Morgans updates research for the company’s farm-in to the Talos Energy Green Canyon project after the recent capital raising and redemption of convertible notes.
The broker believes the company is building meaningful earnings from a portfolio of low-cost and low-risk conventional oil and gas exploration.
Morgans considers now an ideal time to pursue farm-ins, given an expectation that competition for assets will surge as the oil price recovery picks up pace.
An Add rating is maintained with the target raised to $0.15 from $0.13.
Sector: Energy.
Target price is $0.15.Current Price is $0.06. Difference: $0.09 – (brackets indicate current price is over target). If OEL meets the Morgans target it will return approximately 60% (excluding dividends, fees and charges – negative figures indicate an expected loss).
