Beach Energy Ltd

BPT Details
· Exploration prospects with 14 planned wells: Beach Energy Ltd (ASX: BPT) stock rose over 7.14% on November 16, 2016 driven by the oil prices rally on a possible OPEC deal on oil production cut. On the other hand, the group average realized oil price fell 52% in fiscal year of 2016 from the highs of FY14.  However, BPT responded strongly to these challenges and positioned themselves to address this volatility. Moreover there was a demerger of Drillsearch, completion of an organizational design review and implementation of changes to the operating model. Accordingly, the group delivered operational excellence and strong financial performance in FY 16. Additionally, BPT continued to invest in their core business.  BPT has an active operated exploration program in the Western Flank, and has announced two oil discoveries from the first two exploration wells.  BPT is also undertaking major infrastructure development projects to optimize the production capacity and continuing to focus on operating efficiencies.  In addition, of the 14 wells currently planned, nine are exploration wells. Meanwhile, BPT stock has risen 38.74% in the last three months as on November 15, 2016.

· Recommendation: We give a “Buy” recommendation on the stock at the current price of – $ 0.82
 

FY16 Production (Source: Company Reports) 

Oil Search Ltd

OSH Details
· Drilling Update in October 2016: Oil Search Ltd (ASX: OSH) stock rose 3.35% on November 16, 2016 at the back of recovering oil prices. OSH in October 2016 side-tracked the Strickland well in an 8-1/2” hole and the well reached a depth of 3,377 metres in the Ieru formation. Moreover, the mobilization and rigging-up of Rig HA 115 at the Antelope 7 appraisal well site was finished and the well was spudded in November. OSH has plans to drill through the Orubadi Shale formation to test for presence of the primary Antelope reservoir, at a planned total depth of over 2,300 meters. The drilling to this depth is expected to take over 60 days. Meanwhile, OSH stock has fallen 7.3% in the last four weeks as on November 15, 2016.

· Recommendation: We give a “Buy” recommendation on the stock at the current price of – $ 6.79

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