ProActiveInvestors UK
Views from the Trading Floor 29th March 2012
Saints & Sinners: Oil & Gas
San Leon Energy (LON:SLE) pushed 5% higher to 11p during early trading on decent volume after the company noted this morning’s announcement from Longreach Oil & Gas Ltd (Longreach), updating on the independently evaluated resource estimates for the Foum Draa and Sidi Moussa licences, offshore Morocco, by Netherland, Sewell & Associates Inc. San Leon owns a 42.5% net operated interest in these licences. The study showed best estimate gross unrisked prospective resources of 2138.8MMbbl, or million barrels of oil, and 1008.5Bcf, or billion cubic feet, of gas. Low estimate of 751.7MMbbl of oil, 302.9 Bcf of gas. High estimate of 6105.3MMbbl of oil 3145.3Bcf of gas. Shares are currently sat on the 10p support line, as a company we (FoxDavies) are very bullish on San Leon, and believe the shares look undervalued at these levels and currently have a BUY recommendation along with a 60p price target.
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