"Tap Oil has been caught in the down draught of recent disappointments with other explorers and just plain 'noise'. We find this unjustified especially with Tap's exploration track record, which has added significant value," Deutsche said in a report.

"We believe the upcoming 19 well program could deliver value up to 80 cents per share (if successful) when drilling commences in mid-July.

"Add to this an earnings per share growth profile that is the envy of the sector, we reiterate our Buy rating."

Deutsche said its fundamental valuation of Tap remains unchanged at $1.52 but this does not include exploration potential. It said the upside from the upcoming high impact wells is assessed at 81 cps unrisked and 14 cps risked.

"Adding other well leads to our price target of $1.80," Deutsche said. Currently, the stock is trading at $1.50.