Nothing stirs up a lively conversation like asking the question about the preferred method of fracking: Is it wet, dry or not at all? The debate began two months ago when Chimera Energy Corporation (OTC: CHMR) revealed its non-hydraulic technology for extracting shale oil. The traditional hydraulic method uses ground water, which environmentalist find quite disturbing. Some countries like France, for example, have banned the extraction (fracking) of shale oil completely. Early in September, Chimera Energy made a request to exclude its technology from the French ban on shale oil extraction. A discussion currently rages on in the state of New York over a proposal to prohibit fracking within the borders of the “Empire State”.
Meanwhile, down in Mexico, Chimera Energy has set up shop along side Petroleos Mexicanos, otherwise know as PEMEX, for the first test wells using the non-hydraulic extraction technology. The test wells are located in Mexico’s largest certified hydrocarbon field.
Verification of the target wells scheduled to begin next week could help to allay the frayed nerves of traders who have seen the stock rise and plunge like a ride at Six Flags. Buyers showed little trepidation at the opening bell as the stock gapped seven cents higher than yesterday’s closing price to begin the day at $0.59. After touching an intraday high of $0.60, it did not take sellers long to drive share prices to the low trade of the day at $0.52. Traders appeared to take a siesta for the remainder of the day as volume dried to a trickle and share prices struggled to stay in positive territory. The stock ended the day up two pennies to close at $0.54. Even though share prices barely nudged, volume gushed to twice the average daily volume with almost 2.5 million shares trading hands.
The stock has given traders quite a ride since it first started actively trading in July. By the second week of August, share prices had nearly quadrupled to a high on the year so far at $2.00. Even though news continued to flow positively for the company, the stock dropped by 87% over the course of the next seven days, and then share prices more than doubled in September. Besides reaching for a jug of water this weekend, traders will be looking for signs validating the non-hydraulic technology.
In a press release yesterday, Chimera Energy noted that its technology does not use radiation as part of the process. The statement came after Halliburton (NYSE: HAL) admitted to losing a radioactive cylinder somewhere in Texas.
In a newsletter today, Actual Gains had this to say about Chimera Energy: “The Company primarily acquires and develops what management believes is the most lucrative technology, concentrating on producing maximum shareholder value.” A host of newsletter promotions can be seen on Stockreads.com. Special Penny Stocks also promoted the stock today with this note: “CHMR is proceeding into testing and 3rd party certification to completely and safely replace current fracturing methods.” The promoter received $40,000 for the advertising. A total of 17 promotions can be viewed on Stockpromoters.com. @stockstobuy made a comment on Twitter about adding the stock to its Watch List.
Chimera Energy supplies equipment and components used in the oil and gas industry. The Houston-based company was founded in 2011.