Retain Outperform rating We view the acquisition of Ambilobeas a...

Retain Outperform rating
We view the acquisition of Ambilobe
as a positive as it further diversifies
PVD’s projects across a number of basins at little cost. Asset value will likely be released as the prospects are
defined, de-risked and farmed out. Most of our current valuation relates to the Mazagan permit in Morocco.
The market may attribute further value to Mazagan as further farm outs in the region occur. Our total risked
valuation has increased to A$3.22 per share. We expect the stock to re-rate towards this level as market interest
in the upcoming Gabon farm-out intensifies and the company sets a spud date for the Morocco drilling campaign. We retain our Outperform recommendation on the stock.

Figure 4: Risked SOTP Valuation
A$m A$/share
Morroco NAV 414.6 2.96
Gabon NAV 24.0 0.17
Net debt (Cash) 8.4 0.06
Corporate costs -12.6 -0.09
Total 451.5 3.22
SOURCES: MORGANS