RE: Upward Trend11 Nov 2017 20:18
PXOG showing signs of a move north in the short term.
http://www.screencast.com/t/xYuUJZXb#
chart wise looks within a 3 monthly up trend creating higher lows and higher highs.
bullish divergence which kick started the low of the trend in aug, then moved up north. currently around the rising trend line and struggling to pass the 0.55p horizontal resistance. if this breaks then see a move up to upper trend resistance around 0.8p
on a fundamental view PXOG are awaiting on two drill results, one romania and italy,
Romania update (31/10/17) states;
"Prospex has been informed by the operator, Raffles Energy S.R.L. that the Weatherford 865 rig has not yet been released from drilling operations in the neighbouring block to the west. Once these operations are complete the rig will move and commence operations at Bainet-1. It is anticipated that the rig could be onsite in a couple of weeks, but exact timings remain dependent on the rig being released from its current operations."
rig should be moving and start drilling in a 'proven hydrocarbon basin' soon with a 50% interest. once rig is confirmed onsite and starting drilling then could bring an uplift to current SP.
the other play is a 17% interest in a farm-in agreement with Po Valley Operations Pty Ltd, the same update from 31st oct states;
"Podere Gallina Permit: a proven play in a prolific hydrocarbon region
· Located onshore northern Italy in the Po Valley where over 5,000 wells have been drilled historically
· Holds the Selva Gas-Field (previously operated by ENI) ('Selva'), which produced 83 Bcf from Lower Pliocene gas sands before being shut-in in 1984, at which point it was still producing at >0.9Bcf per year
· Modelling work highlights the potential to recover undrained gas structurally updip from historic Selva wells
Significant near term development project at Selva
· The Podere Maiar-1d appraisal/redevelopment well ("Maiar-1d" or "the Well') is to be drilled into Selva in Q4 2017 to a total of 1,350 metres measured depth, targeting contingent resources (2C) of 17 Bcf. Excellent quality reservoir with 70+ m of sand and porosities over 27%
· €3.4 million gross cost of Maiar-1d includes completion of drilling and testing - the Company's share of the cost of this well is the Consideration.
· Limited additional capex required to put the Well on production in the event of success due to nearby infrastructure and minimal gas processing requirements - high methane (99%) / low liquids content of Selva gas
· The Operator, PVE, is highly experienced in developing similar sized gas projects in the Po Valley
· PVE will mobilise the Archimede HH Rig to site in the first weeks of November with a planned spud date of 14 November 2017 for an anticipated 30-day drilling programme.
with 2 short term drill results then it could become a bit interesting at pxog, fully funded for both drill and should receive news in next couple of weeks (once drilling for both sites have been confirmed)
target price of 0.7-0.8p short term.
on a caution side of things, not for the faint hearted, in jan it released 'duster' news on a previous drill and SP crashed from 2.5p-0.83p
knowing risks involved there is a trade there before everyone catches on to it ;)