Last week, Chimera Energy (OTC:CHMR) unveiled a new non-hydraulic shale oil extraction technology. This new technology replaces current fracking techniques that use ground water. Environmentalists have opposed hydraulic fracking due to the possibility of polluting the ground water in the surrounding areas. Chimera Energy originally developed the new technique for shale oil extraction in frigid climates where ground water typically freezes. Besides being environmentally friendly, non-hydraulic fracking is said to be more cost effective over the current method. Chimera energy is in the process of reengineering its technology for mass production and sales. The question is what will environmentalists complain about now.
The company also announced this morning the execution of memorandum with Petroleos Mexicanos, better known as PEMEX, regarding the purchase of Chimera’s non-hydraulic fracking equipment. PEMEX is a Mexican state-owned petroleum company and the largest producer in both Mexico and Latin America. Some of the largest concentrations of shale oil are located in Latin America.
The non-hydraulic technology certainly has grabbed the attention of traders. Since beginning active trading a month ago, shares of Chimera Energy have climbed higher from the first day like an oil derrick rising from the ground along the Odessa, Texas, countryside. The stock rose from a low water mark of $0.14 to a high established today of $2.00.
Buyers clamored for shares right from the opening bell this morning as the stock traded at its new high of $2.00 in the first 90 minutes of the session. The move was 26% higher than yesterday’s closing price of $1.47. Sellers then decided to step up the pressure and the stock traded in a range between $2.00 and $1.80 over the next several hours. After the lunch hour while buyers digested their meal, share prices retreated back to $1.60. The stock finished the day up 25 cents to close at $1.81 for a gain of 23%. The number of shares exchanging hands on the day totaled 1.4 million, which dwarfed the 88,000 shares trading on an average day.
An article printed on the first of August speculated that the drought and water shortages gripping the nation could help Chimera Energy to gain traction in the extraction of shale oil.
Stock promoters have said nothing about Chimera Energy out on Stockreads.com or Stockpromoters.com. On Twitter, however, there was no shortage of chatter. @LivePennyStocks and @StocksToBuy were some of the players chiming in about today’s activity.
The Houston-based company was founded in 2011. It supplies products and components used in the exploration and production of oil and gas. Blount Industries (NYSE: BLT) is the most notable competitor in the field.