HARTLEYS RESEARCH REPORT
Hartleys initiate coverage of UIL Energy Limited (UIL) with a Speculative Buy recommendation. UIL holds a significant acreage position (circa 500,000 net acres) in the north and central Perth Basin. With an EV of only A$5m, UIL should benefit from recent exploration success (AWE) in the northern Perth Basin, but is also leveraged to the significant work program that recently began in the central part of the basin by the likes of Transerv Energy (TSV) and Empire Oil and Gas (EGO).
Hartleys believe that renewed interest in the Perth Basin combined with a $6m mkt cap and ongoing drilling activity, provide a platform for significant share price appreciation. UIL’s high equity holding in each of its tenements also provides the potential to find a farm-in partner.