Sum up
For the one who miss it. UBS just turn negative on BNK. Just read below its comment. Good sum up. Now all analysts are negative on BNK except TD (the only one positive). But they had been dead wrong in the past....
Bankers Petroleum (C$5.00 from C$7.00) - Block F Disappoints (George Toriola)
The result of the first exploration well on Block F points to significant remaining risks with the petroleum system, particularly around the timing and migration of reservoir fluids. Bankers reported that the Ardenica structural prospect did not encounter any hydrocarbon shows to merit testing of any of the porous intervals encountered. The well has been cased and suspended. Successful natural gas exploration on Block F is, in our opinion, critical to the commercialization of the ongoing thermal pilot. While the company expects to drill another exploration well on Block F in Q4-12, we see now see greater risk associated with the thermal program, irrespective of the outcome of the pilot program. We do not currently attribute any value to the company’s thermal program as we currently have limited visibility into the economics of the project. As we look further out in 2012, we see a limited number of catalysts beyond the company’s leverage to Brent crude oil pricing. We expect slow production growth, with very limited reserve growth potential, outside price driven growth. We have lowered our price target on the back of our revised expectations for production growth, and our increased future development capital estimates associated with the booked reserves. Our NAV analysis uses a 10% recovery factor, 12% discount rate and long-term Brent US$95/bbl.