Fox-Davies Capital issued a note on San Leon Energy PLC (AIM: SLE) in the wake of the company’s announcement yesterday of a commercial gas discovery at the first well drilled at Palo Pinto gas field in Texas.
The broker reiterated its ‘buy’ stance and sticks to its 60 pence price target, which it said represents a 161 percent upside to San Leon’s last closing price.
FD Capital called the discovery at the Nichols-1 well, the first of four to be drilled there, “a very positive development for the company, albeit a smaller discovery in relation to the potential of other parts of the portfolio that will be tested in the next 12-18 months”.
It estimates net mean prospective resources of 35MMboe for the whole of the San Leon’s portfolio.www.proactiveinvestors.co.uk
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