Gallic Energy Ltd (CVE:GLC) (PINK:GLCKF) recent operational update created a significant buying wave. The new developments could create a lasting price rally on the market.
GLC stock price jumped 13.6% on Tuesday, carrying a trading volume of over 1.25 million, which was the second highest volume recorded over the past year.
The advancing share price might encounter resistance around 25 cents per share, but it shouldn’t prove to be strong. Coupled with positive news and incorporating lasting structural developments the price could go up to a recent top around 29 cents.
GLC downtrend reverted after the company announced an operational update on November 29. Gallic disclosed to have begun preparations to re-enter wells on Ger Permit and identified first exploratory target on Ledeuix Permit in France.
GLC started construction on two sites at Ger and managed to salvage a significant part of existing infrastructure, which should allow completing their own constructions in one month. A rig should be delivered on site on January 4, 2012.
Construction works on Ledeuix are in preparation and should be completed by the second quarter of 2012.
The company declared to be adequately financed to carry out the planned activities as they had $19 million in cash at the time of publishing.
