As can be seen, CIBC have also raised their price target from $3.50 to $4.00. GLTA



Raging River Exploration Inc.

Revised Estimates Following Acquisitions And Financing; Increased PT to $4


We have provided revised estimates following the close of the recent financing, whereby RRX issued 26 million shares for gross proceeds of ~$69 million. The bulk of the proceeds ($43 million) was used to fund two Viking oil acquisitions in SW Saskatchewan.

RRX also provided 2013 guidance which pointed towards strong growth. The company plans to spend ~$120 million (vs. our previous estimate of ~$80 million and preliminary guidance of ~$90-$100 million), and is anticipated to result in production of ~4,600 Boe/d (Y/Y growth of 112%).

RRX remains our top oil pick due to its strong growth (2013 per share growth of ~62%, meaningfully higher than the oil-weighted group average of ~17%), strong balance sheet (2012 YE debt of $18 million and 2013 debt to cash flow of 0.7x), and strong insider ownership (~17%).

The next catalyst for the stock is the reserves update expected in early Q1/13. We expect RRX will demonstrate very strong per share reserves growth (in the range of ~60%), which would place 2012 YE reserves at ~15 MMBoe. We have increased our PT to $4.00 from $3.50.