Oil giant Repsol is making an $8.3 billion take over for Talisman, a major stakeholder in the Stanley field and other tenements with Horizon Oil. Repsol says it is targeting the PNG gas reserves. Some implications:
Repsol is not going to trouble and expense of buying into the Stanley project only to see it not developed. Its involvement almost guarantees that Stanley will go ahead as planned. And why not buy Horizon as well to secure a much greater stake in the gas reserves it is targeting? At the current SP level that additional purchase is easily within the finances of Repsol and makes a lot of sense. That would leave 2 big players dominant in the project Repsol and Osaka. The offer to Talisman is double the pre-offer SP.
Suggest that this takeover makes Horizon a spec buy.
HZN Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
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