Empire Oil and Gas (ASX: EGO) engages in the exploration, development and production of oil and gas in the Perth, Carnarvon and Canning Basins in Western Australia, has rocketed 43.08% over the last month on discovery of significant hydrocarbon reserves in its Red Gully prospect located in the Perth basin.

A drill report issued by EGO indicated that at a depth of 3529-3585m “a very significant gas charged interval of [sandstones]” is present, which, according to conservative industry estimates could equate to potential recoverable resources of 40.7-58.7 billion cubic feet of gas and 2-3 million barrels of condensate. Accordingly, a find of this magnitude, once accounting for reserve adjustment factors and long term price trends, could be valued between US$245 million and US$375 million. EGO’s intraday market capitalisation stands at just over AU$61.46 million.

Empire Oil and Gas is currently negotiating costs and tariffs for the use of the Parmelia or Dampier to Bunbury National Gas pipelines, which are located 2.4km from the Gingin West reserves. EGO aims to construct a gas and condensate plant capable of processing 10MMcfd of gas and 500bdp of condensate with the provision for an addition train to increase capacity to 20MMcfd and 1000bpd. Given EGO’s small market capitalisation, magnitude of its potential reserves, and its close proximity to other larger players such as ARC Energy, Origin Energy, ROC Oil, Royal Dutch Shell and PetroChina, who have constructed significant infrastructure in the region, a takeover by a larger player is very likely if not imminent.

Looking at recent stock price trends, EGO has recently broken out to the upside of a lose range trading pattern to close at $0.016. The previous heavy resistance at $0.015 should now act as strong support and as such, we recommend that investors without exposure to EGO to BUY on any respected retest of the $0.015 support level. For investors with current exposure, we recommend selling up to 50% of holdings at $0.022 given any evidence of declining momentum or for those with short term trading timeframes. For longer term exposure, we would recommend that investors target the all time high of $0.030. If reserves are proven probable, then we would recommend targeting a fair value of around $0.052.

Source: www.EquityDissector.com

Is there a massivenatural gas field discovered in the Appalachians?

For many years geologist have known about the Devonian black shale described as the Marcellus. Shale itself is simple and easy to spot with its black color and is slightly radioactive, making it easy to detect on a geophysical well log. The problem was that most wells drilled within the Marcellus did not yield great amounts of gas. Most natural gas industy players never envisioned the formation being a “super giant” gas field, thus very few investments were made in the region. As recently as 2002 the United States Geological Survey circulated its “Assessment of Undiscovered Oil and Gas Resources of the Appalachian Basin Province.” In their survey they came to the conclusion the formation contained an estimated undiscovered resource of about 1.9 trillion cubic feet of gas. Provided the tremendous area of the Marcellus, it wasn’t a large amount.

Major corrections in estimates and production

In 2003 a corporation called Range Resources drilled a well in Washington County, Pennsylvania (located within the Marcellus). Early results inferred good flows of natural gas were probable. They started to experiment with horizontal drilling and Hydraulic fracturing techniques that had worked well previously in other Barnett Shale wells in Texas. Apparantly something worked. Production began in 2005, and by 2007, over 350+ wells had been granted permits in Pennsylvania alone. As time progressed many insiders began to take notice. In the early part of 2008, two science professors issued estimates that the Marcellus formation could contain more than 500 trillion cubic feet of natural gas. Using “fracking” techniques, and horizontal drilling techniques, the scientists estimated approx. 50 trillion cubic feet of gas were recoverable. If true, the valuation of recoverable resources would be in the trillions also, and would be enough to satisfy the needs of the United States for decades.

What is shale and exactly how is gas taken from it?

Shale is in essence rock. It is shaped by organic matter that has decayed and beenstored below the ground for millions of years. Natural gas is formed in the pore spaces of the shale, and collects inside of fractures within the shale, and is also collected within mineral grains and organic material. The gas has difficulty esacaping due to the fact that the pore spaces and fractures contained bythe shale are really tiny. Nearly all older wells within the Marcellus shale region produced gas, but at a very delayed rate. The majority wells that produced had one thing similar. They intersected multiple natural fractures inside of the formation. The well bore would intersect the natural fractures and adequate gas would be produced to make the wells sustainable.

Horizontal drilling and fracturing

Nearly all naturally occurring fractures within the Marcellusare vertical, hence a vertical well wouldn’t intersectmany fractures. Through newly created horizontal drilling methods, suddenly wells could coincide with many pre-existing fractures. This radically increased preliminary output of wells drilled. Another process used to enhance production is Hydrofracing. This is done by sealing off a bore hole and inserting water or gel at extremely high pressure into the well. The excessive pressure fractures the shale and raises the size of preexisting fractures. To be able to stop the fractures from closing when the water is removed, sand or a different form of “propent” is required to preserve the size of the fractures and enable the gas to emanate into the well. making use of these two practices, wells were able to substantially raise the flow of gas, and profits for the drillers.

