Analyst Jeremy Mccrea from BMO Capital maintained a Buy rating on Samoth Oilfield (LCX – Research Report) and decreased the price target to C$2.50 from C$5.00.
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Jeremy Mccrea’s rating is based on Samoth Oilfield’s innovative approach in developing drilling techniques that enhance well profitability in shallow heavy oil basins. The company has demonstrated promising initial well results, achieving production rates exceeding 250 barrels per day. Despite the temporary suspension of its capital expenditure program, Samoth Oilfield remains positioned as a strong growth prospect, particularly if there is a rebound in commodity prices.
Moreover, the company’s recent operational updates, including successful discoveries and delineation wells, highlight its potential for significant production growth. Although current market conditions have led to a reduction in the target price, the strategic decisions and technological advancements by Samoth Oilfield support a positive long-term outlook, justifying the Buy rating.