Market Reaction: Slightly negative given that the implied valuation of the transaction is below our valuation (US$60 mm vs US$200 mm that we carried in our model). We doubt that the market was anyway ascribing much value to Chia Surkh as this stage (contingent resources). The decision of Petol to fund further appraisal drilling in Kurdistan as early as 1Q16 could be seen as encouraging. Maintaining our assumptions of Chia Surkh but reducing Genel's WI down to 40% (adjusted for Petoil carry) w
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29 Oct 2015
SALE OF INTEREST IN CHIA SURKH IN KURDISTAN
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SALE OF INTEREST IN CHIA SURKH IN KURDISTAN
Genel Energy PLC (GENL:LON) | 81.0 -0.8 (-1.2%) | Mkt Cap: 226.3m
- Published:
29 Oct 2015 -
Author:
Stephane Foucaud - Pages:
-
Market Reaction: Slightly negative given that the implied valuation of the transaction is below our valuation (US$60 mm vs US$200 mm that we carried in our model). We doubt that the market was anyway ascribing much value to Chia Surkh as this stage (contingent resources). The decision of Petol to fund further appraisal drilling in Kurdistan as early as 1Q16 could be seen as encouraging. Maintaining our assumptions of Chia Surkh but reducing Genel's WI down to 40% (adjusted for Petoil carry) w