15 November 2007 Medco Energi (MEDC IJ / MEDC.JK, OUTPERFORM - Maintained, RP5,550 - Target: Rp6,625) Company update - Still all about Area 47, Libya by Robert ADAIR
Medco recently announced disappointing 9M07 results, with poor production from its Indonesian oil & gas assets. It seems clear tthe company will see a dip in overall FY07 production volumes, and we have made 11-14% downward revisions to FY07-09 volume assumptions. Together with higher cost assumptions, this results in a 16-25% reduction in FY07-09 EPS. However, continued outperformance by Medco's share price shows that investor attention is focused on Area 47, Libya. This has the potential to be a 1 billion barrel find, and could double Medco's current 2P reserves. Independant certification of the first five exploration wells in Area 47 is expected by year-end and remains a powerful near-term catalyst. Maintain Outperform but with a reduced DCF-based target price of Rp6,625 (Rp7,175 previously). Full Report [ Click here ] or the URL below http://www.gohdirect.com/NASApp/spaf/econtent/ind/MedcoEnergi-IND-151107.pdf To view these reports, you need to have Adobe's Acrobat Reader. To download a free reader, click here. PS: if you wish to Opt-Out or Change your Mailing Details, please send an email message to [EMAIL PROTECTED] Otherwise call your respective Salesperson. [ The contents of this e-mail may be confidential. Do not disclose, copy or distribute it if you are not the intended recipient. It may also be unlawful to do so. This e-mail is sent without any implied warranty or representation as to the accuracy or completeness of its contents, or as to the authority of the sender to send it. Do not rely on its contents without written confirmation from a duly authorised employee of CIMB. Please notify [EMAIL PROTECTED] if you have received this message in error. ] Disclaimer: This email may contain privileged and/or confidential information intended only for the use of the addressee. If you are not the addressee, or the person responsible for delivering it to the addressee, you may not use, copy or deliver this to anyone else. If you receive this email by mistake, please immediately notify us. Opinions contained herein may be the personal opinion of the sender and do not necessarily represent the views of the Company. If you are in any doubt as to whether the opinions are officially endorsed by the Company, please contact our Compliance Dept at (+65) 6225 1228 for clarification. --------------------------------- Never miss a thing. Make Yahoo your homepage.
