Original-Research

Saturn Oil & Gas Inc. (von GBC AG): BUY

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Original-Research: Saturn Oil & Gas Inc. - von GBC AG

Einstufung von GBC AG zu Saturn Oil & Gas Inc.

Unternehmen: Saturn Oil & Gas Inc.
ISIN: CA80412L1076

Anlass der Studie: Research Report (Initiation of Coverage) Empfehlung: BUY
Kursziel: 0.31 CAD
Kursziel auf Sicht von: 31.12.2020
Letzte Ratingänderung: -
Analyst: Julien Desrosiers, Matthias Greiffenberger

Profitable Drilling Operation with significant upside potential
Saturn Oil & Gas is an oil and gas producing company located in Alberta, Canada. It operates in the low-cost Viking oil field and offers the sector's highest net cash back compared to its peers.

The company has a higher than average successful drilling and well completion rate.

Saturn Oil & Gas has acquired enough land position to maintain their 3 to 1 ratio of well in reserve per well in production.

The company posted revenues of CAD $0.210 million in 2017 and CAD $4.522 million in 2018. We foresee the company achieving just over CAD $20.4 million revenues in 2019 and entering 2020 with over 1,000 boe/d resulting in a constant revenue level for 2020 and 2021.

Saturn Oil & Gas is well positioned with operating costs of under 13$ per boe/d, the sector's lowest.

The current market environment has in our opinion an enormous monetary potential for the oil industry. Rising demand and flourishing business developments provide the market with important support for further growth. In the event of stable growth in demand and a healthy production level of the OPEC+ nations, fundamental market data forecast average prices in a corridor between USD 60 and 70 per barrel until 2020.

The company business model makes use of their unique expertise and maximizes the current downtime in the oil sector in their operating region.
Saturn Oil & Gas has overcome the hurdles of the start-up phase and will soon enter a stabilization phase. The company's actual advantageous land development opportunities and stable future production in the Viking Oil field will lead the way to a profitable M&A or organic growth period.
Saturn Oil & Gas Inc. plans further acquisitions in the Viking Oil field. Many 'too big to fail' shale and sandstone oil companies are now in distressed position and we believe Saturn Oil & Gas could profit of such a context and could provide a unique growth opportunity.
However, we have currently valued Saturn Oil & Gas without additional acquisitions. Based on our DCF-Model we have determined a target price of 0.31 CAD (0.21 EUR) and initiate our research coverage with a BUY rating.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/19477.pdf

Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
[e-mail]
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Datum und Zeitpunkt der Fertigstellung der Studie (Englische und Deutsche Version: 20.11.2019 (19:30 Uhr) Datum und Zeitpunkt der ersten Weitergabe (Englische und Deutsche Version): 25.11.2019 (8:30 Uhr) Gültigkeit des Kursziels: bis max. 31.12.2020

übermittelt durch die EQS Group AG.

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

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Rating: BUY
Analyst: GBC