One to watch: Soco International
Phase one of TGT is scheduled to come onstream in August and build quickly to an initial plateau of 55,000b/d (gross). Soco recently received government approval to push ahead with phase two, which could increase full field production to abou 90,000b/d (gross) from summer 2012.
We forecast that the TGT development will help lift Soco's production, from 2,500b/d in early 2011, to more than 20,000b/d in 2012. And, under the terms of its production sharing contract (PSC), the company could be allocated 45 per cent of the field's revenue. As a result we calculate Soco's post-tax cash flow should leap 20-fold.
Soco International
354.3p -10.7p
Scotsman says BUY
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Hide Ad• Investment markets and conditions can change rapidly and as such the views expressed should not be taken as statements of fact nor should reliance be placed on these views when making investment decisions. Past performance is not a guide to the future. RBC Europe makes a market in the securities of Soco and may act as principal with regard to sales or purchases of this security.
BROKER SNAPS
Aviva
425.8p -3.4p
Broker says BUY
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Tesco
395.2p -3.6p
Broker says BUY
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