Metals & Mining, Oil & Gas
In the news: MYCELX Technologies, Onshore Nigeria Oil & Gas, Seplat & Eland
A quick reminder about our publications last week. Imogen Whiteside initiated coverage of MYCELX Technologies*† (LON:MYXR) with her piece MYCELX Technologies — A Differentiated Oil Services Company, 29 September 2015. This 48-page report provides a very detailed introduction to a company that offers a technologically differentiated water purification solution that has been adopted by a range of blue chip clients across the oil and gas industry in both the upstream and downstream space. We launched with a BUY rating and a target price of 150p.
We also took a look at a specific Sub-Saharan oil & gas space. This came in Onshore Nigeria — A Focus on Seplat and Eland, September 2015. Nigeria has Africa’s largest oil and gas proven reserves (some 67Bboe) and the new APC government, led by President Buhari, is addressing the severe corruption and mismanagement issues that have hindered the development of its oil sector for decades.
The piece saw coverage initiations on Seplat (LON:SEPL) and Eland (LON:ELA), both with BUY recommendations. We estimate that Seplat’s fair value is 145p and Eland’s is 116p. The continued divestiture of onshore/shallow water Nigerian licences by international oil companies, a new marginal field licence round and commercial domestic gas pricing should present great scope for creating value over the next few years. For the individual company pieces, click here for Seplat and here for Eland.