Interra Resources

Interra Resources: The hype on its Myanmar operations might prove to be overplayed on the release of Group's FY12 results. FY12 revenues increased 22% to US$30.4m, earnings declined 66% to US$3m. Increase in revenues were largely driven by volumes due to higher contribution from Myanmar and West Papua (Indonesia) productions, which increased 21% to 363.7k barrels. The decline in earnings were due to the absence of a one-off revaluation gain of US$7.7m in FY11. Group notes that production is expected to increase in 1Q13, with the completion of a new well in Indonesia, and the contribution of its Myanmar production will still continue to be a significant part of the Group's revenues. Group trades at 47x P/E, P/B of 2.4x