Caprock Risk Management on Pegasi: Strong Buy, Well Positioned to Have a Breakout Year; $PGSI

Caprock Risk Management on Pegasi: Strong Buy, Well Positioned to Have a Breakout Year; $PGSI

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. The field has historically been the domain of small independent operators and is not a legacy field for any major oil company.

Caprock Risk Management, LLC has initiated coverage on Pegasi with a "Strong Buy" rating and with a 12-month price target of $1.50.

Analysts Peter White and Chris Jarvis write,

"We are confident in our investment thesis that a strong management team with geological experience and expertise in the Rodessa field and ability to accumulate and consolidate acreage will drive and maximize shareholder wealth. We believe at current levels, PGSI’s shares are attractive, underpinning our STRONG BUY rating."

See the full report here