RE: Turning Blue8 Aug 2024 11:14
Our 0.12p/sh target price provides significant near-term potential upside for investors just looking to speculate that with delivery in the last 6M of a rig contract and a licence extension until February 2025, the last remaining deliverable of the financing required to drill the NJOM-3 appraisal well in 4Q24 can also be completed. The current share price implies only token option value is being attributed to the Njonji asset ahead of realising a funding partner to participate in appraisal drilling in 4Q24, which is expected to confirm the commerciality of the oil discovery and de-risk a future fast-track development.
NOTE: If SA is farmed out and we are in "serious discussions" via partner NewAge, then the money from that would part fund the Cameroon drill and thereby our share would be greater than originally envisaged without SA farm out money. Also to note that Namibia could be a lot bigger than first thought, we await an RNS to confirm.