VRO: Vero Energy Inc (TSE:VRO) (PINK:VREYF) stock price shot up after the company closed the sale of assets and secured additional credit facility.
VRO stock price jumped 6.9% on Wednesday. The accompanying trading volume topped 6.5 million, which was ten times the average of 640 thousand and the heaviest recorded daily trading volume in three years. VRO got listed among the most actively traded stocks on the Toronto Stock Exchan
ge because of this activity, as well.
The price movement was anything special though. At $2.95 per share, recorded at the end of the session, the price remained below the psychologically important resistance at $3 per share. The stock dwells close to its multi-year lows, but at least now the price action appears to be consolidating, instead of falling further down.
The notable spikes in price and trading could render a further price rally when the market notices VRO. That is even more likely as the price action was induced by a news announcement.[BANNER]
On January 31, 2012, the company said they have finalized the sale of their deep basin natural gas assets in Alberta, which landed them $209 million. In addition, Vero secured an additional credit facility which gives them access to another $45 million.
The company will use the proceeds to cover their debts and improve oil drilling activity as they focus on the development of Cardium light-oil assets.