Nostrum Oil & Gas
- ExchangeLondon Stock Exchange
- SectorOil & Gas Producers
- CountryUnited Kingdom
Currently '(TM)Value Indicator - UK Basic Resources' is a value analysis of the Basic Resources super sector of quoted companies on the the London Stock Exchange's main market that provides the reader with indicative longer-term target prices.
Currently '(TM)Valule Indicator - UK main market' is a value analysis of the Basic Resources, Construction & Materials, Telcoms and Utilities sector of quoted companies on the London Stock Exchange's main market that provides the reader with indicative longer-term target prices.
The independent financial analyst theScreener just lowered the general evaluation of NOSTRUM OIL & GAS PLC. (GB), active in the Exploration & Production industry. As regards its fundamental valuation, the title now shows 1 out of 4 stars while market behaviour can be considered risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Negative. As of the analysis date December 3, 2019, the closing price was GBp 19.50 and its target price was estimated at GBp 8.46.
Currently '(TM)Value Indicator - UK basic resources' is a value analysis of the Basic Resources super sector of quoted companies on the London Stock Exchange's main market that provides the reader with indicative longer-term target prices.
Currently '(TM)Value Indicator - UK main market' is a value analysis of the Basic Resources, Construction & materials, Telecoms and Utilities sector of quoted companies on the London Stock Exchange's main market.
Mysterious rally. We have noticed a two-fold increase in the Nostrum Oil equity price since 11 October, accompanied by uncharacteristically high trading volumes, according to Bloomberg. NOGLN 22s and 25s have also seen buying interest, with bond prices recovering from their all-time lows of 45-46 to the 49 area. There have been no developments in fundamentals that could have caused the shift in investor sentiment. However, given the ongoing strategic review that could change the shape of Nostrum’s business and, potentially, enable it to focus on production growth, we cannot ignore price moves ...
Nostrum Oil reported that the second unsuccessful well in 2019, Well 41, drilled in the North of the company’s only producing asset Chinarevskoye field, did not deliver commercial flow of hydrocarbons. The news comes after Well 42 showed similarly discouraging results.
We downgrade NOGLN 22s and 25s to Sell on the absence of positive triggers that could improve the credit outlook in the next 3-6 months. The H1 19 results and conference call did not answer the question about Nostrum’s ability to ramp up production from c30,000boepd, while Brent trading below US$60/bbl limits the company’s ability to finance an expansionary drilling programme and the second leg of a recently announced acquisition of Stepnoy Leopard licenses.
Reiterate Hold. In July, S&P downgraded Nostrum Oil to CCC+ from B-, sending bond prices to their all-time lows. Bonds have recovered some of the losses since, but valuations remain cheap for a company that has no short-term liquidity issues and will be free-cash-flow neutral in 2019, according to our forecasts (Table 1). Uncertainty about future production and potential corporate transactions that could result in a change of control will continue to weigh over bond prices. We believe that at current levels, downside risk to NOGLN 22s and 25s is low and upside risk is high. The results of test...
Feasibility Study Results in December to be a Catalyst for this Junior