Brownstone Energy Inc (CVE:BWN) (PINK:BWSOF) gained 57.5% after their venture partner found oil on a mutual property.
The stock reached a turnover of 2.6 million on Monday, which was nearly eleven times the average of 241 thousand.
BWN gained after their venture partners discovered oil on the Llanos 27 Block in Colombia. The news basically raised the stock from the dead as it’s been declining for most of the past year and was sitting in consolidation for the past 3.5 months.
The stock price gain meant that Brownstone’s market cap increased to 81.7 million. Their book value is at $89.3 million, thus there is some space for further appreciation.
The well was shut on January 14 and now awaits the Colombian Ministry of Mines’ approval for extended testing. The well can be put into production and it is the company option to do so.
Brownstone pays 50% of the drilling and testing costs seeking to earn a participating interest of 45.275% before payout, and 34.25% after payout.
It is likely the price will continue upwards at least in the morning because the news is sound. The 200-day moving average might stand in a way, but on the other hand a breakout above it would give the rally additional strength.
