Headlines
• BowLeven (LON:BLVNp) – Good End to the Year: To that end, we believe that the Company's owners should be pleased with the progress the Company has made over the last 3 years, and especially this year, and that the shares should show continued strength in comparison to its peers.
• Rockhopper Exploration (LON:RKH) – Experience and Revenues Built: We believe that the continued focus away from the Falkland Islands is a wise move, and one which in this market environment will create longer term value, greater than if the Company had chosen to remain in the Falklands alone. We believe that investors should be happy with the approach that the Company is taking, and once the oil price recovers, it will be in a significantly stronger position than it was previously.
News Items
BowLeven (LON:BLVN) – Good End to the Year
The Company has made good progress this year, especially after what has seemed to be interminably slow progress over the previous few years. The farmout of Etinde accompanied by its partial valorisation (up to $250mm) has enabled the Company to reinvest in its portfolio, especially onshore Cameroon.
In this respect, its recent discoveries on Zingana and Moambe have supported its investment decision to persue them on a sole risk basis, and while testing will be needed to prove the commerciality of these discoveries, the outlook remains brighter than it has been for a long while.
We believe that with the market as it is currently, and the cash resources available to the Company, that it is well positioned to take the Company forwards further, faster than it has done thus far, and with the approach to risk mitigation that the Company has already demonstrated, we believe that the risks for dilution from this point onwards are smaller than they would otherwise be for a company in a similar position.
To that end, we believe that the Company's owners should be pleased with the progress the Company has made over the last 3 years, and especially this year, and that the shares should show continued strength in comparison to its peers.
Rockhopper Exploration (LON:RKH) – Experience and Revenues Built
The news of a successful completion on Rockhopper's Guendalina side track not only proves a wise investment of its cash pile, but also proves that the management team are demonstrating an adroit migration towards being an operator. While they are only the 20% holder in this instance, we still believe that all of this experience will provide them with a stronger hand at the negotiating table should premier oil, the operator and funding party on its key Sea Lion asset in the Falkland Islands, choose to opt for further delays in its development of the asset.
Of course, this also assumes that the oil, price shows some strength from these levels, as we can't see the development being sanctioned by either party until such times as the oil, price can demonstrate some continued support above $60/bbl.
We believe that the continued focus away from the Falkland Islands is a wise move, and one which in this market environment will create longer term value, greater than if the Company had chosen to remain in the Falklands alone. We believe that investors should be happy with the approach that the Company is taking, and once the oil price recovers, it will be in a significantly stronger position than it was previously.