patersons oil & gas review - 30th nov

If anyone is interested, Patersons just put out a new broker report today (30th).

HIGHLIGHTS:
- Strategic investor secured. After the successful
$16.67m capital raising, the Waterford Group (Waterford)
now has a ~27% equity stake in JPR. We believe the
introduction of Waterford is a significant milestone
for JPR given the success of some of Waterford?s past
transactions, including First Calgary Petroleum (sold
to ENI in 2008 for ~$900m). We expect Waterford to
provide strong support to JPR on a fi nancial, strategic
and operational level.

- Changes to the Board. With the introduction of
Waterford as a substantial shareholder, Alastair Beardsall
and Baltabek Kuandykov have joined the JPR Board in
place of Andrew Childs and Erkin Svanbayev. Alastair is
currently Chairman of AIM listed Sterling Energy Plc while
Baltabek is currently President of Meridian Petroleum, a
privately held Kazakh oil and gas company.

- J-50 well tests at 360bopd. The J-50 well completed
the maximum 3 month production test and produced
360bopd during July. This was an encouraging result
however, the well is currently shut-in while JPR applies
for a trial production licence for J-50 which will allow
JPR to sell oil to the export market (expected by year-end).
The length of time it has taken JPR to spud the J-50 well
and complete production testing is disappointing given
the well was spudded at the end of 2009.

- J-52 well to drive resource upgrade. The J-52 well is
was spudded in early November. J-52 has the potential
to prove up an additional 22mmbbls of oil resources in
the shallower Jurassic reservoir and confi rm the eastern
extent of the East Akkar Middle Triassic structure. The
well is expected to take 70 days to drill, evaluate and
suspend.

- We maintain our "SPECULATIVE BUY" on JPR and
price target of $0.13/share. We are encouraged that
JPR is fully funded to complete 3 more wells (J-52, J-51
and NWZ 2) but highlight future value will be driven by
the outcome of the J-52 (early 2011) and J-51 (end 1Q
2011) wells and the granting of a trial production licence
(year end) allowing JPR to sell oil to the export market.

Full document available: http://www.jupiterenergy.com.au/files/news/Patersons_Oil_&_Gas_Review_-_Nov_2010_-_Jupiter.pdf