- Published: 10 November 2008
- Written by Editor
SISM Research Upgrades Kodiak Energy To 'Strong Speculative Buy/4,' $3.45 Target Price
(Investrend Research Syndicate) Ernest C. Schlotter, a senior analyst with SISM Research and "four star" analyst according to StarMine, has given Kodiak Energy, Inc. (OTCBB: KDKN) (TSX Venture: KDK) (CDNX: KDK.V) a "Strong Speculative Buy/4" rating, and a 12 to 18 month target price of $3.45 based on 1.00x P/ANW valuation metric.
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According to the report:
"Kodiak Energy Inc. is a multi-project company with a world-class land position of more than 340,000 gross acres leased for exploration and development in multiple jurisdictions and work environments. Very importantly, in each of the succeeding years since its inception, Kodiak Energy has progressively added value to each project with strategic exploration plans and has financed and implemented those plans. Their projects are now at key milestones in the cycle of exploration, development, and production. Kodiak intends to start with a vertical shale gas fracture stimulation into the Muskwa/Evie shale gas formation during this winter season. A production testing, which will include a multi-point flow and build up test, will be completed after stimulation. The Lucy project has the potential to yield immediate cash flow or a capital divestiture opportunity, which will then fund other developments. If the project is a success, the Company estimates its valuation to be approx. $35 million or $0.59/share. For the Little Chicago Prospect, Chapman Engineering estimated a heavily-risked probability of success of 14% and calculated a cumulative cash flow before income tax, discounted at 15%/year, to be $244.9M or $2.55/share."
Regarding the share price, Schlotter said; "Given its current share price, it appears that only a very small portion of the upside potential is currently being priced into KDKN shares. All together we have arrived at a heavily risked-adjusted Appraised Net Worth of $379.8 million or $3.45 per share. Our 12 -- 18 month target price of $3.45 is based on approx. 1.00x P/ANW valuation metric."
The Company's website is at http://www.kodiakpetroleum.com.
About SISM Research
SISM Research is a private investment research firm, based in Zurich, Switzerland, offering independent, fundamental research on public companies since 1995. SISM Research publishes research on micro- to small-cap companies trading on the OTC, NASDAQ and AMEX. This coverage is geared toward institutional and individual investors in both North America and in Europe.
SISM Research takes steps to ensure independence, including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct, the CFA-NIRI Guidelines (http://www.cfainstitute.org), the exacting "Standards for Independent Research Providers" (http://www.investrend.com/articles/secondlevel.asp?level=491) and in accordance with Guidance set forth by U.S. Securities and Exchange Commission's Advisory Committee on Smaller Public Companies at http://www.sec.gov/info/smallbus/acspc/acspc-finalreport_d.pdf. Additionally, analysts may not trade in any security under coverage.
Safe Harbour Statement
Statements in this announcements that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those implied or expressed by such forward-looking statements. Such factors include, among others, the risk factors included in reports filed with the SEC under the Exchange Act of 1934, as amended.
A "Third Party" has retained and is paying SISM Research one thousand eight hundred and fifty US dollars per month over a two-year period to ensure independent coverage. The identity of said Third Party was not made available to Investrend at the time of this release.
SISM Research is paying the Investrend Research Syndicate a retainer of one thousand three hundred US dollars, and will be paying the Investrend Research Syndicate total fees not to exceed six thousand five hundred US dollars for a 15-month "distribution and visibility" program, supporting SISM's coverage of Kodiak Energy, Inc.
No partner, owner, officer, employee or analyst(s) writing research regarding Kodiak Energy, Inc., for either SISM Research or Investrend Communications, Inc., holds a position in and/or engages in transactions with respect to the securities of Kodiak Energy, Inc.
The Investrend Research Syndicate
The Investrend Research Syndicate distributes reports published by sources dedicated to unbiased, reliable analytics and complete transparency. The primary measure for determining those sources is the "Standards for Independent Research Providers" (http://www.investrend.com/articles/secondlevel.asp?level=491). The Investrend Research Syndicate is a proprietary entity of Investrend Communications, Inc., a financial intelligence and information firm, serving the financial community with neutral platforms and fundamentally-based material since 1996.
SOURCE: Kodiak Energy, Inc.