Target $1.14 (was $1.21). The broker notes the company is looking to raise up to $63m to speed up drilling and lift production rates. Results have been positive so far and the broker is optimistic about further upside from the move.
FY14-15 production forecasts are lifted by 10% and 16%, although the bulk of the upside will be delivered longer term, notes CIMB. There is also scope for further cost cutting, operational improvements, spacing decreases and expected production from new sites. These will continue to lift the valuation going forward, says the broker. The Outperform call is maintained.
SEA Price at posting:
92.0¢ Sentiment: None Disclosure: Held
