Private bank Mirabaud has upgraded its price target on Irish oil and gas explorer Providence Resources by more than 50 per cent after the company amended an agreement to sell a stake in its flagship Barryroe prospect.
Providence said last month that it had finalised an agreement with Chinese explorer Apec in respect of a farm-out agreement for its Barryroe site, a move Mirabaud sees as a “major step towards commercialising” the oil field.
Assuming a discovery is made, Mirabaud valued Providence’s stake at over $1.3 billion (€1.12 bn).
"We consider the company to be in an almost unique position, offering deep value but with a clear roadmap to commercialisation," analysts James Midgley and Tim Hurst-Brown wrote in a note to clients.
The private bank is not considered an independent commentator on Providence because it is currently engaged by the oil explorer to provide corporate finance services.
