Interra Resources

Interra Resources: CIMB has an unrated note. Notes Interra’s share price has quadrupled ytd, fueled by its exposure to Myanmar, possible significant oil & gas discoveries in Myanmar and the potential of its exploratory block in Indonesia. Highlights, Interra is not a binary event company. Says it is a balanced E&P producer, i.e. it has producing assets and exploratory ones too. The co has been profitable for the past five years, has no borrowings and has funded its growth via internal resources and cash calls. Believes that following the recent oversubscribed rights issue, the co has enough cash to fund its CY13 requirements barring significant discoveries. Benchmarked at 11.6x CY13 EV/EBITDA (historical average of closest peer RH Petrogas), the house estimates Interra could be worth $0.441.