Red Emperor Resources (LON:RMP) and Range Resources (LON:RRL) were very active once again today, after bulletin boards were speculating that the current drilling programme in Puntland Somalia may have intersected oil at shallower horizons than pre drill estimates. Of course this sort of speculation must be taken with a large pinch of salt, but the retail market were chomping at the bit for both. Red Emperor were trading 16% better at 43p while Range Resources were trading 12.5% better at 14.5p.
Victoria Oil & Gas (LON:VOG) continued to rally during early trading, pushing another 9% to trade at high as 5.05p before settling back at the 4.7p level. Volumes have been through the roof recently which makes it hard to not keep an eye on the stock to see if anything materialises. One thing is for sure, the stock has been left behind while the rest of the Oil & Gas sector enjoyed a decent rally.
New World Oil (LON:NEW) were 5% better in trading to 8.5p and had traded more than yesterday's volume by the halfway point in the day. One of the possible reasons could be that fellow Oil Explorer in Belize, All Energy Corp struck oil at its first well in the country.
Another stock on the move in early trading was Roxi Petroleum (LON:RXP). Shares were 8% better at 5.25p after bouncing from its major support at 4.5p only a few days ago. The last operations update said 'Swabbing has started with a view to increasing the flow rates; it is the intention to install artificial lifting equipment on Well NK-9 and continue long-term testing to monitor the well productivity. ' Possibly the market is getting ready for additional news flow from the company.
Egdon Resources (LON:EDR) slipped 12% to 10p during early trading after the company reported a 67% rise in first half production versus the year ago period, but said that the production was below its expectations due to issues at the Ceres and Kirkleatham gas fields. Production for the six months to Jan. 31 was 29,624 barrels of oil equivalent, or boe, an increase of 67% 17,671 boe in the same period last year. Revenue from oil and gas sales during the period were GBP1.5 million, up 71% on GBP0.9 million in 2011. To make a precautionary impairment of the Kirkleatham gas field asset of GBP1.0 million in interim results. Anticipates a reduction in overall production and cash flow for the coming period until the issues associated with Ceres and Kirkleatham are resolved. First line support looks to be around the 9.5p level on this one.
Written by Steven Asfour, Sales Trader at Fox-Davies