Borders & Southern Petroleum initiated with "buy"

05/20/08 - Panmure Gordon & Co

LONDON, May 20 (newratings.com) - Analyst Finlay Thomson of Panmure Gordon initiates coverage of Borders & Southern Petroleum (B5T) with a "buy" rating. The 12-month target price is set to 151p.

In a research note published this morning, the analyst mentions that a growing number of players are becoming interested in the Falkland Islands, indicating the perceived potential of the area. An oil discovery of 500 million barrels is likely to be worth 960p per share or $7.5 billion for Borders & Southern Petroleum, the analyst says. The sentiment is expected to be extremely positive into 2009, with the company materializing its busy drilling schedule in 2H, Panmure Gordon adds. The company has a substantial acreage position and bright prospects, and there is upside to its share price over the next 12 months, the analyst opines.