ShrutiAggarwal
Member Since 8 December 2015
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Last Seen: 3 Feb '20
Posted on 2 May 2017, 10:36 AM

Premier Oil Plc. , a stock with a short term upside of upto 15% at the current price levels

Topics: Analysis
Other Insights on Related Shares: PMO.L
Related Shares: Premier Oil Share Price

Premier Oil plc. is an independent exploration and production company with oil and gas interests in the North Sea, South East Asia, Pakistan, the Falkland Islands and Latin America. The Company is engaged in the business of upstream oil and gas exploration and production. The Company's operations are located and managed in six business units: the Falkland Islands, Indonesia, Pakistan (including Mauritania), the United Kingdom, Vietnam and the Rest of the World. In total, the Company manages approximately 760 million barrels of oil equivalent (mmboe). The Company has production rates of over 90 thousand barrels of oil equivalent per day (kboepd). The Company focuses on producing 68 to 73 kboepd. The Company's four-well North Falklands Basin campaign targets multiple stacked fans in PL004 and PL032 using the Eirik Raude rig. The Company owns an interest in over two licenses, such as Natuna Sea Block A and Kakap.

Premier Oil Plc. is a compelling ‘Buy’ at the current levels. The stock finished trading on the London Stock exchange on 1st May at 62.25p a share, up by 2.89% compared to the previous close. Currently the stock has been trading below its 20 day moving average (DMA). 50 DMA and 100 DMA of 63.0p, 64.4p and 73.0p respectively. In terms of charting or technical analysis, the stock has completed rounded bottom pattern formation twice at 60p. Therefore, 60p would likely to be a very strong support for the stock. Any move below 60p would surely indicate the further fall of the stock, but if stock would be able to sustain the support of 60p, and then it might be ready for up move. We would suggest traders or investors to initiate fresh longs if the support of 60p would be sustained. We see the short term targets of the stock at 68.0p and 72 p respectively. The time frame to achieve these targets would be 0 to 3 months.

Let’s throw light on the latest news of the company. The company announced last week on 26th April that it has a big enough majority to finalize its refinancing package, the company announced yesterday. Shareholders representing more than 75 per cent by value of its $245m (£191.3m) convertible bonds have entered a so-called lock-up agreement, committing themselves to vote in favor of the proposed refinancing agreement. The same day, shares rose by more than 3 percent before closing up by1.2% at 63p. Premier's acquisition of E.On's North Sea assets last year via debt funding alongside low commodity prices caused the company to enter a prolonged period of refinancing discussions with lenders.

 

 


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