If you recall (or don't), I mentioned that I noticed First Energy Capital was buying heavily.

They have now initiated coverage and are giving this a 12 month target price 0f 5.10 pounds.

That works out to about 8.08 canadian.

In the report they cite coming dilution as a drag on the return on investment at this point. They are also using some pretty safe numbers such as recoverable oil at 200 mmbls.

There are many different factors influencing what they see as a target price and unrisked price which they are saying is 11 pounds.

The price of brent crude was calculated at $96US in 2012, which we know could be higher.

Initial production would be 15,000 bbls/d but could be higher if the field flows better than tested or if they use enhanced recovery techniques such as heating the oil so that it flows faster.

Whatever they say, IMO they are being conservative, and in this business, this is good, over deliver if possible, which is what i think is going to happen.

Andy