Americas Petrogas Inc. (CVE:BOE) (PINK:APEOF) stock price is flying after the company got cash for exploration activities and a new partner.
BOE share price added 23.5% during Tuesday’s run, although the rally is not very stable at the moment. The trading volume was 1.8 million yesterday, heavily above the average 244 thousand.
The explosive gap up in share price was cause by a public statement that Exxon Mobil Corp. (NYSE:XOM) will be investing up to $76.3 million to jointly explore for unconventional oil and gas in Argentina. $53.9 million will be dedicated purely to exploration and the remainder will be supplied upon entering exploitation phase.
This will cost Americas Petrogas 45% ownership of the project, leaving them with 45% on their own (10% is held by another company – Gas Y Petroleo del Neuquen).
The companies will focus their exploration activities on the Los Toldos blocks in the western region of the Neuquen Basin. Being the operator of these blocks BOE expects to drill the first well in Q4 2011.
Making things even more interesting are the findings of businesses neighboring the targeted area. Argentine oil and gas firm YPF SA, engaged in exploration of this same region, stated in July to have found 10 to 50 million barrels of crude oil, which bodes very well for BEO and Exxon.
