Woodside Petroleum (WPL) Update

Submitted by Craig Strzelecki on 5 March, 2007 - 19:02

Woodside Petroleum (WPL) have a Buy 1 share trading recommendation and a price target of $43.82 per share from stock analyst UBS. UBS released some observations post 2006 results released by the energy company. The North West Shelf Project is world class with the new big bore Perseus (North Rankin flank) wells are producing up to around 350 mmcfd each. These are the most productive gas wells we have ever seen, and certainly stand out on a global basis. After completion of LNG train 5 by 4Q08 (or earlier), NWS LNG production capacity will be around 16.3 mmtpa. The Enfield drilling and work over program begins in April 2007. From 4 to 7 wells are expected to be drilled into the Enfield reservoir and we think this work will deliver a production boost, and possibly even a future reserves upgrade, particularly after the major 42% reserves downgrade taken by WPL at the 2P level. The analyst forecasts that Woodside Petroleum oil production could grow by 24% in 2007 and 62% in 2008. They also expect LNG production to grow by 25% by 2009 (pre Pluto). WPL's total production has potential to reach more than 100 mmboe by 2009 (2006 WPL production 67.9 mmboe). The analyst's NAV is based on a DCF (10% nominal discount rate) of WPL forecast cash flow over the 2P reserve life of producing assets and all committed and highly probable projects. Their share price target is A$43.82 and is based on our NAV, significant contingent resources and potential exploration upside.

Woodside Petroleum Limited is listed on the Australian Stock Exchange (ASX) under stock code WPL. You can view their investor website here. WPL was listed on the ASX on 18 November, 1971. Don Voelte is the CEO of Woodside (WPL). The principal activity of WPL is the Management and operation of hydrocarbon exploration, development, production, transportation and marketing; implementation and operation of the North West Shelf Gas Project; exploration and development of gas, oil and condensate reserves. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!