Another quote taken from the UK .......
apps
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Column 1 |
Column 2 |
| 1 |
Opinion: |
Strong Buy |
| 2 |
Price: |
10.88 |
Cairn India at Cambay
OEX market cap of £66m will seem a steal if 77H gives us the top end of estimates and with the potential of multiplying this with 5 additional wells planned there is no reason why this asset shouldn't add £200-£500m to OEX mcap.
Personally I think OEX will be taken out before then, Magna won't bid for OEX until 77H is proven but anything could happen if proven commercial. How much they are willing to pay!! Who knows, they already own approx 20%.
Looking at the amount of oil/gas Cairn have managed to sell out of Cambay over the last 10 years, with OEX/Cambay de-risked and taking a long term view, surely £200m for the outstanding 80% will be a good deal for both parties. The more OEX proves-up, the more it will cost Magna. This is their opportunity to get an amazing asset at a sensible price taking into account the work still to be done at Cambay.
A £250m (for 100%) bid would give a 41p shareprice. There are many companies on AIM valued in this region with a lot less going for them so don't rule it out.
Since inception in 2002, the Cambay block has produced approximately 19 million barrels of crude and over 218 billion cubic feet of gas. During FY2014, the Cambay block produced 9,735 barrels of oil equivalent per day.
http://www.business-standard.com/ar...r-crude-sales-from-cambay-114072800904_1.html
In 2002, gas production commenced from the Lakshmi gas field, which is situated in Block CB/OS-2 in the Cambay Basin of the west coast of India in the Gulf of Khambhat. The Gauri offshore gas field was discovered in 2001 and came on-stream in 2004. CB-X, a marginal gas field in the transition zone of the CB/OS-2 block was in production between June 2007 and August 2009. The Lakshmi and Gauri fields commenced production of oil in addition to its gas production in 2005. The CB/OS-2 Block has completed 10 years of production and crossed a cumulative production of over 50 mmboe hydrocarbons. Safety and operational integrity have been a strong area of focus for the CB/OS-2 asset operations team. The asset team recorded 0.93 million LTI free hours and delivered facilities uptime of 99.9% during FY 2012-13.. The block has recorded more than nine million safe work hours over the last seven years.
http://en.wikipedia.org/wiki/Cairn_India
