Energy: Oil & Gas - Bahamas Petroleum Company Plc

November 5, 2010 Europe: Energy: Oil & Gas - E&P
M&A: A combination of cheap core value, geographical concentration and lack of a blocking
shareholder is required
Our M&A screen comprises stocks which exhibit both strong potential upside to core value and geographical concentration. We also
exclude stocks where we believe there is a possible blocking shareholder (i.e. a strategic holder of at least 30% of the shares). If we
exclude the liquidity discount, potential upside for some of the stocks would be well in excess of 200% based on core value alone –
something which we believe could be especially attractive to potential industry buyers.
Exhibit 59: M&A screen highlights a combination of geographical concentration and strong core value
Market cap
(US$mn)
Source: Goldman Sachs Research estimates.
Total risked
reserves (mn
boe)
Risked discovered
reserves (mn boe)
% of reserves already
discovered
% value in one
region
Upside to core valuation
(excluding liquidity
adjustment)
Goldman Sachs Global Investment Research 48
Asset base
Global Energy Development 35 44 44 100% 100% 235% South America, oil
Igas 94 73 73 100% 100% 215% UK, CBM gas
Northern Petroleum 145 66 49 74% 99% 93% Netherlands, gas
Nighthawk Energy 64 60 60 100% 100% 189% US, shale oil
Great Eastern Energy 813 191 191 100% 100% 58% India, CBM gas
Amerisur 173 70 36 51% 100% 63% South America, oil
Bankers petroleum 1798 671 633 94% 100% 44% Albania, oil
Det Norske 480 158 104 66% 100% 70% Norway, oil and gas
Norse Energy 117 230 230 100% 100% 74% US, shale gas
Green Dragon 1006 304 140 46% 100% 42% China, CBM gas