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Jennings Capital Reiterates Buy Recommendation on Rock Energy - Video Summary on www.investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - March 27, 2013) - Jennings Capital has reiterat...
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[{"type":"text","content":"\nJennings Capital Reiterates Buy Recommendation on Rock Energy - Video Summary on www.investmentpitch.com\n\nVancouver, British Columbia--(Newsfile Corp. - March 27, 2013) - Jennings Capital \nhas reiterated its buy recommendation on Rock Energy (TSX: RE), a Calgary-based \ncrude oil exploration, development and production company. Analyst James Humen \ngives the company a 12-month target price of $1.80, up from the previous target \nprice of $1.60, and a 30% premium to the $1.38 price the day the report was \nissued. \nInvestmentPitch.com has produced a \"video news alert\" which provides a brief overview of \nRock Energy based on the research report. If this link is not enabled, please \nvisit www.InvestmentPitch.com and enter \"Rock Energy\" in the search box. \n\n\nIf you cannot view the video above, please visit:\nhttp://www.investmentpitch.com/video/0_yy0iu6nm/Jennings-Capital-reiterates-its-buy-recommendation-on-Rock-Energy-TSX-RE\nDuring 2012, Rock took the steps needed to transition itself \nfrom a company with a foundation of heavy oil production and a natural gas \nresource play requiring significant capital, to one entirely focused on oil \nplays in the Plains and Southwest Saskatchewan regions. \nTo prosper in Central Alberta and Saskatchewan, a company like \nRock Energy needs to focus on projects within its means and that generate early \nsignificant cash flow.\nThe company's production currently exceeds 3,000 barrels of oil \nequivalent per day, led by strong drilling results at their new discovery at \nMantario, where the company has developed a producing property that is currently \nproducing in excess of 1,800 barrels of oil equivalent per day. Mantario has \nbecome the company's flagship property for reserve growth and production \nadditions. Management indicates that a full strategy at Mantario is likely to \nconsist of approximately 30 locations at 20 acre well spacing. \nAt Onward, the company is allocating $2 million for a \nwaterflood project. \nRock Energy plans to complete the installation of high volume \nlift facilities at Lloydminster, and has expanded its drilling inventory to over \n60 locations. \nThe company has 500 barrels of oil per day hedged until \nSeptember 30, 2013, at a price higher than $73 per barrel. Through the use of \nrail transport, the company is able to ship crude directly to r...