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COPL could be worth double, says Shore Capital

Shore Capital estimates the risked net asset value for COPL to be 21p – more than double the current share price.

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The company confirmed today a potentially game-changing well off the coast of Liberia will start drilling by the end of the year.

A City broker has repeated its bullish valuation of Canadian Overseas Petroleum (LON:COPL, CVE:COPL) in the wake of an update from the explorer.

Shore Capital estimates the risked net asset value for COPL to be 21p – more than double the current share price.

It was reassured by the company’s update earlier Friday in which it confirmed a potentially game-changing well off the coast of Liberia will start drilling by the end of the year.

Mesurado-1 is being sunk by the giant Exxon, which is majority owner of Block LB-13, with Canadian Overseas holding a fully-carried 17%.

“[It] is a high-impact well and, given the strong subsurface understanding and presence of a lucrative multi-well carry, we believe that the risks lie firmly on the upside for COPL,” Shore said in a note to clients.

The company’s quarterly update showed the company was sitting on $3.7mln of cash.

COPL is not just about Liberia. It teamed up with a local company called Shoreline to acquire control of licence in the Niger Delta that provides it access to near-term production.

Quick facts: Canadian Overseas Petroleum Limited

Price: 0.34 GBX

LSE:COPL
Market: LSE
Market Cap: £33.96 m
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