continues to shine - $2.20+ target, page-2

png national article PNG Locals are buying OSH-hmm..there may be a few fat cats in PNG soon..Capital Stockbrokers say $3+ value...never heard of 'em - best stick with Huntley's profound recommendation - was it $1.26?? It must have been a typo - surely they meant at least $2.26!

Oil Search hits 5-yr high
Price of A$2.08 per share good for local buyers: Analyst

By BRIAN GOMEZ

OIL Search Ltd has hit a five-year high of A$2.08 (K5.24) - good news for thousands of Papua New Guineans who have been buying the stock over the past year.
Capital Stockbrokers analyst Brendan Bure said yesterday the stock market has been re-rating Oil Search shares which are “still 30 to 40% below their true value of over A$3 (K7.56) a share”.
Capital Stockbrokers had put out a buy recommendation on the stock in mid-October when Oil Search shares hit A$1.70 (K4.28), advising clients that these shares could be heading for A$2.03 (K5.11).
Mr Bure said 3.5 million Oil Search shares have been purchased by Papua New Guineans in the last two months, making up a significant volume of trading on the Port Moresby Stock Exchange (POMSoX).
Many local people had purchased the stock at between A70 (K1.76) and A90 cents (K2.27), he said, including a significant number of people from Bougainville.
Mr Bure said there were several factors that have led to the re-rating of Oil Search by the market. These included:
n Commitment to front end engineering and design (FEED) for the PNG Gas Project;
n The company's purchase of ChevronTexaco's PNG oil and gas assets;
n Exploration successes at Kutubu, Moran and in the Middle East;
n High oil prices with expectations that they will remain above US$40 (K127.80) a barrel in the next 18 months and
n Half yearly production and revenues have been rising steadily over the past five years.
Industry sources believe the company’s offshore Nabarajah discovery in Yemen, which is close to production facilities, could contain some 10 million to 20 million barrels of oil.
Oil Search has recently also taken up a 30% equity stake in a highly prospective offshore block in Libya.
Meanwhile, production is anticipated to start from North West Moran around the middle of this year with development also underway on the company’s South East Mananda field.