OREANDA-NEWS. July 15, 2011. Renaissance Capital, the leading emerging markets investment firm, has initiated research coverage of oil and gas exploration company, Jubilant Energy, marking the Firm’s first coverage of an Indian company.

The initiation also marks the further expansion of Renaissance Capital’s research franchise in key business regions. The Renaissance research team comprises more than 80 professionals across Russia, the CIS, Asia and Africa.

Jubilant Energy: Buoyed by gas price and exploration, authored by oil and gas analyst Jenny Wong, assigns Jubilant Energy a BUY rating and GBP0.90 target price. The report notes that the key potential drivers of Jubilant’s success are securing higher gas prices in a liberated Indian gas market, and exploration upside at its Manipur asset.

The report also highlights the Indian government’s understanding of the need to promote the development of the gas market.

“We believe the Indian government is prepared to drive infrastructure development and understands the need to remove market distortions by allowing a more liberated gas market,” says the report. “We expect subsidies for the electricity and fertiliser sectors to eventually be paid directly to the end user. We do not suggest that this process will happen immediately, but we are looking for it to begin from 2012. This will open the gas market to the large latent demand in India.”