JM,
you may remember this from one of the boards you started. Looks promising, and I might bite some now and more after PLNI rewards us later.
Cheers
PC
Deep Well's 6-12 Month Target Price Raised To $3.55 'Buy' Maintained By InvesTrend Research Affiliate SISM Research
12/20/05
ZURICH, Switzerland, Dec 20, 2005 ( BUSINESS WIRE ) --
InvesTrend Research Syndicate - Ernest C. Schlotter an oil and gas analyst with InvesTrend Research Affiliate SISM Research and a four star analyst according StarMine, has reiterated his Buy/4 rating for Deep Well ( PINK SHEETS:DWOG ) and has set a 6-12 month target price of $3.55.
According to SISM's Research Note:
During the last thirty days, the landscape at Deep Well has changed significantly. Just one month ago the Company inked its agreement with a farmout partner who can earn up to 40% of the Sawn Lake Heavy Oil project, a 0.8 to 1.2 billion barrels OOIP project, but must conclude ten horizontal wells at no cost to Deep Well to fully earn its 40% working interest in the project. According to the agreement, Deep Well became an owner of approx. 31.4% of the farmout partner's common shares. In addition, Deep Well received a prospect fee of $2 million.
"On December 6, 2005, the first milestone was achieved in developing the Sawn Lake Oil Sands Prospect," said Ernest Schlotter. He then added, "The farmout partner has successfully drilled and cased the first horizontal test well in the project and expects a minimum recovery rate of 10%. The operator intends to drill nine more wells in 2006, and once fully developed, production could exceed 50,000 barrels of oil produced per day using only conventional cold flow methods. These results may be significantly enhanced by secondary recovery methods such as hot water flooding with a reserve life of 15 to 25 years." SISM Research set a 6 - 12 month target price of $3.55, and a total target price return of 285% from current levels which is based on a 0.75x multiple to the assessment of Deep Well's Net Asset Value of $4.73 per share. |
