Interra Resources

Interra Resources: DBSV starts on Interra with fair value of $0.57 and moderate risk return. Interra is an oil & gas proxy in Myanmar and Indonesia, with two producing fields in central Myanmar as well as two producing fields and one exploration site in Indonesia. Its wells produced close to 1m barrels of oil last year, and it currently has about 24.6m of 2P (proven + probable) reserves. Myanmar is the key earnings contributor, accounting for 86% of FY12 EBITDA. Interra has been in Myanmar since 1996, and is currently the largest onshore oil producer in Myanmar, commanding c.40% market share. Growth is expected to come from production ramp up, potential further upside from exploration assets and bids for new licences.