Updates

Premier Oil - JPâ€ˆMorgan Cazenove introduces 60p price target

March 2016

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

By adjusting the headline consideration to be paid for the proposed acquisition of EON’s North Sea assets to US$120m plus a US$15m completion adjustment, the deal no longer qualifies as a reverse take-over, so the shares have resumed trading and bounced nicely.JP Morgan Cazenove has introduced a 60p price target and notes the acquisition increases NAV by 9% to 71p. Assuming it completes in April it should contribute US$53m-US$60m to EBITDA for 8 months in FY’16 (c. 12% of group total) and US$80m-US$90m in FY’17 while the c. 38m barrels of 2P resources acquired work out at US$3.5 / barrel vs US$9.1 at Premier currently. The deal also reduces the minimum average 2016 Brent crude oil price required to avo ...

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Cineworld

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