Investment dealer Dundee Securities reaffirmed its BUY rating for Tamarack Valley Energy (TVE:TSX) as well as its target share price of C$0.70. The Canada-based oil and gas company's stock closed at C$0.43 on August 15. A stronger-than-expected balance sheet for the second quarter and also a drilling program that should ramp up production in the second half of the year contributed to Dundee's valuation of Tamarack's stock.
Cash flow for Q2 was C$2.2 million, which was almost double Dundee's prediction of C$1.2 million. This uptick in cash flow was created by better-than-expected crude production and a C$310,000 royalty credit. Production during Q2 was 869 barrels of oil equivalent per day, which was a 10 percent increase over Q1. This boost in production was attributed to a 93 percent increase in the production of liquids.
The investment dealer values Tamarack's stock higher than its peers. This premium to the valuation of competitors comes from predictions of significantly increased production during the second half of the year. During the last 52 weeks, the oil and gas company's stock reached a low point of C$0.22 and a high point of C$0.65.