NEW YORK, Dec. 15, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:
Ernest C. Schlotter, research analyst with InvesTrend Research Affiliate SISM Research, has raised the target price for Delta Petroleum (Nasdaq:DPTR) from $15.00 to $18.50.
According to SISM's Research Note:
The increased target price reflects Delta's expanded oil and gas sales through successful acquisitions, development of undeveloped properties and favorable commodity prices. Proved undeveloped reserves represent the future of a growing company like Delta Petroleum and the Company has significantly increased its capital expenditure budget from $25 million in FY2004 to a record $80 million for the current fiscal year of 2005.
The majority of Delta Petroleum's 2005 capital expenditure budget, however, is anticipated to be financed through the reinvestment of cash flow from operations. Increased drilling activities will lead to rapid growth in the Company's production volume, cash flow, earnings per share and NAV. SISM estimates total sales of oil and gas in FY2005 to reach $105 million, that should provide a net profit of $0.52 per share and an increase of approx. 25% in proven reserves to 210 Bcfe in FY2005 which ends June 30, 2005.
SISM Research, based in Zurich, Switzerland, is a private investment research firm offering high-quality, independent research on public companies since 1995. SISM writes, publishes and distributes research coverage, in both English and German, on micro- to small-cap public companies trading on the OTC Bulletin Board, NASDAQ and AMEX. This coverage is geared toward institutional and individual investors in both North America and in German-speaking Europe, a market that represents more than 100 million people. SISM Research is a content provider to Thomson Financials OneAnalytics/FirstCall, to Multex, and InvesTrend. Both SISM Research and InvesTrend Research subscribe to the "Standards for Independent Research Providers" at http://www.firstresearchconsortium.com
The fee for SISM coverage was $3,500 and is being paid by GlobeMedia AG, Delta Petroleum's European IR company.
The full report is available at http://www.investrendresearch.com and http://www.sism.com . Investors are advised to read disclosures carefully before trading in the equities of any enrolled company.
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