We retain our buy recommendation and note that Premier is one of our top picks in the sector. The next news is expected to be from the Bentang well in Indonesia (which is a high-risk potential play opener). The next well in the North Sea programme is Coaster which is seen as high risk.
SANJEEV BAHL NUMIS
We see a small risk of volumes being slightly lower than pre-drill estimates due to a shallower than expected oil water contact. However, this may be offset by the excellent porosity. Buy.
ANDREW WHITTOCK LIBERUM CAPITAL
This is a significant and low risk find as it raises the chances of finding other oil nearby. We estimated the Carnaby prospect to have 60m barrels of oil.
Investors have given the news a warm reaction and we raised our target price by 10pc as a result of the announcement.