Hot news from Sirius Minerals, Solo Oil targets Isle of Wight

As if further proof were needed, a new study has revealed how the fertilizer from Sirius Minerals' York potash mine - POLY4 - outperforms all rival fertilizers. This time it is chilli peppers and celery where crop yields were improved dramatically by the company's polyhalite product. A month ago it was cabbages.

POLY4 increased the dry weight of celery crops by 22% when used as a straight fertilizer against muriate of potash (MOP), or potassium chloride. On a potassium oxide (K2O ) basis, POLY4 outperformed MOP on chilli pepper yield by 10%, and sulphate of potash (SOP) by 4%.

"Sirius continue to show how POLY4 can benefit crop production against rival fertilizers and why fertilizer manufacturers, fertilizer blenders and farmers would consider switching to POLY4 once Sirius can bring it's potash mine in North Yorkshire into production," says WH Ireland. "We maintain our Buy recommendation and 37p price target as we await the results from the permitting process."

Clearly, this is significant. The global market for chilli pepper production was about $2.7 billion in 2012, and almost half-a-billion dollars for celery. However, for the Sirius share price, unmoved at 12p, this means very little short-term. As we've said before, investors seem willing to pay little more ahead of a decision by local authorities on a planning applications submitted both for its York potash mine and mineral transport tunnel and a materials handling facility. We'll hear the result early next year.

Solo Oil to drill on Isle of Wight

A week after finding oil at Gatwick Airport, Solo Oil has applied for a licence to drill for the black stuff on the Isle of Wight. In partnership with fellow Gatwick explorers Angus Energy and UK Oil and Gas, Solo submitted an application to the UK Department of Energy and Climate Change (DECC) as part of the so-called 14th Landward Round.

Bidding for a 30% stake in the licence, the AIM-listed company has its sights set on a 200km square area in the southern part of the Isle of Wight. The team reckon that an offshore undrilled exploration prospect continues into the onshore area.

Chairman Neil Ritson said: "In line with its investment strategy Solo continues to look for attractive opportunities to expand its presence in oil and gas ventures primarily in Europe and Africa."

The three companies, which have at one point all been connected to David Lenigas, have an interest in the Horse Hill Development, which found 3.1 million barrels of oil at Gatwick Airport last week.

The Isle of Wight licence is said to compliment UKOG acreage, which lies adjacent to the plot. UKOG will have a 65% interest if the application is successful. The company drew out $1 million from a new $10 million debt facility for the application. The rest will be used for further investment.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.