Sky Petroleum, Inc. Initiated With Speculative Buy / 4 Rating and 12-Month Target Price of $4.20 By Investrend Affiliate SISM Research
Posted on: Wednesday, 7 December 2005, 09:00 CST
(Investrend Research Syndicate) Ernest C. Schlotter, an oil and gas analyst with Investrend Research Affiliate SISM Research, and a four star analyst according StarMine, has initiated coverage of Sky Petroleum, Inc. (OTCBB: SKPI) with a Speculative Buy/4 rating and a 12-month price target of $4.20.
Sky Petroleum, with corporate offices in Austin, Texas, Calgary, Alberta and in Dubai, United Arab Emirates, is an early stage oil & gas company seeking opportunities in the Middle East and in North Africa. In only a very short time, the company has managed to assemble a highly experienced management team and has achieved remarkable milestones, chief among which are the right to invest in shares of future production revenue from certain Gulf concessions in the UAE.
The company has teamed up with one of the UAE's most established and successfully integrated low-cost operators with more than thirty years of extensive experience in the region. SKPI's first low-risk exploration and development program, with the potential to drill six wells, will be executed in one of the region's premier offshore oil and gas plays--the Mubarek Field.
This field, located in offshore Sharjah in the Mid-East Gulf, has the potential of becoming a major hydrocarbon discovery. The drilling program is expected to begin in 1Q 2006, however, Sky Petroleum has already advanced fifty percent of the drilling costs in the amount of $12.5 million. It takes 60 - 90 days to drill and to complete the well.
"Our positive investment rating takes into account Sky's top management, investor confidence in Sky Petroleum and in the Mubarek development project, as well as a positive outlook for profits beginning in 2006," said Schlotter. "Our target price of $4.20 is supported by a price/earnings ratio of 20.0 x our estimated EPS of $0.21 per share in 2006 and an EPS of $0.64 per share in FY2007. Due to the fact that Sky Petroleum's business is relatively new, we rate the company as a Speculative Buy."
SISM Research, based in Zurich, Switzerland, is a private investment research firm offering high-quality, independent, fundamental research on public companies since 1995. SISM writes, publishes and distributes research coverage, in both English and German, on micro- to small-cap public companies trading on the OTC Bulletin Board, NASDAQ and AMEX.
Both SISM Research and Investrend Research subscribe to the "Standards for Independent Research Providers." Complete information is available at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes . Investors are advised to read disclosures carefully before trading in the equities of any enrolled company.
Anyone interested in receiving alerts regarding Sky Petroleum research should email contact@investrend.com with "SKPI" in the subject line.
Sky Petroleum Inc. pays SISM Research $1,750 per month over a one-year period solely to ensure independent coverage.
Source: Business Wire
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