Investment dealer Raymond James reaffirmed its OUTPERFORM rating for oil and gas company Compass Petroleum Ltd. (CPO:TSXV). The oil and gas company announced on September 7 that it was selling its non-core properties in Alberta. The company is also still involved with the Viking Program at Lucky Hills in Saskatchewan, which motivates Raymond James to recommend that investors buy Compass.

The oil and gas company generated C$29.5 million in total cash proceeds by selling 488 barrels of oil equivalent per day worth of production and 3.64 million barrels of oil of 2P reserves. This sale is scheduled to close on September 12. The transaction will leave Compass with a net cash position of C$15.8 million, which Raymond James says could easily accelerate growth. Raymond James has increased its forecast for Compass's spending to C$53 million from C$34 million.

The investment dealer estimates that Compass will spend C$53 million during calendar 2012, up from Raymond James' previous estimate of C$34 million. Raymond James has Compass' target price at $2.75 per share. The company's stock closed at C$1.48 on September 8, up 9 cents or 6% on 113,000 shares.