WSX18 Oct 2012 08:41
MARKET REPORT: Wessex attracts lingering looks
By Geoff Foster
PUBLISHED:22:30, 17 October 2012| UPDATED:22:30, 17 October 2012
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The only way was Wessex. Shares of the oil and gas exploration company gushed 1.5p or 22 per cent to 8.38p on prevailing takeover hopes and optimism that an imminent drilling result on its Zaedyus appraisal well offshore French Guiana will be bullish and ultimately attract the attention of another cash-rich oil predator.
Back in March, Wessex announced it had received an all-cash bid approach from Total at 10p a share.
Its board rejected it as seriously undervaluing the company, especially when considering it had raised £12m of additional funding in November 2011 and is fully funded for a four-well drilling programme. It was no surprise, then, when Total decided to walk away in April.
The Footsie jumped 40.37 points to 5,910.91 after credit rating agency Moody¿s decided against downgrading Spain to junk status
Killik’s investment guru Mike Savage believes that ultimately Wessex will be acquired, most likely by one of its partners in the drilling programme.
Northern Petroleum, 5.75p better at 68p, has a 2.5 per cent interest in Zaedyus. He says Wessex remains funded, but to accelerate the drilling process he anticipates it will have to raise further equity, but the share price should be trading at, or very near, the year’s high of 10.5p by that point.
Read more: http://www.dailymail.co.uk/money/markets/article-2219295/MARKET-REPORT-Wessex-attracts-lingering-looks.html#ixzz29d6ugBJO
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