Oil and other energy stocks loomed large in broker notes on Thursday, with one Pan Orient Energy (CVE:POE) enjoying some upbeat news.
It was maintained as a Buy with price target of C$3.25 by Mackie Research.
The note was welcome news on a day when the US oil benchmark WTI was flat at $48.19 and bourses generally lower. Pan Orient's share price was up 2.3% at C$1.33.
Mackie highlighted Pan Orient's "strong financial position and high-impact exploration potential in Indonesia."
The company also enjoyed access in Thailand.
"Government of Thailand granted a 215.87 km2 (53,343 acre) five year “reserved area” for exploration at the L53 concession. The acreage includes all of the remaining prospects that were defined by 3D seismic on the concession. In 2016, POE plans to complete two well workovers. In addition, in July and August 2016, POE plans to construct two exploration well locations with drilling potentially commencing late in 2016 or early 2017," Mackie said.
Meanwhile, Dundee Capital Markets offered up notes on four oil groups too.
Blackbird Energy (CVE:BBI) shares were 4.2% higher at C$0.12 after Dundee said it was reinstating its estimates on the company, with a Buy, speculative risk recommendation and an increased price target of C$0.30 up from $0.25.
"We are reinstating our estimates on Blackbird following the close of its $28.8mln equity raise. The proceeds were well above the $15mln we had built into our estimates, upsized from $20mln and the full over-allotment was exercised," Dundee said.
"We believe such strong demand for a junior that is still on the cusp of production is a testament to the capital markets strength of the team, a clearly articulated and executed strategy and of course compelling results from Blackbird’s test rates and nearby competitor activity," the analyst added.
Marquee Energy Ltd (CVE:MQL) was recommended as a Buy with price target of C$0.45 by Dundee.
Marquee reported its Q1, right in-line with expectations. Production averaged 4,430 boe/d with associated CFPS, f.d. of $0.01; we were looking for 4,430 boe/d and $0.01, while consensus was at 4,306 boe/d and $0.01.
"Notably, the company was able to reduce its operating and trans costs to $16.46 per boe relative to our $17.25 estimate, and well below the prior quarter at $18.63. Royalties also came in lower at $1.34 per boe (vs. our $2.34 estimate), mitigating the effects of lower realized pricing," Dundee said.
"The company had a bare bones capex program resulting in $100,000 spent through the quarter. Subsequently, net debt came in at $49.1 million, in-line with our $49.5mln forecast. Marquee has a $70mln credit facility which it expects will decrease as a result of commodity prices and the disposition of non-core assets. The credit facility review period is anticipated to close by May 31," the broker added.
Nexgen Energy Ltd (CVE:NXE) was recommended as a Buy with price target of C$3.20 by Dundee.
"Our first impression of another batch of scintillometer results from the winter-spring drilling program at Arrow is that they likely further extend mineralisation (assays pending)," said Dundee.
"We view this as positive for an updated mineral resource estimate, expected H2/16. Today's results further demonstrate the robustness of the mineralising system at Arrow and potential for additional expansion as mineralization was extended in all four shear," the broker added.
Spartan Energy Corp (TSE:SPE) shares were 5.4% higher at C$3.13 on Thursday after a Buy recommendation, high risk, with price target at C$3.70.
The note followed Spartan announcing on Thursday it had entered into an agreement to acquire private company Wyatt Oil + Gas for 11.4mln SPE shares and $42mln in assumed debt, for a combined deal value of $77mln. Closing is anticipated before June 30, with 58% of Wyatt shares to be voted in favour of the transaction.
Dundee called it a "highlight accretive share deal" and added that the takeover would be a good fit.
"The assets are perfectly complementary to Spartan's existing fracked Midale and conventional Mississippian inventory in Southeast Saskatchewan, adding 1,330 boe/d (76% light oil and liquids) of production, considerable facilities, infrastructure, 3D seismic and 45 net sections of land. With a planned associated natural gas pipeline tie-in in October, an additional 513 boe/d (2,300 mcf/d and 130 bbls/d of NGLs) is expected to be added," Dundee said.