Today new fresh report!From Auctus Advisors (London)
Share price: £0.13
March 30, 2022 Target: £0.30
The Independent NPV estimate of the YE21 2P reserves represents ~2x the current EV
• The YE21 1P, 2P and 3P reserves have increased (compared to YE20) by respectively 4.1% to 3 mmboe, 5.5% to 7.4 mmboe and 10.1% to 11.5 mmboe.
• The after tax NPV10 of the 1P reserves stands at ~US$25 mm in line with the current EV of the company. • The after tax NPV10 of the 2P reserves has been estimated at US$59 mm, which represents ~2x the current EV.
• The NPV10 estimates are based on conservative Brent price assumptions of only US$74.5/bbl in 2022, US$72/bbl in 2023, US$69.5/bbl in 2024 and US$71-76/bbl in 2025-2028. • We re-iterate our target price of £0.30 per share.
• At the current share price we forecast that at US$100/bbl Brent, the company’s net cash would 40% above the current market cap by YE23.
Rob