GMP Flash PTA Update
Reserves and production in line, expect 7–11 wells to be drilled in 2013
Impact: Positive – production continuing to ramp up
• Production continues to increase, in line with our estimates for Q1/13. • Netbacks should also be improving with the addition of the production facility, increasing cash flow into the next 3 quarters.
Recommendation: Maintain BUY rating and $0.50 target price
• PTA is looking to drill and test another 7 wells through 2013, including 5 exploration wells and 2 appraisal wells. This could be expanded up to 11 wells in total for the year, based on upcoming results.
• Given the amount of upcoming exploration and appraisal, PTA could potentially have another year of reserve growth set up. As we have stated in previous notes, 2013 could be an exciting year for the company, given the growth prospects ahead.