DJ Carmichael said it believes at 80c, Australian Worldwide Exploration is an excellent buying opportunity. "Perth and Otway Basin production alone produces a valuation of 95c-$1 per share," Carmichael said. "Exploration interests and Cliff Head adds 80c to our valuation, taking fair value to between $1.65 and $2 per share." Carmichael added exploration in the Carnarvon Basin and Taranaki Basin in April and July would contribute up to $1.50 per share.

With Australia pulling out all stops to secure the lucrative Chinese LNG contract, Carmichaels recommends Woodside Petroleum as a "buy". It said it believes Woodside or the ALNG consortium will offer Chinese customers equity in the project in return for long term contracts to supply LNG.

A Chinese deal will underwrite the construction of fifth LNG Train since stage four is already sold, Carmichael said.