- Hydrodec Group [LON:HYR] was one of the sector's biggest fallers after it sold Hydrodec (UK) Limited and Hydrodec Re-Refining (UK) Limited and agreed to transfer certain other rights and assets relating to its UK operations for a consideration of GBP1.

Hydrodec also announced the appointment of Chris Ellis, previously acting chief executive, as CEO with immediate effect.

The sale follows a detailed strategic review of its UK waste oil collections business and proposed UK lubricant oil re-refining project, following a significant deterioration in the outlook of its UK operations.

The UK operations have been sold to Andrew Black for a consideration of GBP1 in cash, including the transfer to the buyer of circa. GBP1.2 million of existing third party indebtedness in HUK.

In addition to this, the buyer will grant Hydrodec a contractual right to receive 10% of the buyer's entitlement to any future net profits of the UK lubricant oil re-refining project on distribution or exit.

* * *

Xcite Energy [LON:XEL] noted the movement in its share price and confirmed it knew of no reason for this.

* * *

Tower Resources [LON:TRP] has narrowed its FY pretax loss to USD9.8m, from an impairment-driven loss of USD56.6m. In the comparative period it impaired exploration and evaluation assets by USD50.6m, versus USD4.1m in the just-finished 12-month period.


- Portfolio refocus towards proven and emerging basins

- Award of a 100% interest in the Thali PSC located in the prolific Rio Del Rey basin, Cameroon

- Institutional placing to raise net US$8 million: Directors subscribed over $1million

- Board strengthened with the appointments of Philip Frank and Nigel Quinton

- Costs reduced and low near-term commitments

- Cash balance at year-end of US$3.5 million (2014: US$7.9 million)

- Look to strengthen asset base in this period of low acquisition and entry costs

* * *

Xtract Resources [LON:XTR] said the has completed an in-house update on the economic metrics of the Manica Project, as part of the Definitive Feasibility study (DFS) being undertaken by independent consultants.

On March 1, Xtract said had received approval from the Mozambique Government to acquire a 100% of the project.

On 29 June 2015 the Company reported on certain economic metrics for the Manica Project, which had been completed by Auroch Minerals NL ('Auroch') as part of the Preliminary Economic Assessment report ('PEA').

Following the development work undertaken by Xtract since this time, based on the Company's in-house estimates, the Board now has the following expectations regarding the Manica Project:

Key metrics (all based on Xtract's in-house estimates)

� Project Net Present Value ('NPV') (discounted at 10%) increased to US$70 million (PEA NPV: US$50 million) with an Internal Rate of Return ('IRR') of 50% (PEA IRR: 58%) assuming a gold price of US$1,250/oz

� Life of Mine ('LOM') increased to 12 years (PEA LOM: 8 years)

� Production expected to commence in Q4 2017

� Annual LOM production of 6.3mt at a head grade of 2.93g/t recovering 477koz (PEA Annual LOM production: 3.4mt at a head grade of 3.49g/t recovering 316koz of gold)

� Recoveries for oxide ore is 96%, 82% for transitional ore and 80% for sulphide ore

� Start-up capital cost of US$35 million compared to PEA capital estimate of US$28.4 million for open pit and plant. Additional capital of US$14 million, from cash flow, will be expended in years three and four of the Manica Project as part of underground access development compared to US$8.7 million capital for underground development planned in PEA (8 years of underground mining projected vs 3 years under the PEA)

� Cash cost of US$757/oz compared to cash cost in PEA of US$650/oz

� EBITDA of US$245 million (assuming LOM of 12 years) compared to PEA EBITDA of US$130 million (assuming LOM of 8 years)

* * *

Bankers Petroleum [LON:BNK] will release its 2015 financial results and updated corporate presentation on 10 March.

* * *

President Energy [LON:PPC] said current trading is in line with management expectations, with both Argentina and Louisiana performing profitably.


� Contract signed for new workovers in Argentina to commence by end of March

� President planning to commence new drilling programme in Argentina H2 2016

� Company trading within its funding facilities with adequate headroom

� Continued emphasis on G&A cost reductions and team building in Argentina

� Ben Wilkinson steps down as Group Finance Director

At 4:05pm:

[LON:AUR] Aurum Mining PLC share price was 0p at 0.95p

[LON:BNK] Bankers Petroleum Ltd share price was 0p at 62.5p

[LON:BOR] Borders Southern Petroleum PLC share price was +0.09p at 2.14p

[LON:CHAR] Chariot Oil Gas Ltd share price was +0.02p at 5.55p

[LON:ENQ] EnQuest Plc share price was +0.13p at 15.13p

[LON:GKP] Gulf Keystone Petroleum share price was +1p at 14.5p

[LON:GPX] Gulfsands Petroleum PLC share price was 0p at 3.25p

[LON:HYR] Hydrodec Group PLC share price was -0.63p at 3.88p

[LON:INDI] Indus Gas Ltd share price was +0.63p at 131.63p

[LON:PET] Petrel Resources PLC share price was 0p at 2.88p

[LON:RKH] Rockhopper Exploration PLC share price was +3p at 30.75p

[LON:RPT] Regal Petroleum PLC share price was +0.01p at 2.63p

[LON:TRP] Tower Resources PLC share price was -0.01p at 0.08p

[LON:XEL] Xcite Energy Ltd share price was -1.37p at 19.63p

[LON:XTR] Xtract Resources Plc share price was -0.01p at 0.18p

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