Gediminas Jasionis
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Mart Resources Inc.(CVE:MMT) (PINK:MAUXF) Oil Well Testing Intrigues Traders

by Gediminas Jasionis Mar 16, 2012
38mmt_chart.pngMart Resources Inc.(CVE:MMT) (PINK:MAUXF) saw a substantial increase in share price on Thursday after the company reported favorable oil flow test results.

MMT share price spike up 9.7% on a trading volume of 3.4 million which was very significant when compared to the average of 883 thousand. The stock price still has resistance at 1.03 still intact, although an intraday price action tried to deny it.

Mart reported an increase in flow test rate results for their UMU-9 well. The company said to have perforated five of the well's sands and have achieved a flow rate of 4,240 bopd on one of them . The company also reported the Umusadege field production to have averaged 11.229 bopd for February with the average oil delivery to export storage of 8,728 bopd.

9mart_resources_logo.jpgWhile the news were enough to trigger a buying pressure and release the price from its previous consolidation its not likely to have a lasting effect. First of all, the well was just being tested. It is also owned by two more co-venturers, Midwestern Oil and Gas Company Plc. and SunTrust Oil Company Limited. The company can't expect to add this oil production to their top line in a timely manner.

The intraday price action also showed how the bulls aren't able to penetrate short term resistance, which says there aren't enough buyers. People are afraid to commit on such the news and that naturally leaves place for either consolidation or selling.

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