A View from the UK on Lochard energy+IAE
Saints & Sinners
Oil & Gas
Lochard Energy () are starting to look very interesting at the current level of 12p, after Trap Oil () announced yesterday it has bought 15% of the North Sea Athena Oilfield from Dyas UK Ltd for £34.5 million pounds. The current market cap of Lochard is approximately £35.3 million at the current share price, and Lochard have a 10% interest in the same asset. Based on the valuation that Trap Oil has placed on the field by acquiring 15% for £34.5 million, it could be argued that Lochards 10% stake could be worth somewhere in the region of £30 million pounds. Now if you add in the cash the company currently has, plus its other assets, the current market cap of £35.3 million is starting to look compelling. The market is waiting for the confirmation that the FPSO is on site, and possibly once they get that, the market could wake up and notice Lochard.< /FONT>
Ithaca Energy () has been a very weak market the last two trading sessions, slipping from just over 200p to its current level of 186p. Ithaca announced on the 23rd of January “The company notes the recent movement in the Company's share price on the Toronto Stock Exchange and confirms that it has received a confidential, non-binding proposal to acquire all of the outstanding shares of the Company. The proposal is conditional upon, among other things, due diligence, negotiation of all definitive documentation, receipt of all necessary approvals by the interested party and approval of the Board of the Company. The Board of the Company, which is being advised by CIBC World Markets Inc., wishes to stress that discussions are at a preliminary stage and there can be no certainty that the approach will lead to an offer being made for the Company.” The shares have traded as high as 207.25p si nce the RNS, but the last few sessions have seen the bulletin boards speculate that the potential deal may be off. Obviously with all bulletin board speculation, it must be taken with a large pinch of salt, but until the company give the market another update the shares could continue to wobble.