Australia-based research firm Macquarie Equities Research reaffirmed its OUTPERFORM rating for Strategic Oil and Gas (SOG:TSX) and maintained its target share price of C$2.50. This target price is based on a P/RENAV multiplier of 1x. The stock closed at C$0.67 on August 12 and Macquarie attributes this price to market volatility which has caused the equity to trade at a level that does not reflect its ongoing projects.

Strategic announced its Q2 results on August 12, which showed better-than-expected results for both production of oil and cash flow per share (CFPS). The actual production value of 883 barrels of oil equivalent (boe) per day beat Macquarie's prediction of 650 boe per day. At the end of the quarter, Strategic had a C$3.5 million balance of working capital and an untapped C$21 million credit line.

The equities research firm stated that Strategic's stock price will not be affected by the recently released results, and that upcoming operations at Steen River and Maxhimish will have a significant influence on the company's stock. In the last 52 weeks, Strategic's stock has hit a low value of C$0.60 and a high value of C$1.40.