Last June ZEX had a Market Capitalization of $335 Million. Cash in Bank @ that time was $54 Million...Market Cap was 6x its Cash Buffer
Someone took Posession if a Lot of Shares last year at this time. It is conceivable that a Short was taken out on thsi stock and that SHORT COVERING is now in Progress to close the Position as the Bottom is cleary in here.
During the quarter ended June 30, 2011, the Company received a notice of exercise in respect of 31,175,000 of its outstanding warrants. Each warrant was exercised at an exercise price of approximately $1.034 per warrant and entitled the holder thereof to acquire 1.0 common share of Zodiac for each warrant held. The Company received total proceeds of $32,250,000 upon the exercise of these warrants.
The recent push by the
United States to finally reach energy independence has caused a significant spike in investment in California oil shale plays, particularly within the San Joaquin Basin, one of the richest oil shale basins in the region according to the US Government Office of Energy. Large domestic oil producers like Hess Corporation and Occidental Petroleum have aggressively expanded their portfolios within the region.
Major Oil companies have been aggressively expanding their portfolios within the Kreyenhagen oil shale play fairway
- Hess Corporation (Mkt Cap: US$22 billion), a new entrant into the California oil shale plays has permitted for the drilling of up to 6 test wells updip to the east from Zodiac Exploration's acreage in which a deep horizontal well was recently tested flowing between 60 and 126 BOPD of 29 degree API gravity oil. ZEX understands that Hess will be targeting the Kreyenhagen Shale.
- Oil major Occidental Petroleum Corporation (Mkt Cap: US$84 billion) has stated ambitious plans for the expansion of its oil shale production in California and are the largest acreage holder adjacent to ZEX. OXY have been competitively leasing in the immediate area
- New Gulf Resources, a private company from Tulsa, Oklahoma and another new entrant to California oil shale activity are advanced in the drilling of an initial three well program on acreage on the flanks of the Kettleman Domes with targets in both the Monterey and Kreyenhagen Shales.
With the pending developments on the Kreyenhagen oil field, assessment by the US Office of Energy Administration that the San Joaquin Basin is the volumetrically richest of all of the California oil shale basins and big oil's recently expanded investment in the area, ZEX becomes of great interest to investors looking to play the energy market for above average gains.
Given the sizes of Occidental and Hess and the interest they have in the area, it is not unreasonable to expect that ZEX could be purchased for a HUEG PREMIUM to current SP.