The Netccentric Ltd (ASX: NCL) share price is flying higher today as the company announced an affiliation with global company, Shopify Inc (NYSE: SHOP).

Shares in the small-cap Australian company are currently trading up 2.17% at 24 cents.

Netccentric is a communication services company that develops software and programming platforms to engage with digital advertising. While it operates globally, the company primarily targets southeast Asian markets.

What happened

Today the Netccentric subsidiary, Nuffnang Live Commerce, completed an integration with Canadian e-commerce giant Shopify. The partnership will allow almost 2 million Shopify merchants to sell their products via its live video streaming application.

The integration will likely enable Netccentric to increase its merchant base, consequentially driving possible revenue opportunities for the company through transaction and subscription fees. Moreover, Shopify merchants could also gain the ability to select products from the Shopify catalogue and directly sell through live streaming.

With a market capitalisation of $138.69 billion, Shopify would be the second-largest company on the All Ordinaries Index (ASX: XAO) if it were listed. The Canadian company operates across 175 countries and generated $2.93 billion in revenue in 2020.

How it works

Netccentric says the platform helps merchants convert social media comments into sales through an automated livestream selling process. A user can comment “+1” or “+2” on a post relating to an item, and the goodwill is immediately added into a virtual shopping cart.

The platform was developed so that both merchants and retailers can take advantage of the rising social commerce industry.

Management comments

Netccentric executive chair Ganesh Kumar Bangah welcomed the news, saying:

After a sustained period of platform development in 2020, we are now exposing Nuffnang Live Commerce to as many merchants, brands and businesses as quickly as possible.

With the Nuffnang Live Commerce Shopify integration, we are making it easier for merchants on the Shopify platform to leverage live social video selling in a way that is quick to get started with an easy and seamless integration

About the Netccentric share price

The Netccentric share price has gained an astounding 235% this year, most of the increase coming in March. At its current share price, the company has a market capitalisation of $65 million.

More reading

• QBE (ASX:QBE) share price falls on Greensill update
• Why the Fortescue (ASX:FMG) share price is sinking 5% today
• Why the Beach Energy (ASX:BPT) share price is climbing today
• Oceania (ASX:OCA) share price rises on new CEO announcement
• What’s with the Flight Centre (ASX:FLT) share price today?

Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Shopify. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The QBE Insurance Group Ltd (ASX: QBE) share price is slipping today after the company clarified its exposure to the now insolvent Greensill Capital.

At the time of writing, QBE Insurance is trading down 2.1% to $9.57 per share.

QBE shines a light on Greensill exposure

The Greensill saga has implicated many entities – as the once $9 billion valued supply-chain financier becomes insolvent and faces liquidation.

As previously reported, Greensill’s business of providing funds to suppliers awaiting accounts receivable to purchasing businesses came under pressure when COVID-19 hit. After becoming heavily weighted to a handful of clients, cracks quickly propagated when these loanees could not repay their debts.

Prior to the collapse, debts would be collateralised by Greensill and sold onto investors. For protection, Greensill took out debt insurance policies to cover losses in the event of fallout. Consequently, insurers have found themselves caught in the turmoil. 

QBE Insurance had been speculated to be one of three insurers who provided credit insurance to Greensill. However, the insurance group has today clarified it has no credit exposure to Greensill entities.

The clarification comes after Insurance Australia Group Ltd (ASX: IAG) cleared the air two weeks ago, regarding its dealings with the insolvent entity.

Floods put more stress on QBE share price

It appears there are more pressing concerns for QBE and other Australian insurers today.

As Sydney is battered by torrential rainfall, causing the area’s worst floods in 60 years, insurers are being inundated with flood claims. IAG alone has already received more than 2,100 claims involving property damage, as reported by Reuters.

The recent force of nature adds to what has been a tumultuous 18 months for insurance providers. Only last year, insurers were hit by more than $700 million in damages incurred by catastrophic bushfires. More recently, insurers have been battling in the courts to avoid an estimated $10 billion in COVID-related liabilities.  

Despite testing times, the QBE share price has increased by 17% over the past year. The insurer’s market capitalisation is currently around $14.43 billion at the time of writing.

