Insights

Research initiation of Valeura Energy

Colin Smith, Panmure Gordon’s Oil & Gas research analyst, initiated coverage of Valeura Energy with a Buy rating. The report says the company is “an opportunity to invest in an unconventional gas play, the BCGA (Basin Centred Gas Accumulation) play, in Western Turkey.”

The credence of the opportunity is enhanced by the entry of Equinor as a partner. Colin has taken an innovative approach to modelling the development of the asset and has arrived at a valuation which is compelling.

Why we think it is important: Testing is about to start on two new wells which should help to define the commercial potential and provide a catalyst for investors. Turkey is expected to support development because it currently imports nearly all of its gas. Should the BCGA play prove commercial, it is large enough to be strategically important for Turkey, and ultimately Valeura is likely to realise shareholder value by being the target of an acquisition.

For more information, please contact Colin Smith.

Colin Smith

Natural Resources - Oil & Gas