Next few weeks will be Intresting as bidders line up for Gulf keystone. If there are bids they will be at a significant premium to the share price today imo. Looks like we have reached bottom and price will rise from these levels. Could also get some good news in the results tommorow.
Speculation on the pricing of Gulf Keystone Petroleum plc (LON:GKP) and Tullow Oil plc (LON:TLW) is notable with the share prices of both enjoying a fresh bid today.
“A flexible, resilient group of oil majors who can borrow at low costs has led many to believe that 2015 will be a ripe year for acquisitions, and the party may have just got started,” says Augustin Eden at Accendo Markets.
Royal Dutch Shell (RDSb) has confirmed this morning that it has agreed to buy BG Group for £47B.
“This could mark the beginning of a M&A rave, much like the one we saw in the late 1990s where all manner of small Oil & Gas stocks were snapped up by larger ones – leading to the group of heavyweight oil majors we know so well today in the likes of Exxon Mobil, BP, Chevron, and the aforementioned Royal Dutch Shell,” says Eden.
The recent oil price declines have seen many up-and-coming names under perform.
Eden names smaller firms such as Gulf Keystone Petroleum, Tullow Oil and their small cap peers as companies investors will be eyeing closely this year.
GKP, whose operations are in Kurdistan, has already ‘put itself up for sale’ (maybe just the turnings of the rumour mill, but all the more likely to ring true now) while FTSE250 newbie TLW will want to find a way back into the blue chip index.
Staying in sector, with the gossip Gulf Keystone (GKP) just about to be 'part of a deal', with company being very tight-lipped, Malcy's assertions look to be bang on the money. Some interesting moves to wash away the Easter fat!
Anonymous8 April 2015 at 10:58 Fraser, what deal? Malcy talked about £3 a share. I doubt he'll be bang on re the T/O price. Or are you talking about the rumoured $15m a month deal with KRG? Regards, Tony
Erractic Market Coverage by Fraser8 April 2015 at 11:16 Morning Tony, £3 a share is rich in today's market. Having heard the placing was oversubscribed by near 100% and various other offers, including the T5 proposal that was apparently dire, GKP might has more upside risk than downside currently. One wouldn't want to be betting against the market at least at the moment.
Regarding deals and gossip, if everything was mentioned here, when would I trade. 90% of gossip on the market is BS. However, there are some more reputable comments around at the moment, of around £1. The placees appear to have more conviction than most! There's a lot happening on the market current, especial in the small! Kurdistan, no matter the current political outlook with ISIS and lack of payments, is becoming enticing to those with decent cashflows! When others are distressed/selling is the time to buy!
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.