Point Loma Resources shares up as Chinese group Zhongcheng Group continues backing

Proceeds were around $753,000 and Evenergy, which first invested in the oiler last summer
Point Loma Resources shares up as Chinese group Zhongcheng Group continues backing
Point Loma has a large portfolio of opportunities in Alberta

Broker Mackie has repeated a 'buy' on Alberta-focused oil firm Point Loma Resources Ltd (CVE:PLX) following news yesterday that it had completed a private placing to strategic investor Evenergy Co Ltd.

Proceeds were around $753,000 and Evenergy, which first invested in the oiler last summer, maintained its control over 19.9% of the shares.

The cash will be used to exploit Point Loma's deep inventory of Mannville, Nordegg, Banff and Duvernay shale opportunities and for additional accretive acquisitions.

Evenergy is subsidiary of Zhongcheng Group, one of the largest privately owned independent petroleum refinery, oil products and LPG distribution and retail companies in China

Mackie analyst Bill Newman said: "PLX is highly undervalued and has a large concentrated land base with a large, multi-zoned drilling inventory to fuel rapid growth for many years.

"PLX has no bank debt and positive working capital to fund low risk well recompletions, facilities expansion and drilling that should double production in H2/18."

The broker targets C$1.10 for the shares, which today stand at 28 cents - up 12%.

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Point Loma Resources Timeline

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