commsec research wrap, page-24

UBS 04-Feb-14 Buy

The company has announced an 82% increase in 1P reserves. This is primarily because of downspacing, the Austin Chalk potential and a minor input potential from Pearsall.

UBS already incorporates a large increase so this brings valuation into line with current assumptions. There remains scope for small incremental increases, in the broker's view.

The Buy rating and $3.70 price target are retained.