Talos Energy (TALO) Update - Nov 14

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Talos Energy (TALO) Update - Nov 14

Post by dan_s »

Note sent out by John White at Roth Capital on November 14

Our valuation is based on a net asset value (NAV) analysis which produced $39.79 per share which we adjusted higher to $40.00, which is our price target.

Premier Oil, PMO.L-NC, recently announced it has extended the bid deadline for its 25% stake in the Zama oilfield to December after getting "significant interest." PMO.L started the sale process in August after raising resource estimates for the field in June.

A Reuters report dated 11/14/2019 cited research away from ROTH Capital Partners that values PMO.L’s stake in Zama at $413 million. Applying this valuation to TALO’s 35% stake in Zama equals $578 million or $10.67 per share.

Our current valuation for TALO does not include any value for Zama as Zama’s oil and gas potential is classified in the category of Contingent Resources and we employ only Proved, Probable and Possible reserve categories. Nonetheless, this is an upcoming data point illustrating the significant potential of Zama, a world class oil discovery.
Dan Steffens
Energy Prospectus Group
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