America Resources Exploration Inc (OTCMKTS:AREN) witnessed a massive surge during Thursday’s trading session. The stock surged by close to 30% on the back of 10 times the average daily volumes. The stock currently trades above all important moving averages. The stock has been able break above the broad trading range on the back of heavy volumes indicative of the strong buying interest. The relative strength index has given a buy signal, which is a bullish sign. Traders believe the stock could head to levels of $0.1 in the near term. The momentum oscillators are showing a clear shift towards the buy side.
America Resources Exploration Inc (OTCMKTS:AREN) has announced its reserves estimates for its recently acquired Harris leases, which is located in Texas.
Methodology And Calculations
America Resources Exploration wanted to make sure that things fell in line; hence, it used volumetric calculations for OOIP (Original-Oil-In-Place) and reserves were executed for reservoirs in Harris A, B and C Leases. As per the reports, this area is located in Callahan County, Texas and spread across 722 acres of land. Most of the companies in petroleum industry use this method because of uses of sound engineering practices.
Reports claim that Seabourn Oil Company provided rock and geologic properties, which were finalized after reviewing a host of wellbores in the adjacent area. As part of this procedure, three reservoirs were evaluated – Cross Plains, Strawn and Cisco. For each reservoir, a low case and a high case were evaluated.
Acquisition of Producing Oil-Field In Callahan County, Texas
Meanwhile, America Resources Exploration also announced that it had acquired a producing oil field located in Callahan County. Reports claim that the leased area is around 700 acres and has 1 SWD well and six shallow wells that are drilled into the famous Jane’s Cross Plains Sand pay zone. In returns of this acquisition, America Resources has decided to issue 500,000 shares at a price of $0.97 per share to the sellers, making the transaction worth $485,000.
NRI of this transaction is around 79 percent. Company’s senior management team is extremely happy to announce this decision and hopes that it will mark a new beginning in America Resources expansion plans. According to Huang Yu, Chief Executive Officer, America Resources Exploration, this site might not have been explored to its full potential up till now. America Resources Exploration has such technologies and tools that can use this property and develop it into a fully working oil field.
Further details of this deal and the production work will be announced later.