HEAPEST OIL STOCK, highest risk reward.....
Evi Resource Opportunity Overlooked: We feel the focus on Q1
operational issues and near term guidance changes has masked progress
on drilling density at Evi. Operated activity was focused on the northern
block of Evi during Q1, where LPR drilled eight wells in a single section. All
eight wells are now on stream and initial rates indicate no signs of
interference between wells. LPR has regulatory approval for up to 16 wells
per section in certain sections at Evi and has plans to initiate a pilot of up to
12 wells per section in H2. Notwithstanding certain step-out wells that did
not perform as expected, we believe LPR ultimately has the opportunity to
double its current 500 well location inventory and surface up to ~$9/share.
Sentiment: Strong Buy