Mart Resources fka MMT (MMT)

[kaisersosze]

Cormark raises MMT target price to $2.75

The first and deepest sands to be tested in the UMU-10 well, XXI, flowed at 1,943 B/d of light (55.3º API) crude oil through a 28/64” choke with 1,260 psi of tubing pressure during clean-up. Five intervals (six sands) targeted in UMU-10 have now been perforated and completed with four flow tests remaining (two sands will be comingled). The success with UMU-10 reinforces our belief that Mart will be able to materially increase volumes later this year following a pipeline deal with Shell and add significant new reserves in 2013. We continue to view Mart as one of the most attractive names in our universe with further material catalysts expected near term. Trading at 4.0x 2013 EV/DACF with a 10.9% yield and strong balance sheet, Mart should appeal to every investor class. We reiterate our TOP PICK rating and are increasing our target price on Mart to $2.75 from $2.50 previously