Looking ok so far, outperforming it's peers today.Aspect Huntley...

Looking ok so far, outperforming it's peers today.

Aspect Huntley afirm their buy recommendation in yesterdays review of the stock:

Business Impact: The stronger than expected result sees our FY07 earnings forecast upgraded from $22.2m to $27.5m. The improvement follows our lowering of unit operating cost and depreciation rates moving forward, nearer to 1H07 actuals. Our FY07 production forecast agrees with ARQ guidance of output in line with FY06’s 2.2mmboe. FY08 earnings increase from $27.3m to $30.4m. Our valuation however declines 3% to $1.65ps, lower depreciation negatively impacting tax. Long term assumptions remain a US$60/bbl oil price, an A$/US$0.76 exchange rate and 10% discount rate. Our Buy recommendation is retained. Attractions include the considerable discount to valuation, strong management, exploration upside and strong cash flow. ARQ is well placed to internally fund exploration and development. Cash levels increased to $57m during 1H07 and should grow further in 3Q07 with Eremia 6 and Dongara 36 on stream. A considerable number of wells is planned this year including large upside targets in all focus areas.