MiningMaven's Top 3 (Seriously) Undervalued ASX Energy Stocks...

MiningMaven's Top 3 (Seriously) Undervalued ASX Energy Stocks for 2014

Tangiers Petroleum
Date: 30th January 2014
Price: A$ 21.5c/11.9p
Market Cap: A$37.6m/£19.9m
ASX Code: TPT/TPET

Friendly Bid for Jacka Increases its African Firepower

In December 2013 dual listed Tangiers Petroleum announced a friendly off-market all scrip takeover offer for ASX listed Jacka Resources. The offer of 0.468 shares in Tangiers, for each Jacka share held, implies a value of A$ 11.2 cents per Jacka share, a 56% headline premium to Jacka’s last closing price of A$ 7.2 cents prior to the offer announcement. The board of directors of Jacka led by its recently appointed MD Bob Cassie unanimously recommends Jacka shareholders accept the offer in the absence of a superior proposal. Upon completion Eve Howell will remain as Tangiers’ Chairman with Bob Cassie to become MD of the new group.

After already agreed farm-ins are executed the combined entity will be well funded with around US$30m in cash, and as part of the deal Tangiers’ will provide Jacka with a US$2.5m standby loan facility to fund its operations over Q1 2014. Besides meaningful Australian oil and gas assets, the combined entity’s focus is firmly on Africa where it will possess a portfolio of highly prospective exploration, appraisal and development acreage in Morocco, Tunisia, Nigeria, Somaliland and Tanzania. Drill-ready high-impact exploration and appraisal drilling is planned for 2014 including theTAO-1 exploration well in the Tarfaya block in Morocco, and the drilling and testing of Hammamet West 3, side-track 2, in offshore Tunisia.

The combined entity’s assets could hardly be in better hands. A forty year veteran of the oil and gas industry, Executive Chairman Eve Howell is a former CEO of the A$27 billion North West Shelf Project, Australia’s largest ever oil and gas resource development which currently accounts for more than 40% of Australia’s oil and gas production. Jacka’s Bob Cassie and Scott Spencer will add further depth to Tangiers’ board and of note is their respective roles in the development of African oil discoveries for Hardman Resources, leading to its takeover by Tullow Oil for A$1.5 billion in 2006.

Tangiers’ enlarged African oil and gas prospects managed by a pedigreed board offer the prospect of accelerated growth through a diversified portfolio of frontier exploration together with near-term appraisal and development opportunities; a tantalising prospect for Tangiers’ shareholders who can likely look forward to a prosperous 2014, and beyond.

http://www.miningmaven.com/mining-blog/top-3-seriously-undervalued-asx-energy-stocks-for-2014-20140130367/