Norway-based Arctic Securities has initiated coverage on CAMAC Energy Inc. with an Arctic buy rating and $0.90 per share target price, a development that is expected to increase the cash flow of the oil and gas explorer.
Following the closing of the Allied Energy transaction, CAMAC is focusing its efforts on increased oil recovery from the Oyo field, which is expected to bring production from the current 2,000boepd to 15,000boepd under first phase and towards 30,000boepd under the second phase of development.
CAMAC Energy had in February closed the acquisition of the remaining economic interests that it did not already own in the production sharing contract covering Oil Mining Leases (OML) 120 and 121 offshore Nigeria, which include the currently producing Oyo field, from Allied Energy.
The strong increase in estimated cash flow will enable CAMAC to explore potential upside in both prospects within the Nigerian licenses and new ventures in Kenya, Gambia and Ghana, according to a statement posted on its website on Tuesday.
“CAMAC has a highly experienced management team, which not only add technical competence, but will also contribute strongly in accessing new opportunities in Africa. Through developing its current asset base and potential new ventures CAMAC is well underway to become a pan-African mid-sized independent company,” the statement added.
Last week, the company had said that it had identified 10 exploration prospects and 12 leads in the country, and has currently high-graded three prospects containing unrisked prospective resources in excess of 200 million barrels of oil each.
The company, which explores for oil and gas mostly in Nigeria, said current efforts are focused on determining the first exploration well location to be drilled in 2015.
CAMAC Energy is an independent oil and gas exploration and production company focused on energy resources in Africa, with asset portfolio consisting of nine licenses across four countries covering an area of 43,000 square kilometres, including existing production and other projects offshore Nigeria, as well as exploration licenses with hydrocarbon potential offshore Ghana, onshore and offshore Kenya, and offshore Gambia.
FEMI ASU
