Stockchase Opinions

Josef Schachter Petrus Resources Ltd PRQ-T BUY Nov 19, 2018

A small cap. Book value is $2.56. They are focused on only two plays. He likes the company. It is a cheap stock. They generated cash flow in the quarter. (Guest's target: $2.00).
$0.790

Stock price when the opinion was issued

oil gas
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They are 9,200 boed and 71% natural gas. They are working at reducing debt and building a position in the Cardium area. He has a $2.40 per share target in the next 12 months and he holds it personally. Yield 0%. (Analysts’ price target is $1.75)

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Don Gray (from Payto Energy) is their CEO and a major shareholder. Their production is 71% natural gas. They are in Spirit River and also increasing in the Cardium area. Book value was $2.72 at the end of the year. Cash flow is 78 cents compared to a 90 stock price. Yield 0%. (Analysts’ price target is $1.66)

WATCH
They have two plays. It is pressured because of debt load. Production came down in the third quarter and should now increase. They should knock debt down with the sale of two non-core assets next year. It needs a catalyst before the market will revisit this story.