commsec research wrap

Out today - from CommSec Research Wrap

GUIDANCE FOR SIGNIFICANT PRODUCTION GROWTH

Aurora provided FY14 guidance. While in line with expectations, it highlights significant forecast production growth and follows the very positive December update from Marathon (MRO), operator of Aurora’s acreage, highlighting further upside potential.

We retain Overweight and $4.20ps price target (12 months)
We believe management can unlock material upside on downspacing to below 60 acres along with improvements in drilling,fraccing and production. We see this driving reserves growth over the next 12 months, serving as further positive catalysts.