Zacks initiates coverage of Native American Energy Group Inc. with an Outperform rating
Ian Gilson, CFA
Native American Energy Group Inc. is a development stage energy resource management company with interests in tertiary oil recovery in Montana, coal-bed methane recovery in Alaska and vertical axis wind turbines.
The company currently has five oil wells on four leased holdings that have been flow tested for commercial production and we expect significant oil sales in 2013.
Initial production from two wells should generate revenue in the fourth quarter on 2012. Native American Energy has a contract to sell all the crude oil to Shell US Trading at a price based on the NYMEX average price.
Our recommendation is Outperform with a price target of $1.50.
Please visit scr.zacks.com to access a free copy of the full initiation report.