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Bering Exploration (BERX): Close to a Breakout?

Whlie there hasn't been any upside progress on the price of late, BERX has been trading an above average amount of volume, which might be serving as a precursor to a breakout in the stock.

Yesterday BERX announced it has entered into another development agreement- this time in Southeast Louisianna. In all, this brings the number of drilling/development projects this company is participating in to 5.

In other news, BERX announced last week it will begin drillling shortly on its South Texas prospect. BERX has a 50% interest in this project, and this 500 acre property has multiple potential drilling sites. If the company is successful with this drill, it will begin oil production on this site in a matter of weeks.

With the total now five, here are the prospects BERX is pursuing:

• Eagle Ford: 1200 acres targeting 3 million barrels of oil at approximately 120 well locations. First drilling slated for later this year.
• South Chambers: Drilling is beginning this week and production could begin in a matter of weeks
• Gulf Coast: LOI to participate in a Gulf Coast prospect that could contain 10 million barrels of oil.
• Permian Basin: 3 year exclusive with Glaus oil and gas on 500 acres in West Texas
• Southeast Lousianna: 10% working interest in potential reserves of 500,000 barrels.

Taken as a whole, this is clearly one of the most active small companies in the oil and gas exploration and development sector. Listed above are 5 chances for a home run in the stock. One never knows when just one of these projects will capture the market's attention, but it could happen at anytime.

Volume Kicking Up

The chart is interesting. There's a precursor imbedded for a move up in this one.

As you can see, there hasn't been a lot of upside progress made on the price of late. However, $.60 seems to be great support- there's seems to be no sellers below that level.

Everytime the stock pokes its nose up above $.70, it heads back into the $.60's range.

As a backdrop, volume has been holding up beautifully, with the stock trading over 250,000 shares on quite a few days over the last several weeks.

This stock could be setting up for a breakout, especially as the market appears to be anticipating some postive drilling results out of their South Texas prospects.

Don't be surprised if BERX suddenly gets some legs and heads north when you least expect it. It appears to be in the tea leaves.

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