Pegasi Energy Resources Corp. (OTCBB:PGSI)
, a Nevada corporation (“PERC” or “Pegasi”), is an independent organic growth-oriented energy company engaged in the exploration and production of natural gas and oil through the development of a repeatable, low geological risk, high potential project in the active East Texas oil and gas region. Pegasi currently holds interests in properties located in Marion and Cass County, Texas, home to the giant Rodessa oil field, which has produced approximately 2.3 trillion cubic feet of gas and 400 million barrels of oil.
Caprock Risk Management ("CRM"), an independent research firm with expertise in the energy sector, has initiated research Coverage Of Pegasi. Caprock has initiated coverage on Pegasi with a STRONG BUY rating and a 12 month target of $1.50.
The report "examines the potential continued growth of the Company which is expected to be driven by strong revenue growth opportunities from its oil and gas production in the Highly Active East Texas Cotton Valley Liquids Trend. CRM's recommendation centers on strong secular trends for domestic oil production, Strong reserves in place, and large volumes of hydrocarbons in place in multiple geologic horizons combined with experienced, proven management with an average of over 30 years of experience specific to East Texas."
Chris Jarvis, CFA, CMT and Director of Research at Caprock Risk Management, commented,
"We are excited to launch coverage on Pegasi Resources Energy Corporation. We believe equity research plays a vital role and intermediary between investors and publicly traded companies, which makes the markets more efficient. In our opinion, Pegasi is an example of a publicly traded company with strong fundamentals that are not yet reflected in its share price. Given this, we believe Pegasi Energy validates the independent research model and are happy that Pegasi is one of several companies that we are launching coverage on in 2012."
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