Singapore Stock Market News

RH Petrogas - Better Luck Next Time!

StockFanatic
Publish date: Thu, 30 Jan 2014, 01:36 PM
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RHP reported that non-commercial quantities of oil were found in the Klagalo-1 exploration well. As we do not ascribe much value to exploration assets, our TP is adjusted to SGD1.37 (from SGD1.38). Operationally, there is little impact as the well only costs RHP USD3m. The stock trades well below the asset liquidation value of SGD1.03/share.

Near-term catalysts are asset acquisitions and the approval of the Fuyu-1 field in China. Maintain BUY.
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