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PetroMaroc is an independent oil and gas company with a highly qualified management team. The Company is focused on Morocco which offers a politically stable environment and extremely favourable fiscal terms to energy producers.
Longreach Oil & Gas has attractive leverage to very large resources, says brokerJanuary 21 2013, 5:58pm
Morocco focussed explorer Longreach Oil & Gas (CVE:LOI) provides investors with attractive pure-play leverage to very large potential resources, according to Canadian stockbroker Cormark Securities.
Cormark analyst Garett Ursu says, in a note, that multiple wells planned this year have the potential to ‘drastically alter’ the company’s profile.
“With a relatively small market cap and disproportionate upside potential, Longreach represents an attractive addition to international E&P portfolios,” the analyst said.
In the note Cormark begins its coverage on the junior oil explorer with a C$1.50 target price – almost 130% higher than the current price of 66 cents.
The analyst says that as a result of recent deals Longreach now has very large, very experienced partners funding offshore exploration wells at Sidi Moussa and Foum Draa projects.
And, he adds, that drilling activity in Morocco has accelerated markedly and as an exploration destination it is now attracting leading West Africa oil explorers such as Kosmos Energy, Anadarko, Cairn, Plains, Repsol and Total.
This is, in part, because of the attractive fiscal terms and exploration opportunities in Morocco, he says.
“Facing a growing energy deficit, Morocco’s generous royalty and tax regime make it one of the most attractive hydrocarbon regimes in North Africa.
“The country also represents one of the most underexplored regions in North Africa on trend with huge finds in neighboring Algeria, Libya and Egypt.”
The first wells, at the 50% owned onshore Sidi Moktar project, are scheduled to get underway in the first half of this year. And the partner operated, and funded, offshore well s are expected to be drilled in the fourth quarter of this year, and the first quarter of 2014.