Multiple UpgradesNot sure why the SP closed down other than the fact that it was a negative day in the energy sector. But as can be seen, the reaction to the sale was very positive with almost everyone raising their targets. They now range from a low of $6.00 (RBC who just raised from $5.00) to $9.50 (Raymond James). GLTA
Trilogy Energy Corp. (TET-T) said it plans to sell 11 net sections of its Duvernay mineral rights for $85 million (U.S.)
As part of the sale, the Calgary-based oil and gas company said it will also swap 5.25 net sections of undeveloped lands in the same play, for an equivalent number of sections.
After the sale, expected to close at the end of the month, Trilogy said it will still hold "a substantial land position" in the Kaybob area Duvernay play, or about 190 sections of land (121,600 acres) in areas prospective for shale development.
The company said its borrowing base will be drop to $450 million from $538 million, and the $125 million development facility will be eliminated. When the sale is done, and taking into consideration a reduction in capital spending, the company said it expects to have a draw of about $270 million on its $450 million lending facility as of Dec. 31, 2015.
Trilogy Energy Corp (
TET-T) was raised to "buy" from "neutral" at Dundee by equity analyst Chad Ellison. The 12-month target price is $6.25 (Canadian) per share. It was raised to "outperform" from "market perform" at Raymond James by equity analyst Kurt Molnar with a 12-month target price of $9.50 per share.
| GMP Securities |
Upgrade |
Trilogy Energy Corp (TET) |
Reduce -> Hold |
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| CIBC |
Boost Price Target |
Trilogy Energy Corp (TET) |
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C$5.75 -> C$6.50 |
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| Scotiabank |
Boost Price Target |
Trilogy Energy Corp (TET) |
Sector Perform |
C$6.50 -> C$7.00 |
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