RH Petrogas

UOBKayhian on 21 Feb 2014

FY14F PE (x): 48.8
FY15F PE (x): 23.3

Finds success in its offshore drilling. RH Petrogas (RHP) announced yesterday that it
has completed testing its Koi-2 appraisal well in the Salawati Kepala Burung Production
Sharing Contract (Island PSC). Recall that the well successfully reached its total vertical
depth of 1,428 meters on 30 Dec 13 and drill stem tests were conducted following log
analysis. Post-drill evaluation confirms that the Koi structure holds an estimated
4mmboe (net to RHP).

Maintain BUY with target price of S$1.50 based on NPV and risking model. Our
valuation is based on the NPV of the company’s current production/near-production
fields, plus risked estimates of its 2C resources and prospective resources, less net debt
adjusted for its committed capex and new funds raised from its recent private placement
exercise.