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STOCKHOLM ( Reuters) Oil exploration company's Africa Oil's East African drilling adventure to drag yourself Deutsche Bank's interest. Bank stamps shares as one of the most interesting of its kind.
It appears from an up to date analysis in which the investment bank begins its Africa Oil coverage with buy recommendation and target price of SEK 75.
Despite the breathtaking share price performance in recent years, Deutsche Bank believes that there is an upside in the Kenyan South Lokichar area where Africa Oil has completed a flawless drilling campaign to date with the oil discoveries at all wells.
Africa Oil's partners , British Tullow Oil , has identified at least ten other geological areas in its very large surface area. In light of the recent drilling disappointments mean the bank that expectations have been lowered and that a significant discovery thus could affect the valuation of Africa Oil significantly .
As regards next drilling results expected the Kenyan well Amosing pretty soon.
On the risk side post Deutsche Bank dry wells , disturbance of drilling work, political risk and falling oil prices .
On Wednesday morning trading Africa Oil's share to 58 kronor on the Stockholm Stock Exchange , a gain of 1.3 percent.