Pan Orient Energy Corp. (CVE:POE) (PINK:POEFF) stock price has been running up actively over the past two sessions as traders bought into the news. However, things remain rather speculative as the company promised further news in a couple of days’ time.
Stock price added another 12.5% on Tuesday, albeit the trading volume was less than half of the 2.2 million recorded on Monday. The stock price started this week with a 23% run and has advanced a total of 36%.
Although it dwindled after gapping up on Tuesday morning, it seems correction is not due yet. The price advance is also supported by news, thus even if it retraces down the crash shouldn’t be very fast paced.
The price rally was a reaction to the company’s announcement of oil findings in one exploration well. The company will be issuing more information once they run some tests, but the initial data looks very encouraging. The company essentially found several sandstone reservoirs, three of which were found at random.
In the same announcement Pan Oriental reported progress on their other wells as well, but most of them didn’t provide a positive impression.
