|Result Energy Inc. (RTE) is a company involved in the exploration of oil and gas exploration in Alberta, Canada. Now, we all know that the Canadian Oil Sands appears to have more oil than Saudi Arabia, and that at the current oil prices, recovering the oil from the oil sand is a viable and profitable proposition. Many exploration companies have descended on Alberta, hoping to discover even more viable oil fields.|
|RTE announced on January 17 that it had entered into a bought-deal financing agreement with Acumen Capital Finance Partners to raise at minimum $4 million by way of RTE issuing 3.2 million common shares at $1.25 per common share. Proceeds will be used to fund ongoing exploration and development of RTE's three core areas in the Peace River Arch region of Alberta, the Pembina area in central Alberta, and southwest Saskatchewan, as well as for general corporate purposes.|
|FIGURE 1: RESULT ENERGY. Another company to watch as the price of oil makes Canadian oil recovery in the Alberta Oil Sands a viable proposition.|
|Graphic provided by: AdvancedGET.|
|Looking at Figure 1, we can see how the price of the stock has risen strongly from a low of $0.45 in May to a high of $1.45 on December 23, 2005. In the process, it formed a cup & handle formation in October 2005, which gave it a target of $1.50 (1.21 - 0.92 = 0.29 + 1.21 = 1.50). The high of $1.45 is acceptable as the target high predicted. So what happens now? |
|The price dropped to $1.23 by January 10 as the price of oil settled, and it does appear to be forming a flag. This means that should the price break above $1.40, the present resistance level, it could rise to $1.68 (1.45 - 1 = 0.45 + 1.23 - 1.68).|
Of course, everything depends on the price of oil maintaining current prices, and with the political scenario currently being played out in the Middle East, it is very likely that the oil price could start rising once again.
Another company to watch.
|Address:||3256 West 24th Ave|
|Phone # for sales:||6042634214|
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