Simba Energy Inc. (CVE:SMB
) (PINK:SMBZF) stock price jumped up significantly after the company hired independent experts to re-evaluate their oil properties.
SMB jumped up 36.8% under a trading volume of 3.6 million which was roughly ten times heavier than the 90 day average of 377.7 thousand.
Stock gained value after the company declared to have hired Sproule Associates to assess their Kenyan oil project. The news might not have had such an effect if not the recent discovery by Tullow Oil Plc. (LON: TWL), which also operates in the area.
Simba is only in the beginning phase of exploration. Their closest goal is to carry out a passive seismic survey next month. Geological and geophysical studies have been carried out thus far. The independent opinion from the newly hired independent expert company should be received over the coming two months.
Because the event doesn't provide any direct value for the company in the short term the recent price jump will likely fade away pretty soon.
On the other hand, SMB share price jumped very quickly on Monday morning, which showed that shorts simply got squeezed. There was no serious interest in the stock for the remaining part of the session, and thus a quick drop in price is less likely because of limited interest.