Eon NRG shares rocket 400pc after sales revenue bounce
Link copied to
Shares in US energy company Eon NRG have gone a bit silly, surging 400 per cent after the company said monthly revenue shot up.
Sales revenue for October hit $US660,000 ($929,000).
In the last quarter oil and gas sales revenue totalled $US1.2m, or about $US406,000 a month.
The stock (ASX:E2E) leapt to 3c from 0.6c yesterday.
About a third of the sales were from natural gas and the remainder was oil and gas condensates — a heavier form of gas that condenses into liquid form.
Australia-based company secretary Simon Adams told Stockhead the boost came partly from the higher oil price — they averaged $US69 a barrel — the fact that they had some stock left over from September to sell, and a slow increase in production over the last six months.
Coming off a quarter where they were cashflow positive, even while paying off debt, the news helping push the stock up, he said.
But with oil prices falling again they don’t expect next month’s revenue figures to be quite as good.
One area where they hope to make up for that oil price drop is in natural gas.
“The last two months has seen a sharp rise in the price of natural gas with CIG Rockies benchmark prices currently above $US4/Mcf (million cubic feet) ($5.50/Mcf),” the company said.
The average price has been $US2.40/Mcf for the last six months.
Mr Adams says they are recompleting, or fixing up, a second gas well in their Silvertip field in Wyoming which they saved for the winter season, in the hopes that this winter gas prices would — unlike last year — rise on seasonal demand.
He reckons that it could add another 1000 Mcf of gas to their current production.