Is the well running dry as energy firm seeks capital?

THE rumour swirling in the City is that AIM-listed gas producer Victoria Oil & Gas is on the hunt for more funds.

The word on the street is that the company – which operates as Gaz du Cameroun in the Francophone West African state of Cameroon – has been tapping up shareholders for a new share placing to raise cash.

All of this might not come as too much of a surprise to those who monitor the company’s activities. The firm is known to have a large following of private investors.

Victoria Oil & Gas warned at the end of September that it was keeping a close eye on cash levels, which stood at just $3.2 million (£2.4 million) at the end of June, after burning through $3.8 million in six months. It seems the well has at last run dry.

The shares have been on the slide in 2019, leaving it with a market value of just over £20 million.

Even an update on its increasing gas production levels last week failed to lift the share price.

A spokesman for the company, which is led by Kevin Foo, said it did not comment on ‘market speculation regarding capital raisings’.

AS MANY as ten Aimlisted companies could be suspended from trading next Friday. That’s unless they find a replacement nominated adviser or ‘nomad’ – required under Aim rules to oversee statements made to investors.

After the merger between Northland Capital and SP Angel, the Northland brand will disappear and its clients will need to find a new nomad by February 1. If they can’t, trading in shares in companies such as gas-to-energy firm EQTEC and Management Resource Solutions will be suspended.

And if they still can’t find a replacement by March 4, the shares will be cancelled altogether, leaving thousands of investors with stock they can’t offload. The clock is ticking.

WONDERING whether to buy Apple shares before Tuesday’s firstquarter results? Morgan Stanley thinks you should.

The Wall Street bank sent out a note to clients saying the bad news is already factored into the iPhone giant’s share price, which has dived more than 30 per cent in the past three months.

Apple slashed revenue guidance earlier this month when it warned about slowing sales in China. But Morgan Stanley thinks the shares have fallen far enough.

All eyes will be on forecasts for the next quarter. The bank predicts $58 billion (£44 billion) for revenues and 38 per cent for gross margins, which could boost the share price.