2011 is not a strong year for the energy sector. A large number of energy companies, including Canadian ones, suffer losses on the stock markets. It seemed the bottom was reached in the end of this month when many energy stocks fell to 52-week lows, some of them even noted their all-time lows.
Sea Dragon Energy Inc. (CVE:SDX), (PINK:SDRYF) makes no exception from the overall picture. A few days ago, SDX slumped to a two-year low of $0.07. The start of this week, however, marked a positive change in the shares’ behavior, just as almost the same happened with the stock of several other companies.
Perhaps, the crisis in the energy sector stocks has been overcome at last. Accordingly, SDX began moving up – yesterday it added 5.88% to its value on a large volume of over 3.3M shares. The signal for the advance was given on Monday more than evidently – in a hot session the stock climbed 13%, supported by a striking turnover of 6.56M.
The future performance of SDX remains unclear; it is difficult to make prognoses. At present, the shares find themselves at $0.09. Hard to imagine how they will roll back up to go beyond the $0.30 level where they were in the start of 2011.
The last days are rich in company news too. Perhaps that also managed to pump up the stock a little. On Wednesday, Sea Dragon released an update of its operations in Egypt, where the company holds a 10% working interest in the NW Gemsa Concession and a 50% interest in the Kom Ombo Concession. Sea Dragon was glad to inform the public about its new Al Ola-2 well, spud successfully in the beginning of this month.
On Monday, the corporation announced the closing of a 5-year senior secured loan facility for the sum of $50M. Talking about money, we should note that the latest Sea Dragon’s reports (filed on SEDAR) indicate some financial stability. In the end of this June, the company had a sound cash position of $10M and a working capital of almost $14M.
