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Mackie Research has initiated coverage on Canamax Energy (TSXV: CAC)

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Mackie Research has initiated coverage on Canamax Energy, symbol CAC on the TSX Venture Exchange, with analyst David Ricciardi giving a buy recommendation and price target of $1.00, a premium of 49% to the $0.67 price on May 25th, the day the report was issued.

Additional Information:

Company: Canamax Energy
Website: http://www.canamaxenergy.ca/
Stock Symbol: TSXV: CAC
Date Published: May 28, 2015
Transcript: Available

Video Transcript:

I’m Amanda Rose Schellenberg for InvestmentPitch.com

Mackie Research has initiated coverage on Canamax Energy, symbol CAC on the TSX Venture Exchange, with analyst David Ricciardi giving a buy recommendation and price target of $1.00, a premium of 49% to the $0.67 price on May 25th, the day the report was issued.

Canamax Energy is a junior oil and gas company with its primary growth asset being a conventional Upper Montney oil play located at Flood in northwest Alberta.

The company also has three non-core assets: a Cardium oil play at Wapiti, an Upper Belly River / Cardium light oil play at Brazeau and a Mannville medium oil and cretaceous gas play at Retlaw in southern Alberta.

The goal is for this core area to provide long-term, stable production to provide cash flow for future acquisitions.

A total of 12 wells were brought online during 2014, eight new vertical wells drilled and four recompletions, all at a 100% success rate.

As a result, 14 locations were booked as 2P reserves as of December 31, 2014.

Canamax believes an additional 62 unbooked vertical Upper Montney locations exist beyond the reserve report, with the potential for 30 to 75 horizontal locations targeting the Middle and Lower Montney.

Analyst David Ricciardi stated: “CAC’s history of successful acquisitions demands the Company continue to make strategic acquisitions in order to meet its corporate production goal of 4,000 Boe/d to 5,000 Boe/d. We believe achieving this is a near certainty.”

The company is well funded having completed 2 financings for net proceeds of $12 million and established a $10 million bank loan facility during the 10 month period ended December 31, 2014.

The company currently trades at $0.70, well below the $1.00 target price, and with 42 million shares outstanding, the company is capitalized at $29.4 million.

For more information, please visit the company’s website www.canamaxenergy.ca or contact Brad Gabel
President & CEO at 587-349-5186 or email ir@canamaxenergy.ca.

For more information about Mackie Research or to obtain the report on Canamax Energy contact your nearest Mackie Research office. Their branches are listed on their website at www.mackieresearch.com.

I’m Amanda Rose Schellenberg for InvestmentPitch.com
For more video news, and to view our disclaimer, be sure to visit our website www.investmentpitch.com.
This video is for information purposes only and it is not a recommendation to buy or sell any securities.