More reading

• Brokers name 3 ASX shares to buy right now
• Why AGL, Clover, QBE, & Volpara shares are pushing higher today
• IAG (ASX:IAG) share price could jump with this other ASX share after a broker upgrade
• IAG (ASX:IAG) share price takes wild ride on Greensill fears
• Why Adairs, Afterpay, IAG, & Livetiles shares are sinking

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The worst performer on the S&P/ASX 200 Index (ASX: XJO) on Monday has been the Fortescue Metals Group Limited (ASX: FMG) share price.

In afternoon trade, the iron ore producer’s shares are down 5% to $19.01.

This latest decline means the Fortescue share price is now down 28% from the record high it reached in January.

Why is the Fortescue share price tumbling lower today?

Investors have been selling Fortescue shares on Monday after another pullback in the iron ore price.

According to CommSec, the iron ore price fell by a further US$5.80 a tonne or 3.5% to US$160.20 a tonne on Friday night. This was reportedly driven by news that Chinese regulators will restrict output for some steel mills in Tangshan until the end of 2021.

As Tangshan is China’s largest steel-producing city, investors appear concerned that demand will soften meaningfully and weigh on the iron ore price.

Is this a buying opportunity?

One broker that sees a lot of value in the Fortescue share price is Macquarie.

This morning the broker retained its outperform rating and $25.50 price target on the mining giant’s shares.

Based on the current Fortescue share price, this price target implies potential upside of 34% over the next 12 months.

Macquarie’s recommendation follows Fortescue’s US$1.5 billion note offering last week. As well as repaying its 2022 Senior Unsecured Notes, the broker expects the funds to support its Iron Bridge plans. This will allow it to maintain a high dividend payout ratio.

What about dividends?

In light of the above, Macquarie is forecasting dividends of $2.88 per share and $1.92 per share over the next two financial years.

This will mean very generous dividend yields of 15.1% and 10.1%, respectively, in FY 2021 and FY 2022.

Based on the former and Macquarie’s price target, Fortescue’s shares could provide investors with a stunning total return of almost 50% over the next 12 months.

More reading

• ASX 200 up 0.35%: Crowns surges, ANZ & CBA settle class actions
• ASX 200 Weekly Wrap: Inflation fears hold ASX down
• These were the worst performers on the ASX 200 last week
• ASX 200 dips, Sydney Airport falls, AGL rises
• ASX 200 down 0.3%: Afterpay & Zip lower, AGL signs Portland Smelter deal

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Beach Energy Ltd (ASX: BPT) share price is lifting slightly this afternoon following a gas discovery at one of its wells. At the time of writing, the energy producer’s shares are swapping hands for $1.75, up just 0.12%.

Gas discovery

Investors are eyeing the company’s shares today to gauge its prospect of unlocking future gas supplies.

In today’s announcement, Beach Energy advised that it has discovered gas at the Artisan 1 exploration well, located roughly 30km offshore from the Victoria Otway Basin.

The company used a diamond offshore ocean onyx rig to drill a depth of 2,205 metres. A gas column of 69.5 metres in the Upper Waarre Formation (1,921 metres of measured depth) was found, with a net gas pay of 62.9 metres.

In addition, a secondary target of the Flaxman Formation (1902.8 metres of measured depth) intersected a gas column of 20.9 metres. This included a net gas pay of 4.6 metres.

‘Net pay’ is a common term used in hydrocarbon mining that refers to a portion of reservoir rock that holds economically recoverable gas or oil.

Beach energy owns a 60% interest in the Artisan 1 exploration licence (VIC/P43), with OG Energy controlling the remaining 40%.

What’s next?

The recent spudding marks the start of Beach Energy’s offshore drilling operations. The well is being cased and suspended for now, with the company eyeing for production at a later date.

Once casing is complete, the rig will move to the Geographe field to drill two in-field wells. From there, the rig will continue onto the Thylacine field for the development of an additional four in-field wells. The first gas to be extracted from the new Geographe wells is expected sometime in FY22.

Management commentary

Beach Energy managing director and CEO Matt Kay commented:

Beginning our Otway campaign with two exploration successes is a good result for Beach.