Potential economic benefits

The Marcellus shale is the largest volume of natural gas that is situated near the major population regions of New York, New Jersey, and the rest of the Eastern Seaboard. The shale is also located in a location that is central to the Eastern Midwest regions of the United States. Given that most of the gas has to be moved by pipelines, the central locale leads to noticeably lower investments for transportation. As time passes and the accessibility of the gas is confirmed, the infrastructure to drill, move, and consume the gas will be magnified. Could Pennsylvania be the next Texas of energy creation?

Landowners, Leasing, and Right-of-ways

Just like Jed Clampet, several people are finding new found assets in acres they believed was only good for farming etc. In the begining mineral rights were being purchased for a hundred or so dollars per acre, but lately that figure has grown to as much as two or three thousand per acre. Landowners have begun to recieve checks in the hundreds of thousands, just for the oppotunity to drill. As well as mineral rights, gas producers also need to have right-of-ways to construct pipelines to transport the gas to the place it will be consumed. It is estimated that thousands of miles of pipeline will be required to get the gas to locations it will be utilized. Right-of-ways are currently being bought throughout the Marcellus Shale and can range from a couple dollars per linear foot to a hundred dollars per foot in populated locations.

Drilling activity and companies involved

There are numerous companies involved in the Marcellus shale. They take part by leasing mineral rights from land owners or sharing in royalties of generating wells. Range Resources, Chesepeake Energy, Cabot Oil & Gas, Southwestern Energy Production Company, Atlas Energy Resources are just a few of the companies taking part in the rush to increase theirnatural gas holdings in the area. More on these, and many other natural gas stocks here.

Stock Market 101: A Guide To How Things Work

In a nutshell, the stock market is a market place for business people. Goods are sold to the public in a public market. However, in the stock market, the public is sold share. Shares are the form in which company stock is sold. When a person purchases more shares in a company, they have a higher ownership in that company.

In the stock market, there is the primary market and the secondary market. In the primary market, companies sell shares to investors to raise financing for their operating expenses. In the secondary market, investors buy and sell shares in companies to other investors. Constantly changing market conditions are the basis of those buy and sell decisions.

A stock market operates much like an auction house, with a systematic way of buying and selling. The system in the stock market involves a great deal of bustling activity. Often there are people running around frantically, shouting and gesturing at one another.

The purchase and sale of stock starts at various places. A broker is contacted if a person wants to buy stocks in a certain company. The broker will take the investor’s money to the stock exchange to coordinate with a floor broker.

In most cases, the floor broker works for the company selling stock. Right on the stock exchange floor, brokers buy the desired stock for the investor. Once the deal is made, it is communicated to a broker and the investor then becomes a stockholder of that particular company.

Investors may decide to sell their stock. Usually investors want to sell their stock when the price per share increases so they can realize a profit on their investment. For example, a person may purchase 100 shares at the price of $25 per share. When the price increases to $35 per share, the person can sell the 100 shares and make a profit of $1,000.

The driving force behind the stock market is the basic economic principal of supply and demand. The number of stocks open to the public is the supply. The number of shares that investors what to purchase affects the demand of the stock in a certain company.

The constant change in the cost of stock is a result of conditions in other markets. For example, if people feel that the economy is growing they are apt to purchase more stocks. However, when the economy is in a decline, the majority of investors tend to sell off their stocks. On the flip side, some investors use this time to buy because the stock prices are usually at a discount.

There are quite a few business people who make long term investments in the stock market. In some situations, stocks go down in value and a stockholder loses money. There is no guaranteed profit when investing in the stock market. Thus, when a person is flexible and able to handle the constant changes of the stock exchange they are more likely to experience a profit.

So this is how the stock market works. In the end, patience, education and experience usually equals greater long term success.

This economic downturn has raddled the stock market, and it continues to plunge. Some are walking away with huge losses, especially in the automotive sector. Fortunately, there are some companies that are really starting to shine and progress.

# 1 – Exxon Mobile CP (XOM)

Fear not, Exxon is staying for good. Its not as risky compared to BP and Shell, and remains to be one of the most profitable companies.

#2 – ProShares UltraShort Technology (REW)

With a very impressive month, there is no reason to doubt them anytime soon. They began the month of February with a closing price of 76.07, and as of 2/26, a close of 81.66.

