Gediminas Jasionis
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Operational Update Moves PetroMagadalena Energy Corp (CVE:PMD) (PINK:ALNGD) Stock

by Gediminas Jasionis Nov 1, 2011
pmd_chart.pngPetroMagadalena Energy Corp (CVE:PMD) (PINK:ALNGD) stock recorded very high buying pressure over the past couple days resulting from the announced operational update.

PMD stock price rose 44% since Friday, October 29. Trading volume continues to be very high - it reached 1.6 million on Monday and was 7 times above the average of 242.5 thousand.

However, these huge and fast increases in the share price are probably announcing the upcoming end for the uptrend lasting from the beginning of October. While technically PMD is on a blue skies breakout, stock rallies tend to expire very quickly after such spikes.

petromagdalena.jpgOne of the reasons why this price increase could continue is the operational update provided by PetroMagadalena on October 31. The company said that the Copa A Sur-1 well produced 1.1 thousand barrels of oil per day when undergoing a 4-day production test. 636 bpod share of that belongs to the company before royalties are paid. PetroMagadalena holds a 57% interest in Copa A Sur oil field in Llanos Basin.

The company had an average gross production of 2.7 thousand bpod during the third quarter of 2011. This marked a 12.4% increase since the previous quarter. 78.4% of this came from operations on Cubiro block in Llanos Basin.

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