We are launching coverage of CircleStar Energy, Inc. with a Strong Buy-Speculative Rating at a $7.50 DCF Valuation on 45MM shares (fully diluted) @3,000 BOE daily production by end of 2014 @$75 net revenue per barrel. In the last 45...
CRCL NBT Initial Report
Circle Star Energy Corp (CRCL)
We are launching coverage of CircleStar Energy, Inc. with a Strong Buy-Speculative Rating at a $7.50 DCF Valuation on 45MM shares (fully diluted) @3,000 BOE daily production by end of 2014 @$75 net revenue per barrel. In the last 45 days, CRCL has secured 71,500 acres in the oil-rich Mississippian Limestone formation (known as the "Mississippian Extension"). In our opinion this Mid-Continent Mississippian Limestone carbonate reservoir is the "next big thing" oily resource play in the rapidly expanding onshore US oil E&P; renaissance.
Moreover, we expect leasehold valuations to grow to $8,000-$10,000 an acre by 2014-15 like most major new US onshore oil resource plays of the last ten years which have benefited from new horizontal drilling technologies. $10k per acre market pricing would imply significantly higher CRCL share valuation upon acquisition by mid-size oil E&P; or energy trust.
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Founder and Editor-in-Chief for NBTEquitiesResearch.com. Contributor and Anchor for the Fox News Channel and Fox Business Network 2000-2013. Chairman & CEO of NBT Group, Inc., a boutique private capital investment bank and investor relations organization.
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