Dragon Oil’s Petroceltic Offer Low, Counterbid Likely: Peel Hunt
2014-10-06 08:25:31.834 GMT
By James Cone
Oct. 6 (Bloomberg) -- Dragon Oil “would be getting a good
deal” if proposed 230p/shr offer is accepted, strong likelihood
of counter offer from another co. closer to est. risked NAV of
250p/shr, Peel Hunt says in note.
* Peel Hunt (buy): Petroceltic’s 38.25% interest in Ain Tsila
gas/condensate field in Algeria may appeal to a number of
larger cos. seeking alternative sources of supply in south
Europe
* Has development risks, although with Russia/Ukraine
situation ongoing the strategic value of Ain Tsila
should command premium, ensure fuller valuation for
shrholders
* Has development risks, although with Russia/Ukraine
situation ongoing the strategic value of Ain Tsila
should command premium, ensure fuller valuation for
shrholders</li></ul>
* Oriel: offer represents ~$786m acquisition excl. debt, “a
meaningful inroad” into Dragon’s $2b cash resources
* Would rebalance Dragon’s portfolio toward development,
provide exploration exposure in Kurdistan
* Would rebalance Dragon’s portfolio toward development,
provide exploration exposure in Kurdistan</li></ul>
* Petroceltic rises as much as 23% in London to 220p/shr, vol
>10x 3-month daily avg.; Dragon Oil falls as much as 1.2%
For Related News and Information:
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First Word newswire: NH BFW<GO>
To contact the reporter on this story:
James Cone in London at +44-20-7673-2572 or
jcone@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-10-06 08:25:31.834 GMT
By James Cone
Oct. 6 (Bloomberg) -- Dragon Oil “would be getting a good
deal” if proposed 230p/shr offer is accepted, strong likelihood
of counter offer from another co. closer to est. risked NAV of
250p/shr, Peel Hunt says in note.
* Peel Hunt (buy): Petroceltic’s 38.25% interest in Ain Tsila
gas/condensate field in Algeria may appeal to a number of
larger cos. seeking alternative sources of supply in south
Europe
* Has development risks, although with Russia/Ukraine
situation ongoing the strategic value of Ain Tsila
should command premium, ensure fuller valuation for
shrholders
* Has development risks, although with Russia/Ukraine
situation ongoing the strategic value of Ain Tsila
should command premium, ensure fuller valuation for
shrholders</li></ul>
* Oriel: offer represents ~$786m acquisition excl. debt, “a
meaningful inroad” into Dragon’s $2b cash resources
* Would rebalance Dragon’s portfolio toward development,
provide exploration exposure in Kurdistan
* Would rebalance Dragon’s portfolio toward development,
provide exploration exposure in Kurdistan</li></ul>
* Petroceltic rises as much as 23% in London to 220p/shr, vol
>10x 3-month daily avg.; Dragon Oil falls as much as 1.2%
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
James Cone in London at +44-20-7673-2572 or
jcone@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net