Analysts at Peel Hunt have repeated an 'Add' rating on Capricorn Energy PLC (LSE:CNE, OTC:CRNZF) following recent news it has reached agreement with NewMed Energy - previously Delek Drilling - to create a new UK-listed E&P company of scale, focused predominantly on gas development and production in the MENA (Middle East and North Africa) region.
The analysts noted that Capricorn's previous all-share merger transaction with Tullow Oil PLC (LSE:TLW) now falls away and, subject to shareholder approval and receipt of various consents, the combination with NewMed will complete in 1Q23.
They pointed out that the NewMed deal values cum-div Capricorn at 271p per share - or 99p ex-dividend - and will result in Capricorn shareholders owning 10.3% of the enlarged group.
The Peel Hunt analysts said their analysis points to a Capricorn standalone NAV (net asset value) of 293p. In late trading on Monday, Capricorn shares were trading at 248p.