chance that anyone without a MSc in Geology is going to derive any value from it.

The layout is overbearing. Too much text, poorly spaced and extended paragraphs of text – I mean if you want investors to part with their money, the very least a company should do is package the news up in a digestible way. This is torture to read through.

The post 17th Feb: Trader Tim’s Penny Stock Post – #XTR #JOG #MTR appeared first on Trader Tim.

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17th Feb: Trader Tim’s Penny Stock Post – #XTR #JOG #MTR


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