Electromagnetic GeoServices ASA (EMGS), a surveyor of underwater oil and gas fields, climbed the most in a week in Oslo on the prospect of new orders from the U.S. Gulf of Mexico and possible renewed takeover interest.
The stock gained 2.6 percent to 9.4 kroner as of 10:55 a.m. in the Norwegian capital. That’s the highest intraday level since Aug. 2 and makes it the biggest gainer on the OBX index of 25 most-traded stocks.
“The short-term focus will be on the processed first joint survey with Schlumberger in the U.S. Gulf of Mexico, which may create a new market for EMGS and raise M&A interest from seismic players,” analysts at Danske Bank A/S said in a note today. “Further large awards should surface in 2014” from companies including Saudi Aramco Oil Co., Petroleo Brasileiro SA and BG Group Plc, said the Copenhagen-based bank, which has a buy rating on the stock.
EMGS, which uses electromagnetic technology to search for oil and gas under the seabed, has declined almost 40 percent during the last year amid investor concern that the Trondheim, Norway-based company lacked enough contracts for next year.
To contact the reporter on this story: Alastair Reed in Oslo on at email@example.com
To contact the editor responsible for this story: Christian Wienberg at firstname.lastname@example.org