While the Artisan discovery is at the lower end of pre-drill expectations, it is being cased as a future producer. Drilling operations have gone to plan and I want to commend the teams working on the Ocean Onyx for the successful start to the campaign.

About the Beach Energy share price

The Beach Energy share price has gained 60% since this time last year, but is down 3% for 2021. The company’s shares hit a 52-week high of $2.04 in January before treading lower after the Cooper Basin business purchase.

More reading

• Beach, Santos, & Woodside shares on watch after oil prices crash
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Oceania Healthcare Ltd (ASX: OCA) share price has risen slightly today after the New Zealand healthcare provider appointed former CFO, Brent Sutton, as its new CEO effective immediately.

Sutton only joined Oceania in January 2020 but previously worked with the company during its IPO in 2017. Sutton is a former investment banker and qualified chartered accountant and has led mergers, acquisitions, takeovers and capital market transactions.

Oceania Chair, Liz Coutts, said that Sutton has already had a major impact on the company.

“Brent has made a significant contribution to both the strategic direction and the performance of Oceania Healthcare over the last 15 months in his role as Chief Financial Officer. He has the full trust of the board and the executive leadership team, and has built a strong relationship with the investment community,” she said. 

Oceania share price grows after COVID downturn, CEO poaching

Sutton’s appointment came after former Oceania CEO Earl Gasparich was poached by rival retirement village provider Metlifecare Limited this month.

Sutton said he was aiming to transform New Zealand’s retirement sector,  Oceania caters for approximately 3,500 residents across the country.

“I have been privileged to be part of the success of the company and am very excited to have the opportunity to lead our highly skilled team into the next stage of growth.

“I am passionate about transforming the retirement and aged care experience in New Zealand, putting our residents at the heart of all that we do.”

The Oceania share price has been a reasonably steady grower over the past five years excluding a swift downturn at the height of the COVID-19 pandemic in March 2020.

In the past 12 months, Oceania shares have risen from a low of 51 cents to $1.41 today.

The Oceania share price was up 0.71% after the announcement and has risen more than 90% year-to-date. The company is listed on the ASX and New Zealand’s NZX, with a market capitalisation of AU$853 million. 

More reading

• What’s with the Flight Centre (ASX:FLT) share price today?
• Retail trade was down 1.1% in February. What does that mean for Coles (ASX:COL) and others?
• Why AnteoTech, Crown, Dotz Nano, & Galan Lithium are zooming higher
• Is the Sydney Airport (ASX:SYD) share price set for a recovery?
• Here’s why the Buru Energy (ASX:BRU) share price is flying 6% today

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Flight Centre Travel Group Ltd (ASX: FLT) share price is having a pretty decent day today. Flight Centre shares are, at the time of writing, up 2.64% to $19.86 a share.

That’s a pretty pleasing result for shareholders, considering the broader S&P/ASX 200 Index (ASX: XJO) is ‘only’ up 0.59% at the same time.

Today’s movement continues the positive momentum the Flight Centre share price has enjoyed over the past month or two in particular. Flight Centre is now up 27% since 22 February, and up 44.7% since 1 February. They are also up 98.6% over the past 12 months.

However, zooming out and the picture is still not quite as rosy for long-term investors. Flight Centre shares are still 44.2% down from the pre-COVID level of $35.54 a share, and 68% down from the all-time high of $61.56 a share we saw back in August 2018.

But that was then, and this is now. So, what’s been going on with Flight Centre today?

Why is the Flight Centre share price soaring today?

Well, let’s get this out of the way: there is no official news or announcements out of Flight Centre that might provide an easy explanation for why Flight Centre shares have taken off today. The company’s last ASX announcement was released on 17 March, but that was just some routine regulatory paperwork, nothing too exciting.

But we are seeing similar moves from the companies that share Flight Centre’s stable as a travel company. Corporate Travel Management Ltd (ASX: CTD) shares are up 0.7% today, while Webjet Limited (ASX: WEB) shares have been bumped 1.65%. So this is clearly an industry-wide trend here.

These shares have all been in investors’ sights ever since the government announced the $1.2 billion travel stimulus package earlier in the month. This package includes 800,000 half-price airline tickets, which is obviously a positive development for companies like Flight Centre.

