Dutton Associates Announces Investment Opinion: Quest Oil Rating Strong Speculative Buy In Initiating Coverage By Dutton Associates Dutton Associates initiates coverage of Quest Oil Corporation (OTCBB:QOIL) with a Strong Speculative Buy and a price target of $0.90. The 23-page report by Dutton senior analyst Richard R. Wolfe, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias and other leading financial portals.
Quest Oil Corporation has assembled an attractive portfolio of oil and natural gas assets in Alberta, Canada, and Texas, well balanced between high-potential, higher-risk drilling and low-risk, production-ready properties coming on-line at very little capital cost. Management has extensive industry experience that has been instrumental in the Company's rapidly accelerating pace of development, and we expect continued asset and production growth. We estimate that cash flow turned positive in the first months of 2006, and we expect the Company's fourth-quarter results (for the period ended March 31, 2006) to be near break-even, with solid profitability in subsequent quarters. Our cash-flow projections indicate fast-paced growth through 2006 and 2007. By 2008, the Company should be generating discretionary cash flow well in excess of currently estimated capital expenditures. In particular, we estimate that in 2008 and subsequent years, Quest should have approximately $20 million per year available for reinvestment or for share buybacks. Our valuation of Quest common shares, employing the discounted cash-flow method, indicates a $0.90 share price, 200% higher than recent levels for the shares.
About Dutton Associates
Dutton Associates is one of the largest independent investment research firms in the U.S. Its 29 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 130 enrolled companies, and its research, estimates and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. The Firm does not accept any equity compensation. We received $35,000 from the Company for 4 quarterly Research Reports with coverage commencing on 3/17/2006. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.
Dutton Associates, LLC John M. Dutton, 916-941-8119
-------------------- GSUS - Eternal 100 Bagger! HCPC - my favorite potential into December
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This has always been a good play for the boards when at it's base.......this looks to be a keeper for me , unless I see a strong spike in a short time frame......this might see a gradual rise, which would be nice, steady modest gains, and with warm weather coming and the price of oil going up, I see this as a good safe play....won't make you alot of money fast, but it is safe at this level.
-------------------- GSUS - Eternal 100 Bagger! HCPC - my favorite potential into December
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