09/05/2006
If you still have the rump of your original Genesis Petroleum stake, you may have noticed a flurry of activity in the shares last week. I tipped Genesis (then Zari Resources) here in August 2004 at 1.75p. I suggested you sell half your holding at 4.75p some six months later. Since then the shares have been down to 0.8p. But last week they shot up to 1.88p at one stage, before settling back at 1.5p.
In November, when Genesis came to AIM through its reverse takeover of Zari, the company said it was hoping to drill its first well on North Sea block 9/10c ‘within six months’. Since then there has been no further announcement, but it looks as if the action is about to begin.
Sitting between the Bruce, Frigg and Heimdal fields, block 9/10c is highly prospective. Genesis has farmed out a 60 per cent stake to Lundin Resources and so will get a free carry on the drilling. A market capitalisation of just £19 million at the current price leaves plenty of scope for upside if any of Genesis’ prospects comes good. Hold on.
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| AIM | £20.34m |
12.00p
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-0.25p
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