American Oil and Gas, Inc. (AEZ), an independent oil and natural gas company engaged in exploration, development and production of hydrocarbon reserves primarily in the Rocky Mountain region, recently received a reiterated buy rating from Undiscovered Equities with a target price of $8.50.
As reported by Undiscovered Equities, the stock has traded on low volume this week; however, American Oil and Gas recently released proved reserve estimates for the company’s three wells with EURs of close to 3.0 bcfe, which exceed modeled expectations of 2.2 bcfe.
Undiscovered Equities cautions that American Oil and Gas is still a very early-stage company, however, their recommendation is supported by the groundwork the company has put in place for future growth. With over 185,000 net acres, a seasoned management team, and exposure to both crude oil and natural gas in the Rockies and the Williston Basin, Undiscovered Equities continues to be enthusiastic about American Oil and Gas’s upside potential and reiterates its buy rating and $8.50 per share price target.
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