Angle Energy Inc ANGZF

RE: 3 Reasons to Buy NGL

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And here's CIBC's report released this morning. They maintain their Sector Outperform rating and $8.00 target. GLTA

 

 

Angle Energy Inc.

Q1/12 In Line; Taking Up Production Estimates Given Solid Current Volumes

? Production of 15,066 Boe/d was in line with our 15,000 Boe/d estimate. Of note, oil and C5+ production increased 42% over the quarter to just under 3,000 Bbls/d. Q1/12 CFPS was
.28, a bit below our
.30 estimate. The variance was due to higher royalties and G&A.

? NGL had an active quarter in Harmattan drilling 12.6 of its 16 net wells in Q1/12 in this area. The focus was on Cardium light oil and Manville condensate plays given depressed natural gas prices, and we expect all future capital in 2012 to be directed towards these two plays.

? We believe NGL is on track to achieve the higher end of its 15,500-16,000 Boe/d guidance given current volumes of 15,600 Boe/d. As a result, we have increased our 2012 production forecast to 16,000 Boe/d and our 2013 estimate to 17,300 Boe/d.

? We believe the latest Cardium results at Harmattan continue to impress and believe that the company can materially increase its liquids weighting if the positive trend of oil results continues. As a result, we believe the market will start to recognize the oil growth with a better valuation. Maintain SO rating.