United Oil & Gas PLC (LON:UOG) has “many near term value drivers” in its asset portfolio, according to analysts at Cenkos Securities, who on Wednesday initiated coverage of the firm with an 8.9p target price, being its risked valuation for the stock - it's unrisked valuation is 31p..
Cenkos said the company had “several upcoming near-term milestones which have the potential to deliver significant shareholder value”, including the continued interpretation of data from the ASH-2 well in Egypt, a drill or drop decision on the Walton- Morant licence in Jamaica, containing the giant 229mln barrels Colibri prospect and the development of the Selva gas field in Italy, due onstream in the fourth quarter of 2020.
READ: United Oil & Gas expects Rockhopper Egypt acquisition to complete on 28 February
“We believe the current share price of…offers no value to United’s potentially transformational portfolio of value accretive opportunities”, Cenkos' analysts said, adding that in their view the stock will be re-rated on a “regular basis as it looks to deliver on its full cycle asset portfolio”.
Shares in United O&G were 1.5% higher at 3p in mid-morning trading on Thursday, a 66% discount to the Cenkos target.