SMALL CAP MOVERS: Things are looking up for North Sea oil stocks this week as Chancellor offers industry lifeline 

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London’s AIM market is now an increasingly liquid exchange, populated more by retail investors rather than institutions.

That is the analysis of Laurence Sacker, corporate finance partner at UHY Hacker Young, who this week hailed reforms in last year’s budget - changes to ISA rules and stamp duty - that have increased appetite for AIM shares.

It remains to be seen, however, whether George Osborne’s North Sea lifeline, announced this week, can be quite as successful.

Looking up? Xcite Energy, Parkmead and TrapOil were among the small cap North Sea oil stocks rising after Wednesday’s budget

Experts claim revenue tax breaks mean very little to AIM’s small cap explorers and field developers, which don’t yet generate revenue and already have losses to stave off tax once fields initially come online.

Nevertheless, the simplification of tax allowances for new investment and the proposed government funding of seismic exploration surveys has been something of a boon for explorers.

And some oil analysts believe the measures - whilst potentially too little, too late - could attract larger companies back to the North Sea and spur some sort of consolidation among otherwise distressed assets.

Xcite Energy, Parkmead and TrapOil were among the small cap North Sea stocks rising after Wednesday’s budget – respectively marking gains of up to 10 per cent, 20 per cent and 70 per cent at one point or another.

Independent Oil & Gas, meanwhile, advanced around 20 per cent on Friday as the Department of Energy & Climate change agreed to extend licence boundaries to add another gas discovery to the group’s portfolio.

More broadly, the small cap market was steady with the FTSE AIM 100 set to end Friday at around 3,200, more or less where it was last week.

Nevertheless, Karelian Diamond Resources was Friday’s top riser, up over 60 per cent, as it discovered diamonds in eastern Finland.

The discovery was described by Karelian as a ‘major step’ towards unearthing a world class deposit.

Sparkling: Karelian Diamond Resources was Friday’s top riser, up over 60 per cent, as it discovered diamonds in eastern Finland

Technology investor Amphion Innovations, meanwhile, rose 25 per cent, as its part-owned associate Motif BioSciences confirmed it will float on AIM this month.

Prior to the IPO, Amphion owns 38 per cent of the clinical stage biopharma group which is developing antibiotics to treat infections caused by multi-drug resistant bacteria.

There were other medical sector successes this week, as Sphere advanced around 20 per cent as it launched its Proxima blood analysis device in mainland Europe, with the Netherlands, Belgium and Germany firmly in the company’s sights.

Deltex Medical was boosted as three directors bought shares and it revealed a study that validated a combination of Deltex’s oesophageal Doppler monitoring blood flow system with heart rate monitoring; its product performed the best out of nine combinations.

Elsewhere, PuriCore gained strongly with news of a new six-year, US$17.8million, deal for its sanitisation products with a top tier American supermarket retailer.

On the back foot: Mine developer Patagonia Gold was on the back-foot after it told investors it will need to find more oxide ore to make the Cap-Oeste project, in Argentina, viable at the current gold price

In the technology and media sector, Zamano shares were in demand as its full-year results were well received.

The mobile marketing and payments group showed revenue, pre-tax profit and cash generation all moving in the right direction thanks to a strong performance in the UK.

Mirada, the ‘audiovisual interaction’ specialist, hired former Disney and Electronic Arts exec Gonzalo Babio as its new chief financial officer.

Mercia Technologies’ 21 per cent owned associate VirtTrade won a deal with iconic sticker-book firm Panini to develop a digital trading card platform.

Satellite imaging firm Digital Globe more than halved in value on Friday, as it swung to a first-half net loss, citing delays in completion of client mergers and its investment programme.

Ultrasis shares shed 40 per cent as it revealed more details of a recapitalisation and restructuring.

Shares in Premaitha Health lost about a third this week after patent infringement proceedings were filed against the company.

Gulfsands Petroleum dropped around 10 per cent on Friday after telling investors it needs an injection of capital.

And mine developer Patagonia Gold was on the back-foot after it told investors it will need to find more oxide ore to make the Cap-Oeste project, in Argentina, viable at the current gold price.