With a new target price Shore Capital sees the share price of Canadian Overseas Petroleum Limited (LON:COPL) doubling.
Shore Cap today repeated a ‘buy’ and lifted its target price from 16p to 21p, which suggests around 100% upside to the current price of 10.6p.
It comes ahead of a potentially game changing drill programme in the deep waters off the Liberian coast. Expectations surfaced earlier this month that the well would spud in November.
“We had believed that an early spud date was quite possible and are therefore highly encouraged to see the reports of plans to commence drilling next month,” analyst Craig Howie said in a note.
He added: “Mesurado-1 is a high impact well and, given the strong subsurface understanding and presence of a lucrative multi-well carry, we believe that the risks lie firmly on the upside for COPL.”
Howie also highlights the boost from the recently completed acquisition in Nigeria, which adds near term production and exploration potential into the mix for COPL.
“In our opinion, OPL 226 is a highly complementary (and value-accretive) addition, reinforcing COPL’s African footprint and bringing a later stage asset into the portfolio. The acreage contains an existing discovery and an offset well location has already been identified,” he added.