Also likely adding to this momentum is the ongoing rollout of coronavirus vaccines. The US has flagged that all citizens will be eligible for their shot by the end of April.

Here in Australia, we are not quite as advanced, but the government is still planning on making vaccines universally available before the end of the year.

All of these developments add up to a fertile environment for the Flight Centre share price. Thus, it’s no big surprise that Flight Centre shares are lifting today.

More reading

• Top brokers name 3 ASX shares to sell next week
• End of oil price rally fires warning shot for the ASX COVID recovery trade
• 11 top ASX shares that WAM thinks will make great buys
• Is the Webjet (ASX:WEB) share price in the buy zone after its update?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Coles Group Ltd (ASX: COL) and other retailers received unwelcome news on Friday after the Australian Bureau of Statistics (ABS) released data showing retail turnover was 1.1% lower in February compared to January 2021. Turnover was 8.7% higher, however, when compared to February 2020.

While the release of these statistics is unlikely to have a material effect on the share price of these companies, the numbers are indicative of the trading environment faced by many retailers.

The ABS attributes the fall mainly to COVID restrictions in place in Victoria and Western Australia during the month. Victoria went into a state-wide, 5-day lockdown in mid-February, while the WA government placed the greater Perth metro area in a 5-day lockdown at the beginning of the month. Retail sales were down 4% and 6% in the respective states.

New South Wales and Queensland recorded strong growth rates in the month, which partially offset the national results. Both states had their own COVID restrictions in January. The ABS cites this as a reason for the strong growth in retail in NSW and QLD.

Food retailing was the biggest loser in the month. It fell 3% nationally, and in every state and territory, although it was still 6.5% greater when compared to February 2020. All other industries were mixed.

Until the coronavirus pandemic subsides, retail trading could still be volatile in the near-term.

How the Coles share price has been performing recently

The Coles share price is 1.55% higher today. At the time, shares in the supermarket giant are trading at $15.73. On Friday, Coles announced it would target net zero greenhouse gas emissions for its business by 2050.

In its half-year report for FY21, Coles’ net profit increased 14.5% on the prior corresponding period (pcp) to equal $560 million. This was spurred by an 8% increase in revenue on the pcp, which equated to $20.6 billion. Supermarket revenue was up 7.3% ($17.8 billion), liquor sales were up 15.1% ($1.9 billion) and Coles Express sales were up 10.5% on the pcp ($632 million).

Coles shares have lost 6.26% in value over the last 12 months.

What about other Australian retailers?

Of course, Coles is not the only retailer listed on the ASX. Here’s a closer look at how 4 other popular ASX retail shares have fared. 

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is up 1.05% at the time of writing and is currently trading at $50.56. The company (which owns brands such as Bunnings, Kmart, and Officeworks) has a market capitalisation of $57.2 billion. If an investor bought shares in it 1 year ago, they would be sitting on a tidy 44.91% return on investment (ROI). The share price, however, is down 10.48% from its 52-week record it achieved in February this year.

In the retailing giant’s half-yearly report for FY21, Wesfarmers reported a 23.3% surge in net profits after tax. Total net profit was $1.4 billion. Revenue increased 16.6% on the pcp to equal $17.8 billion. Earnings before income taxes (EBIT) grew 23.2% to total $2.1 billion.

Wesfarmers paid an interim dividend of 88 cents a share, fully franked. The payment was up 17.3% on the pcp.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is up 1.47%. Shares in the Coles archrival are swapping hands for $39.47, presently. The share price is 5.18% lower than this time last year, but 16.53% higher than its 52-week low.

Woolworths’ revenue growth did not quite match Coles during H1 FY21. Its revenue grew 10.5% on the pcp to equal $35.8 billion. EBIT was up 16.7% to equal $2.1 billion. Gross profit leaped 9.4% on the pcp to total $10.5 billion.

The board paid an interim dividend of 53 cents per share, fully franked.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is trading 1.48% lower today, sitting at $51.24 at the time of writing. The ROI on JB Hi-Fi from 12 months ago is 85.86%.

