As previously mentioned here Premier are known to be discussing Encores Catcher operators’ licence and greedily eyeing their stake.
However there are now two schools of thought currently being discussed here in the city.
The recent Cladhan drill has certainly put the wind up Premier vis-a-vis Encores’ Catcher stake.
The news from this end is that Cladhan now puts Wintershall in the driving seat for a possible takeover of Encore bearing in mind that Wintershall are tied into the Catcher discovery with a 20% interest. (See Reuters link).
Premier will now know that Wintershall are the front runners in any attempted takeover/asset sale the best that Premier can hope for is an Encore sale of Catcher if Premier become the operator of Catcher. Now this can’t happen until the full oip ,which is expected to increase, is known.
The Wintershall interests in Catcher and Cladhan (which again is expected to be at the top end of the 200 million and will probably surpass it) given Encores raison d’etre must surely add up to at the very least an asset sale to them with the cash being returned to stock-holders via a special dividend. The more likely scenario is a full blooded takeover by Wintershall of Encore.
So goes the thought here.
There could quite literally be a bidding war here for all or part of Encore.
My advice is to hold your stock and top up on any fall.
Encore could be handing out big cash divis’ at the very least before Xmas or as most analysts think be gobbled up by one of the above mentioned Oilers.
Sell at your peril Massive gains are on the horizon here for those that hold.