Apparently no shortage of controversy exists when it comes to extracting shale oil through a process called fracking. The traditional method to extract shale oil involves the use of groundwater, which is a point of concern for environmentalists. Chimera Energy (OTC: CHMR) claims its non-hydraulic extraction technology can alleviate the potential problem of groundwater pollution. Traditionalists in the hydrocarbon industry partnering with academia, however, have called into question the non-hydraulic fracking technology. Water-based shale oil extraction has been banned in France and greatly restricted in certain areas of the United States.
While the debate rages on, Chimera Energy earlier this week began shipping equipment to Mexico for use at well sites owned by Petroleos Mexicanos, otherwise known as PEMEX. Traders must feel like each side of the shale oil extraction issue has grabbed an arm and gave it a mighty tug. All this talk has the stock acting like a yo-yo.
At least for today, buyers managed to give the string a quick flick that sent shares of Chimera Energy higher. Today’s trading session basically began where the stock closed yesterday at $0.50. It did not take long for buyers to run share prices up. Within the first 30 minutes of the session, the stock traded at an intraday high of $0.67 with the number of shares exchanging hands equaling about half of the total volume for the day. With traders preparing for the long weekend, the stock drifted for the remainder of the day. When the closing bell rang Chimera Energy, shares posted a 14% gain to finish up seven cents at $0.57. Volume for the session came in at a little over 1.3 million shares compared to a daily average of 886,000.
Even though the stock has been actively trading for less than two months, traders have experienced a ride suitable for only the strongest of stomachs. Starting in mid-July, the stock gushed higher like a high-pressured well. In a matter of a few weeks the stock had climbed from around $0.25 to $2.00 on August 10, 2012, for a gain of 700%. Then share prices fell as quickly as they had gone up. Ten days after hitting the pinnacle, shares traded for $0.33, and then doubled 48 hours later.
Traders will be thankful to have a three-day rest. The question for them is when some clarity will come to the fracking controversy.
No debate exists between stock promoters touting the stock. In a newsletter last Sunday, OTCPicks.com classified Chimera Energy as a stock to watch and noted the following: “August 24 – PEMEX Executes Go Ahead for Three Wells to use CHMR System Designed to Safely Replace Hydraulic Fracturing Chimera Energy Corp.” More newsletters can be read on Stockreads.com.
A week ago, Penny Trader Publisher alerted readers to a rally in the stock with this note: “Up 11.29% in morning trading to $.69 with 750K shares traded”. The promoter did not list receiving any compensation. A total of five promotions can be viewed on Stockpromoters.com.
The company is based in Houston, Texas, and supplies equipment and components used in the exploration and production of oil and gas.