finnCap Research Company Notes - 3 January 2019

Jan 03, 2019 / News

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Sector: Energy

Anglo African Oil & Gas (AAOG) : Corp

Tilapia back online at improved rate

Key data                              

  • Share price (p)                  12.3
  • Target price (p)                38.0
  • Market cap (£m)                              21.4
  • Enterprise value (£m)                    14.9

Another fillip of good news from AAOG, which has restarted production from the TLP-101 well at a higher rate than before it was shut in, plus is considering the commercial viability of a water injection project to materially boost production from the well. This will provide welcome cash flow as the company continues to look for an alternative financing solution to the £5m Sandabel facility (£1m drawn). Next up, likely in short order, will be the results of the wireline logging on the various zones encountered so far with TLP-103C. The market will be looking for confirmation of better-than-expected net pay in the Mengo as well as more detail on the reservoir quality for that and the newly encountered zones.

Jonathan Wright |


Sector: Technology & Telecoms

Tracsis (TRCS) : Corp

Significant contract win

  • Key data                               
  • Share price (p)                  595.0
  • Target price (p)                725.0
  • Market cap (£m)                              169.0
  • Enterprise value (£m)                    146.7

Tracsis has announced a new multi-million pound contract with a major Train Owning Company to deliver the TRACS Enterprise solution. The agreement will see TRACS delivered to all the individual TOCs within the Train Owning Group in the UK over a five-year period, as well as any other franchises that the Group may win in the future. We make no changes to forecasts due to the ‘call-off’ nature of the agreement as well as the timing of implementation (and revenues); however, we expect this contract to deliver significant recurring revenue opportunities for Tracsis over the duration of the agreement. Target price remains at 725p.

Andrew Darley |


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