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Eland Oil & Gas: Canaccord repeats 'buy' after Opuma resumes production

Published: 20:12 05 Sep 2014 AEST

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The broker Canaccord repeated its ‘buy’ and 185p a share price target for Eland Oil & Gas (LON:ELA) following the resumption of production from its Opuma licence in Nigeria.

It pointed out the current share price of 102p places it on a significant discount to its peer group and net asset value.

It also noted that hitting certain production targets will enable it to draw down a US$22mln loan facility, that will then fund the company’s ongoing development.

Currently Eland is producing 3,500 barrels of crude a day, but with its first of seven new wells expected to come on stream by the end of the year, that figure should double.

“We think that the timing may be tight but in our view successful stable production delivery of around 7,000 barrel of oil per day (from the two current and one newly drilled well) early in 2015 will be a more important indicator of the field performance than the precise timetable,” analyst Charlie Sharp said in a note to clients.

Zak Mir: Eland Oil & Gas can rise to 85p

Oil producer Eland Oil & Gas PLC (LON:ELA)  has been on a slow recovery trend and could rise to 85p, the top of the channel, over the next 3-4 months believes technical analyst Zak Mir.

on 2/6/17