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.
- Shell Looking for TikTok Expert
- Market Says Boo! To OPEC+
- Calgary Stampede Returns With Oil Boom Vibe
- Earthstone in $627MM Delaware Basin Deal
- Libya Crude Oil Exports Drop Sharply
- Bureau Veritas Gets Services Deal On Shell UK Facilities
- Major Licensing Rounds Coming Up In MSGBC Region
- TGS Begins First Multi-Client Offshore Wind Measurement Campaign
- Veolia Picks StaySafe For Solo Workers In Remote Locations
- Permian Highway Pipeline in Expansion Project FID
- USA Condemns Mortar Attacks on IKR Oil Infrastructure
- Sonatrach Makes Massive Gas Find In Sahara Desert
- Libya Says It May Suspend Oil Exports from Key Terminals
- G7 Weighs Russia Oil Price Cap
- Who Produced the Most Oil and Gas in 2021?
- Oil Prices Buck Recession Trend
- First-Ever 8th Gen Drilling Juggernaut Delivered To Transocean
- Exxon, Shell, CNOOC To Develop CCS Project In China
- More Oil Workers Being Trained to Operate in Permian
- Guinea-Conakry Hoping To Unlock O&G Potential With 22 Block Tender
- USA Navy and Iran Corps Clash in Strait of Hormuz
- Oil Industry Responds to Biden Letter
- Top Headlines: USA Navy and Iran Corps Clash in Strait of Hormuz and More
- Oil Nosedives on Fed Inflation Actions
- Top Headlines: Oil Industry Responds to Biden Letter and More
- Too Early To Speculate on ExxonMobil Refinery Fire Cause
- Fitch Solutions Reveals Latest Oil Price Forecast
- ExxonMobil Made More Money Than God This Year
- Russian Oil Disappears as Tankers Go Dark
- OPEC+ Set to Remove All Production Curbs in August