Positive read-through from Shell discovery offshore Namibia
Reuters yesterday published a news article stating that Shell has made a major oil and gas discovery offshore Namibia (close to the border to South Africa).
This has been rumored for a couple of weeks and the article based on “several industry sources” state that the discovery is likely to be announced by the Namibian government and Shell next week. The Graff-1 discovery is estimated to be 250-300 mill boe and will, if confirmed, open a new hydrocarbon basin.
This is positive for Africa Energy (BUY/TP SEK 4.50) as its Bock 2B exploration well expected to be drilled later this year is located in the same hydrocarbon basin. The discovery also has a positive read-through on Africa Oil (BUY/TP SEK 14) and Eco Atlantic given their interests in the region.
For latest update see minutes of the call with AEC management
My valuation of AEC
The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.