Beaufort view: Tangiers’ proposition of equity infusion is...

Beaufort view: Tangiers’ proposition of equity infusion is likely to provide substantial financial leverage to the company to explore new ventures and meet its current capital obligations. Despite the failure of the TAO -1 well earlier this year, we remain optimistic about the other permits in the world class Tarfaya Block prospect located in Morocco, adjacent to the proven petroleum system of Cap Juby Oil field. The share price has plunged 83% in the past one month and has now placed the company at attractive valuations. With the half yearly results to be released soon, the stage is set for a major rebound when the trading resumes in the coming week. In the light of these and the company’s prospects in petroleum rich areas, we maintain a Speculative Buy rating.