RedChip announced that it has initiated research coverage on PetroSouth Energy Corp, an emerging oil & gas exploration and production company that has non-operating working interest in highly-prospective leases in Colombia.
PetroSouth Energy has one producing well and another currently being tested. The company anticipates reporting revenue in the next quarter. PetroSouth Energy is led by highly-experienced executives with oil and gas expertise as well as access to attractive deals. They have already proved their competency by raising $6 million to fund initial operations and have a solid track record in the oil and gas business.
The RedChip Research Analyst who completed the report stated, “Although speculative, PSEG has an attractive upside/downside return profile suitable for risk-oriented investors. Their net potential reserves are over 40 million barrels of oil, and if only 25% of these are proved by successful drilling, it could result in price appreciation of over 100% from the current stock price.”
He concluded, “A 12-month price target of $3.00 is based on conservative estimates of drilling success.”
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