#3 – Activision Blizzard, Inc. (ATVI)

ATVI is certainly not as recession proof as we all have expected according to their last 6 months history. They have some huge games in development that I expect will shoot this company up to the sky later this year.

#4 – Safeway (SWY)

Safeway has been doing good so far this recession, and stocks have been a bit jumpy over the last few months. Don’t let that scare you. Their profits are still rising, with a recent report showing profits were up 12%.

#5 – Best Buy (BBY)

Since Circuit City announced they were going out of business, Best Buy has really been shining. Stock price has almost doubled over the last few months, and is looking very promising despite the economy.

#6 – Mastercard (MA)

Mastercard has limited credit risk, which keeps them in the safe zone. Last quarter Mastercard’s revenue grew 14%. With everything plastic nowadays, this company continues to prosper as it reaps rewards.

#7 – Netflix, Inc. (NFLX)

I was very surprised when I saw the history of Netflix over the past few months. Stock price has more than doubled since October, with a 19% increase in last quarter’s revenue. There are expectations for Netflix to break its record high price of 40.90 during the recession.

#8 – General Electric Co. (GE)

With poor results over the past year, it’s unexpected to find them on a top 10 list. However, with its recent dividend cut, they will have the cash they need to support their operations. Stock is priced very low which is making it very attractive, and expectations are rising for next quarter.

#9 – Dollar Tree Inc. (DLTR)

Prone to succeed in a recession, Dollar Tree has proven successful as shoppers are cutting expenses. They continue to expand and expect to add atleast 150 stores for fiscal 2009.

#10 – PetSmart Inc. (PETM)

Pet owners continue to shop for their loved ones, and spoil them on occasion. Some analysts are predicting this quarter’s sales to rise 15%. Support continues to grow along with the price of stock.

For any first timer who wants to taste success in the stock market, best stock picks have become the favorite bet these days. Since these stocks are incredibly low priced (mostly below $5 per share), they have emerged as the hottest bait for luring innocent investors. Although they are a very good investment option, hurt investors warn inexperienced investors against falling prey to the penny stock frauds.

Seeing the hugely growing interest in stocks among people in general, an increasing number of fraudulent penny stock pick agencies have swindled innocent investors out of thousands of dollars, taking advantage of their lack of experience and knowledge. These agencies pose as financial experts and lure people to invest in huge volumes of shares, using the fact that penny stocks are extremely low-priced as bait. By recounting impressive success stories of more than 100% returns in penny stocks, these frauds make inexperienced first-time investors to put huge money in the Ebest stock picks suggested by them.
Experts plead inexperienced investors who intend to earn money by stocks, to understand that investment in stocks requires in-depth research. Most Efree penny picks out there are false claims made with little or no background research. Although there are many success stories that are true, many a times they are simple flukes that malicious people quote to impress inexperienced people.

The penny stock market has faced many scams recently and it is the result of some people posing as financial advisors and fooling investors with Ebest stock picks. Since the penny stocks are most lucrative, they have been subject to most frauds. It is strongly advised that new investors do upfront research of their own before investing in stocks rather than under the influence of some free penny picks.

For any kind of investment, professional advice is needed, therefore, investors should subscribe for a credible penny stock pick advisory service. However, before making any kind of investment, it is strongly suggested that investors study the stock pick advice for a few weeks. This way they will be better able to judge the credibility and accuracy of the stock picks and identify any fraudulent advice.

Penny stocks are most prone to stock dilution scams, which is all the more reason why an investor needs to be very careful before investing in them. It is very easy to act under greed in this case, because one can buy large volumes of penny stocks in the expectation of multiplying profits. However, like any other good thing, patience is of essence here.

It is imperative that inexperienced investors do thorough analysis before investing in penny stocks. Investing your lifes savings blindly under the wrong influence is like throwing your hard-earned money away.

Traders in the financial markets have many different methods of calculating support and resistance levels. One of these methods is known as the “floor traders pivot points”. These levels were used by floor traders on the commodity exchanges to calculate potential areas of support and resistance. Additionally, many trading systems and approaches make use of these levels.

These pivot points are easily calculated numbers that are supposed to indicate where support and resistance levels may occur. Of course you can’t just buy and sell every time the price touches these levels, but it is useful to have the same numbers that other traders are looking at. They are simple to calculate with a pen and paper, but a calculater will help you do this faster.

Although these levels are usually calculated off of a daily bar, they can also be calculated off of any other time frame, such as weekly, monthly or yearly.

The calculations are figured using the high, low and closing prices of the previous time frame. The first step is to figure out the “Pivot”, and then you can figure out the other levels.

