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Altura Energy Inc has good prospects for 2017, reckons Mackie
Broker Mackie is upbeat on Alberta-focused oiler Altura Energy Inc (CVE:ATU), which it expects to show substantial reserves, production and cash flow growth this year.
In the current commodity environment, the firm continues to generate strong rates of return by controlling drilling costs, says analyst Bill Newman.
He repeats a ‘buy’ stance and $0.80 target price – almost double the current price of $0.43.
So far this year, the company has sunk 6 gross (6 net) wells with a spud to rig release time averaging under 3.5 days and all six of these are expected to be on production next month (April this year).
Altura is focused exclusively on east central Alberta and is targeting oil within the area called the Upper Mannville Group, specifically the Sparky and Rex reservoirs.
The firm has substantial experience in horizontal drilling and completion technology to achieve low wells costs and leading rates of return.
It strategy is to identify Upper Mannville pools with 20 plus degree API oil by collecting data from thousands of existing well penetrations, reviewing logs and analyzing well cuttings and cores.
Once pools are known and structures are understood, the firm will initially focus operations on the low cost area located on the far eastern side of the play.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/175385/altura-energy-inc-has-good-prospects-for-2017-reckons-mackie-175385.html
