cmon this sounds promising with the banks We retain our...

cmon this sounds promising with the banks
We retain our Speculative Buy recommendation, noting that as the lender (Morgan Stanley) appears increasingly supportive of the Management Team, increasing flexibility and latitude under the banking facility (and growing operating cash flow) is improving leverage to recovering oil price

Investment Case
With the Company recently meeting its lending covenants for the medium term, the lift in the oil price – perhaps recognising the impact curtailed investment over the past 18mnths brings to bear on prices over the medium to long term – significantly enhances the investment appeal of SEA and has served to highlight the leverage the Company offers. Though the Company is not without risk (liquidity remains tight), we remain prepared to back Management to impute equity value should oil prices continue to firm. We maintain our Speculative Buy recommendation and set a $0.60/sh price target.