re: Ann: Increase in Borrowing Base and Mid Y... JP Morgan...

re: Ann: Increase in Borrowing Base and Mid Y... JP Morgan 10-Sep-13 Overweight

Aurora has upgraded reserves, assisted by improved well performance, and JP Morgan thinks the stock offers some of the best valuation upside among ASX100 energy stocks. The broker also likes the range of varying positive scenarios rather than an "all or nothing" development.

The Overweight rating is retained and the price target is reduced to $3.41 from $3.67, as the valuation model is refined.

UBS 10-Sep-13 Buy

Aurora has announced a 21% increase in 3P reserves to 203.3mmboe. The reserves are now 70% liquids, up marginally from 69% previously. UBS expects further reserve increases will be achieved via downspacing.

The Buy call is maintained and the price target is raised to $4.25 from $4.00.

Deutsche Bank 10-Sep-13 Hold

Aurora has announced a 29% increase in 2P reserves at its mid-year reserve update, with a skew towards liquids. Take out the impact of the newly acquired Heard Ranch and Axle Tree acreages and the increase is 8%, the broker notes. AUT has also increased its credit facility.

The broker has made no valuation change as a result. Hold and $3.20 target retained.