FinnCap Group PLC provided some succour for investors in Europa Oil & Gas Holdings PLC after Norwegian giant DNO ASA opted not to sell Europa a promising Irish gas exploration licence.
The broker was quick to restate and flag up risked-net asset value (NAV) and a price target of 6.7p.
That’s more than double the current share price.
“Clearly, DNO has had a change of heart about the attractiveness of this licence/prospect following the surge in European natural gas prices,” commented finnCap, which is Europa’s broker.
However, Finncap added: “The surge in European gas pricing should only improve the chances of finding a partner to fund drilling on this prospect.”