LONDON (ShareCast) - Analysts at Canaccord continued to view the valuation of Tullow Oil (LSE: TLW.L - news) as "not particularly attractive" after the oil and gas giant posted its annual results Wednesday.
The group reported a 4.0% rise in profits before tax of $1.11bn for the year to December 31st, up from $1.07bn the previous year.
Sales revenues increased 2.0% to of $2.34bn year-on-year.
Share rose 4.32% to 1,231.00p at 13:42 after the results.
Canaccord said it was promising news for the company following a disappointing announcement bout a dry well at Sapele, offshore Ghana and a lower than expected plateau rate at the Tweneboa-Enyenra-Ntomme (TEN) Cluster Development.
"Next (Other OTC: NXGPF - news) important news is the Sabisa well, onshore Ethiopia, currently drilling," it said.
"This will be an important well, bracketing the potential to the north of the Kenya-Ethiopia trend. This well is being drilled in a separate basin from those drilled to date."
The broker added that Tullow trades with 39% downside to its central net asset value (producing and development assets) compared to the likes of Premier (BSE: PREMIER.BO - news) with a 22% upside.
"However, Tullow has been a big underperformer, underperforming Premier by around 23% year-to-date and we expect a bit of a bounce today with the potential for some short covering."