3Legs Resources (LON:3LEG) jumped 14% to 72p before lunch on decent volume. Possibly these are playing catch up to the recent run in San Leon, who are drilling nearby in Poland, or possibly the market is getting ready for an update on 3Legs own drilling campaign. Peter Clutterbuck, the Chief Executive of 3Legs Resources, said on the 29th of November last year "Our primary focus remains the commercial development of the Baltic Basin where we are continuing to do further analysis on the results of our two recent wells and we are engaged in a planning process for the 2012 programme." First line resistance looks to be around 75p, with major resistance sitting around the 85p level.
Tower Resources (LON:TRP) volume continued to jump again today, with almost 15 million shares changing hands by the beginning of lunch. It is no surprise to see the shares getting active again as the company said in the last update, that the Mvule-1 exploration well spud at 16.00 hours (GMT) on 12th February 2012. The well is being drilled to an estimated depth of 620 metres. Operations are expected to take two to three weeks and a further announcement will be made once drill results have been determined. So holders here should be looking for an update again from Tower towards the end of next week. We will continue to watch this one closely for the update.
Xcite Energy (LON:XEL) jumped another 12% before lunch to almost 150p, with 14 million shares changing hands. I have been highlighting the major resistance levels over the last few notes, and pointed out the150p level as the last major sticking point before 200p. Well Xcite tested the 150p level this morning, before drifting slightly as a few profit takers showed up to the party. We will be watching the close carefully on this one, because if they close above the 150p marker, we could see the chartists getting Xcited once again, and try to push this one on to 200p. The major support to watch out for here will be the 120p level.
Sefton Resources (LON:SER) pushed 12% better to 2.6p in trading today, after the company said 'that work done on its Tapia and Eureka Canyon Fields in California is likely to have "a significant impact on production and reserves by mid-2012. Proved reserves total 3.7 million barrels of oil in California as at Dec. 31, and remain largely unchanged from the mid-year stage. The quality of reserves is improving as the recent work at Tapia has allowed Proved Undeveloped (PUND) reserves to move up into the Proved Developed Non-Producing (PDNP) and Proved Developed Producing (PDP) category of reserves. The recent drilling at Tapia, together with the renewed cyclic steaming program, a pending updated geologic model from Petrel-Robertson following current core analysis and the completion of Dr Farouq Ali's thermal stimulation model based on the updated geologic model is expected to have a significant impact on production and reserves by mid-2012' The shares did jump all the way up to 3p in early trading on that announcement, but settled down around the previous resistance at 2.5p, that should now act as a support line.
Nighthawk Energy (LON:HAWK) slipped 10% to 3.5p before the end of lunch, albeit on thin volume, as profit takers finally showed up after the stock pretty much doubled over the course of three trading sessions. There is a little support around the 3.5p area, but any break could lead to a test of the support at 3p.
Oilex (LON:OEX) were 6% better at 14p, as bulletin boards were speculating an update could be due. Reading through the last update from the 18th of January I found this 'While a reduction in pressure has been recorded, the well is continuing to flow thus preventing a resumption of the retrieval operations. Subsequently, a re-interpretation of the post fracture pressure data has revealed that the reservoir pressure is higher than previously anticipated. Accordingly, the well control procedures are being reviewed and additional chemicals sourced to ensure that the well can be stabilised and remaining operations completed. Further releases will be made upon completion of significant events. Based on the last few lines, possibly the chatter on the boards could be right.
Quadrise (LON:QFI) the emerging supplier of MSAR(R) emulsion fuels, a low cost alternative to heavy fuel oil in the shipping, refining and power generation markets, jumped 9% to 6.25p on decent volume. Holders here have not seen any updates from the company so far this year, so possibly the market is getting ready for an update sometime soon. We will be watching the news wires closely here.
Written by Steven Asfour, Sales Trader at Fox-Davies