The move to a risked net asset valuation of 9.5p, a 280% premium to Friday’s closing price, was prompted by a number of positive developments.
Key among them was the recent reserves upgrade to the Abu Sennan asset in Egypt.
Also driving Cenkos’ assessment was the decrease in fixed operating costs at the same concession, along with a drop in its variable opex.
Included also in the modelling was a valuation for the ASH field, also in Egypt, as well as the Broadmayne and Zeta prospects (both offshore UK).
“Despite the ongoing economic headwinds, 2020 has already been a significant year for United,” said Cenkos.
Highlighted was the infill-drilling campaign at Abu Sennan, which exceeding expectations while “delivering significant reserve and production additions”.
Since the Abu Sennan acquisition announcement a year ago, net production has nearly tripled to 3,100 barrels a day.
In early trade, United shares were trading 11% higher at 2.82p.