Horn Petroleum Corporation (CVE:HRN) (PINK:HPMCF) stock price hit a new high as traders anticipate the company to find oil.
HRN hit a 52-week high of $1.31 during Monday’s trading session and closed at $1.30 suggesting a technical possibility of a further price rally.
The price move was accompanied by a heavy trading volume of 2.6 million, which was nearly 10 times heavier than the 90 day average activity and also the heaviest daily volume recorded over the past year.
The stock is now technically on a blue skies breakout and it will all depend on momentum buyers since there were no recent news. The price action is now mostly based on the last week’s news and technical scans bringing in new traders.
Horn Petroleum issued their last press release on March 7. Back then the company said their Shabeel-1 well, on the Dharoor Block in Somalia, continued drilling ahead and was at a depth just of over 2053 meters. The company also reminded that the planned well depth is 3800 meters, nearly twice the current depth and it has yet to penetrate the reservoir targets.
Horn has high expectation partly because they are drilling on the same Jurassic aged rift which was found productive on some properties in Yemen. On the other hand, the data was apparently found only on country and industry websites and is not NI 51-101 compliant.
Some oil and gas shows were witnessed during the work, but no large scale findings were announced. Still, it was enough to heat things up last week when the stock price was already inflated and thus the commotion lead to a price breakout.
