Oil exploration company Energulf Resources (TSX: V.ENG, Stock Forum) shares climbed more than 7% to trade at 41 cents. The company last released news, when it reported on activity at its offshore Namibia block and its onshore Lotshi block in the Democratic Republic of Congo.
Posters to the company’s Bullboard were understandably pleased about the share gains, but wanted to uncover the reasons for the rise in price.
“Sustainability is the key.....not sure what there is to sustain the continued rise but it better come soon or the bubble will burst again,”noted Truebluenoser.
Posters wondered about the discrepancy between Energulf and Universal Power (TSX: V.UNX, Stock Forum), which is part owner of one of Energulf’s oil exploration targets in Namibia, but whose share price far outstrips Energulf.
“Back in 2008 Kuene #1 was being drilled and ENG has a 10% interest in the block,” explained Wallywill.
“UNX was just getting started and did not even have any interest in 1711 until they bought all the shares of Cabanas. That acquisition gave them the option to get a 2.7 carried interest in 1711 which they still hold today. Since then UNX acquired interest in 5 more blocks offshore Namibia for a total of 6.”
Nevermind the lack of news, massEntropy urged the others to buy on the rumor.
But northendninja wondered: “what is the rumor? have they started drilling? tasked a drill ship? is anyone drilling the area? I am not sure what kind of news to expect here, they already released info long ago about potential reserves... In saying that it is nice to see that UNX is going up at the same time.”
There are several rumours, according to superstar1976, who also mentioned that any one of them could be true
“A) Drillship contracted
“B) Second Well being drilled with date determined
“C) ENG being bought out
“D) Second massive zone being tested
“E) Congo?
“Either way, the direction is pointing up and it is very possible that ENG has simply lagged behind UNX which would affect investors perception of what has been going on (mine included). Things look very different now, and Tasser, you I think are bang on.”