Korpfjell a big disappointment
The high-impact Korpfjell exploration well (PL859, Lundin 15%) has been concluded as a non-commercial gas discovery. In our view the results carry two negative data points. It was only discovered gas, which is extremely challenging to commercialise in this area, almost independent of size. And the volumes discovered were disappointingly small. We had included Korpfjell at SEK4/share in our NAV, and have cut our target price accordingly to SEK196 (200), but we reiterate our BUY recommendation.Lundin Petroleum is an oil and gas company. Co. has a global portfolio of assets with two main areas located in Norway and South East Asia. As of Dec 31 2014, Co. held close to 70 licences in Norway, with activities across exploration, appraisal, development and production. Co. also operated within several geographical areas, including France, Netherlands, Malaysia, Indonesia, Russia, Sweden and other countries.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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