Can Canacol Energy be at takeover target ?From TD Bank
We highlight two themes for 2017:
Sustainable growth: We continue to view reserves and production growth as the two most important performance scorecards for our coverage. We believe that the market will reward those companies that can demonstrate material growth even during periods of low oil prices, as long as near-term balance sheet strength is assured. On this note, we highlight that most of the companies in our coverage universe could publish year-end reserve estimates during Q1/17 and some continue to have high-impact exploration programs over the course of this year. We highlight Africa Oil (AOI-T), Canacol Energy (CNE-T), Gran Tierra Energy (GTE-T), and Parex Resources (PXT-T) as potentially reporting positive reserve and resource updates during Q1/17 or as having material exploration upside potential later in the year. We also highlight Gran Tierra Energy (GTE-T) and Parex Resources (PXT-T) for their material production growth potential during 2017.
M&A: The acquisition of Bankers Petroleum by GeoJade Petroleum and Statoil building a 20% stake in Lundin Petroleum (LUPE-SS), were two notable 2016 developments, reinforcing our view that many of the International E&Ps in our coverage present strategic acquisition opportunities for their industry peers. If, as we expect, a market re-balancing leads to lower oil price volatility, we are confident there could be more M&A activity with positive read-throughs for most of the share prices across our coverage. We highlight Africa Oil (AOI-T) and Canacol Energy (CNE-T) as two notable examples with strategic asset portfolios that could attract attention from their larger peers.