Investment banking firm Canaccord Genuity reaffirmed its BUY recommendation for Canadian Overseas Petroleum Limited (XOP:TSX) and increased its target share price for the exploration and production company to C$1.20 from C$1.10. This revision in the company's target share price was largely based on new information related to the 206/5a-3 exploration well, which increased the company's portfolio NAV.

The well was drilled to a total vertical sub-sea depth of 7,711 and aimed to reach the Fulla prospect, the media outlet reports. The well was drilled to utilize Clair and Whiting reservoir sands, which could potentially yield oil. Average porosity of the reservoir was measured at a better-than-expected 23 percent. Oil samples have been extracted and will be assessed in Canadian Overseas' onshore lab.

Canaccord Genuity estimates that Fulla will generate as much as C$0.29 on an unrisked basis and C$0.14 on a risked basis.

New York Mercantile Exchange (NYMEX) gas scheduled for delivery in September increased 3 percent to close at C$3.99 Tuesday, Canaccord Genuity reports. NYMEX crude scheduled for October delivery increased 1 percent to C$85.44.