macquarie report recommendation for osh, page-4

A glaring ommission there in that Macquarie upgrade regarding the effect of any potential success at Kapul-1 (potentially>100 mmbl).

Macquarie stated there that the 'catalyst' for share price movement would be the pipeline project, I can't agree with that.
Fairly obvious that the major short term driver for OSH up and over the $1.84 resistance will be success at Kapul-1 (or expectation of success there) Al-Ahkaf is now (ostensibly) regarded as less than hoped for, although the result is still not definite.

ABN AMRO places a valuation of A$0.33/share on a 113mmbbl discovery at Kapul-1...

Quote - "Kapul (OSH 54.3%, PNG forelands) - our analysis suggests a 113mmbbl (gross) oil discovery would roughly influence Oil Search's share price by 19% (A$0.33)"

NB. I think ABN have stuffed up the % interest here. As far as I am aware OSH has a 70% interest in Kapul-1. I also assume ABN would be using oil prices at around the US$30/bbl mark...

Wondering, does anyone else has a valuation on a discovery at Kapul?

With a bit of luck they may reach total depth by end of this week, though more likely a result very early next week - I would say.



Cheers,

Christian