Update: Appointments and raise should take to next level
After the approval of the field development plan in April 2015, Madagascar Oil (MOIL) can start the development stages of the massive 1.7bn OIP Tsimiroro field. Further approvals (such as the recent EIA submission) and milestones need to be negotiated, but pilot results indicating commerciality of the resource mean that a staged development can start. A development of this size is too big for MOIL to fund independently, and it has appointed Jefferies to seek possible partners. Given the size of the resource, we would expect interest from many parties. Importantly, MOIL can now leverage the knowledge of two very experienced figures in the company, Robert Estill (CEO) and Michael Duginski (NED) following their appointments. We have made broad assumptions on a possible farm-down (of 40%) with partial carry to arrive at an indicative NAV of 38p/share, although we note the material uncertainty in the terms of a deal.
Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.