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Valeura Energy Inc. (VLE:TSX; PNWRF:OTCMKTS) will acquire offshore oil assets in the Gulf of Thailand, "a transformational action that provides a huge boost to cash flow," reported Research Capital Corp. analyst Bill Newman in a Dec. 6 research note. To reflect the deal, Research Capital increased its target price on the Canadian oil and gas company to CA$8.25 per share from CA$1.45, its current share price. From here, the target represents a possible 469% return for investors. "We expect the assets will generate substantial free cash flow to fund development and appraisal projects to extend the life of the reserves, help to fund the company’s other Thailand assets, and provide capital for additional acquisitions," wrote Newman. Valeura’s management team forecasts 2023 pretax annual cash flow of US$360 million (US$360M) from the new assets, Newman noted; Research Capital estimates funds flow forecast next year to be US$206M. The three assets Valeura is to acquire, relayed Newman, are: an operated 100% interest in the B5/27 license holding the Jasmine and Ban Yen oilfields an operated 90% working interest in the G11/48 license holding the Nong Yao oilfield a 70% interest in the G1/48 license holding the Manora oilfield Newman noted these […]
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