In the past month the Bengal Energy (OTCMKTS:BNGLF) stock has experienced considerable selling pressure and hence, it is perhaps not a surprise that the stock has declined by as much as 14% during the period.
Trading Data
On Thursday, BNGLF stock fell 0.95% to $0.0517 with more than 285 shares, compared to its average volume of 2.9k shares. The stock has moved within a range of $0.0517 – 0.0517 after opening trade at $0.0517.
Bengal Energy Announces Chef-1 Exploration Well Update
That being, it is now important for investors to work out if the stock is going to continue to slide or if it is going to rebound any time soon. In this situation, it should be noted that on Thursday the company was actually in the news announced that it had completed the drilling work in relation to the Chef-1 exploration well. It was a major announcement from the company and it now remains to be seen if it leads to a recovery or not.
The exploration well in question is situated In the Cuisiner well, which is already an oil producing well. As per the announcement from the company, after the completion of its drilling activities it came across a range of oil shows both in the secondary and the primary targets. In addition to that, testing of a particular zone in the well revealed oil saturation to the tune of as much as 15%.
Key Quote
“In spite of the absence of commercial production results, we are encouraged by the hydrocarbon shows in the primary exploration targets and potential for new Triassic exploration,” said Chayan Chakrabarty, Bengal’s President and Chief Executive Officer. “We believe that these results will support the ATP 752 joint venture’s ongoing exploration program in the Birkhead Formation and Hutton Sandstone, and more importantly, we are intrigued by the possible novel play in the Triassic zone which has the potential to become a future high-impact exploration target.”
Technical Data
BNGLF stock is trading below the 20-Day and 50-Day Moving averages of $0.0561 and $0.0641 respectively. However, the stock is trading above the 200-Day moving average of $0.0696. The stock is down 14% in the past month.
