AkerBP, Cairn Energy Make Jefferies Top Pick List
AkerBP ASA and Cairn Energy plc have made investment bank Jefferies’ ‘top pick’ list, while Genel Energy plc and Tullow Oil plc have been given an ‘underperform’ rating by the firm.
“Det Norske's merger with BP Norge to create AkerBP is a clear industry validation of material, de-risked asset attractiveness … At $12 per barrel of oil equivalent 2P and with new production … in 2017, we retain our AKERBP top pick view,” oil and gas analysts at Jefferies said in a short research note sent to Rigzone.
“At the opposite end, Genel Energy's 'Taq Taq' field production decline and reserve downgrade outweighed any oil price recovery, and we downgrade GENL to Underperform (again) as further Taq Taq production decline offsets any roll forward valuation improvement,” the analysts added.
With a second round of appraisal at Cairn's Senegal SNE discovery providing a potential catalyst to unlock further value, and the additional catalysts brought about by two UK North Sea field production start-ups, Cairn Energy was described by Jefferies as another top pick.
Tullow Oil's slower than expected ramp-up from the TEN field, however, kept the oil and gas firm at an underperform rating from Jefferies due to the TEN asset's “importance to the business case”.
Det Norske completed its merger with BP Norge in the fourth quarter of 2016. The company announced Dec. 28 that its operated Ivar Aasen field in the North Sea had come online and produced first oil. The output start-up from the field comes four years after the Plan for Development and Operation (PDO) was submitted.
In August last year, Cairn Energy increased its 2C resource estimate at the SNE asset offshore Senegal to 473 million barrels from an earlier prediction of 385 million barrels.
Over the last two years, six wells have been drilled within the SNE field. Two of these were basin-opening discoveries, according to Cairn, and four were successful appraisal wells.
The resource estimate increase was still lower than Woodside's estimates of gross 2C resources of 560 million barrels and Far's estimates of 277-1,071 million barrels as of April 2016, said FirstEnergy Capital in a brief research note sent to Rigzone at the time.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension