Baker Hughes, San Leon strike Siekierki deal

|About: San Leon Energy Plc (SLGYF)|By:, SA News Editor

Work to bring Poland's Siekierki gas field online is set to begin shortly following a deal between operator San Leon Energy (SLGYF) and Baker Hughes (BHI -0.5%).

BHI will receive a return from 75% of profits generated from production, followed by a 10% net profit interest in the wells, in return for the full funding of all stages of the project.

Separately, Argus Research raises its BHI price target to $80 from $68, as it continues to expect the North American onshore market to drive earnings growth; the stock trades at 17x the firm's 2014 EPS estimate and 13.4x its 2015 estimate, seen as too low based on its forecast for average annual EPS growth of 42% over the next two years (