America Resources Exploration Inc (OTCMKTS:AREN) was a notable mover during Friday’s trading session. The stock rallied by close to 8% on the back of above average volumes. The stock has been trending higher ever since it was able to break above the resistance zone at $0.36. The stock currently trades above its 50 day moving average, which is a bullish sign. The relative strength index continues to trend in bullish territory indicative of buying interest. Traders believe the stock could head to levels of $0.087 in the near term. The stock has formed a strong base at the level of $0.021
America Resources Exploration Inc (OTCMKTS:AREN) announced that it had acquired a new running oil field in Texas area. As per the reports, the total leased area is about 700 acres in size, and houses one SWD well and 6 shallow wells drilled into Cross Plains Sand pay zone of Jane.
Insights of The Announcement
To execute this transaction successfully, America Resources will issue a total of 500,000 shares at $0.97 per share to sellers of the property, making it worth $485,000. All the equipment available at the site are included in the transaction value. The NRI of this transaction is estimated to be around 79 percent. Other pay zones for these leases make room for Cisco formations and Strawn.
The senior management team of the company is delighted to make this announcement and hopes that things will continue to fall in line in the coming months as well. This transaction is likely to pave the way for the future growth of America Resources.
According to Huang Yu, Chief Executive Officer, the prime objective of America Resources Exploration is to develop this site into a fully-working property. The management team believes that the previous owners didn’t use it up to its potential, which has left behind a great opportunity for America Resources.
Not long ago, America Resources Exploration acquired another property Snyder leases, which’s not far from these oil fields in Texas. This strategic move will help the company unearth many advantages in the months to come.
As of now, America Resources Exploration has given charge of assessing the potential of this property to Mr. Randy Chillion, who’s a petroleum engineer by profession. Chillion’s expertise and a whopping 36 of experience in the same field make him the best suited for this role. Further development work will soon begin, details of which will be shared from time to time.