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United Oil & Gas: Stockbroker target sees “material upside” as new Egypt assets advance

“Material upside comes both via exploration and infill wells," Cenkos said in a note.

United Oil & Gas PLC - United Oil & Gas: Stockbroker target sees “material upside” as new Egypt assets advance

A new price target for United Oil & Gas PLC (LON:UOG), in the wake of its recent Egypt acquisition, sees some 270% upside to the current market price.

House broker Cenkos has adjusted its price target to 9.09p, up from 8.9p, against a market price of 2.45p.

Cenkos also repeated a ‘buy’ recommendation for the AIM-quoted share.

READ: United completes Rockhopper Egypt acquisition

United completed its transaction to acquire the Rockhopper Egypt business delivering production of around 1,700 barrels oil equivalent per day, via a 22% non-operated stake in the Abu Sennan concession.

Abu Sennan presently comprises seven fields and ongoing work campaigns by operator Kuwait Energy seek to increase volumes and expand by exploration.

Cenkos, in its note, added: “Near-term production comes from the Al Jahraa field, where construction of a gas pipeline is expected to bring an additional c.1,000 boepd (220 boepd net) of gas onstream.

“Material upside comes both via exploration and infill wells, with El Salmiya-5, the first of a fully funded four well campaign looking to target bypassed pay in previously untargeted reservoirs.”

Quick facts: United Oil & Gas PLC

Price: 1.95 GBX

Market: AIM
Market Cap: £12.07 m

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