RECAP Saturday...Best GOLONGCenkos analyst Ashley Kelty points out that the A1 flows exceeded previous tests on the field, and that the well was completed on budget. The well result is hugely positive, he says, explaining that Ithaca’s achievements are ‘arguably rare’ in the sector.
“This is an important development milestone, and we are greatly encouraged by the result and timing of the well, with the resultant look-through to the performance of the full field from 2014,” the analyst said in a note.
He adds: “In our view, Ithaca offers an attractive entry point to the E&P sector as a cash generative company with material production, low risk developments and exploration upside from multiple prospects.
“With the positive news on the transformational GSA development highlighting the significant value for Ithaca to be realised from 2014, we believe that the negative sentiment towards the sector is due to end, and anticipate that Ithaca shares may appreciate to a level in line with peers.”