PI Financial Corp Initiates Coverage on Artek Exploration (TSX:RTK) with Buy Recommendation - Video Research Alert Posted on InvestmentPitch.com
(Thomson Reuters ONE) -
Vancouver, British Columbia, September 10, 2013 - PI Financial Corp. has
initiated coverage on Artek Exploration (TSX:RTK). Analyst Kuno Ryckborst gives
the company a buy recommendation, with a speculative risk rating, and a12-month
target of $4.50, a premium of 29% to the $3.48 price the day the report was
issued.
InvestmentPitch.com has produced a "video research alert" based on this report.
If this link is not enabled, please visit www.InvestmentPitch.com and enter
"Artek" in the search box.
Artek is a domestic junior oil and gas producer focused on de-risking several
prolific, liquid rich natural gas plays at its Inga/Fireweed property in
Northeast British Columbia.
The company has also identified one light oil resource play, plus six other
natural gas focused projects within the Peace River Arch and Deep Basin areas of
Alberta and British Columbia.
The research report projects 2014 estimated production to grow significantly via
the drill bit to average 5,860 barrels of oil equivalent per day, with 45% oil
and liquids, versus the expected 2013 estimated exit guidance of 4,800 to 5,000
barrels of oil equivalent per day, with 40% oil and liquids.
Artek is in the early stages of firming up the Montney play with high conviction
on existing Inga/Fireweed lands making Artek a compelling takeout or merger
candidate. From a merger perspective, PI Financial sees Kelt Exploration
(TSX:KEL) as the most likely merger candidate given its assets overlap and
provide many synergies that can enhance its valuation further. Likely buyers are
several key majors with large Montney capex budgets that are currently drilling
in the immediate area.
The company is run by an experienced and technically proficient management and
board that have a history of starting junior E & P companies and growing them to
a certain production level and reserve base with a pre-determined exit strategy.
Management has a proven ability to access bank and equity capital even during
challenging market conditions.
Most recently, Artek successfully raised $39 million of gross equity proceeds on
a bought deal basis, and increased its borrowing base credit facility from $65
to $75 million.
Analyst Kuno Ryckborst stated, "We believe Artek to be an appealing investment
opportunity. Artek is trading at a 23% discount to its December 31, 2012 net
asset value of $4.51 per share before considering the additional value created
in 2013."
The company currently trades at $3.60, below the $4.50 target price, and with
62.5 million shares outstanding, the company is capitalized at $225 million.
For more information, please visit the company's website
www.artekexploration.com or contact Darryl Metcalfe, President & CEO at
403-532-1888 or email info(at)artekexploration.com.
For more information about PI Financial or to obtain a copy of their research
report, contact your nearest PI Financial office. Their branches are listed on
their website at www.pifinancialcorp.com.
About InvestmentPitch
InvestmentPitch.com, a multimedia company that provides a combined solution for
creating and hosting financial video content, and distributing it across
multiple platforms to investors and financial professionals, specializes in
producing three minute videos based on news releases and research reports.
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
bmorgan(at)investmentpitch.com
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Source: InvestmentPitch via Thomson Reuters ONE
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Datum: 10.09.2013 - 22:06 Uhr
Sprache: Deutsch
News-ID 295405
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