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How Far Can You Look Into
the Future? |
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Bering Exploration, my "Thrill
of the Drill" idea seems to be the one on everyone's radar screen
Yesterday was the first significant
"correction" day for the stock. After chugging up from $.90 in mid
March to yesterday's high of $1.70, the stock finally ran into some
aggressive sellers who knocked the pins out from under it in the early
going.
The high of $1.70 quickly
became a low of $1.30 by noon eastern, and then the stock rebounded
to close at a more reasonable $1.43. This stock has been entitled
to correct for sometime, and I'm actually quite glad to see it happen.
Today, pre open, BERX released
some additional information about its pending drilling program which begs
the question "How Far Can You Look Into the Future?".
BERX gave an update on the
commencement of drilling, informing the world it has retained Dependable
Working Partners to provide the drilling services. From the name, one
can assume they are likely to be hard working, dependable, and good partners.
Truth in advertising.
However, as importantly, BERX
disclosed the potential gross revenues of the 3 million barrels of oil
would
equate to $318 million in revenues. Hence, my question for you-
How
Far Can You Look Into the Future?
If you see yourself as a long term
investor in small companies, you might be the perfect candidate to own
this stock as the $318 million in revenues equates to about $13.25
per share in value. However, it will take some time and some proof
for the market to be willing to price to that level.
Drillers are hitting a very high
percentage of test wells in the Eagleford Shale- I've read over
90%.
So, as this proves out, that eventual target of $13.25 will get
priced into the stock.
Technically, this stock's uptrend
remains very much intact until proven otherwise. Here's a look not many
people are sophisticated enough to see. It's a 5 minute chart of yesterday's
action.
To me, this chart screams one big
seller who was out at about 8:40 AM Pacific Time. Every volume bar you
see represents 5 minutes, and each price bar the same. Since I'm on the
West Coast, the market opens at 6:30AM.
Notice how the stock opened on pretty
good volume, the started selling off. Volume increases a bit on the way
down, and the capitulation trade is 75,000 shares in 5 minutes at 8:40,
after which the stock starts to rebound.
This stock was oversold at that time,
and a bounce back was to be expected.
Today is important technically. If
this stock continues to trade north of 1/2 million shares everyday, and
can continue to ease its way higher from here, that correction will have
been heaven sent for those who have chosen to just watch this one. The
train has made a brief stop at the station, and you can climb onboard if
you choose to do so. Until now, this train had not been very accommodating.
At times, it just slowed down a little.
Investors are likely to respond very
favorably to today's news, the entirety of which you may read below:
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Bering Exploration
Engages Firm to Provide Drilling Services for Its Eagle Ford Prospect That
Has Potential Gross Reserves of $318 Million or $13.25 Per Share
Press Release Source:
Bering Exploration, Inc. On Wednesday April 13, 2011, 7:45 am EDT
HOUSTON, April 13, 2011
(GLOBE NEWSWIRE) -- Bering Exploration, Inc., (Pink Sheets:BERX - News)
announced today that it has engaged Dependable Working Partners to provide
drilling services for its Eagle Ford shale play in Central Texas. This
prospect has potential gross reserves of 3,000,000 barrels of oil which
amounts to $318 million or $13.25 per share based upon the current price
of oil and outstanding shares and assumes all wells are drilled and successful.
Bering owns a 100% working interest and an 80% net revenue interest in
this prospect.
Bering recently announced
that that it will initially drill four test wells on its Eagle Ford shale
play in Central Texas and will utilize the results to help with the design
and development of a more in depth drilling program for the remaining 116
potential wells locations.
"With the hiring of Dependable,
we have assembled a seasoned and experienced team to work with us to implement
our drilling program," stated Steven Plumb, Chief Financial Officer of
Bering. "We are on track to obtain drilling permits in the near term and
hope to be drilling soon after that."
About Bering Exploration,
Inc.
Headquartered in Houston,
Texas, Bering Exploration, Inc. is an independent oil and natural gas company
that focuses on identifying, evaluating, developing and acquiring potential
natural gas and oil wells in the Gulf Coast onshore region. Additional
information about Bering can be found on the web at www.beringexplore.com.
The Bering Exploration,
Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8898
Safe Harbor Statement
This press release contains
statements that may constitute forward-looking statements and are based
upon assumptions that management believes to be reasonable. A number of
risks and uncertainties could cause actual results to differ materially
from these statements, including, without limitation, the success rate
of exploration efforts and the timeliness of development activities, leasing
of the target acreage, fluctuations in oil and gas prices, access to acquisition
and development capital, achieving economically viable wells, and other
risk factors described from time to time in the Company's reports filed
with the SEC. In addition, the Company operates in an industry sector where
securities values are highly volatile and may be influenced by economic
and other factors beyond the Company's control. For additional information
about Bering's future business and financial results, refer to Bering's
Quarterly Reports on Form 10-QSB and Annual Report on Form 10-KSB and other
reports, which are on file with the Securities and Exchange Commission.
Bering undertakes no obligation to update any forward-looking statement
that may be made from time to time by or on behalf of the company, whether
as a result of new information, future events or otherwise.
Contact:
Bering Exploration, Inc.,
Houston
Steven Plumb,
713-780-0806
Investors@beringexplore.com |
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