Zenith Energy Ltd Zenith Energy Align Research note release
January 19 2017 - 1:40AM
RNS Non-Regulatory
TIDMZEN
Zenith Energy Ltd
19 January 2017
Zenith Energy Plc Research Note
Compelling investment play on Azerbaijan - sum of the parts
target of 42 pence per share
CONVICTION BUY STANCE
Zenith Energy dual listed in both Canada and now London on the
standard segment of the Official List on
the 11(th) January 2017 in tandem with a private placing raising
a net GBP2.016m at 7p per share. Zenith has recently built up its
existing portfolio by adding a substantial acquisition in
Azerbaijan which we believe could propel the company towards a
mid-cap oil valuation on a medium - long term investment
timeframe.
Acquisition in Azerbaijan potentially transformative
Located in the Lower Kura Basin and around 240km inland from
Baku, the Muradxanli Block is the largest onshore oil and gas
concession in the country, covering 642.4km2 with three
under-developed oil fields, the Muradxanli, Cafarli and Zardab
Fields and offering both development and exploration upside.
Italian assets offer value but Argentina on hold
In Italy Zenith owns various gas production and exploration
assets. It also owns interests in two small oil fields in Argentina
where production has been curtailed after a recent storage tank
collapse.
Sum-of the parts valuation suggests significant value
Valuing the Azerbaijan assets using a DCF model based on the new
CPR report and adding in the Italian assets, while wary of further
capital issues, we have a sum of the parts valuation of 42 pence
per share. The Italian assets alone cover in excess of 50% of the
market cap, with Azerbaijan providing significant potential
value.
FULL NOTE FOR DOWNLOAD HERE -
http://www.alignresearch.co.uk/wp-content/uploads/2017/01/Zenith_Energy_Align_Research_Jan_2017.pdf
Zenith Energy is a research client of Align Research. Align
Research has an interest in Zenith Energy shares. For full
disclaimer information please refer to the last page of the full
document. This investment may not be suitable for your personal
circumstances. If you are in any doubt as to its suitability you
should seek professional advice. This note does not constitute
advice and your capital is at risk. This is a marketing
communication and cannot be considered independent research.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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