Resources investor Niche Group is raising £11 million and upping its holding in Oman Resources following a new gas find.
Resources investor Niche Group (NGP) is raising £11 million and upping its holding in Oman Resources following a new gas find in Turkey.
Chaired by colourful former stockbroking chief Christopher Stainforth and with Irish entrepreneur John McKeon as consultant, the AIM-quoted company is raising the money at 6p through brother Daniel Stewart and will put £4 million of the proceeds into a convertible loan to Oman Resources, a private company where the redoubtable McKeon is prime mover.
On conversion, the loan will take London-based Niche’s stake in Oman Resources from 18.7 per cent to 26.67 per cent. This development is prompted by Oman Resources’ move to farm in to a 50 per cent working interest in Turkey’s Block 4077.
The block’s operator, Arar Petrol ve Gaz, has reported that drilling at one of its wells, Gulhanim-2 (G-2) has penetrated through two hydrocarbon bearing potential zones and work is afoot on three wells, with a ‘Competent Person’s Report’ planned for the whole block. Niche director Donal Boylan declares ‘the discovery of an unexpected shallow gas zone at G-2 and further deeper zones with indications of gas/condensate further enhances Niche’s strong belief in the prospectivity of Block 4077.’
McKeon, the founder of fellow AIM counter Circle Oil and with interests ranging from football management to gold mines, has a strong following among investors. Niche’s shares soared from 0.28p low to 7.63p in the past year.