I'm glad i bought in at $1.16 recently.Thought you guys might...

I'm glad i bought in at $1.16 recently.

Thought you guys might like this article:

UBS has placed a “buy” recommendation on Drillsearch Energy after the group posted record quarterly production of 850,000 barrels of oil equivalent in September.The broker has lifted earnings per share estimates on Drillsearch for 2013-14, 2014-15 and 2015-16. UBS was anticipating production of 750,000 barrels of oil equivalent, but a stellar performance from Drillsearch’s Bauer field had a significant impact.UBS highlighted that with a 10,000 barrels of oil per day pipeline now in operation, additional trucking capacity had propelled this to 12,700 barrels per day compared with the broker’s estimate of 12,200. It also noted that revenue was up 71 per cent compared with the June quarter to $86.7 million (UBS: $81.1 million).While bringing unconventional gas exploration into production may prove to be a lengthy process, UBS said that Drillsearch has “an initial free carry from BG, as well as having a number of funding and exit options along the way”.The company has maintained its 2013-14 production guidance of between 2.3 and 2.5 million barrels of oil equivalent, but UBS sees upside given an annualisation of September quarter figures equates to 3.4 million barrels of oil equivalent.UBS is forecasting oil output at Drillsearch to decline in the second half of 2013-14, but it has still upgraded full-year production to 2.7 million barrels of oil equivalent. Profit of $99.4 million is expected in 2013-14, representing pre-abnormal earnings per share of 23.1¢. This implies a price/earnings multiple of 5.1 relative to Wednesday’s closing price.While Drillsearch’s share price increased from Tuesday’s close of $1.15 to close at $1.19 yesterday, its shares are trading well below their 12-month high of $1.66, and at a 20 per cent discount to UBS’s 12-month price target of $1.50.