Beaufort Securities BUYWildhorse Energy (LON:WHE)Yesterday,...

Beaufort Securities BUY

Wildhorse Energy (LON:WHE)

Yesterday, Wildhorse Energy released its quarterly report for the three months to 31st March 2014. During the period, the company signed a Heads of Agreement with Linc Energy, allowing the latter to acquire a 100% interest in its UCG assets for A$4.04m shares of Linc Energy. Wildhorse Energy’s primary asset is the Mecsek Hills UCG Project where the company conducted approximately 1,164m of drilling for a current JORC Inferred resource of 184.5 million tonnes (Mt). Wildhorse Energy is now evaluation all options to interest in the Mecsek Hills Uranium Project in Hungary, which has a current JORC Inferred Resource of 48.3Mt at 0.072% U3O8 for 77 million pounds (Mlbs) of U3O8.

Our view:

The deal with Linc Energy, which was announced earlier during the year, is obviously a great one. We like Linc’s prior experience and expertise in UCG assets and are of the opinion that it may result in a turnaround for the Mecsek Hills Project.

We reiterate a Speculative Buy rating on Wildhorse Energy.