RE:RE:Target RaisedHere is the other side. A $1.50 target and given how well oil prices have behaved and that PXL's High Volume Lift methodology still appears going strong it will also be nice to get the next reserves update.
Palliser Oil & Gas trades "substantially below" 2012 1P reserves, says analyst
Fri 9:44 am by Deborah Bacal
The company, which focuses on heavy oil and natural gas in Alberta and Saskatchewan, spent $8.7 million in the quarter, which saw 10 producing wells and one injector put online toward the end of the period. () had its buy rating and $1.50 target price maintained at Casimir Capital on Friday morning, after reporting first quarter production in line with its prior update, recently seeing some "significant improvements", the brokerage said.
First quarter average output of 2,215 barrels of oil equivalent per day (boed) was in line with Casimir's expectations and with the previous guidance of 2,200 boed.
The company, which focuses on heavy oil and natural gas in Alberta and Saskatchewan, spent $8.7 million in the quarter, which saw 10 producing wells and one injector put online toward the end of the period.
Casimir analyst Ryan Galloway said in his note that this helped to "substantially increase" rates for the second quarter, with current flow rates estimated to be near 2,600 boed.
Palliser also maintained its full year average production outlook for between 2,700 to 2,800 boed.
Along with the production figures, Palliser also released quarterly financial results late Thursday, with funds flow from operations impacted by wide heavy differentials between WTI and WCS and higher maintenance operating costs.
For pricing, Palliser saw $51.04/boe compared to $58.18/boe in the fourth quarter of last year.
Galloway says, however, that he expects the differentials should narrow to more normal ranges of low $20s/boe in the second quarter, and realized prizing above $63 per barrel.
Operating expenses of $29.89/boe, up from $22.96 in the last quarter of 2012, occurred as anticipated due to higher winter operating costs and maintenance work in preparation for the spring break-up period.
Palliser exited the quarter with $41.7 million in net debt, and said it expects to fund the remaining $15.3 million in capex for its program from the $52 million bank line, on which it has not yet drawn $10.3 million, as well as cash flow from production.
Galloway maintained his $1.50 price target - well above the 48 cent closing price on Thursday - as he said the company currently trades "substantially below" booked 2012 proven reserves, less current net debt.