Sapura Energy's shares increase in active trade
Kuala Lumpur: Sapura Energy Bhd's shares rose in active trading on Tuesday morning after the integrated oil and gas services company said it has discovered its ninth gas exploration well in offshore Bintulu, Sarawak following the completion of its drilling campaign within Block SK408 in 2017.
As at 10 am, the company's shares were up four sen to 67.5 sen, with 200.13 million shares changing hands.
Public Investment Bank said the further discovery reinforced the value of the field and solidified future earnings growth of its production assets.
"We remain optimistic of the group's prospects, short-term weaknesses notwithstanding, and retain our Trading Buy call with an unchanged sum-of-parts derived target price of RM1.11," it said in a note.
Sapura Energy owns a 40 per cent stake in the field, scheduled to kick-off commercial production in 2022.
On Monday, the group announced that the ninth well was discovered by its wholly-owned subsidiary, Sapura Exploration and Production (Sarawak) Inc, and its two partners, Sarawak Shell and Petronas Carigali Sdn Bhd.
Codenamed Pepulut-1, Sapura Energy said the ninth well encountered high quality reservoir within the Block SK408 production sharing contract. – Bernama