I didn't see any posts about Bell Potter's latest SEA report (1st Aug), so here is a summary. Due to copyright, I'll just present highlights and a few quotes:
Target Price: $1.11 (up from $1.09 in Bell's March12 report, which was up from 86 cents in its late 2011 report) BUY -- "compared with many mid cap oil & gas stocks, we see this as a less risky or speculative call" (Actual price was $.41 at time of report)
-- Current resources support target of 5,000 BOEPD in 3 years -- Low net cash position but good loan facility and maybe asset sales (Bakken) -- FY12 NPAT estimate lowered (due to $5M lower revenues, due to lower oil/gas prices) -- Bell notes in a few paras SEA's possible asset sale of Bakken, valued at $200M or 68 cents/sh (more than SEA's current market cap). -- Wattenberg wells have lower flow rates but good economics ($.16/sh value) -- Mississippi acres added, adding reserves potential of 15-25mmboe -- No flow info for Leon Pecha-1 may be due to commercial sensitivities or inconclusive results (but don't be harsh if the latter).
Next reserves report expected in September: "We see either the reserves report or an asset sale as a strong short term catalyst for the share price."
A Few Estimates: YEAR 2012-2013-2014-2015 BOEPD: 1160 3407 4352 5075 EBITDA: 11 53 75 96 EPS Adj: 1.2 10.3 15.3 17.8
Estimated liabilities are highest in 2013 (Assets=$147M; liab=$52M), lower in other years.
SEA Price at posting:
43.0¢ Sentiment: Buy Disclosure: Held
