UPDATE: Credit Suisse Initiates Coverage on Emerald Oil

In a report published Friday, Credit Suisse analyst Mark Lear initiated coverage on Emerald Oil (NYSEMKT: EOX), with a $10.00 price target.

According to the report, EOX's price target is derived from the analyst's 'PD Plus' NAV estimate, driven by EOX's project inventory in the Williston Basin, to which is assigned a five-year project inventory in-line with the value allocated across their SMID-cap coverage universe. “EOX has drilled nine wells thus far in its Low Rider project, which have exhibited average 24-hr and 30-day IP rates of 1,654 boe/d and 809 boe/d, respectively,” the report noted. “Much like other Bakken operators, EOX is seeing improving well results due to enhanced drilling and completion techniques. Moreover, positive results from neighboring operators point to the prospectivity of its acreage outside of Low Rider, where the company plans to initiate drilling in 2014.” EOX closed Thursday at $7.05.