Sound Energy PLC (LON:SOU) has been on a bit of rampage of late - with the stock up than 300% in the last three months on the back of drilling success in Morocco.
Its first well on the Tendara Block proved the area was host to “commercially significant” accumulations of gas.
Drilling on a second well got underway on August 26 and since then the trading volumes have been remarkably strong.
Certainly there has been plenty of chatter on the bulletin board as to the potential of Tendara, which has fuelled the excitement.
But the noise level was ramped up a notch Tuesday by well-followed small-cap blogger, Brokermandaniel.
He has made some fairly punchy (and one must say hugely positive) assertions about the size of Sounds Morocco discovery.
BLOG: Read Brokermandaniel’s post in full here
IN DEPTH: Sound Energy kicks off second Morocco well
At 11.45am, shares in Sound - which recently joined junior elite AIM 50 index - were changing hands for 69.40p, up almost 2%. That values the business at £376mln.
This time last year the stock was worth just 16p per share.
finnCap analyst Dougie Youngson said the shares were worth 104p each as he repeated his ‘buy’ call on the stock.
Cantor Fitzgerald’s Sam Wahab also said ‘buy’, but his ceiling is 101p.
“An extended well test will follow the drilling operations, and therefore provide further support for the long-term commerciality of the field in our view,” Wahab said in a recent note.
“The shares have continued their strong rally following encouraging results at the company’s last well, but we believe the current valuation remains undemanding ahead of two transformational wells.”