Lochard Energy Group

14.12.11 :-0.25, (10.63) Merchant Securities issues a "buy" recommendation. The broker has a 24.2p price target.

14.12.11 :-0.25, (10.63) Merchant Securities issues a "buy" recommendation. The broker has a 24.2p price target.

Press: Lochard Energy rose after saying soon after reporting full-year results that it had received a takeover approach. The company, known as... read more

Press: Lochard Energy rose after saying soon after reporting full-year results that it had received a takeover approach. The company, known as Rheochem before the sale of its drilling fluids business earlier this year, owns a 10 per cent interest in the Athena development, which is due to deliver first oil in the fourth quarter of 2011. House broker FinnCap recently estimated a net asset value of 47?p per share for Lochard. Source - Financial Times

Press: Lochard Energy rose as a large line of stock was cleared and broker Merchant Securities advised clients to buy, describing it as... read more

Press: Lochard Energy rose as a large line of stock was cleared and broker Merchant Securities advised clients to buy, describing it as ?undervalued North Sea oil play?. Source - Mail

shares rose over 24% in early trade following news that its exploration and production subsidiary, Zeus Petroleum Ltd., has been offered... read more

shares rose over 24% in early trade following news that its exploration and production subsidiary, Zeus Petroleum Ltd., has been offered eight appraisal and exploration blocks in the U.K. 26th Seaward Licensing Round. Chief Executive Haydn Gardner told Dow Jones Newswires that the new licenses would help facilitate the separation of Rheochem?s exploration and production, or E&P, business from the drilling fluids business. Gardner expects the E&P division to generate cashflow within 12 months, mainly from the company?s 10% holding in the Athena development, where he expects 2,200 barrels of oil a day to be produced when it comes online. Gardner said that in the short term, the company anticipates spending A$500,000 on the acquisition and interpretation of seismic data. The company will use modern drilling techniques to maximize flow rates and efficiency. As Rheochem has a large equity stake in the blocks, once the operational performance is improved, it will seek to farm-out portions of the licenses, Gardner said, adding that was in order to minimize costs and maintain the validity of the licenses. The oil and gas business with oil services, production, development and exploration assets, said Rheochem will be the operator of the blocks holding a 90% interest and its partner, Aimwell Energy, will have the remaining 10%. The blocks have been offered as promote licenses which allows Rheochem to get a production license first and then attract the necessary operating and financial capacity later. The annual rental rate on a promote license is reduced by 90% for two years. The license will expire at the end of the second year if Rheochem is unable to get the necessary financial, technical and environmental capacity in place as well as a firm drilling agreement. These awards build on Rheochem?s existing North Sea portfolio which includes a 10% interest in the Athena development, a 90% interest in the Thunderball gas discovery and a 100% interest in the Metis prospect.