KUALA LUMPUR: Sapura Energy Bhd
is the most traded stocks on Tuesday on news that it discovered ninth gas well in offshore Sarawak.
At 9.10am, Sapura Energy was up four sen or 6.3% to 67.5 sen. More than 94.5 million shares had changed hands so far.
Sapura Energy Bhd 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.
The group said the ninth well was discovered by its wholly-owned subsidiary, Sapura Exploration and Production (Sarawak) Inc, and its two partners, Sarawak Shell Bhd and Petronas Carigali Sdn Bhd.
Affin Hwang Capital Research has maintain its “sell” call on the counter with a target price of 40 sen, based on 0.6 times P/NTA valuation.
“We are positive with the announcement as Block SK408 has proven to have huge monetisation potential based on current discoveries.
“We believe that Petronas will progressively sign more gas sales agreement following Phase 1 FID to develop Gorek, Larak and Bakong gas fields, which will be a long-term catalyst for Sapura Energy,” it said. – thestaronline