Talisman would gain from forced Sudan sale,
Hmmm could the human right activist lobby own shares??... just a thought.
CALGARY - Talisman Energy Inc. stands to gain a hefty
profit if it is forced to sell its Sudanese oil assets should the
federal government impose sanctions against the war-torn
African country, says a leading oil and gas analyst.
Martin Molyneaux, research director of FirstEnergy Capital
Corp., said in a report released this week that Talisman's
project would be worth between $10.50 and $13.50 a share if
put up for sale.
"Not such a bad worst-case scenerio considering Talisman
only invested approximately $5.60 per share," for its 25% stake
in the Greater Nile Oil Project, said Mr. Molyneaux.
Analysts have said that TotalFina SA of France, as well as
ENI SpA of Italy, are interested in the $800-million oil project.
Royal Dutch/ Shell Group is also rumoured to be back in the
capital of Khartoum looking for investment opportunities.
Mr. Molyneaux is one of 20 analysts who recently returned
from a tour of the controversial project that has been criticized
for providing new government revenues that could exacerbate a
16-year civil war.
In his report, Mr. Molyneaux praised the potential of the
project, saying if Talisman is allowed to continue operating, it
"could very well be the most profitable oil production of any
publicly traded oil company in Canada."
The criticism has led Talisman to downplay the importance of
the investment in Sudan in a letter mailed to shareholders this
week.
The investment in Sudan represents less that 10% of expected
production volumes for the Calgary-based oil and gas company
next year.
"We are very ethusiastic with regard to the upside potential
for this area," Mr. Molyneaux said in his report. He said it's
apparent that current production of around 155,000 barrels per
day is only the beginning for the oil and pipeline facilities owned
by Talisman and its partners -- Chinese, Malaysian and
Sudanese state oil companies.
Like Mr. Molyneaux, a number of other analysts who toured
the facilities at Talisman's invitation have also strongly
recommended the stock, claiming Western reports of human
rights abuses are exaggerated.
Robert Plexman, an analyst for CIBC World Markets Inc. in
Toronto was one of the first off the mark to file a glowing
dispatch from Sudan. He put a target price on Talisman's
shares of $69 in 12 months. |
