Over the last two sessions, PFC won some territory on the price chart, moving 10% up. The trading volumes are rising too, which is principally a bullish sign. Yesterday’s turnover was three times the average.
It is not clear how the shares will behave in the coming days. There are no newly issued company developments. We have nothing on paper that could explain the current or the future performance of the stock.
Perhaps this is due to the fact that PetroFrontier is one of the newcomers on the CVE. It commenced trading on the Canadian market in mid-January.
The company itself was formed shortly before New Year, after the amalgamation of Pendulum Capital Corporation and Australia Energy Corp. In relation to this, 26.5M subscription receipts of AEC were issued at a price of $2 each. The net proceeds of this brokered private placement were released from escrow to PetroFrontier.
PetroFrontier is at present an international oil and gas exploration company focused on the development of onshore petroleum and natural gas assets in Australia. The corporation could probably profit from the rising oil prices, triggered by the political unrest in Lybia.
PetroFrontier looks financially stable enough with $57M of working capital, as stated in latest company’s presentation. PetroFrontier claims that the unconventional Bakken oil shale formation in Australia, where the company operates, has over 4 billion barrels of recoverable light oil reserves.
Maybe, PetroFrontier left somewhat negative impression with the lack of any developments regarding its Australian properties over the last two months. Traders are still awaiting the filing of the company’s official financial statements on SEDAR too.
Besides, PetroFrontier has not yet started earning revenues. After all, making a profit is the ultimate purpose of each business.
