Wonder how TSX will perform today. 2:1 buyers here.
Only way is UP!
Market maker is trying to hold this one back, to shake out the retail investors. Volume is coming in however, market will have no choice to push up soon, steady as she blows!!!!!!!!!!!!!!!!!!!!
Its interesting to see that any price rise is difficult to sustain here. How long before the Cantor note is forgotten about in the long wait for Tajik to get going. the only plus is that I'm begiinning to detect a slight improvement in sentiment towards junior oil explorer/producers. If that really changes for the better then the shackles are off.
Cantor note: Tethys Petroleum (BUY) – CNPC sets out plans for Chinese gas infrastructure TPL LN (31p, TP 86p), Market cap: £93m We note an article published yesterday from Chinese news agency, Xinhuan, that China National Petroleum Corporation (“CNPC”) has signed an agreement with Tajiktransgaz to launch a gas pipeline company to jointly establish a natural gas pipeline (Line D) between China and Turkmenistan. The agreement aims to add 25bcm in gas supply to China from Turkmenistan annually. This follows the Chinese government signing inter-governmental gas agreements with Uzbekistan, Tajikistan and Kyrghyzstan in September last year. The feasibility studies have been completed by Trans-Asia Gas Pipeline Company with construction of the Tajikistan section of Line D is expected to commence this year. According to the CNPC, construction of the Lines A, B, C, D and auxiliary facilities in China are anticipated to be completed by the end of 2020, 80bcm of natural gas will be transported from Central Asia to China annually, taking over 40% of China's gas imports. Clearly it is hoped that CNPC’s 33% interest in the Bokhtar PSC, Tajikistan, which Tethys farmed out to the Chinese major in December 2012 in a landmark transaction, will be a material contributor to the proposed gas supply. The field is estimated to contain a 27.5bnboe recoverable resource base, consisting of 114tcf of gas and 8.5bnbbls of oil. In our view, the Chinese government will be keen to expedite drilling activity at the Bokhtar PSC in an effort to meet the requirements of this large scale gas infrastructure development. This can only be positive news for Tethys, with the market largely ignoring its Tajik assets – deeming them to be much longer term plays. Full details of the 2014-2015 programme are yet to be announced, however we would expect 2014 to consist of a seismic survey and subsequent data interpretation followed by a deep exploration well in 2015. Under the terms of the farm out, Tethys will be carried on the $80m initial work programme (with its financial exposure limited to $9m), following a $60m cash injection received on completion of the deal. We have long highlighted Tethys as one of our top picks in the junior E&P space, with shareholders gaining exposure to a well capitalised business underpinned by a strong Kazakh production base, and a fully funded drilling schedule. In our view, further exploration/appraisal drilling will invariably unlock additional resource potential in Kazakhtan, whilst the accelerated gas programme could provide a material increase in near term cash flows. We reiterate our BUY recommendation and TP of 86p
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