July 8 (Bloomberg) -- Ipek Dogal Enerji Kaynaklari ve Uretim AS rose to the highest level in more than three weeks as the energy company found evidence of hydrocarbons in an exploration well in southeast Turkey.
Ipek surged 9.6 percent to 4 liras at the close in Istanbul, the highest level since June 14. The volume of shares traded was about six times the three-month daily average, according to data compiled by Bloomberg. The third consecutive day of gains took this month’s advance to 25 percent, compared with a 6.1 percent decline in the benchmark Borsa Istanbul National 100 index over the same period.
The company has discovered evidence of hydrocarbons in one of the two exploration wells it operates in southeast Turkey, according to a filing with Borsa Istanbul on July 5. Studies at the “Koza 1” well point to high quality oil at 4,050 meters underground, though the yield may be “limited,” Ipek said. It has also found evidence of “a high amount of” natural gas, according to the filing. Ipek’s shares jumped 9.9 percent after its statement on July 5.
“The market has a positive view for the shares after this filing,” Erkan Savran, senior vice president at Ak Investment in Istanbul, said in a phone interview today. “Investors have expectations from these two wells Ipek operates, though how much oil, if any, can be produced remains unclear.”
Ipek has reached 1,800 meters of depth in its second well, named “Ipek Koza 1,” it said in the statement. The targeted reservoir level at the well is at about 3,000 meters, according to the filing.
Ipek Enerji, which is 62 percent is owned by Koza Ipek Holding AS, reported first-quarter net income of 90.9 million liras ($47 million), down 53 percent from 192.3 million liras a year ago. Two analysts, including Savran, recommend investors buy the shares, while six say hold and one recommends selling, according to data compiled by Bloomberg.
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