In the electronic and home goods seller’s half-yearly report for FY21, it reported a huge lift in its net profits. The figure was up an astounding 86.2% on the pcp, coming in at $317.7 million. Earnings per share (EPS) went up 86.2% to $2.77.

By brand, revenue was up 23.3% for JB Hi-Fi Australia ($3.36 billion) – this included a 201.9% explosion in online sales ($515.6 million). JB Hi-Fi New Zealand saw sales grow 9.1% (NZ $144.9 million), including a 69.2% growth in online sales (NZ $6.9 million). Finally, The Good Guys brand saw sales lift by 9.1% on the pcp ($1.45 billion). Online sales increased 86.1% for the brand ($148 million). Total EBIT for the Group was up 76% to $462.8 million.

Harvey Norman Holdings Limited (ASX: HVN)

Finally, the Harvey Norman share price is down 0.83% to $5.95 per share. Shares in the company have gained 120.37% in the past year. The company came under fire recently for refusing to pay back $22 million in JobKeeper payments despite profits doubling to $462 million.

For the 6 months ending 31 December 2020, net profits in the multinational retailer grew 116%. Revenue in the company increased by 25.8% on the pcp ($5.2 billion). Earnings before interest, tax, depreciation and amortisation (EBITDA) leaped 76% year-on-year to $779.8 million. EPS leapt 109.5% to 37.08 cents.

The company paid an interim dividend of 20 cents a share, fully franked. That’s the biggest dividend ever paid by Harvey Norman.

More reading

• ASX 200 Weekly Wrap: Inflation fears hold ASX down
• 2 high quality ASX dividend shares to buy today
• 2 blue chip ASX dividend shares to buy
• These were the best performers on the ASX 200 last week
• When dividends can be a bad thing for an ASX share

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In early afternoon trade on Monday the S&P/ASX 200 Index (ASX: XJO) has fought back from a poor start and is pushing higher. At the time of writing, the benchmark index is up 0.45% to 6,737.6 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are zooming higher:

Anteotech Ltd (ASX: ADO)

The Anteotech share price has jumped 18% to 26.5 cents. The catalyst for this was the release of an update on its rapid COVID-19 test. According to the release, the biotech company’s COVID-19 Antigen Rapid Test was reviewed by the Victorian Infectious Diseases Reference Laboratory and achieved sensitivity of 97.3% and specificity of 99.6%. Management advised that the results will form the basis of its CE Mark submission.

Crown Resorts Ltd (ASX: CWN)

The Crown share price has surged 17.5% higher to $11.58. Investors have been fighting to get hold of the casino and resorts operator’s shares after it confirmed the receipt of a takeover approach. US investment company Blackstone has made an unsolicited, non-binding, and indicative proposal to acquire all of the shares in Crown at $11.85 cash per share. This was a 20.1% premium to its last close price. The Crown board is now assessing the proposal.

Dotz Nano Ltd (ASX: DTZ)

The Dotz Nano share price is up 7% to 29.5 cents. This morning the advanced technology company revealed that it has obtained CE Mark authorisation for its SARS-CoV-2 virus detection technology. The CE Mark clears the saliva-based diagnostic Dotz Test Kits for sale in the European Union. Management notes that the Dotz Test Kit is less intrusive than the current standard method of sample collection in most parts of the world. 

Galan Lithium Ltd (ASX: GLN)

The Galan Lithium share price has stormed 12% higher to 52.5 cents. This morning the lithium focused mineral exploration company announced that the testing of a new process has resulted in higher grade lithium product. In fact, the end product is the same quality as that of nearby mining giants SQM and Albemarle. Galan’s Managing Director, Juan Pablo Vargas de la Vega, commented: “These results are better than we envisaged and have more than solidified the serious potential of the Hombre Muerto West project.”

More reading

• ASX 200 up 0.35%: Crowns surges, ANZ & CBA settle class actions
• Why the Galan Lithium (ASX:GLN) share price is rocketing 19% higher today
• Crown (ASX:CWN) share price shoots up 18% after Blackstone takeover bid
• Why the AnteoTech (ASX:ADO) share price is surging 15% today
• Crown (ASX:CWN) share price on watch after receiving takeover approach

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Sydney Airport Holdings Pty Ltd (ASX: SYD) released its February passenger data last week, with total passenger growth down 79.8% year-on-year compared to the 94.2% decline in January.

