Yeah, I was cranky. Apologies.
Stonecap Securities analyst Kuno Ryckborst has kept his outperform rating and target price of $4.00 per share on Manitok Energy (CVE:MEI), after the oil and gas company said it met its exit guidance for 2012 of 3,860 barrels of oil equivalent per day (boe/d).
Its forecast was for around 3,730 to 3,830 boe/d. But Ryckborst notes that management missed slightly on the expected oil and liquids weighting that came in at 54%, versus guidance of 57% to 60%.
Manitok Energy, formerly Desco Resources, is focused on conventional oil and gas reservoirs in Canada and heavy crude oil in east-central Alberta. It has around 35 potential drilling locations, targeting a variety of reservoir types, on its existing undeveloped land base of 81,343 net acres.
"The company started the year with a 33% average weighting to oil and liquids, which, looking back, was one of the compelling reasons to invest in Manitok," Ryckborst notes.
Manitok also put out a slight production warning to early February 2013 given that it will shut-in between 500 to 600 boe/d as it switches out from temporary to permanent production facilities at its Stolberg property.
The currently announced pre-shut-in production volume was 4,100 boe/d (54% oil and liquids), which after the shut-in is still in line with Stoncap's first quarter 2013 average production estimate of 3,485 boe/d, at 59% oil and liquids.
"This saw-tooth effect on the overall production profile is typical for an early stage exploration company given that: 1) volumes come from only 10 gross wells; 2) rugged foothills terrain forces them to re-use existing Pad locations causing production shut-ins; and 3) it can be forced to utilize temporary production facilities that cause fluctuating shut-ins," the analyst adds.
He says that Manitok represents "one of the few remaining junior exploration and production driven growth companies", as management plans to carry on with its continuous light oil drilling program at a pace of one well per month through 2013.
"We recommend buying additional shares should a price weakness manifest itself," he concludes.
Shares of the company were trading at $3.27 Wednesday afternoon, down more than 2%.