RE: RE: RE: 70,000 $/boepd with 22% oil & liquids Some posters here sure lack math skills
From integral report:
Our 2013 cash flow forecast of $1.23 per share ($75.8 million) is predicated on a US$86.50/bbl WTI price assumption and results in a cash positive position after funding an assumed $50.0 million capital spending program. With WTI currently over US$95.00/bbl, there also appears to be upside in our cash flow forecast.
Our maintained $3.50 12-month target price is based on 2013 cash flow alone and implies a 2.8X EV/DACF target cash flow multiple. We continue to be comfortable with that target price based on successful drilling to date and development locations added, appreciable upside on the liquids-rich natural gas side in the event of future upward Henry Hub gas prices movement, and the fact that we are not allocating net present
value of future development drilling to our target price. With that, we believe Manitok is a very good buy and is likely to outperform its peer group based on the characteristics of its prospect inventory in the Alberta foothills disturbed belt. As a result,
we maintain our $3.50 12-month target price and reiterate our BUY recommendation.