the bull today

Although Challenger Energy (CEL) has assets in Australia and the US, it is the South African operation that is generating the most interest amongst investors. On 25 July 2013, Challenger got a “speeding ticket” from the ASX inquiring as to any material information to account for the share price rising from $0.056 cents to $0.07, intraday. In the response, management commented that they were aware of “third party press suggesting positive sentiment from the South African Government.” The share price continued its upward rise. Here is a one year chart for Challenger:



Challenger’s website proclaims its primary focus is the shale gas play in the Karoo Basin of South Africa. The company has assets in the Oklahoma and Texas area in the US in the Woodford and Barnett shales. However, following less than fully satisfactory preliminary drilling tests there Challenger decided to plug the wells and is now considering 3D seismic surveys on the prospects.

The South African story is very different as investors appear convinced the company will be awarded an exploration license. The area in question totals about 800,000 acres centred on an already successful well. Challenger got another ASX price query in September and on 19 October the share price went up around 14%.

http://www.thebull.com.au/premium/a/41823-13-asx-oil-&-gas-plays-.html