Despite oil prices dipping below $60 per barrel on Tuesday, we are still on the lookout for domestic junior oil & gas exploration companies showing the potential to help decrease America’s $440 billion and growing annual foreign oil habit.
One such company that’s popped up on our radar screen this week is North American Energy
Resources, Inc (NAEN.ob) While NAEN’s performance, either financial or operational, has yet to impress me to date, the company continues expand its future upside potential by growing its energy property portfolio through acquisition of 12 miles of pipeline and by drilling initial wells.
After announcing that the first two wells of a six-well lease package located in Washington County, Oklahoma have been drilled at 1,500 feet back in September, NAEN.ob followed up last week with news that it has expanded its ownership position in the venture from 49% to 75%. According to the company, geographical reports indicate that both wells hold recoverable oil & gas reserves at depths of approximately 650 feet. With energy reserves both present and apparently easily recoverable, investors are watching closely here for news of initial production figures and forecasts.
If NAEN.ob can begin producing oil and gas through its newly acquired infrastructure, which is a solid possibility as its first two wells should be complete by now (management noted that they would be finished 30 days from 9/08/08), interest in the stock should increase significantly.
Junior domestic oil producers such as Mexco Energy Corp (AMEX: MXC) are now trading in the $11 range while producing less than $4M per year in resources. That being said, we could potentially see a tremendous increase in both investor interest and share price if NAEN.ob impresses the street with stellar production numbers and/or future output forecasts in the coming weeks and months.
Read up on the SEC filings and give the company a call. A few minutes of research is certainly worth it for some potential gains in your trading account, especially in today’s uncertain economic environment.
Check back for updated coverage on NAEN.ob and its prospects for short-term share price appreciation and potential to reduce domestic reliance on foreign oil.
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