Raymond james RJ put out a new target on PEC today .15c here are the analyst comments below.
Under a blue-sky scenario, Alcobaça-1 could undoubtedly be transformational
for Porto, with independently certified gross prospective resources in the order
of 588 Bcf, or 294 Bcf net to Porto’s 50% interest (recall that the well is being
drilled under a joint venture with Galp). And indeed, from our perspective,
Monday’s update contained a couple of modestly encouraging preliminary
observations; namely, i) a thicker-than-expected salt section (which may
increase the likelihood of an effective seal for the targeted pre-salt four-way
closure), and ii) elevated gas reading once the well drilled out of the salt.
However, the risks that remain are considerable, including the geological risks
inherent to frontier exploration (in a country, we might add, with very limited
past exploration success); the regulatory risks impacting the probability of a
commercial discovery; and a significant financing risk. Even though Porto is
being carried on 50% of the Alcobaça-1 well (estimated at $7 mln gross), we
anticipate Porto will require external funding after the end of calendar 2012.