To OTC Journal Members: 
 
Sorry about Sunday. The idea I was looking at wasn't quite ready for Prime Time, so I held off.

Bering Exploration: Round 2?

The first time around, BERX moved from my entry level of $1.17 and found its way to a high of $1.70 within 7 trading days.

The stock has since backed down all the way into the $.70 range, but of late has been moving back up the charts on increasing volume. It seems like someone is starting to accumulate this stock again.

Today, just after the market opened, BERX announced it has begun remediation on two wells in it's joint venture, central Texas location. On this 1,000 acre tract, there are 50 previously drilled wells, and 50 new potential locations.

These wells have been abandoned for a number of years. Over the past 10 years, new drilling technologies have allowed abandoned producing wells to go back into production with moderate investments from the smaller, more agile oil and gas companies.

Many of these wells will only produce $10,000 to $50,000 in revenues daily, so they aren't large enough targets for the majors. Remediating a series of smaller wells can have a major impact on a more nimble company like BERX, and small oil and gas exploration companies are enjoying tremendous success reincarnating these sites.

In summary- BERX is going to drill it's initial four test wells in the EagleFord Shale, drill on the Gulf Coast, and remediate in Central Texas. The combined potential revenue of the two drilling programs is $40 million, and the remediation wells are not quantified yet.

It's not going to take much production to get this stock moving. The company is getting extremely active, and who knows where they might hit a windfall.

Now, a look at the chart. As I've said, I believe this stock is going to have at least 3 tradeable rallies throughout the course of 2011. The first has already happened with the stock peaking about $1.70 in mid April- up from a starting point of about $1.

It would appear there "could" be another move starting to take shape. The stock retreated to about $.70 from $1.70, traded sideways for about 1 week, then started to move the other way again.

Note the recent surge in volume, accompanied by a move to the upside in price.

While it's a bit too early to call, I'd say it's possible the stock is setting up for Run #2. Off of $.70, a measured move would take the stock to about $1.40.

The company's high level of activity is no doubt sparking interest as well.

A move could be forming. You might consider starting to accumulate.

Catch Me If You Can

I'll be making an appearance on a nationwide, stock market related TV show later today, and you can tune in on the internet if you're so inclined.

Simply go to www.bigbizshow.com, and click on the button that says "Watch Us Live".

I'll be appearing today for about 20 minutes starting at 12:40 Pacific, 3:40 Eastern today.

I'll be talking about the resurgence in the China Small Cap sector. You never know- I might actually say something intelligent.

Home Page : www.otcjournal.com
Email Questions or Comments To: editor@otcjournal.com