"This remote exploration, far from any market or infrastructure, is similar in context to that undertaken in offshore Mauritania," Carmichael said it in weekly report.

Drilling of a frontier well in a water depth of 1.8km is scheduled for the middle of next year. "In this remote and hostile environment, only oil will be considered commercial since it can be produced to a floating facility," the brokerage house said.

"For example, a 200 million barrel discovery would be worth about $500 million or 75 cents per share, but any encouragement in this frontier zone could open up a new and exciting, though high cost hydrocarbon province."

DJ Carmichael also recommends Pan Pacific Petroleum as it's high impact, four well program has the potential to add over $2 per share to its net present value.

"Drilling kicks off in December with Tauton and Immortelle, operated by Apache," Carmichael said. "The main game in January or February will be the drilling of Tui, subject to rig availability, prior to March. Success here could be worth as much as $2.20 per share."

The program will be completed by drilling a 50 mmbbl target at Montgomery, west of Barrow Island in February or March next year.