Today’s Reserves’ increase and corresponding PV9 places the...

Today’s Reserves’ increase and corresponding PV9 places the Company firmly within its lending covenants for the medium term. The recent lift in the oil price – perhaps recognising the impact curtailed investment over the past 18mnths brings to bear on prices over the medium to long term – significantly enhances the investment appeal of SEA and has served to highlight the leverage the Company offers. Though the Company is not without risk (liquidity remains tight) we remain prepared to back Management to impute equity value should oil prices continue to firm. We have upgraded recommendation to Speculative Buy as a consequence. We set a $0.60/sh price target