Stock in Norwegian investor favourite Artumas Group shot up 15 percent by mid-morning Tuesday, although analysts polled were puzzled as to why given the “big finance challenges” the Calgary-based oil company is still perceived to have in East Africa.

Artumas’s market worth is 50 million kroner, but with debt payments on $10 million are due this June. The company paid bondholders back $20 million in January.

“We can’t see why they’re up today,” First Securities analyst Are Martin Bentzen told Scandoil.com.

The Oslo-listed Canadians of Artumas have made great strides proving gas in the Rovuma Basin in the Tanzanian onshore and near-offshore. An article in Scandinavian Oil-Gas Magazine called “The Last Basin” showed the offshore block holdings of the big oil companies have pressed ever-nearer Artumas assets since the company started proving and selling gas for power to Tanzanians.

Since January, however, the company stock price has nearly halved, and Bentzen pointed to the funding still needed before the Artumas dream of finding buyers in East Africa for Tanzanian compressed natural gas, or CNG, could become reality. Process plant to feed gas-to-liquids ships are needed before the company can substantially rise up from debt.

In Oslo, the company has retained energy-savvy bank DnB NOR to help find “alternatives” ahead of coming debt payment. A DnB NOR analyst said the company was a going concern and hanging on to its core assets.

Meanwhile, the once-promising onshore and offshore blocks in Mozambique are being “farmed down”. In Mnazi Bay, key to company success to now, gas-to-power assets are being sold while talks are understood to be underway with oil companies hoping to ply the Last Basin.

Anadarko Petroleum and Artumas have parntered, while offshore StatoilHydro and a host of others lie in wait.

Artumas holds an interest in a known 890 billion cubic feet of gas in its 25,500 square kilometres of Tanzania and Mozambique’s Rovuma Delta. Success in drilling and boldness in turning first gas into power for locals has kept the company afloat, along with debt. Now, that debt is due.

The good news is that 70 percent of last year’s $120 million loss was a write-down on it two gas fields due to falling gas prices. The other good news is that oil giant Anadarko has taken over operatorship during drilling in Mozambique, cutting Artumas’s costs.

And other millions have been cut: Sixty percent of field costs and 40 percent of the home-office is no more.

The stock surge may be that a partner or buyer has been found, although it would be high time: A large-scale gas-to-electricity project remains but a plan, and no agreements exist for the CNG export project.

Tags: Anadarko Petroleum Corporation, Artumas Group Inc.