Northern Lights: Investment Opportunities in the UK North Sea

Mar 29, 2011, 05:49 ET from Edison Investment Research

LONDON, March 29, 2011 /PRNewswire/ --

- Edison Investment Research Oil & Gas sector report

Despite the negative sentiment around the UK government increasing the marginal tax rate from 50% to 62% in last week's Budget, the North Sea independents continue to offer the potential for spectacular returns. The average share price increase from the companies profiled in this report was 192% over the last 12 months. In the coming year, we believe Premier Oil, Nautical Petroleum and Encore Oil offer the best value potential, with high impact upside from Faroe Petroleum and Deo Petroleum.

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We highlight Premier Oil, Nautical Petroleum and Encore Oil as companies where the risk reward balance is skewed in the favour of value creation. We believe Valiant and Endeavour at present should be avoided. Serica and Xcite have the potential to become more attractive if they derisk their prospects further, while Faroe and Deo Petroleum both provide high impact exploration upside.

Edison is Europe's leading investment research company. It has won industry recognition, with awards in both the UK and internationally. The team of more than 65 includes over 35 analysts supported by a department of supervisory analysts, editors and assistants. Edison writes on more than 280 companies across every sector and works directly with corporates, investment banks, brokers and fund managers. Edison's research is read by major institutional investors in the UK and abroad, as well as by the private client broker and international investor communities. Edison was founded in 2003 and is authorised and regulated by the Financial Services Authority (

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