“Management has stated that it expects production of gas in 4Q18. GSS is re-entering a makeover well and we expect it to start producing 200 barrels of oil a day by 1H18 – and to enjoy better margins and profitability if the oil price continue to rise,” elaborates Seet.
SINGAPORE (Mar 6): RHB is initiating coverage on GSS Energy at “buy” with a target price of 25 cents, saying the stock is significantly undervalued and an ideal proxy to the tech and oil & gas sectors.
In a Tuesday report, lead analyst Jarick Seet says GSS provides a unique opportunity for investors to ride the manufacturing boom and oil price recovery given how the group recently affirmed its first oil & gas (O&G) discovery in Dec 2017.
