Mart Resources Inc MAUXF

Curmark launches coverage on Mart $2.50 target

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Mart Resources Inc. (MMT - TSXV)
Compelling On Any Metric; Mart Reaps Benefits Of Umusadege Field Performance - Friday, July 13, 2012
We are initiating coverage on Mart with a Buy rating and $2.50 target price. Mart provides investors with unique exposure to an established crude oil field onshore Nigeria that has enjoyed considerable operational success and is expected to drive low-risk production, cash flow and reserves growth for the Company through 2012 and 2013. Strong pricing and attractive fiscal terms combined with increased pipeline egress from the Umusadege field is expected to result in significant free cash flow for the Company through 2013, further strengthening an already strong balance sheet and supporting a very attractive
.20 annual dividend. With one of the most experienced management teams operating in Nigeria and a marginal field bid round expected later this year, the Company is also well-positioned to add additional value-creation opportunities in the country in the near term. As wells into the Umusadege field can test at significant rates (more than 11,000 B/d of light crude), the Company’s relatively active drilling program this year is expected to provide investors with several potential catalysts. Mart currently boasts some of the most attractive valuation metrics among any companies in our universe and represents an attractive, low-risk addition to any international portfolio. (Research Comments)