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UPDATE: Canaccord Genuity Starts American Eagle Energy (AMZG) at Buy

March 31, 2014 7:37 AM EDT Send to a Friend
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Price: $4.45 -4.09%

Rating Summary:
    7 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 24 | New: 21
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(Updated - March 31, 2014 9:20 AM EDT)

Canaccord Genuity initiated coverage on American Eagle Energy (NYSE: AMZG) with a Buy rating and a price target of $10.00.

Analyst Stephen Berman said, "AMZG's position in northwest Divide County is very meaningful for a company its size, providing a ~19-year inventory with a two-rig program. Heavily driven by long lateral well costs that are ~$6M and declining, IRRs are 40%-60% or more at $90/Bbl oil, very competitive with deeper parts of the WB where well costs are 50% higher or more."

"Including the exercise of its option to acquire an additional 8,244 net acres and the separate acquisition of 5,000 net acres, both from its JV partner, AMZG trades at $2,360/acre, one of the cheapest among the WB pure-plays and less than half the group average," he added. "The company had been utilizing both carry and farm-out agreements to help finance its drilling program. All the carry and farm-out wells should be drilled by mid-2014, after which all of AMZG's wells should have high working interests, yielding a significant boost in net production volumes."

For an analyst ratings summary and ratings history on American Eagle Energy click here. For more ratings news on American Eagle Energy click here.

Shares of American Eagle Energy closed at $7.00 yesterday.




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