As trading came to a close on June 6th, Independence Energy (IDNG) celebrated a new personal high, reaching $3.24, an impressive 8.36% higher than the prior day. Considering where the company was nearly a month ago, this increase is even more incredible. It was only May 15th when the company completed an additional round of financing at $125,000, which was issued through 50,000 common shares at a price of $2.50 per share. What is most surprising, however, is how quickly this financing has affected the growth of the stock, as well as how much interest has been created in the last month.
Generally, companies complete financing in order to pursue potential project acquisitions, or to increase general working capital. However, as most analysts will report, the turnaround time from financing to the use of the money is generally over a period of three to five months. Independence Energy has surprised the international community by making these types of moves in only a month. The climb began on May 21st when the company confirmed that it received the contract-drilling rig for the proposed well site in Coleman County, Texas. Not even twenty-four hours after this initial announcement, the company confirmed that it had begun drilling on the site. This was one of the most efficient displays by an energy company and resulted in a two-day increase of close to $1.00.
Independence Energy is an oil and gas exploration company that focuses the majority of its projects in the United States. With more and more companies outsourcing projects to foreign countries, Independence Energy remains unique in that its focus is on home soil. For these reasons, its success is even more noteworthy in its relation to the success oil companies can have in the United States. With the current economy still faltering, such success appeals to countries worldwide.
The company’s success in May has led to their most recent announcement. Earlier on June 5th, it was announced that Independence Energy was currently evaluating numerous new joint development projects in the United States. The projects would be a mixture of exploration and development and would take place in Oklahoma, Texas, and Ohio. The company’s CEO, Gregory C. Rotelli, has stated that he believes such new projects will lead to dozens of near-term blue sky drilling opportunities. Without a doubt, the announcement, coupled with the encouragement and belief from the CEO, played major roles in the 8.36% increase the stock felt. If anything, it is an indication for a strong summer for the company, one that should see the company grow even further. For instance, if Independence Energy can show the same efficiency in its spending, as well as the same level or productivity and turnaround time, then its projects should perpetually increase into bigger and better things.
A report from www.benzinga.com has stated that, although the prospects of future drilling are promising, everything is still subject to the completion of due diligence by all parties contributing to negotiations. In other words, there is still no assurance that any of these transactions will be completed.
Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. While reading this article one must assume that we may be compensated for posting this content on our website.