UPDATE: Imperial Capital Initiates Coverage on Kodiak Oil & Gas Corp. with In-Line Rating, $10.50 PT on Good Market Position

In a report published Thursday, Imperial Capital analyst Ann Kohler initiated coverage on

with an In-Line rating and $10.50 price target. In the report, Imperial Capital noted, “We are initiating coverage of KOG with an In-Line rating and a one-year price target of $10.50. With a 154,000 net acre position in the Williston Basin in North Dakota, and the majority of its acreage located in the core of the play, KOG is a well-positioned mid-sized Bakken pure-play. In the near term, KOG is focused on completing two pilot drilling programs, at its Polar and Smokey projects, designed to test the optimal well spacing for development. With these projects expected to bring a cumulative incremental 27.5-36.6mboe/d of production on line in 3Q13, a material jump from the 1Q13 production levels of 21.6mboe/d, successful execution will be critical. Given the magnitude of the production start-up associated with the pilot projects, particularly in light of execution issues experienced in 2012, as well as oil price risk, we are initiating coverage of KOG with an In-Line rating.” Kodiak Oil & Gas Corp. closed on Wednesday at $9.00.