RNS Hotlist February 28: Abingdon, Baron Oil, Block, Brandshield, Castillo, essensys, OKYO, TM1, United Oil & Gas

OKYO Pharma (OKYO), an ophthalmology-focused bio-pharmaceutical company, announced that its GMP packaged OK-101 drug to be used in the upcoming Phase 2, first-in-human, clinical trial in patients with DED, which was recently shipped from Europe, has cleared customs in the United States. The company said it was excited to be very close now to moving this drug into clinical trials and believe that OK-101 can provide a new way to treat DED patients who are presently not well-served by currently approved drugs.

Comment: There is an acceleration in the newsflow, and in turn the progress for OKYO, as the company heads towards clinical trials. This progress could surprise the market in terms of its speed, something which is not factored into the current valuation of the company.

BrandShield Systems (BRSD), a provider of cybersecurity solutions, provided a trading update for the year ended 31 December 2022. Annual Recurring Revenue was up over 60% to $8.42 million1 (FY21: $5.22 million). There was a 53% increase in new business and upsells to $3.87 million1 (FY21: $2.53 million). The company said it was pleased to report a strong end to 2022 - a year that saw BrandShield expand both its client and operational footprint within the cybersecurity space.

Comment: Once again Brandshield has underlined the merits of its business model, a point highlighted by the Annual Recurring Revenue being up over 60%. If only most in the stock market appreciated or understood the merits of this metric, the company would be far better appreciated in terms of its share price.

Castillo Copper (CCZ), a base metal explorer, announced encouraging results from initial Rare Earth Element metallurgical test-work at the Fence Gossan Prospect within the BHA Project's East Zone. The company said it was delighted with results from the drilling, surface sampling and metallurgical test-work at Broken Hill as they collectively demonstrate the forward value creating potential of the BHA Project's East Zone. In short, the underlying REE system is shallow, extends over at least 4.5km2, delivered results up to 3,491ppm TREO and produced up to 38.9% MREO in diamond core.

Comment: CCZ delivers regular, positive newsflow, updates on progress. It is surprising that so far in terms of market interest updates like today have not moved the dial in terms of engagement.

Baron Oil (BOIL), the AIM-quoted oil and gas exploration and appraisal company, announced that a copy of a Competent Person's Report prepared by ERC Equipoise Pte Ltd on the offshore Timor-Leste PSC TL-SO-19-16. The company said the independent assessment of approximately 1.1Tscf of gross Pmean Contingent Resources for the Chuditch-1 discovery is a major milestone, underpinning the potential commercial viability of the asset and highlighting its attractions to potential future participants in the Chuditch project.

Comment: It could / should be the case that today’s announcement from Baron Oil delivers a fresh leg to the upside for the share price. Clearly, the Baron Oil-maniacs should have enough to chew on here in the form of the CPR, and the potential that is now shaping up for the company.

essensys (ESYS), a provider of flexible workspace technology, announced an unaudited trading update for the half year ended 31 January 2023. Trading during H1 FY23 was in line with management's expectations. Total revenue grew by 18% to £12.9m (H1 FY22: £10.9m), driven primarily by the Group's North American business, which generated growth of 36% to £8.1m (H1 FY22:  £5.9m).

Comment: If nothing else, essensys deserves a mention here today off the back not only of its revenue growth, but the way that it has primarily been driven in the North American markets.

Technology Minerals (TM1), a company focused on creating a sustainable circular economy for battery metals, announced the Cameroon Ministry of Mines, Industry and Technological Development has confirmed that the five exploration permits at the Technology Minerals Cameroon Property have been validated under Cameroon law and granted to the company. The company has drawn down a further £560,000 from the £4.0 million convertible bond facility with Macquarie Bank Limited and Atlas Capital Markets LLC  as detailed in the company's announcement on 9 December 2022. Following this, a total of £1,060,000 of the Facility has been drawn down.

Comment: Excellent permitting news in one RNS from TM1, but the financing news in a second RNS. Perhaps having it all in one RNS would start to get the share price off the lows, which is what shareholders deserve given the latest progress.

Block Energy (BLOE), the exploration and production company focused on Georgia, announced initial results from the WR-B01Za well, part of the initial development phase of the West Rustavi/Krtsanisi Field, the Company's Project. The company said it was reviewing the data gathered during drilling and testing WR-B01Za to optimise the KRT-45_ST drilling programme, the second Project I development well. The Company continues to work on Projects II, III, and IV.

Comment: Block Energy continues to be under-loved by the market, despite regular decent updates such as today’s. One would imagine an inflection point is due sooner rather than later.

Abingdon Health ABDX), an international lateral flow contract development and manufacturing organisation (CDMO), provided its half-year trading update for the six months ended 31 December 2022. Revenues for H1 2022/3 were £1.1m (H1 2021/2: £1.7m). The company said it started the second half of the financial year strongly as new contracts have started to generate revenues,  and anticipates a significantly improved second half of the financial year.

Comment: The transition from the Covid gravy train, to operating in real world conditions sounds like a tough proposition. Full marks for Abingdon for at least being up to the challenge.

United Oil & Gas (UOG), the full-cycle oil and gas company, announced an update on the drilling of the ASH-8 development well in the Abu Sennan licence, onshore Egypt. United holds a 22% non-operating interest in the Abu Sennan licence, which is operated by Kuwait Energy Egypt. The company said successful development wells on the ASH field can be quickly brought on stream through existing facilities, generating immediate production and revenue for the company.

Comment: There are some signs of life for UOG’s shares near the lower levels. It is probably all about proving to the market that the company can quickly deliver as much consistent production as possible.