Yes, that specific type of report simulates Ultra and its reports are generally reliable. Unfortunately, most remote sightings aren't done that way by intelligence report, but by random sighting by "another unit." These tend to be so unreliable that it really isn't worth the time to chase them unless you're VERY near and it won't impede your progress to your destination to complete your mission.
So in the game intelligence reports are pretty reliable and worth chasing. Sightings by "other units" are a lot less reliable and most of the time aren't worth an extended travel out of your way.
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