CUE 2.04% 10.0¢ cue energy resources limited

analysts report on santos

  1. 428 Posts.
    Next week should be interesting for CUE holders.
    60 cents here we come!!!

    The Santos Ltd share price could be boosted by at least 50 cents following positive test results from its East Java acreage, analysts have said.

    Analysts today said preliminary test results from its Jeruk wells in East Java could be worth about $1 a share to the company.

    They said half of this was already factored into the group's share price.

    Santos said tests at its Jeruk 2 ST-3 well being drilled in the Sampang Production Sharing Contract supported a potential 370 metre oil column. advertisement

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    While the precise measurements could not be established due to debris in the test string UB analysts Gordon Ramsay and Max Brewster said the Jeruk structure was estimated to contain between 250 million and 300 millions barrels of oil.

    "Although early days, we believe Jeruk has the potential to be worth up to around $1 a share to Santos," the analysts said.

    "We assume just over half of this potential value, based on Santos 170 million barrel pre-drill estimate, is included in Santos' share price."

    Santos shares closed today up eight cents at $8.80.

    UBS said the discovery had prompted it to raise its share price target to $9.21 from $8.21.

    Santos is the operator of the well and has a 50 per cent stake in the field, with PT Medco Sampang holding the remaining 50 per cent.

    "We view Jeruk as a potential re-rating trigger for Santos," the analysts said.

    They said the Agung well, to be drilled by the same rig after the completion of Jeruk was another interesting exploration prospect in East Java.

    "If successful (this) could possibly be worth more to Santos than Jeruk."

    Santos has said Agung had the potential to contain up to 550 million barrels of oil equivalent.







 
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