intersuisse advises tex a potential 6 bagger..

Source: www.theaustralian.news.com.au
Link: http://www.theaustralian.news.com.au/story/0,25197,22895914-5005200,00.html

Target Energy (TEX)
Intersuisse
Buy recommendation
Potential price target of $1.63
Last traded at 27c

TARGET Energy's vital signs are healthy after negotiating what is normally a tricky period for junior energy stocks - the 12 month period after listing.

Intersuisse notes that since November 2006, Target has been a participant in the drilling of five wells in the US petroleum states of Texas and Louisiana, four of which have been successful.

The three wells in production are yielding 1.8 billion cubic feet of gas a day and 5 barrels of condensate.

"This equates to monthly cash flow of around $70,000 to the company, based on its 25 per cent interests," Intersuisse recently said in a note to clients.

The trick for Target now is to get the same success in five wells soon to be drilled in Louisiana that it has economic interests in.

Three of those wells are within the same geological model of Snapper A2, where Target has a 25 per cent interest and wireline logging intersected 28.7m of net oil and gas pay in seven sands.

"All up, the six wells, including Snapper A2, are targeting up to 3.65 million barrels of oil and condensate and 97 billion cubic feet of gas," Intersuisse notes.

All up, success at the upper level of potential would "represent net value per Target Energy share of $1.63".


Ends.

Cheers, Pie :-)