research comments
Wednesday, May 13, 2015
LGX Oil + Gas Inc. (OIL) Announces First Quarter 2015 Results
In a very quiet quarter of operations that saw the Company only spend $0.7 mm, LGX reported results largely in line with our thinking, albeit framing production and cash flow that retreated from levels in the prior quarter. While there are no meaningful changes to our proforma estimates to alter our current target price of $0.05 per share as a result of this update, the reaffirmation of our Underperform ranking contemplates the real possibility of not being able to meet the financial obligations of its credit facilities and drilling commitments on the Blood Reserve.