euroz update october best buy

"Tasman is cleaning-up and peak rates can be expected shortly.

·         Blair will be brought on production.

·         Bunch and McMurtry-1 22H will be fracced within the month, and initial flow results anticpated.

·         We understand logs over Tasman and McMurtry-1 22H are consistent if not better than Blair and McMurtry-1 21H in terms ‘net-pay’ and oil shows.

·         Maiden independent reserves and contingent resources for the Mississippi Lime are due in Oct (prev Sep) which should underpin implied valuations of $1/sh on a 3P basis at peer av of $15/boe and point to significant upside on a Contingent Resource basis

·         On a full scale development scenario considering full development scenario of 3 wells per 640acre spacing unit (@ 30 wells/yr from 2013), results in a valuation of +$2.50/sh (vs current $1.51/sh).

·         Incorporation of an additional horizon of development through the Woodford Shale (depending upon assumptions of timing and pace of development) would underpin valuations of +$3.50/sh.

Price Target $1.51/sh"