Horn Petroleum Corp (CVE:HRN) (PINK:HPMCF) stock price shot up after the company declared to have found oil on their Somalian property.
HRN stock price added 35.2% on Monday in reaction to the news. The acompanying trading volume was 4.2 million, significantly above the average turnover of 622 thousand.
the copmany announced on May 14, they have found oil while drilling the Shabeel-1 well in Putland, Somalia. Horn works as an operator on the property co-owner by Red Emperor Resources (LON:RMP) and Range Resources (LON:RRL). HRN owns 60% stake in the licence under which the drilling is progressing.
150 meters of oil were encountered with 12 to 20 meters thought to be productive. The well has been drilled to a depth of 3,423 meters and is nearly at the planned depth of 3.8 thousand meters. The depth of the findings was not stated in a press release.
HRN share price hit its 52-week high upon the announcement but failed to stay above $2 per share by the end of the session. Since the price gain was still significant a further bullish pressure could very well manifest during the upcoming session. A breakout would be welcomed in this case, but clearly there is a wall of sellers around $2.05 which needs to be taken out first.