In the past month, the Enerplus Corp (NYSE:ERF) stock has emerged as a notable gainer and managed to deliver gains of 23% to its shareholders. One of the more important triggers for the rally came on August 30 when the company announced that it was in the process of selling its interests at the Sleeping Giant field located in Montana and the Russian Creek region in North Dakota.
Both of those fields are located in the Williston Basin area. The company noted that the sell was going to be made for a consideration of $115 million and that seemed to have come as a source of excitement for investors.
However, that is not all. Enerplus could also get a maximum of $5 million in the form of contingency payments if the West Texas Intermediate oil price stays at more than $65 a barrel next year and at more than $60 a barrel in the year after. The sale of such non-strategic assets provided significant capital to the company. The Chief Executive Officer and President of the company C.
Dundas stated that the properties in question were not actually attracting any new capital to Enerplus’ portfolio either. It remains to be seen if the stock can continue to add to its gains this week.
Allied Energy Corp. (OTCMKTS PINK: AGYP) is emerging as an independent oil company that is now pumping oil from reworked commercialized well sites. For oil and gas investors, AGYP’s performance and stock deserves a view as a rare domestic energy producer in a global world of oil and gas shortages. By reworking the wells AGYP is also reducing their carbon footprint.
