Gediminas Jasionis
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Canadian Energy Exploration Inc (CVE:XPL) (PINK:CXXXF) Stock Price Is Spiking Higher

by Gediminas Jasionis Dec 28, 2011
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xpl_chart.pngCanadian Energy Exploration Inc (CVE:XPL) (PINK:CXXXF) share price continues to spike higher driven by a recent technical bounce and partially encouraged by older news.

XPL gained 43% shortly into Wednesday's trading session as the price continues to rally after hitting a yearly low of 1.5 cents per share nearly a week ago. The bounce wasn't directly driven by news although Canadian Energy did have a favorable announcement one week before the price spike.

On December 12 the company declared they have received lease term extensions from the Petroleum Tenure Branch for the Saskatchewan Ministry of Energy and Resources, which allowed them to act more freely with the capital on hand.

Another cause why the market got excited was an indication of a possible joint venture agreement expressed in the same news. Canadian Energy needs help to drill a horizontal Bakken well in the leased Hardy area.

cee_logo.jpgFrom the financial side XPL has nothing bullish about it. Their situation calls for funds from a side as negligible revenues cannot cover hundreds of thousands in quarterly expenses.

The exploration stage company still looks pretty bullish on the market right now. The $6.7 million market cap is less than a half of their book value thus there is a lot of space for share price appreciation is the right catalyst is presented.

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