Updated from 2:34 p.m. EDTMagna Entertainment ( MECA) said it plans to eliminate its net debt by Dec. 31, 2008, by generating roughly $600 million to $700 million from the sale of assets, entering into strategic transactions involving its racing, gaming and technology operations, a possible equity issuance and improved earnings. The company, an operator of horse tracks and off-track betting facilities, also expects to arrange $100 million of funding to address its immediate liquidity concerns and provide sufficient time to implement the plan. Shares of Magna closed up 19.9% to $2.23. SteelCloud ( SCLD) rose following its latest quarterly results and word of a new contract. For the third quarter, revenue fell to roughly $4 million, a decrease of about 33.7% from a year ago, but SteelCloud's loss shrank to $675,012, or 5 cents a share, from last year's $6.5 million and 46 cents a share. The developer of specialized servers and related appliances said separately that it received a two-year contract from an international networking software company valued at $3 million to $6 million. Shares gained 3.8% to $1.37. Schawk ( SGK), a provider of digital-imaging graphic services, has acquired Protopak Innovations, a package-prototyping company with approximately $6 million in annual revenue. Shares of Schawk traded actively, closing flat at $22.50. Evolution Petroleum ( EPM) jumped after it said reserves surged by 270% during fiscal 2007 to 1.7 million barrels of oil equivalent. In addition, the present value, discounted at 10%, of future net revenue increased 314% during the fiscal year to $33.3 million. The company acquires mature, onshore oil and gas resources and saw its shares rise 18.9% to close at $2.58.
Challenger Energy ( CHQ) said its Victory well currently being drilled offshore Trinidad successfully reached a total depth of 16,621 feet on Aug. 30. However, while conditioning the wellbore during preparations for open hole logging, the well lost circulation and the drill string became stuck. After several days of retrieval efforts, the decision was made to cut off the lower portion of the drill string and sidetrack the well. Shares of Challenger, an oil and gas exploration company, closed down 9.3% at $1.95.