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Meren Energy (MER · TSX)

Mid-cap E&P — HQ Canada. Oil & gas valuation, proved reserves, production, break-even, net-asset-value and jurisdiction-risk screen.
Category Mid-cap E&PRegion N. AmericaCEO Roger Tucker (2015)Jurisdiction risk High (87)

Overview

Formerly Africa Oil Corp; renamed Meren Energy in 2025 following a corporate reorganization. A pure-play deepwater Nigeria producer whose value derives almost entirely from its interest in Prime Oil & Gas (OMLs 127/130 — Agbami, Egina, Akpo/Preowei). Prime is equity-accounted, so earnings are lumpy and cash reaches Meren chiefly as dividends; the company runs a net-cash corporate balance sheet and returns capital via a high dividend yield (~9%).

Upside optionality sits outside the producing base: a stake in Impact Oil & Gas exposes Meren to the TotalEnergies-operated Venus discovery in Namibia's Orange Basin, plus exploration in Equatorial Guinea and South Africa. Key risks are single-country production concentration, equity-accounting opacity, Nigerian fiscal/security/FX exposure, decline at mature Prime fields, and binary exploration results.

Valuation snapshot (FY2025)

Market cap
$1.1bn
Enterprise value
$1.3bn
EV / EBITDA
4.2x
P / E
n/m
FCF yield
17.5%
Dividend yield
8.8%
ROACE
12%
Debt / equity
43%
Net debt / EBITDA
0.5x
EV / reserves
$26.53/boe
EV / flowing
$37k/boe/d
Free cash flow
$0.2bn

Its EV/EBITDA of 4.2x is below the 5.9x median across the 142-company universe, the free-cash-flow yield of 17.5% is higher than the 6.5% median, and at $26.53/boe of proved reserves it is richer than the $13.51/boe median.

On a balanced screen across the universe, Meren Energy scores 50/100, strongest on valuation (66/100). Sub-scores: value 66, quality 46, growth 34, risk 63 (higher = riskier).

Reserves & production

Meren Energy holds approximately 0.05 billion boe of proved (1P) reserves with FY2025 production of about 35 thousand boe/d (68% liquids), a reserve life of roughly 3.8 years. Break-even: ~$40 (Brent FCF breakeven) — Low-cost deepwater Prime barrels (Agbami/Egina/Akpo) and a net-cash corporate balance sheet keep the dividend covered around the low-$40s Brent; Prime carries its own project-level debt serviced before dividends flow up to Meren.

Net asset value (public-source)

For Meren Energy, no SEC standardized measure is disclosed (non-US filer or listed NOC), so a public-source proved-NAV floor is not computable from US filings. See the interactive screener's NAV tab for peers where an SEC figure exists.

Jurisdiction risk · production-weighted country risk

87 /100
High jurisdiction risk
Production-weighted average of the country scores below (0 = safest, 100 = riskiest).
Country / regionProd. shareCountry riskKey jurisdiction risk
Nigeria93%89Theft/sabotage, subsidy reform, PIA transition, security.
Namibia4%55Hot Orange Basin play; nascent regime, local-content evolving.
Equatorial Guinea3%78Governance/corruption, mature declining fields, opaque state.
How this is scored. Each country's risk (0–100) is anchored to two named public indices — the OECD Country Risk Classification (0–7 official export-credit country risk) and the World Bank Worldwide Governance Indicators (Political Stability & Absence of Violence percentile) — blended 55/45 and rescaled to 0–100. A company's jurisdiction risk is the production-weighted average across the countries where it operates. This is a pure country measure, kept separate from company & financial risk (leverage, governance). Source: OECD Country Risk Classification (CRC) as of 24 July 2025, sourced via the German Federal Export Credit Guarantees (exportkreditgarantien.de) which applies the OECD consensus country risk category directly (values 0-7; 0 = lowest risk). High-income OECD members are not individually rated by the OECD and are set to crc=0 per the model spec (US, UK, Norway, Canada, Australia, Japan, NZ, and most of Europe incl. OECD members Israel, Poland, Hungary, Czechia, Lithuania, Ireland). 'ps' = World Bank Worldwide Governance Indicators (WGI) 'Political Stability and Absence of Violence/Terrorism' percentile rank, latest available (2023 vintage), 0-100 with higher = more stable; ps values are best sourced estimates rounded to the WGI percentile scale. Yemen not on OECD list ('./.') so crc estimated at 7. Iraq-Kurdistan and Falklands are non-standard model rows using judgment, not official OECD entries..

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Key assets & projects

AssetLocationTypeNotes
AgbamiNigeriaDeepwater oil (OML 127)Chevron-operated; core producing field via Prime
EginaNigeriaDeepwater oil (OML 130)TotalEnergies-operated; core producing field via Prime
AkpoNigeriaDeepwater oil/condensate (OML 130)TotalEnergies-operated; producing via Prime
PreoweiNigeriaDevelopment (OML 130)Egina-area tie-back development via Prime
VenusNamibiaExploration/appraisal (Orange Basin)TotalEnergies-operated; indirect exposure via Impact Oil & Gas stake
Impact Oil & GasNamibia/South AfricaExploration equity stakeProvides Orange Basin (Venus) and frontier upside optionality
Equatorial Guinea blocksEquatorial GuineaExploration/appraisalOffshore exploration acreage; early-stage

Five-year trend (FY2021–FY2025)

Metric20212022202320242025
Production (mboe/d)2425242735
Proved reserves (bnboe)0.100.100.090.110.05
Revenue ($bn)0.00.00.00.00.6
EBITDA ($bn)0.0-0.0-0.00.00.3
Net income ($bn)0.1-0.10.1-0.3-0.0
Free cash flow ($bn)0.0-0.0-0.1-0.10.2

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Peer companies — Mid-cap E&P

FANG · Diamondback EnergyPR · Permian ResourcesCHRD · Chord Energy CorporationMTDR · Matador Resources CompanyMGY · Magnolia Oil & Gas CorporationMUR · Murphy Oil CorporationTVE · Tamarack Valley Energy Ltd.CRC · California Resources CorporationNVPT · Navitas PetroleumCRGY · Crescent EnergyBTE · Baytex Energy Corp.POU · Paramount Resources Ltd.TALO · Talos Energy Inc.ENRG · Energi Mega Persada

Sources

✓ FY2025 figures verified against primary sources:

↗ Compare MER against 141 peers in the interactive screener

Disclaimer. Screening research only — a starting point, not investment or transactional advice. Figures are drawn from public sources (~mid-2026), may contain errors, and require independent due diligence before any decision.
Enerquill Advisory. Data compiled from company FY2025 filings and results releases; market data ~mid-2026. Larger names are verified against primary sources (shown on each page); smaller names are best-estimates pending verification. © Enerquill Advisory. enerquilladvisory.com