argonaut price target .57c, page-14

Snippet thanks to Spooner

We are initiating coverage on Swala with a BUY recommendation and a price target of $0.57. The Company has early mover advantage and a unique business model that means that its large acreage position, in the hottest exploration location on the planet, is highly likely to increase and, with it, the share price.

"Swala is ahead of the pack but still under the radar of many investors, despite securing a huge net acreage position in the hottest exploration area on the planet. As the story disseminates more fully into the investment community, both in Australia and internationally, we are confident that a re-rating will occur. The size and quality of the acreage position secured is a testament to management’s experience in Africa, where they created significant value in a pre-cursor vehicle before founding Swala.
By securing acreage ahead of the recent discoveries, Swala has created a unique opportunity for investors that desire early stage, thematic investment that we believe is likely to generate significant returns prior to high risk drilling activity.
The Company’s business model, with local companies and local ownership, has been validated by the recent invitation to negotiate exclusively for the highly prospective Eyasi licence. Several larger companies bid on the block but Swala was successful. The portfolio is expected to grow and, based on management expertise, we are confident that the acreage acquired will be high quality.
Substantial newsflow is expected over the coming months, with re-ratings likely:
? Official award of Eyasi
? Seismic results at Kilosa-Kilombero and Pangani
? Start of seismic at 12B with Tullow
? Award of at least one Zambia licence
? Flow testing at Etuko-1 (Q4)
? Results from Ekales-1 (end Sep) and flow testing (Q4)
? Spud Bahasi-1 in Block 9 – (>300mmbbl target)
? Seismic results from 12A (closest of Tullow’s other blocks to 12B)
? Continued appraisal and exploration – up to 6 rigs operational
? Likely regional M&A / transactional news
Given the technical expertise, on the ground experience, management track record and re-rating of the region due to recent exploration success, we believe the potential for a meteoric rise is high. By simply joining the dots, it is a small step to equate “early stage” with “excellent value” for those that have an appropriate investment profile for a company of this size.
We are initiating coverage on Swala with a BUY recommendation and a price target of $0.57."

Its a very in depth report best i have seen to date.