Replies to post #75 on Emerald Oil, Inc. (EOXLQ)

[Timothy Smith]

$EOX is beyond early stage; however, it does enjoy an early-stage multiples.

On an enterprise value to trailing twelve months production basis, EOX is trading at $293,006 per flowing BOEPD.

Referencing EOX's June 2013 presentation, on an enterprise value to Williston Basin acre basis, the company is trading at $2,730, a 67% discount to the peer average of $8,262.

KOG's $660 million acquisition of Liberty Resources 42,000 net Williston acreage was for $15,714 per undeveloped acre (without adjusting for any daily production).

If the company hits its estimated Q4'13 average production guidance of 2,750 BOEPD, up from 1,065 BOEPD during Q1'13, I believe we will see the company's production multiple trade more in line with its Bakken peers, and its acreage multiple trade higher and closer to its peer acreage multiple as they continue to de-risk and prove up their acreage.

[Timothy Smith]

$EOX Analyst Comments:

12-month price target: US$8.00 based on a DCF methodology.
Catalyst: Operational well results, production growth, EUR increase

Emerald continues to represent a unique opportunity as it continues to ramp its operated Bakken production. We reiterate our Outperform and our US$8.00 price target.