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DJ Focus on Quality Among Aussie Energy Stocks, Says WilsonHTM -- Market Talk

0058 GMT (Dow Jones) WilsonHTM says investors should opt for energy companies
with low production costs, robust operating cashflows, manageable capex programs
and low debt levels until oil prices recover. For that recovery to happen, there
needs either to be a material supply reduction by non-Opec countries such as the
U.S. and Russia, or Opec itself, the broker says. Opec's next meeting is due to
take place in June. WilsonHTM has lowered its 2015 Brent oil forecast by 31% to
an average US$59/bbl, and its 2016 forecast by 20% to US$70/bbl. That has helped
to trigger downgrades to Horizon Oil (HZN.AU) to sell from hold, Strike Energy
(STX.AU) to hold from buy, and Sundance Energy (SEA.AU) to hold from buy. The
broker's top buy-rated energy exposures are Drillsearch Energy (DLS.AU), Beach
Energy (BPT.AU) and Karoon Gas (KAR.AU).

Editor: KLH


(END) Dow Jones Newswires