Roth Capital analyst Joe Reagor maintained a Buy rating on Magellan Petroleum (NASDAQ:MPET) with a $3.75 price target, following the news that the company has reached an agreement for an option on a CO2 reservoir in Utah.
Reagor noted, “We believe that this provides MPET with additional opportunities as it moves forward with its Poplar CO2 project. He continued, “We believe the company will look to either lock up a long term sales contract with an oilfield owner in the area or to partner on an additional CO2 flood project in Utah. If MPET elects to sell the CO2 it could use the revenue to offset the acquisition cost of CO2 at Poplar.”
The analyst concluded, “We continue to believe MPET will show positive results with its pilot CO2 injection project at Poplar and believe this will be a significant positive catalyst for MPET.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joe Reagor has a total average return of -11.1% and a 24.4% success rate. Reagor has a -36.9% average return when recommending MPET, and is ranked #3319 out of 3395 analysts.