|Joda,noen av oss, deriblant meg, fordi;
NORTH er et politisk preferert selskap med hovedkontor i Alta. Jeg regner derfor med at NORTH fortsatt vil få interessante tildelinger i kommede lisensrunder.
Her er noen klipp fra Pareto sin oppdatering etter kvartalsrapporten tidligere i uka:
Reell kontantposisjon er ca halvparten av beløpet nevnt av leshi. På den annen side, med kontanter tilsvarende 13 kroner pr aksje og kurs i underkant av 20 kroner får man Norvarg og leteporteføljen tilnærmet for ingenting.
Med fornyet interesse for norsk sokkel, etter Norvarg og AM, bør det vær duktet for en reprising av de norske oljemyggene, herunder NORTH!
"Targeting the Barents potential
North reported Q2'11 results in line with our expectations. With
promising results at Norvarg and two high-impact exploration
prospects to be drilled in H2'11, the company is well positioned
for taking part in the new wave of optimism in the Barents Sea.
We reiterate our BUY rating and NOK 40 TP
Financial numbers in line with expectations
North Energy reported a Q2'11 net profit of NOK -12.6m, in line with
our NOK -13.0m estimate. Exploration expenses were spot on our
estimate of NOK 20m, while overhead expenses were NOK 4m
lower than expected. However, this was largely offset by higher net
finance costs. Net cash at the end of Q2'11 was NOK 410m, but this
includes a big build-up of non-interest-bearing current liabilities
related to the Norvarg drilling. Adjusted for this, net cash was NOK
330m (NOK 13.1/share), which is in line with our expectations. We
estimate that this will decrease further to around NOK 250m (NOK
10/share) at the end of the year.
Potential upside to Norvarg volume estimate
Earlier this summer, North participated in the gas discovery at
Norvarg in the Barents Sea, which has a volume estimate of 63-315
mill boe, of which North holds a 20% share. The company is
optimistic after having completed the first production test, and
believes there could be upside to the size estimate. Using the midrange
estimate of 190 mill boe, we have a risked valuation of NOK
12/share. Further evaluation of the reservoir is currently ongoing, but
it is too early to say whether the first appraisal well will be drilled in
2012 or 2013.
Exciting exploration program over the next 12 months
Over the next 12 months, North will drill the final 5 exploration wells of
its fully funded 8 well drilling program. Of the 5 wells, the clearly
highest value potential lies in the two next prospects to be drilled;
Heilo and Zapffe, both of which are located in the Barents Sea.
Drilling start is scheduled in Q3'11 and Q4'11, and net recoverable
volumes are estimated at 40 and 84 mill boe, respectively. We
estimate that both these have the potential to double North's share
price in case of success. The value potential of the three remaining
prospects is estimated to be NOK 5-10/share each.
Value of exploration program not reflected in share price
With promising results from the Norvarg discovery and two high
impact prospects to be drilled in H2'11, there are several potential
share price triggers over the coming months. We estimate the risked
value of North's discoveries at NOK 16/share, and in addition the
company has net cash of NOK 13/share. As such, there is
considerable upside for the share, even before taking the company's
exploration program into account. We reiterate our BUY
recommendation and NOK 40 TP"