Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on AFRICAN PETROLEUM CORP LTD. We currently have 8 research reports from 2 professional analysts.
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Research reports on
AFRICAN PETROLEUM CORP LTD
AFRICAN PETROLEUM CORP LTD
GMP FirstEnergy ― UK Energy morning research package
24 Nov 16
GeoPark Limited (GPRK US)1,6: BUY, US$6.50; expansion of Jacana oil field | Parex Resources (PXT CN)4 : Buy; C$24.00, Expansion of Jacana oil field | Canacol Energy (CNE CN) (not covered): New gas sales contract and production outlook in Colombia | Nostrum Oil & Gas (NOG LN)6; BUY, £6.00: Model roll forward & 3Q16 financial results | Sound Energy (SOU LN) (not covered): £24 mm raise & Tendrara flow rate onshore Morocco | African Petroleum (APCL NO) (not covered): Exits Liberia
Ophir farm-down deal complete
18 Mar 16
In December 2015, African Petroleum (APCL) announced it had entered into a farm-down agreement with Ophir Energy over its CI-513 licence area. On 10 March the transaction completed. This will trigger a payment of US$16.9m towards APCL’s back costs, provide it with a well-funded partner and is a vote of confidence in its asset quality. The deal was made possible by the flexibility shown by the Côte d’Ivoire government to make fiscal terms more attractive and the extended drilling timetable, which is important in the current macro environment. The cash payment will fund APCL to continue to farm down its other assets in West Africa, many of which are close to recent discoveries in Senegal and Mauritania. We await further deals and the probable announcement of drilling in 2017.
Farm-out signed with Ophir
06 Jan 16
African Petroleum (APCL) has announced it has entered into a new PSC with Ophir Energy on its CI-513 licence area, Côte d’Ivoire. Ophir will take a 45% interest in return for a US$16.9m contribution towards APCL’s back costs and paying an additional 10% towards drilling costs. Importantly, the PSC has also been renegotiated to reflect the current commodity price environment and outlook for deepwater developments. This has resulted in an extension of the minimum work commitments (a well is now required within two years), adjusted fiscal terms and holding costs. The involvement of a company of Ophir’s size is a vote of confidence in the acreage, which contains Ayame West, a prospect with mean unrisked resources of 800mmstb across a number of horizons.
OPHIR ENERGY ACQUIRES 45%WI IN CI-513 IN COTE D'IVOIRE FOR US$16.9 MM AND A 10% NET CARRY
21 Dec 15
Market reaction: Very positive. Just based on Cash, this would value Block-513 at US$33.8 (100% WI), in line with our valuation for the asset at US$34 mm (about NOK0.25 per share). This excludes the small (10%) carry component. This transaction is also boosting African petroleum balance sheet by US$16.9 mm.
Equity placement completed
22 Oct 15
APCL has completed the private placement, raising NOK16.5m (c $2m). This capital injection allows the company to continue to fund itself, while finding partners for drilling across its extensive offshore African portfolio. The previously announced farm-down of an interest in CI-513 continues to progress, with completion expected following negotiation and government approval. The company is also in advanced discussions with several interested parties across the Senegalese and Gambian licences. Industry interest has been piqued by exploration success in Senegal (Cairn/FAR) and Kosmos (Mauritania) and we are hopeful of successful deals.
Strong trading leads to upgrades
22 Mar 17
On the back of today’s positive trading update and slightly upgraded profit forecasts for FY2017, FY2018 and FY2019 we have reviewed our DCF analysis. This has led to an increased DCF valuation per share of 1500p (from 1200p) which we have made our new target price (from 1200p). Both TFP and JC Paper have contributed to the upgrades shown in the table below as have favourable currency movements. With the potential for further upgrades due to capitalising 3DP costs to come we maintain our Add recommendation.
Small Cap Breakfast
21 Mar 17
First Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march. Tufton Oceanic Assets- The Company intends to invest in a diversified portfolio of second hand commercial sea-going vessels where the Investment Manager believes that an attractive opportunity exists in shipping. $150m raise. Admission 3 April.
Bang to rights
21 Mar 17
Tullow unexpectedly announced a US$750m rights issue on Friday at a 45.2% discount to the previous close. While this step confirms our investment thesis, the scale of the discount and the timing look like a slap in the face for investors and/or indicative of a weaker financial position than we are modelling. We publish revised estimates to reflect the impact of the issue and cut our Target Price to 215p per share (from 245p). We maintain our Hold recommendation.
Panmure Morning Note 22-03-2017
22 Mar 17
Acacia Mining and Endeavour Mining confirmed merger talks have now ended with Endeavour claiming an inability to “create adequate value for Endeavour shareholders”, most likely, we believe, given the disappointing ruling from the Tanzanian government on copper-gold concentrate sales. We were positive on the merger and believed a credible London listed Pan-African producer capable of challenging Randgold, would have been established. We make no change to our Hold recommendation today, and expect the shares to be marked lower in early trade.