Gediminas Jasionis

Empire Energy Corp. Intl. (OTCBB: EEGC) Stock Settles After Cooperation Annoucement

by Gediminas Jasionis November 10, 2009
5energy_logo.jpgLast Thursday Empire Energy Corp. Intl. (OTCBB: EEGC) revealed a new agreement with Hunt Energy Drilling of Australia. Apparently both companies will be cooperating on the drilling operations on the Bellevue site.

The site is valued as one of the top properties Empire has the rights to. The company plans to proceed with drilling up to 15 wells in the whole Tasmanian Basin where the mentioned site is located.

Two days after the publication of this report the company's share price remained correcting down. It has actually erased nearly all the gain accumulated after the agreement announcement and report publication.

Such a share price behavior is a natural one as there wasn't any materially healthy information disclosed. Another reason behind price failing to follow any particular direction is that currently the investors are waiting for the company to report their quarterly results.

Currently we could be hoping for the price to find support at $0.028, at previous resistance level. Previous consolidation channel was of $0.004 width, so in the current situation the price should be expected to consolidate somewhere between $0.028 and $0.032. There is no reason for the price to break the resistance, especially with promising news in place.

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