Investment bank Canaccord Genuity said in a statement on October 3 that it was maintaining its BUY rating and C$9.00 target share price for exploration and production company Bellatrix Exploration Ltd. (BXE:TSX).

These recommendations are based on a 5.5 times multiple of 2012 estimated EV/DACF along with C$1.46 in risked upside potential for the Cardium formation in Alberta. The company's stock is currently trading at a 2.8 times multiple of EV/DACF and C$30,212 per barrel of oil per day based on Canaccord's 2012 estimates.

The exploration and production company released a statement indicating that its Sproule-evaluated reserves rose 19.1 percent to reach reaching 50,729.3 million barrels of oil on a 2P basis during 1H 2011. This production required an FD&A cost of C$8.84 per barrel of oil

Canaccord Genuity believes that although this increase in reserves is a very positive sign for Bellatrix, the impact is not significant enough to change risked upside for the exploration and production company.

Bellatrix Exploration Ltd. opened at C$3.15 on October 4 and reached a 52-week high/low of C$6.19 and C$3.15, respectively.