new broker report, page-2

Broker GMP Securities has initiated coverage of JPRL with a 'buy' recommendation and an A$1.18 12-month target price. The following quotation is indicative of the report, though IMO the longer-term valuations appear somewhat on the conservative side (seemingly valuing in-the-ground 2Ps at the same level as producing reserves):

'With current EV of ~$73 mm, we believe the market is pricing in the company's 2P reserves of 24.2 mmb at $3.0/b. This compares to average historical acquisition metrics of $5-7/b and our valuation of $6.3/b (NPV10) from the Block 31 field model. Hence, we believe investors are getting 2P barrels at a steep discount and the remaining potential prospectivity on the block of ~100 mmb "for free". We are initiating coverage on JPR with a 78p /A$1.18 12-month target price and a BUY recommendation.'