UPDATE: CK Cooper Lowers Target to $10 on Double Eagle Petroleum
CK Cooper lowers its price target to $10 on Buy-rated Double Eagle Petroleum (NASDAQ: DBLE) as it waits on better Niobrara results and better natural gas prices.
CK Cooper says, "Given weakness in natural gas prices, DBLE announced 2012 capex in the range of $15-20 mm, down from 2011 capex of $24 mm. As a result, we see flattish production through 2013 if natural gas remains depressed. ...n March 1st, the company announced they had finished drilling their first Niobrara vertical well. Given wildlife restrictions, DBLE will not complete and test the well until Aug 2012. The company will target the Niobrara, Dakota, and Frontier zones. Initial results indicate oil and gas shows in the Niobrara, as well as gas shows in the deeper Dakota and Frontier formations."
DBLE closed at $6.30 a share yesterday.
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