According to a Bloomberg report, Addax may become a takeover target and the deal could potentially be worth $8 billion. Addax is an active player in Iraqi Kurdistan area and has just started international export of oil from its Taq Taq license field.
In a separate Bloomberg report, Heritage Oil acquired Genel for $2.45 billion. Heritage Oil recently made significant oil discovery in its Miran West field which could contain 2.3 to 4.2 billion barrels of oil.
The acquisition news provided additional reference point on the valuation of the companies with Kurdistan exposure, especially those pure plays such as WesternZagros or Vast Exploration. For our detailed writeups on WZR and VST, please see our earlier postings or go to utualpha.blogspot.com.
Disclaimer: the author is long WesternZagros and Vast Exploration.