Canaccord Buy $5 target From Dave Pescod over at Canaccord today:
...."" we noted that Equal had
12.5 net sections of land in the Lochend Cardium whereas
TriOil now has 70 net section of Lochend Cardium rights.
Canaccord’s Brian Kristjansen writes, “Of TriOil’s last
stated production of 2,500 BOE/d, approximately 1,000 BOE/d
was being produced in Lochend. Translating the Equal sale
metrics across a range of land values and producing BOE
metrics, nets an estimated range of $2.25 to $3.07 per share in
Lochend value to TriOil. Ascribing a conservative $400/acre
metric and the associated producing BOE metrics (see following
page) to the company’s 1,500 BOE/d of ex-Lochend production
nets an estimated total corporate value of between
$4.33 to $4.62 per share.”
He continues, “The Equal Energy sale metrics reinforce
our valuation of TriOil and serve to highlight the conservatism
of current risked upside estimates. We are reiterating
our BUY recommendation on TriOil and consider the company
to be one of our top junior picks. Our 12-month C$5.00
target remains based on a 5.0x 2013E EV/DACF multiple
supplemented by $0.42 of risked Cardium upside potential.” ""