Morgans upgrades estimates and valuation post the recent discovery at Lightning. First production from Lightning is on track for March. This will be the company’s second producing asset, as it explores the on or near-shore targets.
Drilling is now occurring through the primary and secondary formations at Winx and nearing total depth. Once at total depth the JV will conduct comprehensive logging of the well and make a decision on production testing.
First half results were in line with expectations and the company wrote off exploration expenditure of US$17.5m. Morgans maintains an Add rating and raises the target to $0.14 from $0.10.
Sector: Energy.
Target price is $0.14.Current Price is $0.07. Difference: $0.07 – (brackets indicate current price is over target). If OEL meets the Morgans target it will return approximately 50% (excluding dividends, fees and charges – negative figures indicate an expected loss).
