AOIC.ST, DVN, ECA, IMO.TO, KAR.AX, SDRL,
Things We Learned This Week,
Oil Insights: Notes from Brazil Investor Trip,
Oils: Pre-Salt Brazil Delivering On Promise,
Quarterly - Brazil tracker
Africa Oil Corp (AOIC.ST)
E&A Drilling Campaign Continues to Offer Significant Potential
2 April 2014 ¦ 16 pages ir.citi.com
Valuation support from existing discoveries, E&A drilling campaign still targeting
material upside — Despite recent disappointing newsflow (Etuko flow rates and
Emong dry well), we still see Africa Oil as one of the highest impact exploration
stories in European E&P. We believe our valuation of the existing discoveries in
the Lokichar Basin (SEK42/share) provides good downside support to the current
share price. We expect the high levels of drilling activity planned over the next 12
months could determine the full potential from its core play in the Lokichar basin
in Kenya, but also target new frontier basins. Further exploration success and
continued progress towards the development of regional pipeline infrastructure
between Uganda and Kenya will materially enhance the value of Africa Oil’s
asset portfolio, in our view. We reduce our price target to SEK69/share (from
SEK80/share) to reflect the recent drilling news, but retain our Buy (1H) rating.
Devon Energy Corp (DVN)
Trading Places; Raise TP to $80 from $76
3 April 2014 sendspace.com
EnCana Corp (ECA)
Encana Announces Sale of Jonah Field for $1.8 Billion Cash
1 April 2014 ¦ 9 pages ir.citi.com
Imperial Oil Ltd (IMO.TO)
Investor Day Highlights
1 April 2014 sendspace.com
Karoon Gas Australia Limited (KAR.AX)
Discount for farm-down delays unwarranted; upgrade to Buy
2 April 2014 ¦ 22 pages ir.citi.com
We think KAR has sufficient cash to fund the ongoing Browse appraisal program,
but will need to farm-down Brazil and/or Browse prior to commencing Brazil
appraisal programme in 2H CY14. If KAR can complete farm-down of Browse,
Brazil, Peru then we estimate KAR will be able to fund its share of exploration &
appraisal costs until late-CY18. While the farm-downs have been delayed beyond
prior guidance of end-CY13, we do not see this as a negative reflection of the
outcome, but rather reflective of timing that is normal for this process. We
understand that farm-downs remain at an advanced stage and interest has been
high. We think the current discount in KAR’s share price from market concerns
about farm-down delays is unfair, given the value placed on underlying assets by
corporate transactions. Upgrade to Buy with TP of A$5.88/share.
Seadrill (SDRL)
Highgrading the WAFA Jackup Market
02 April 2014 sendspace.com
Things We Learned This Week
Oilfield Services & Equipment
03 April 2014 sendspace.com
Oil Insights: Notes from Brazil Investor Trip
Pre-salt at the spotlight – Notes from Rio meetings
1 April 2014 ¦ 18 pages ir.citi.com
Multiple new lessons learned from corporates one-week visit in Rio. We met
senior management from multiple domestic and international companies in Brazil.
The news on pre-salt development continues to impress, with meaningful room
for upside from current estimates for pre-salt economics.
Oils: Pre-Salt Brazil Delivering On Promise
Brazil Field Trip highlights Modularisation, Drilling Deflation and Recovery Upside
2 April 2014 ¦ 9 pages ir.citi.com
Our discussions with 20 key operators, services companies, and regulators on
our Annual Latin America Field Trip last week suggest capital efficiency in the
Brazilian pre-salt is gathering pace. In Europe, Buy-rated BG, Repsol and Galp
offer the most leverage to this theme.
Quarterly - Brazil tracker
World Cup - who is your pick (prioritise)?
01 April 2014 sendspace.com
The World Cup (and then the elections) is just around the corner with so many
good teams – how exciting. We would hope that work(ers) in Brazil will not be
too distracted as a result, especially at such a critical juncture. This report tracks
upstream activities of European IOCs exposed to Brazil with a particular focus
on BG, Repsol and Galp. Brazil is key to their investment case. |