With increasing optimism for the travel industry, could investors expect a recovery for the Sydney Airport share price? 

Goldman Sachs rates Sydney Airport share price a buy

Goldman Sachs is buy-rated on the Sydney Airport share price with a 12-month price target of $6.73 on 19 March. The broker notes that the sharp improvement in February was supported by easing border restrictions.

It believes that Sydney Airport remains in “effective hibernation” and expects it to “be a major beneficiary of the Australian domestic inoculation strategy if it facilitates relaxation of border restrictions”. 

Goldman forecasts a strong recovery in Sydney Airport earnings. The broker forecasts revenues of $950.0 million, $1,382.8 million and $1,521.0 million from FY21 to FY23. This compares to the reported 51% decline to $803.7 million in its FY20 results. 

The earnings improvement should also see the return of dividends, with Goldman forecasting a dividend yield of 1.4%, 4.3% and 5.0% between FY21 to FY23. 

What do other brokers think? 

On 12 March, Citi took a more long-term view, believing that the Sydney Airport share price will get a major re-rate when international travel restarts.

Due to the uncertain nature of the COVID-19 vaccine rollout and when international borders will reopen, the broker retained a neutral stance with a $6.61 price target. 

When could international travel restart? 

In another research report from Goldman on 17 March, the broker’s base case assumes international travel recovery starts mid-CY21 with the United States and the United Kingdom taking the lead.

Its report does acknowledge that opening programs across countries, progress on vaccinations and possible variant outbreaks to be key risk factors for the recovery. 

The Sydney Airport share price is up 0.66% today, trading at $6.13 at the time of writing.

More reading

• ASX 200 Weekly Wrap: Inflation fears hold ASX down
• ASX 200 dips, Sydney Airport falls, AGL rises
• Brokers name 3 ASX shares to buy right now
• Shocking new numbers reveal Sydney Airport (ASX:SYD) share price resilience
• Vaccines have begun, what might this mean for ASX airport shares?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Buru Energy Limited (ASX: BRU) shares are flying higher today after the company provided a drilling update. At the time of writing, the Buru Energy share price has jumped 6.45% to 16.5 cents.  

Let’s take a look at the ASX energy company’s latest exploration announcement.

What did the company announce?

The Buru Energy share price is gaining today after the company reported it’s ready to start a major drilling and seismic exploration program at its Canning Basin project in Western Australia.

The drilling program, set to commence in June, is the largest to take place at Canning Basin for many years. It will include exploration wells on two large conventional oil prospects as well as the development of a new well on the Ungani Oilfield. Buru interprets this to be “an undrained part of the field”.

Buru expects to award the seismic contract within the next few weeks. Terrex Pty Ltd has been selected as the preferred contractor. The seismic exploration will cover roughly 1,200 kilometres of surveys, which Buru expects will take around 50 days to acquire.

Commenting on the exploration program, Buru’s executive chair Eric Streitberg said:

Our exploration program is on track, with a lot of hard work and attention to detail paying off. We are planning to use a large rig run by an experienced contractor and have put in place a very experienced drilling team to run the program. We are drilling two of the largest onshore oil exploration targets in the country at a time of rising oil prices and critical domestic oil production declines.

In parallel with the drilling program we will be acquiring a major seismic program that will help us fill our prospect inventory and set us up for a continued drilling program next year.

The program is targeting a total of 97 million barrels of conventional oil, and Buru reports it has received environmental approvals for the drilling of the wells.

Buru Energy share price snapshot

Buru Energy shares have handily outpaced the All Ordinaries Index (ASX: XAO) over the past 12 months, gaining 136% compared to a 53% gain on the All Ords.

Year to date, the Buru Energy share price has continued to perform well, up 27% so far in 2021.

More reading

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• How much have investors lost on the Freedom Foods (ASX:FNP) share price?
• Airtasker’s ASX debut happens tomorrow, after 24-hour delay
• Why the Galan Lithium (ASX:GLN) share price is rocketing 19% higher today
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Buru Energy (ASX:BRU) share price is flying 6% today appeared first on The Motley Fool Australia.

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