MARKET TALK: E&P Oil Stocks To Have Bumper 2H - UBS >TLW.LN

7th Jul 2010 11:22

1022 GMT [Dow Jones] 2H'10 is likely to be a bumper six months for the E&P sector, given the relative dearth in 1H, says UBS. All European E&Ps in its coverage universe are drilling important prospects in 2H, UBS notes. It says M&A is showing signs of returning with vigour, noting Afren's (AFR.LN) all-share takeover of Black Marlin Energy (BLM.V) and KNOC's recently announced preliminary approach to Dana Petroleum (DNX.LN). UBS says the E&P sector outperformed wider oils and the market in June. Tullow (TLW.LN) remains top pick, with a buy rating and 1450p target. UBS also likes Premier Oil (PMO.LN) and Afren, which it rates buy with 1560p and 125p targets, respectively. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 07, 2010 06:22 ET (10:22 GMT)