Pivot = (High+Low+Close)/3

Resistance 1(R1) = (Pivot*2)-Low
Resistance 2(R2) = Pivot+High-Low

Support 1(S1) = (Pivot*2)-High
Support 2(S2) = Pivot+Low-High

If you need to calculate additional support and resistance levels:

First calculate R2-S1; then calculate R1-S2. The smaller of these two figures we will refer to as Ext1 and the larger one as Ext2.

Resistance 3=Pivot+Ext1

Resistance 4=Pivot+Ext2

Support 3=Pivot-Ext1

Support 4=Pivot-Ext2

Rising Volume in Penny Stocks

Rising volume when prices are falling can come in two flavors. There are volume spikes which typically indicate a short term bottom as those hoping for higher prices bail; and then there are the gradual build up in volume type moves accompanied by gradual but continuing declines in price. These are the sickening moves that happen from time to time where you have a blow off type volume move over a period of days that results in very low prices relative to the general price level and is usually accompanied by a V shaped volume and price spike back in the other direction. The problem is having the patience and the nerve to stick your neck out in such a decline. You have to gradually average in to such a move as the odds of catching the bottom tick are almost nil. You will find these types of plays all over the place during a bear market.

In a bear market, there are stocks that still rise. However, in a bear market, there are times when even the good stocks are pulled down and you find declining prices on average or falling volume. Falling or average volume when prices are falling is usually a sign of strength, not weakness; especially if the stock has generally been in an uptrend prior to the short term down trend.
When a stock exhibits steady volume when prices are steady, then this doesn’t really give us anything to go on. It doesn’t give us any insight into where prices will necessarily go based on a volume read, but the fact that the price range is narrowing suggests that something will occur soon enough. It is then that we will get both a volume and a price read to determine the sustainability of the next move.

There is a close relationship between price and volume. Although indicators have been built on various volume measures, all indicators have a couple of inherent problems and we continue to feel that it is important to view price and volume as a relationship that says different things about a stock when the general trend is up versus down, versus sideways. In general, rising prices should be accompanied by rising volume for the market and/or stock to be healthy.

Similarly, falling prices should be punctuated with volume spikes and to a lesser degree, rising or steady volume shows a healthy continuation to the downside. Falling volume that is associated with rising prices generally is a red flag warning you to be careful as a healthy correction could be just around the bend.

Average volume on rising prices generally occurs when a stock is turning from down to up or sideways to up or sideways to down. Generally a stock that moves from up to down has large prices drops that is accompanied by large spikes in volume.

If you intend to trade stock, you should only ignore volume at your own peril. It can give you the comfort to stay with a position when times are tough, or to signal that you need to lighten up or get out of a position when things seem fine. Volume recognition is your friend just as is the trend.

Article Written by wallman Hot Penny Stocks

You will never gain something from a stock underneath a penny. With the penny stock market, there are dangers li ke any other inventory market. In fact, it is rather like the common inventory market besides you purchase stocks for much less. That is why you must deal with the penny inventory market like any other investment.

When you’re planning on investing in the penny stock market it would be best to know the right way to invest. First it’s good to open an account to your broker. Then you will need to find a monetary adviser. A monetary adviser will tell you what to spend money on the penny stock market and what shares it is best to avoid in the penny stock market. They may price range, file, and plan all your investments. Even with a monetary adviser, you will need to do your personal analysis in the penny stock market. You might want to know each thing concerning the company and the stock that you are purchasing. With correct investing, you should be able to profit from quick good points from the penny inventory market.
The one way to achieve success with the penny stock market is to know what firms to put money into by way of research. Research is key to any investment. The penny stock market may give you a superb investment and a few money, however you should know when to sale and when to buy. It’s good to notice when you are in a risk. This could take years. The penny stock market, like several stock market is very tricky. It is more of trial and error than anything. That’s why you might want to have trusted advisers and know the place to get the great research in your penny stock.

Like other stock markets, the penny stock market is a pit of schemes. One approach to know for certain that you are enjoying right into a scam is once they start to push the stock too much. When they begin encouraging you to purchase low cost penny stock at large portions, there is something up. They’re famous for being one of many many get rich quick schemes. First, there is not technique to get rich quick, particularly in terms of the penny stock market. The only approach that you can gain a real investment is if the inventory becomes to be greater or worth far more than you bought. Don’t get distracted by the funding or the broker.

