Cantor retains 'buy' recommendation on Lansdowne Oil & Gas

Cantor Fitzgerald has kept a ‘buy’ recommendation on Lansdowne Oil & Gas after it announced it will drill the Midleton gas prospect this year.

FTSE AIM All-Share

730.12

11:25 15/11/24

n/a

Lansdowne Oil & Gas

0.11p

17:30 25/09/24

6.80%

0.01p

Oil & Gas Producers

8,011.85

11:24 15/11/24

0.92%

73.30

The broker also retained its target price for the Irish oil & gas explorer at 33p.

Lansdowne announced Monday that PSE Seven Heads, a Kinsale Energy subsidiary, has contracted with Diamond Offshore Drilling to start a well during August this year, using its SEL 4/07 licence.

Kinsale Energy has 80% of the SEL 4/07 licence, while Lansdowne has the rest.

Through the farm-in agreement previously announced, Kinsale Energy will fund 100% of the drilling costs including the survey work.

"In terms of valuation, we ascribe 23.1p per share to an assumed farmed down Barryroe, 18p per share to exploration upside and -8.1p per share for financial items," Cantor said in a note.

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