Blackbird Energy Inc. (CVE:BBI) (PINK:BKBEF) stock price corrected on Friday following a whole week of constant gains. However, the company had some news recently, which might prevent a drastic decline.
Over the last session Blackbird’s stock failed to retain the stock price momentum it gained from news published on Thursday. BBI lost 16.4% over Friday’s trading session. The accompanying strong trading volume of 176.5 thousand indicates a possibility of further drop as well.
Despite the large percent decline, this fall in price was a simple correction on the preceding 4-day rally. The rally exhausted shortly after the most recent update from the company.
On Thursday, October 20 Balckbird disclosed that operator has completed and flow tested the Bigstone, Montey Formation horizontal well. The initial testing showed that the well is capable of 1,011 boe/day production. Another 2-2.2 thousand meters well is planned to be drilled next, based on the reported production performance and the quality of the encountered reservoir section.
Blackbird currently holds 25% working interest at Bigstone.
The stock selloff came one day after the news. This suggests profit taking as a core reason, but considering the nature of the news the correction could be short lived. On the other hand, Blackbird already holds a P/B ratio of 2.1 which strongly limits any further increase in share price.
