Shell share price: Group finds gas offshore Malaysia

on Apr 17, 2014
Updated: Apr 9, 2020
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iNVEZZ.com, Thursday, April 17: Royal Dutch Shell Plc (LON:RDSA) has found gas in a new drilling area offshore Malaysia, the energy giant has said.

Shell’s share price has been little changed this morning, having added 0.11 percent to 2,227.50p as of 08:35 BST.
**Deepwater gas discovery**
Shell announced today in a statement that it had found more than 450 metres of gas column offshore Malaysia. The company’s ‘Rosmari-1’ well is located 135 kilometres offshore in Block SK318, and was drilled to a total depth of 2,123 metres. The company said that it was planning further exploration in the area.

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“Rosmari-1 is a testament to our ability to successfully drill and build understanding of new geology within our existing exploration heartlands, adding value to our existing assets in Malaysia,” Andy Brown, Director of Shell Upstream International, said in the statement. “We are expanding and rejuvenating heartlands across our exploration portfolio, including in Brunei, Australia and the Gulf of Mexico.”

Iain Lo, Chairman of Shell Malaysia, noted that the new discovery added to the group’s “sequence of recent exploration successes in Malaysia, with these discoveries expanding the company’s heartlands positions”.
Shell has an 85 percent stake in the SK318 block, with the balance held by Malaysia’s Petronas Carigali.
**Analysts on Shell**


Analysts at Barclays this week reiterated their overweight rating on Shell with a price target of 2,660p. Last week, Credit Suisse reaffirmed its ‘outperform’ rating on the FTSE 100 oil major with a price target of 2,450p, while JPMorgan Chase & Co, which has a ‘neutral’ rating on the company, boosted its price target from 2,270p to 2,325p. Shell currently has a consensus ‘hold’ rating and an average price target of 2,398.24p.

Shell’s share price has added about 14 percent since mid-December with investors expecting the group’s new chief executive Ben van Beurden to rein in spending and improve shareholder returns. The Financial Times this week quoted analysts as cautioning not to expect much evidence of the strategy shift in Shell’s first-quarter results due out on April 30. Barclays forecasts that Shell’s dollar earnings will drop 40 percent year-on-year, twice the decline of its peer group, reflecting the Anglo-Dutch company’s greater exposure to weak refining margins and lower gas volumes in Europe.
Last month, Shell set out plans to boost profitability, with van Beurden promising ‘sharper performance’. (Shell share price: Americas upstream spending cut by a fifth)
**As of 09:07 BST, buy Shell shares at 2225.50p.**
**As of 09:07 BST, sell Shell shares at 2224.50p.**

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