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Longreach Oil and Gas Ltd
www.longreachoilandgas.com
Longreach Oil & Gas (TSX-V: LOI) is an independent oil and gas exploration company, with significant exploration acreage, managed by a team with excellent technical, commercial and financial skills. Our strategy includes a regional focus within North Africa. In Morocco we enjoy fiscal conditions that are recognised to be amongst the most favourable worldwide. Longreach is incorporated in Jersey, Channel Islands.
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Longreach Oil & Gas: VSA Capital targets US$2.42 for shares
Mon 3:31 pm by Giles Gwinnett
VSA’s valuation of the firm is based on three primary factors, analyst Amina Bouzid said in a noteMorocco focused Longreach Oil & Gas (CVE:LOI) shares are targeted to reach US$2.42 by broker VSA Capital, which has issued a bullish note on the rapidly growing developer.
VSA’s valuation of the firm is based on three primary factors, analyst Amina Bouzid said in a note.
These are the discounted cash flow valuation of its flagship 4,711 sq km Sidi Moktar asset, the net asset value of the firm’s five licences and comparison with the closest exploration company for comparative purposes – Tangiers Petroleum(LON: TPET, ASX:TPT).
“It indicates a target share price of US$2.42, which implies a significant undervaluation for Longreach Oil and Gas at current levels,” he said.
Longreach has a 22.5 per cent interest in the onshore Tarfaya exploration block, while the offshore extension is owned by Tangiers Petroleum.
The analyst also highlights that Morocco is a stable country, which is attracting growing interest from more than 30 oil and gas firms for various reasons, including its geographic position and political stability.
The firm was founded by Bryan Benitz, who has more than 40 years’ experience in the natural resources industry, and who established a team with strong credentials in finance and oil and gas and strong relations with the Moroccan national company, ONHYM.
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