The Very best Penny Stocks to Acquire – Penny Stock Prophet Evaluation

Penny Stock Prophet has the distinction of currently being a single of the only stock applications which create stock choose right now which solely targets cheap stocks and appears for and identifies the greatest penny stocks to get. Using their money again assure of 60 days, I cracked to attempt it 1st hand. Day traders specially ought to pay focus to this tell all assessment about the picker of the finest penny stocks to purchase of right now.

When you very first get Penny Stock Prophet, you’re not in fact obtaining a bodily stock program which you run on your computer and finds and generates stock picks for you. As an alternative you are primarily signing up for a mailing listing to get stock picks of the ideal penny stocks to acquire by means of e-mail from their central hub.

I’ve observed that a good deal of individuals are unfamiliar with penny stocks when they attempt this plan, so when they get a handful of stock picks and they go on to explode in worth in the brief time period, they are continually surprised and attribute it to the power of the picks, but also the volatility of the greatest penny stocks to get on their own.
This attributes to a huge part of the volatility of the stock, but you’ve acquired to keep in mind at the similar time there are other people today signed up for the identical mailing record investing just as you are. On top of that, as soon as the stock begins its first upswing due to yours and their affect on it, at that stage outdoors traders will start to take discover of the stock and leap on, as very well. This all operates out in your favor as you get in far just before any of this comes about and can get out just before the relaxation of the trading entire world is aware of what has happened.

Take the very first choose which I acquired from this plan as an instance. When I obtained it, it was to begin with valued at $.15. I positioned an purchase on-line for one thousand shares of that stock early Monday morning and went about with my unique day job. Having not had a probability to verify in on that stock for the the rest of the day, when I lastly did get a likelihood the industry had closed and it had climbed to $.31, just doubling in worth.

The following day I created observe to examine in on that stock’s performance routinely. It’s a great feeling seeing a stock which you are invested in climbing prior to your eyes. It continued to climb routinely only to finally degree out at forty eight cents a share, or far more than tripling in value more than that span of about two marketplace buying and selling days.
For much more data about “buy penny stocks”, you ought to check out: buy penny stocks.

FMCG Stocks are now catching eye of investors for investing as best option in stock market. Analysts and market experts are now putting a ‘buy stock’ recommendation on select FMCG stocks.

FMCG stocks seem to be the dark horse on the bourses. These stocks are now catching the eye of investors. Analysts and market experts are now putting a ‘buy’ stocks fromselect FMCG stocks, a move which is not just being considered as a safe ploy but also as a defensive strategy to counter a volatile and uncertain market.

The trend is visible on the bourses where leading FMCG counters have outperformed the overall market during the last few sessions. Take the case of MNC giant Hindustan Unilever (HUL). The company’s stock has made its 52-week high at Rs 267 on December 19, at a time when BSE’s benchmark index, Sensex, was trading under the 10,000-mark (down by over 50 % from its life-time high of 21,000 made in January, 2008).
Similarly, the scrip of another FMCG giant, Godrej Consumer, is currently hovering near its 52-week high of Rs 145. On Wednesday, the stock price closed at Rs 138. Other companies like P&G , Dabur(I) and Colgate Palmolive have also recorded better performance on the bourses. Market analysts who earlier stayed away from FMCG stocks are now taking a fresh look at these rising scrips. Though some reservations about the FMCG sector still persists, the analysts have accepted the “safe” nature of these stocks.

“Fall in commodity prices (from crude, vegetable fat and food articles) is the main reason behind the outperforming FMCG sector. Earlier trends indicate that fall in commodity prices will lead to an improvement in profitability of the FMCG companies in the next fiscal. Such a phenomenon will not remain limited to just soaps and detergent companies; even paints, confectionery, food processing and others will get benefit of the fall in commodity prices,” said Ajay Parmar, head, equity, Emkay Global Financial Services. “Those who want to play defensive can invest in such stocks,” he added.

Anand Shah, a research analyst at Angel Broking, is also optimistic about the FMCG sector. Though the markets (at current level) have already discounted the positive impact of the fall in the raw material costs, Shah believes that those who wish to play safe should invest when the prices of the FMCG scrips fall.

“FMCG companies will be able gain cost advantage on raw materials, freight, transport and packaging. The balance sheet of the FMCG companies will definitely gain strength in the coming quarters,” Shah said while cautioning the investors to adopt a stock-specific approach instead of a sector-specific one.

However, not all are convinced. “Now-a-days , smaller players are eating into the business of big MNC players in the FMCG sector. Biggies are therefore losing their market share,” says VVLN Sastry, country head at Firstcall India Equity Advisors. “There is some momentary activity in FMCG stocks, which is a part of the defensive strategy adopted by the traders to restrict the downslide. But this trend will not prevail for a long time,” he added.