Citi have given a target price upgrade to SEH from 18c to 32c.
proviso's being: well recovery 2Bcf/well, 400mscf/d peak production, USD55/barrel Brent oil price, well costs USD1.6mill per well.
90% risk factored in now for SJB and LXG which means Citi are very confident everything is looking good.
Personally I believe Citi are still erring on the side of caution with quite a few of the above assumptions, however it gives an indication to what they are they thinking.
SEH Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
