We reiterate our Outperform recommendation on Premier Oil with a target price increased from £2.60 to £2.70 per share following the acquisition of 40% of Solan from Chrysaor in return for what we view as minimal payment. In addition, Premier Oil has secured a US$100 mm upfront payment in exchange for a 15% royalty on Solan for a period of less than two years. These deals add £0.13 to our RENAV per share. In addition, Premier’s balance sheet is somewhat boosted and this
03 Jun 2015
Another Tick in the Box for Premier Oil at Solan
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Another Tick in the Box for Premier Oil at Solan
Harbour Energy Plc (HBR:LON) | 281 -8.1 (-1.0%) | Mkt Cap: 2,164m
- Published:
03 Jun 2015 -
Author:
Stephane Foucaud -
Pages:
5
We reiterate our Outperform recommendation on Premier Oil with a target price increased from £2.60 to £2.70 per share following the acquisition of 40% of Solan from Chrysaor in return for what we view as minimal payment. In addition, Premier Oil has secured a US$100 mm upfront payment in exchange for a 15% royalty on Solan for a period of less than two years. These deals add £0.13 to our RENAV per share. In addition, Premier’s balance sheet is somewhat boosted and this