What a chart, further to go, or not
Comments please

Barclays Capital today reaffirms its overweight investment rating on Premier Oil PLC (LON:PMO) and cut its price target to 105p (from 130p).

StockMarketWire.com
Premier Oil confirmed that it was looking at acquiring assets in the North Sea while responding to press speculation that it eyeing Chevron's assets there.

'Premier will continue to look at opportunities to acquire UK North Sea assets in line with the group's stated strategy,' the company said.

'There is no guarantee that the group will bid in any process or that any process will complete.'

The Sunday Times had reported earlier that Premier was mulling a capital raising to bid for the Chevron assets, which the report said could be worth $1.5bn.

'Specifically, no firm decision has been taken to bid for all or any of the assets currently being marketed by Chevron and how, in the event that the group were to be successful, the acquisition of such assets would be financed,' Premier Oil said

RBC comment today:
"Chevron is reported to be selling its UK North Sea portfolio, including a 19.4% stake in the Clair field, plus stakes in Alba, Captain, Elgin/Franklin, Erskine and Jade as well as the Britannia platform and its satellites. It is unclear if and how the package might be broken up, as potential buyers including private (Chrysaor, INEOS, etc.) and public companies focus on their core areas and strengths.
Premier is an established UK operator with a sizeable operation in Aberdeen, and the acquisition of a package of producing assets would enable it to unlock value tied up in its $4.1bn of UK tax losses and capital allowances. Given these synergies any acquisitions at fair prices should be value accretive. However, we would not expect management to put its balance sheet at risk and/or issue shares at a material discount to the current share price.
With oil prices having gyrated since Chevron commenced its rationalisation process last year, the outlook for the seller and the attitudes of the potential (competing) bidders may have hardened. We understand that the sale process is still in its early stages, and with all attention currently fixed on Chevron it would be worth considering what other, lower profile, opportunities might exist."

14 Jan
RBC Capital...
140.00
Top pick