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Update MGI-Report: Date: Fri, 1 Dec 2006 09:29:40 Drilling Results Continue to Indicate Large Gas Potential – Flow Testing is Slowly but Steadily Approaching Stock Rating: Speculative BUY Target Price: $8.00 Falcon Oil & Gas (TSX-V: FO) released an operational update with regard to its ongoing drilling program in Hungary on November 27. Importantly, both the Mako-7 and the Magyarcsanad-1 well have encountered gas shows as expected. With regards to fracture stimulation and flow testing, there has been a minor delay to the arrival of crews, but two crews are now expected to be working simultaneously by late December, with the first expected to start work within the next two weeks. Based on operations continuing roughly as planned, our view of Falcon Oil & Gas remains effectively unchanged while we continue to await test results with much anticipation. We reiterate our Speculative Buy recommendation on Falcon Oil & Gas with an unchanged target price of $8.00, based on a 1.0x multiple of our in-house estimate of Future net asset value. Our target price represents a potential return of 110.5% from the recent closing price of $3.80. Our recommendation remains speculative, mainly due to the company’s lack of production base or reserves in this formative stage of development. Please CLICK on LINK BELOW for FULL COMMENT http://websrv.mgisecurities.com/file_share/research/FO%20Dec… |
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| aus der Diskussion: | FALCON - ALLE DATEN, ALLE FAKTEN |
| Autor (Datum des Eintrages): | dontsushi (04.12.06 09:25:29) |
| Beitrag: | 11 von 47 (ID:25919266) |
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