The shares of Reliable Energy Ltd. (CVE:REL), (PINK:RELZF) did it once again. They came up with another volume spike on the Canadian Market. It happened after the company filed its 2010 financial and operational results on SEDAR. Unfortunately, the rise of the price was much more modest.

7Reliable_Energy_-_Logo.pngYesterday, REL went less than 2% up, closing the trade at $0.53. It was the volume that made much better impression here – more than 2.9M shares were turned over during the session. This surpasses three times the average trading activity of the shares.

The modest change in the price is probably no big surprise. In late March, just ten sessions ago, REL had noted an all-time high of $0.55. Currently, the shares are very close to this peak. The stock is probably not ready yet to go beyond that level and set new price records. Nevertheless, nobody can deny the solid share performance since the start of the year.

Reliable_Energy_-_Chart_-_12_Apr_2011_new.jpgIn the beginning of 2011, REL was traded at $0.325, at present it is worth 63% more. No doubt, this is a huge gain for the stock. The shares’ stir from yesterday was perhaps related with the announced by the company last year’s fiscal and operational results. Reliable Energy was pleased to inform the public about its financial achievements in 2010.

Most of the investors are probably already acquainted with the company’s releases from Monday. We shall mention just some of the highlights; the figures sound positive indeed:

  • Reliable recorded increased annual production from 106 to 333 barrels of oil equivalent per day (boe/d), a rise of 214%. Respectfully, gross revenue jumped by 284% – from $2.5M to $9.4M;
  • The company reported a significant growth in its oil and gas reserves. As at Dec. 31, 2010, Reliable had 1,352 Mbbl (thousand barrels) of proved and probable reserves, an increase of 143% over the year.

Mr. Swanson, the company’s president, even defined 2010 as Reliable’s “most successful year since operations began in 2005”. There are, however, several negative facts regarding the company that also need to be mentioned. Despite the rise in the revenue, Reliable continues to record losses. The net negative income for 2010 is $0.30M. Moreover, the company reported a working capital deficiency of $2.6M at the end of last year.

In view of this, some people might wonder whether Reliable will secure enough funds for the successful completion of its $22.2M capital program announced in January.