Morgans est CTP 21c, page-3

This seems to offer a good summary of the Morgans paper.

https://finfeed.com/opinion/speculate/morgans-sees-60-upside-central-petroleum/

Morgans sees 60% upside inCentral PetroleumBy Trevor Hoey.Published at Mar 20, 2019, in Trev's Stock Tips

Identifies Central Petroleum Ltd (ASX:CTP) as an oil and gasexplorer and conventional producer with a focus on supplying the Australiandomestic gas market.

Largest onshore gas producer in the Northern Territory as operator of,Mereenie, Palm Valley and Dingo.

In position to pursue reserve growth programs across package of provenand prospective oil and gas acreage.

The NGP was required to link to the east coast. The pipeline wascompleted on time, and Central is now supplying gas to lucrative east coastmarkets.

It could be argued that the group’s progress and its future prospectsaren’t captured in the company’s share price.

Morgans resources analyst, Adrian Prendergast, initiated coverage,placing an add recommendation on CTP with a target price of 21 cents.

Expects the company to deliver a net profit of $24.3 million in fiscal2020, representing earnings per share of 3.4 cents.

This places the group on an attractive PE multiple of 3.8 relative toits current share price of 13 cents.

There is the potential for Central Petroleum to increase its east coastsales with Prendergast saying that the NGP has current capacity of 90terajoules per day, but could be expanded to 160 terajoules per day withoutcompression.

While the company doesn’t have the capacity to meet added demand atpresent, it has nearly 230,000 square kilometres of gas prone ground in theNorthern Territory including the Dukas prospect which is under a free carryagreement with Santos (ASX:STO) as the operator.

Central Petroleum has a 30% stake in this project, and explorationsuccess at Dukas could be a game changer.

Given the company’s revenue predictability, near-term profitability andhighly prospective assets with access to lucrative markets, its share price of13 cents, implying a market capitalisation of $92 million seems inconsistentwith the group’s investment profile.

Prendergast’s price target of 21 cents per share implies upside ofapproximately 60%, and it wouldn’t be surprising to see the company push uptowards this level as it transitions to profitability in fiscal 2020.