SEB UpdateLatest SEB report this morning: Prices in SEK. Raised 6 month target to 111 SEK or 18 CAD if ALL other Lokichar prospects are successful;
"Tullow Oil and Africa Oil report another discovery in the Lokichar basin, making 5 Successes on 5 wells The Agete-1 well targeted a prospect with pre- drill most likely resources of 276mb grossnet oil pay is Estimated as 100m, Which will be further verified with drill stem tested next year. We have spoken to CEO Keith Hill, who says thatthis is 33% more than the pre-drill estimate. He overpriced described the reservoir quality as "really good - might be the best we've seen so far" No final view yet on Whether it is part of a mega-field connected to the nearby Twiga South discovery, so we Assume note at this Stage prospect If resources are upgraded by 33%, then the value to Africa Oil of the discovery would be 17/share after capital gains and government back-in We carry a risked value of 6.6 for Agete in our 81 target This means That the discovery is set to add 10.4/share to our target price CONCLUSION Agete outcome better than expected. Large field by any standard.Affectionate Recent share movement, we'd expect today's news to add 5/share. 100% exploration success In Lokichar is exceptional., If all other Lokichar prospects are successful, we'd ask Adding a further 30 to our target in next 6 months. Further upside on top of That if They find oil in any other of the 8 other basins to be explored Agete The rig will now move on to drill the flank prospect Ewoi, with 317mb gross prospect resources. News end January. Q3 report now scheduled for release after Stockholm close today, but we do not expect any other share price sensitive news in That . News on Amosing-1, Tultule-1, Bahasi-1, El Kuran-3, Etuko test and Ekales test all expected before year end."