Integral Wealth Securities Ltd.
has updated its coverage of Manitok Energy Inc.
, Stock Forum
Following an update on the 2013 drilling program, research analyst Rob Knowles reiterated his buy recommendation and 12-month target of $5.25.
Manitok Energy is an oil and gas exploration and development company with a focus on conventional oil and gas reservoirs in the Canadian foothills and Southeast Alberta.
Following the inclusion of Cardium light oil well #20 and the recent Ostracod natural gas well, both of which are located at the Stolberg oil play in the Alberta foothills, corporate production is running at 5,300 to 5,500 barrels of oil equivalent per day, at the high end of previous guidance.
The stock eased 0.47% to $2.11 on Tuesday, leaving a market cap of $159.7 million, based on 75.7 million shares outstanding. The 52-week range is $3.49 and $1.93.
“With the current production levels meeting management’s target exit rate, continued success at Stolberg, and initial positive results from the Quirk Creek [farm-in with Legacy Oil + Gas Inc.
, Stock Forum
], we feel that Manitok is well positioned to achieve drilling success that exceeds what the market is currently pricing into its share price,’’ Knowles said.
Disclosure: Manitok Energy is a Stockhouse client, but the company hasn't paid for this content.