Small caps round-up: Gulfsands Petroleum, Ardana, Prodesse
Oil and gas exploration firm Gulfsands Petroleum has completed the drilling operation on the first horizontal development well within the Khurbet East Field, Syria.
The well is scheduled to commence operation by the fourth quarter of 2008.
"With a further horizontal well to be spudded imminently, Gulfsands is on track to commence commercial production later this year," it said.
Drug developer Ardana fell back on a disappointing trial result for its new testosterone cream, which is now unlikely to meet the expected target for patients to get approval from the US Food and Drug Administration.
"It would be prudent to assume that a further study may be required for regulatory approval of Testosterone Cream," Ardana said.
The company added that it continues to hold discussions with potential bidders and also over licensing opportunities.
US mortgage investor Prodesse saw net asset value per share fall to $6.91 at the end of the first quarter from $7.70 as at 31 December, while net income rose to $7.7m from $6.7m in the quarter to end December.
"Lower short-term financing rates in the US contributed to the increase in the company's net interest rate spread and thus the first quarter earnings," said Ronald Kazel, Investment Manager to Prodesse.
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"However, credit market dislocations, particularly those caused by high profile problems at several investment vehicles specializing in mortgage-backed securities, affected the company's net asset value," he added.
Aggregates group Ennstone's trading in the first quarter of this year has met expectations.
"We are particularly encouraged by the performance of our UK operations, which remain resilient in spite of the downturn in the residential housing market, energy pricing pressures and the current economic climate," said the group.
Poland has had an excellent start to the year but the US position is unclear, it added.
Anglo Pacific's first five months of 2008 were hit by lower coal royalty receipts due to weather and transport related disruptions to coal operations in Australia.
Coking coal prices, though, recently rose sharply to between $250 and $300 per tonne. This is expected to have a favourable impact on the group's future coal royalty flows.
Inkjet printing specialist Xaar said gross margins across the product range are stable, operating costs continue to be controlled successfully and trading for the company as a whole for 2008 is in line with expectations.
Vehicle installation service provider TG21 is trading in line with expectations for the year to date. Cash flow remains strong and net debt has been maintained at under £1m.
