Traders of Petrolia Inc. (CVE:PEA) (PINK:PTOAF) saw a blue skies breakout today after the company published favorable resource estimate.
PEA hit a new 52-week high at $2.42 after the stock price skyrocketed from the beginning of the trading session adding more than 25% over the course of couple hours. The price went up on a massive trading volume which could easily be one of the heaviest for the year by the end of the session.
The breakout above the stubborn resistance of $1.95 was caused by news announcement. Petrolia said that an independent resource assessment on the Macasty Shale done by Sproule Associates Limited showed significant results. The company could have around 30.9 billion barrels of oil on the property according to the initial estimates with statistical high-low interval between 48.2 and 19.8 billions of barrels.
During their drilling the company had found residual oil in a core of one of the testing wells drilled in 2010. The Macasty shale itself is favorably located and was expected to be within the oil window and to be oil prone.
On the other hand, a portion of the shale remains untested and the current results are not final. The resources announced are considered inferred and were derived from the data available at the time of study.
