This value was an assessment of prospects currently, but Roxi is in the process of further exploration and production testing and, potentially, the target price could rise to 70.5p if all of this work proves successful, said the broker.
Roxi has a 58.4% interest in the BNG Contract Area, which is located in the west of Kazakhstan 40km southeast of Tengiz on the edge of the Mangistau Oblast.
Tengiz is a 9bn barrel super giant field, Ireland notes, while Roxi’s licence area is massive at 1,702 sq km - equivalent to the area within the M25.
“We believe the geological backdrop that created successful exploration results so far is regionally extensive. We have included no value for exploration upside in our target price.”
“We have assumed the scale of the company’s two deep discoveries is limited to direct offset well locations relative to known successful wells.
“This implies that wells such as the upcoming deep appraisal well at Airshagyl have scope to materially increase our valuation.”
Ireland added: “The recently drilled deep A6 well’s design was improved in light of experience from the discovery well and the A6 well has potential to provide the first stabilised flow test.
Another deep well, 801, meanwhile is currently being cleaned up by natural production and pressure build up cycles which could also establish stabilised production in the near term.
"The de-risking from establishing stabilised flow at both of the company’s deep discoveries would increase our target price by 6.6 p/share."
Shares were trading at 7% higher at 11.2p.