The President of Chimera Energy (OTC: CHMR) announced today that the company had signed documents in hand from Petroleos Mexicanos, also known as PEMEX, to utilize Chimera’s non-hydraulic shale oil extraction system. According to the news release, the fracking technology will be used at the largest hydrocarbon reserve in Mexico.
The statement this morning got the attention of buyers. The first trade of the morning at $0.63 also ended up being the low for the day. Ten minutes after the opening bell, shares traded for $0.81, setting the high water mark for the session. One could hardly blame traders for taking the rest of the day off after the furious movement in the early moments of trading. Looking at the trading action over the remainder of the day, it looks like they at least took a nap until the closing hour. Standing like bookends with short stories in between, half of the 2.4 million shares exchanging hands occurred during the first and final hours. The stock gained 11% on the day and finished just about where it ended the first 30 minutes of trading at $0.69. The number of shares traded was four times greater than the average daily volume.
Chimera Energy stock opened for trading just a month ago. During the last 27 days, traders must feel like they bought a ticket on one of the world’s most stomach-wrenching amusement rides. Share prices started their journey selling for $0.50, and tracked immediately toward a high of $2.00 on August 9, 2012. Seven days later on Monday of this week, the stock traded for $0.14. The stock received a boost on Wednesday when a report from a chemical engineer seemed to validate the non-hydraulic extraction technology. Today’s closing price puts the stock up 400% over the last four days.
Newsletters and stock promoters had a few things to say about Chimera Energy today. OTCPicks.com reiterated the story in the morning about PEMEX, which can be viewed on Stockreads.com. On Wednesday, Penny Stock Crowd and Penny Stock Publisher touted the stock. Penny Stock Publisher noted, “Up 20.35% in morning trading to $.65 with 650K shares traded.” Neither promoter listed receiving any compensation for their statements. A total of four promotions can be viewed on Stockpromoters.com. Some of the chatter on Twitter included a note from @OTCEquity, wondering if the company’s technology is really that revolutionary.
The company is based in Houston, Texas, and focuses on developing and commercializing products and technologies for oil and gas energy. The one product causing all the buzz lately is a non-hydraulic shale oil extraction device that does not pollute ground water like traditional fracking methods. The company was founded just a year ago in August of 2011.