Cowen Securities Reiterates Buy on Atwood Oceanics Following Solid Contract on the Atwood Aurora

In a report published Wednesday, Cowen Securities analyst J.B. Lowe reiterated a Buy rating and $66.00 price target on Atwood Oceanics

. In the report, Lowe noted, “Atwood announced last night that a fixture for the Atwood Aurora (2008-built Super 116E Class jackup). The one-year contract with Addax Petroleum in Cameroon will commence in late February 2014, immediately following a contract with Glencore, also located in Cameroon. Depending on well location, the rig will receive either $164K/d when not subject to the 15% Cameroon withholding tax or $193K/d when the tax is in effect, essentially reimbursing the company for the tax payments. The contract is another strong data point for jackups in West Africa and is further evidence of improving fundamentals in the region.” Atwood Oceanics closed on Tuesday at $52.55.