Market Report: Tullow Oil’s comeback cut short by woes in Ghana

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All good things come to an end and so it proved for Tullow Oil, whose rally came to an abrupt halt today.

After a dismal 2015, the FTSE 250 oil driller had recovered 16% this year until leaking 9.04p to 182.36p after admitting it had encountered an issue in Ghana.

The company said there was a problem on its floating offshore rig on the Jubilee oilfield and “additional operating procedures” were being put in place as a precaution. It stressed, however, that oil production and gas exports would continue as normal.

Analysts at Barclays said the move should only marginally lift costs, but warned that it was “a new known unknown” for investors.

On the wider market, punters cashed in some of their winnings from the past four days which saw the FTSE 100 soar 9%, with mining and oil stocks hoisting the blue-chip index higher.

Today, it drifted 30.23 lower to 6000.09, with yesterday’s winners ending up on the losing side, including a 25.65p decline for Anglo American at 442.4p.

Reports that Tesco had teamed up with private-equity firm Permira for a stunning swoop for beleaguered Morrisons at 275p a share left the FTSE 250 Bradford-based supermarket group 4.1p tastier at 185.6p.

Among the tiddlers, FastForward Innovations, renowned investor Jim Mellon’s latest venture, edged up 0.19p to 18.19p as it emerged former bwin.party chief executive Norbert Teufelberger increased his stake in the recent placing to 6.7%. 

Teufelberger has been selling his shares in GVC after the £1.1 billion reverse takeover of bwin by the AIM-listed owner of Sportingbet.

FastForward took advantage of a strong share price rise in December to raise another £5.6 million, just  six weeks after tapping investors for £3.2 million to fund the acquisition of a stake in education-technology company VEMO.

Victoria Oil & Gas gushed 4.38p higher to 41.55p after snapping up a 75% stake in a gas field in Cameroon from Glencore.

Elsewhere, Liberian gold miner Aureus Mining, which came under intense selling pressure in November when it raised cash through issuing new shares at a huge discount, shone 0.3p higher at 3.3p as it improved recoveries of the precious metal at its New Liberty mine.

Stockbroker Jarvis Securities rewarded its shareholders with a 10p-a-share special dividend, boosting the AIM-listed company 11.25p to 335p.

Jarvis managed to lift pre-tax profits by 7% last year to a record £3.4 million, while revenues rose to £7.6 million.

Finally, e-sports business Gfinity dropped 0.88p to 13.5p despite being selected by Californian video games developer Super Evil Megacorp to host the finals of its Vainglory Winter Championship next month in Fulham.

Source Article from http://www.standard.co.uk/business/market-report-tullow-oil-s-comeback-cut-short-by-woes-in-ghana-a3183896.html

February 21, 2016 |
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