Legend Oil and Gas Ltd (LOGL) Is Showing Very Smooth Rise
Legend Oil and Gas Ltd (OTC:LOGL) has been showing very smooth rise over the past one week with the stock jumped about 16% in the past five trading sessions driven by latest developments.
Late Monday, Legend Oil said that it has reached a non-binding letter of intent (LOI) agreement with international Sovereign Energy Corp.,w here it would buy all of ISR’s interests in land and production in Canada and valued the deal at $17 million , payable in cash. The property has potential to produce at least 300 barrels of oil equivalent per day, of which thirty percent contains crude oil.
Last week on July 06, 2011, LOGL updated its investor’s about its drilling activities in the first two wells of a three well program in Piqua, Kansas. The results were impressive and has potential to produce high quality of Oil.
LOGL also said that it will begin drilling activities on the third well in the coming few weeks and may do some additional drilling as well.
Shares of LOGL are now up 3.03% at day’s high of $2.38 with more than 309K shares traded hands, compared to its average volume of 156K shares.
LOGL is trading well above its 50-Day Moving Average and 200-Day Moving Average of $2.12 and $2.01 respectively. The company had total outstanding shares of 62.91 million, of which 38.89 million shares were floating. The company has a market capitalization of $149.72 million.
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Legend Oil and Gas – LOGL
Oil & Gas penny stocks have always been pretty consistent favorites for day traders. There are hundreds of the out there on both the OTCBB and Pink Sheets. Mining Penny Stocks are a favorite for both longer term investors and day traders because they are often news driven. The right news announcement can send any given company skyrocketing in a matter of minutes.
Legend Oil & Gas (OTCBB:LOGL). LOGL is a junior minor who operates in the Bakken Shale Oil Field in North Dakota. This is the new hotspot for drilling in America. It is estimated that the Bakken holds between 3 and 5 billion barrels of recoverable oil. Geologists have known about the Bakken for a long time but it wasn’t even on the radar until oil prices pushed above $140. Then the Bakken became an economically feasible place to explore for oil as shale is extremely expensive to mine from.
The question is, does LOGL have quality properties in the Bakken and are the able to pull oil out of the ground at a cost affective price. There is no doubt that LOGL is in the right area of the world. Companies like Marathon, Hess, Chesapeake, Continental, EOG, Burlington and Whiting produced an astonishing 42.5 million barrels of oil from only 1,541 wells. At least 10 companies have doubled or even tripled since they started producing oil out of the Bakken.
I will be keeping an eye on Legend Oil and gas LOGL over the next few months. The company just started trading in March and we have seen it creep up slowly with some days having decent volume. LOGL could turn into a hot penny stock with the right news announcement but it is still unproven. I will keep watching for news on this one.
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