PEN’s Q2 numbers were largely as expected, and we make few near-term estimate changes. Hibiscus and Mupale could be continuous structures, and if confirmed by one or two appraisal wells, their combined gross reserves could grow from 45 to 155 mmbbl. The company is also making progress on its Tunisian assets and have several well workovers lined up for the second half of the year. With >60% upside to core NAV and firm triggers ahead, the risk/reward is attractive.
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All set for growth
PEN’s Q2 numbers were largely as expected, and we make few near-term estimate changes. Hibiscus and Mupale could be continuous structures, and if confirmed by one or two appraisal wells, their combined gross reserves could grow from 45 to 155 mmbbl. The company is also making progress on its Tunisian assets and have several well workovers lined up for the second half of the year. With >60% upside to core NAV and firm triggers ahead, the risk/reward is attractive.