Why Investors Are Watching These 2 Stocks – CE1, VRX

Why Investors Are Watching These 2 Stocks - CE1, VRX

Calima Energy Limited (ASX: CE1)

Calima Energy Limited (ASX: CE1) is an international player in the oil and gas industry. CE1 has more than 72,000 acres of drilling rights for the Montney Formation in British Columbia.

Management has communicated about the success of production testing results for the Calima-2 and Calima-3 wells. It was the first drilling campaign on its 72,014 acre asset in NE British Columbia, Canada. Calima-2 production testing brought in further upside in the rate of liquid recovery with CGR of 20.06 bbl/mmcf (plant recovery estimate 40.12 bbl/mmcf) during the final 8 hrs. The increment in CGR continued throughout the testing duration.

The Calima-3 well test was for flaring gas of Upper Montney at rates in excess of 2.5mmcf/d, similar to the rate with early Calima-2 test rates.

Earlier in its announcement, CE1 informed that the company’s net production revenue worth CAD 1,200,000 from the Paradise well has been forward sold for the consideration of CAD 1,000,000 with immediate payment. Calima owns 100% stake in Paradise well.

At CMP of $0.041 on 5th April 2019, the stock was trading near its 52-week low of $0.039. The stock has generated a negative return of 12.77% on an annual basis. Looking at its three months and six months performance, the stock has generated negative returns of 10.87% and 31.67%, respectively.

VRX Silica Limited (ASX: VRX)

VRX Silica Limited (ASX: VRX) is focused on supplying silica sand in the Asia Pacific region. The major demand for silica comes from the Asia Pacific region, accounting 47% of the total global demand and is expected to grow by 6.1% to 138 million metric tonnes in 2019.

VRX recently announced its capital raising plan of $2.26 million before costs. For that purpose, the company issued 37,666,666 fully paid ordinary shares at the price of $0.06/share to its sophisticated and institutional investors and existing shareholders. The purpose of the placement is to continue the rapid progress of both the Arrowsmith and Muchea Silica Sand Projects.

On 29th March 2019, the management released an announcement to place VRX in immediate trading halt due to its pending announcement related to the proposed capital raising.

VRX on 27th March 2019, updated about the company receiving process design, engineering and cost estimates for its Arrowsmith Silica Sand plant.

On 13th March, the company updated about the cancellation of an agreement with Metalicity Limited, where MCT was supposed to acquire a 40% interest in VRX’s Biranup Project along with a farm-in and JV facility for the balance of the project.

Looking at the one-year performance, the stock was merely up by 1.41% from its previous close. The stock at market close on 5th April 2019, was trading at $0.071, with a 52-week high and low prices at $0.19 and $0.056, respectively.


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