heading $2???, page-5

re: heading $2 Intraday high of $1.26 and strong volume throughout the day (plenty of large bids going through over 2mil for the day).

snippet of the latest Euroz report released today (courtesy of a SS);


AZA ($1.20 at time of report) rated a BUY with a price target of $1.48 based on upside valuations.

Excellent Basker-2 (AZA 62.5%, BPT 37.5%) clean-up flows of 4,288 and 5,060 bopd respectively from its upper and lower Intra Latrobe sand sections intersected around 2 weeks ago. Importantly, the lower sands had not been flowed before. The flows were supported with high well head pressures, constrained by rig facilities and no water influx was observed.

The result will easily support the 8,000 bopd estimated production target set to commence in late October. Full field development is expected to be completed by July’06, at which time average rates from the field should be >20,000 bopd.

Euroz say "Our base case valuations of $0.90/sh and $0.86/sh for AZA and BPT respectively are based upon gross Basker/Manta recoverable oil reserves of 23.3 mmbbls (34% oil recovery) and a long term oil price of US$35/bbl. Assuming a less conservative (but possibly more realistic) 50% oil recovery (34 mmbbls) and US$45/bbl long term oil price our valuations increase to $1.48/sh and $1.09/sh. Reserves will be re-calculated by Gaffney Cline over the next month from the Basker-2 well data. We anticipate 1P (proven) reserves will increase from 10 mmbbls and 2P (proven & probable) should increase 0-15% above the 23.3 mmbbls prospectus reserves."

The remaining development wells: Manta-2 should spud in Dec’05, followed by the Basker-3, 4 and 5 wells in April-June’06. With the success and risk reduction of the project BPT are likely to exercise their option over an additional 12.5% interest in the project. The option must be exercised before Dec 15.

Some may say this has run a little hard and due for a retrace, others may say its still undervalued and in the[b] process[/b] of be rerating according to fundamentals. I have a bid to top up around $1.10. 8)