Sp20 Apr 2015 18:18
Stephane Foucaud: How To Make Money In The Chaos Of Oil And Gas
By Tom Armistead of The Energy Report
Thursday, March 12, 2015
TER: Is there a last company you would like to mention?
SF: Our argument for Tethys Petroleum Ltd. (TPL:TSX; TPL:LSE) is based on growing production to China, increasing gas export price, and exploration upside in Tajikistan. But more than anything, it's all about the completion of the deal with a Chinese private equity firm that would be buying 50% of Tethys' Kazakh asset. The value of this deal is more than Tethys' current market cap. At the time that this deal closes, the company gets over US$80 million (US$80M), which compares with a market cap at the moment of less than £30M (about US$45M). You can see the investment logic. This is almost 50% upside on the transaction with the Chinese private equity firm. Beyond that, there is production growth and exploration upside in Tajikistan. The upside is quite significant.