Total has announced the successful appraisal of the Shwe Yee Htun-2 well in Myanmar. The well-intersected 40m of net pay and a high-quality reservoir. Macquarie expects these initial results to provide upside to the existing resource base in Woodside’s 2018 result.
The broker values the current resource at around US$150m (unrisked) with a 5% risking because of early stage exploration. Neutral maintained. Target is $35.40.
Target price is $35.40.Current Price is $37.99. Difference: ($2.59) – (brackets indicate current price is over target). If WPL meets the Macquarie target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).