This is post starfish result TAP - TAP OIL LIMITEDMacquarie...

This is post starfish result
TAP - TAP OIL LIMITED
Macquarie rates TAP as Outperform (1) - Target $1.10 (was $1.20). The broker notes that no oil was encountered at the Starfish-1 Well off the coast of Ghana. It was always a high-risk, low success probability, but the valuation does take a hit, hence the lower price target.
The hit to the price target would have been even bigger were it not for Macquarie de-risking a further 300bcf relating to Bianchi, which brings total discovered resources up to 800bcf.

The Outperform call is maintained, the broker saying the current price is well supported by $87m cash in hand and 3rd party gas contracts worth $35m. This means the Manora Oil development in Thailand and TAP’s interest in the Carnarvon Basin gas discoveries are being entirely discounted.

Target price is $1.10 Current Price is $0.49 Difference: $0.61 If TAP meets the Macquarie target it will return approximately 124% (excluding dividends, fees and charges).

The company's fiscal year ends in December. Macquarie forecasts a full year FY13 dividend of 0.00 cents and EPS of minus 3.10 cents .

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.81.