Vancouver, British Columbia--(Newsfile Corp. - July 16, 2013) - Canaccord Genuity has initiated coverage on Petroamerica Oil Corp (TSXV: PTA). Analyst Christopher Brown gives the company a buy rating and one-year price target of $0.45, a 64% premium to the $0.275 price the day the report was issued.
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Petroamerica, a junior oil and gas exploration and production company, is focused on light to medium oil in Colombia. The company has assembled a large portfolio of prospective oil properties in the Llanos basin, and is joint ventured on some of these properties with established producers in the country.
The company has 6 exploration blocks covering 783,000 gross acres and has made 4 oilfield discoveries since 2009, and is currently targeting 15,000 to 20,000 barrels of oil equivalent per day by 2015. Production currently exceeds 5,500 barrel per day, while the company's existing inventory could provide growth to 7-10,000 barrels of oil equivalent per day over the next 12 months.
The company has established itself as a successful oil and gas explorer, with a 63% commercial success rate on 8 wells drilled off 3D seismic.
Petroamerica's first quarter operating netback of $79 a barrel is a reflection of the company's premium-priced light oil and low operating costs.
Analyst Christopher Brown stated, "We forecast growth to 8,500 barrels per day by 2015, and believe that associated cash flows should position the company for future acquisitions or potential dividends. As Colombia's Bicentennial Pipeline becomes operational, we expect regional light oil demand and prices to remain robust."
The shares are currently trading at $0.27, well below the target price of $0.45, and with 580 million shares outstanding, the company is capitalized at $156.6 million.
For more information, please visit the company's website www.PetroamericaOilCorp.com or call 403-237-8300 or email InvestorRelations@pta-oil.com.
For more information about Canaccord Genuity or to obtain a copy of their research report, contact your nearest Canaccord Genuity office. Their branches are listed on their website at www.canaccord.com.
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