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PI Financial initiated Coverage on International Frontier Resources (TSXV: IFR)

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Analyst Brian Purdy gives the company a buy recommendation along with a speculative risk rating and a 12-month target of $0.60, a premium of 77% to the $0.34 price on March 8th, the day the report was issued.

Additional Information:

Company: International Frontier Resources
Website: http://www.InternationalFrontier.com
Stock Symbol: TSXV: IFR
Date Published: Mar 14, 2017
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch Media

Today’s buy recommendation comes from PI Financial.

PI Financial has initiated coverage on International Frontier Resources (TSXV:IFR) (OTCQB:IFRTF).

Analyst Brian Purdy gives the company a buy recommendation along with a speculative risk rating and a 12-month target of $0.60, a premium of 77% to the $0.34 price on March 8th, the day the report was issued.

The company, through its Mexican subsidiary and strategic joint ventures, is advancing the development of petroleum and natural gas assets in Mexico.

In 2016, the company’s 50% owned joint venture in Mexico, Tonalli Energia, was awarded the Tecolutla Block as part of the first round and third call of Mexico’s oil and natural gas “mature fields” bid round, the first in almost 80 years.

Although it does not have current production, the block has some previously producing wells, opportunities for workovers and identified drilling prospects.

Management believes they have 5 well locations on the Tecolutla block and prior vertical wells had initial oil production rates of up to 453 barrels per day, without stimulation.

Analyst Brian Purdy stated: “Although future production is difficult to predict at present, we believe IFR has a small production ready land base, strong positioning for future bid rounds, and stands out as one of the few pure plays on Mexico’s energy reform process.”

The company recently closed a private placement, raising gross proceeds of approximately $5.1 million from the sale of 18.1 million shares at $0.28 per share.

Steve Hanson, President and CEO, stated: “IFR is now fully funded to meet its work commitments at Tecolutla. We look forward to advancing the development on the block and putting Tecolutla into production with workovers and new wells planned to be drilled this year.”

The company also has projects in Canada and the United States, including the Northwest Territories, Alberta and Montana.

The shares are currently trading at $0.31, well below the $0.60 price target, and with 118.1 million shares outstanding, the company is capitalized at $36.6 million.

For more information, please visit the company’s website www.InternationalFrontier.com
or contact Steve Hanson, President and CEO, at 403-618-7346 or email shanson@InternationalFrontier.com.

For more information about PI Financial or to obtain a copy of their research report, contact your nearest PI Financial office. Their branches are listed on their website at www.pifinancialcorp.com.

I’m Samantha Deutscher for Investmentpitch Media