PetroFrontier Corp (CVE:PFC) (PINK:PFRRF) saw a price breakout after the company commenced drilling of a new well.
PFC stock price added 9.5% yesterday as buyers got encouraged by the recent advance of PetroFrontier. The price slipped 3% lower upon opening today as some short term traders took profits, forming a natural correction. Despite the slower opening, the news are still influencing the price action.
PetroFrontie said yesterday they have spudded their first well, Baldwin-2, in the Southern Georgina Basin, Australia. The press release provided information on location of the well and related details.
The main target in is the Basal Arthur Creek shale. Secondary targets include the Hagen Member and Dolomitic Shoal above this shale and the Thorntonia below.
2011 exploration program of PetroFrontier focuses around the existing well bores and new drill targets are chosen accordingly. Baldwin-2 will be drilled to a depth of 900 meters to test the Thorntonia formation, looking for hydrocarbons. After that the well will get a horizontal extension of 1 kilometer into the Basal Arthur Creek shale. The whole process should take about three weeks after which the company will focus on drilling a second well.
The news surely got investors excited. Heritage Oil Plc (TSX:HOC) (LSE:HOIL) announced this morning they have acquired additional 151.9 thousand shares of PetroFrontier and now own 12.22% of the outstanding PFC common stock.
