Citi not interested in WZR?
https://static3.proactiveinvestors.co.uk/companies/news/61692/citi-paints-a-rosy-picture-of-kurdistan-oil-and-gas-61692.html
Citi paints a rosy picture of Kurdistan oil and gas
By Ian Lyall October 01 2013
Citi paints a rosy picture of Kurdistan oil and gas as the export pipeline out via Turkey heads towards completion by the end of the year.
It reckons the traditional 20-25% discount applied to the value of
companies
operating in the semi-autonomous region of Iraq should unwind as this provides a means to monetise discoveries.
It also points out that gas agreements between Turkey and the Kurdistan Regional Government provides a further catalyst, particularly for companies such as Genel (
LON:GENL), which is sitting on huge discoveries such as Miran and Bina Bawi.
Meanwhile, farm-ins and buy-outs will become a theme as majors (Exxon, Total et al) and the large independents (Hess and Marathon) start to become the dominant players in an oil province with a high success rate and which is very firmly low-cost.
“We continue to believe that the discount rate that the market ascribes to Kurdistan-focused names is too high,” said analyst Michael Alsford in a note to clients.
“While regional tensions (such as Syria) remain challenging, the strengthening relationship between Kurdistan and Turkey could see sustainable oil exports and the completion of long-term gas supply agreements over the next three to six months.
“We think this should lead to the discount rate ascribed to Kurdistan-focused names narrowing further.
“We also expect larger oil and gas companies will move to gain a greater exposure to the significant resource potential in Kurdistan, which sits in the first quartile of our global cost curve.”
Citi has Genel, Norway’s
DNO International and
Afren (
LON:AFR) on its ‘buy’ list.