At the beginning of a new trading week, it may be a good move from investors to look into those stocks which may have recorded strong gains last week and hence, it might be a good time to start tracking Orion Diversified Holding Co Ltd (OTCMKTS:OODH).
Market Reaction
On Friday, OODH stock fell 2.03% to $0.0290 with 186K shares, compared to its average volume of 272K shares. The stock moved within a range of $0.0273 – 0.0296 after opening trade at $0.0273.
Key Details
The stock had been in the middle of a major rally last week and had managed to clock gains of as much as 17% during the period. The company announced on Thursday that it had been successful in closing a producing royalty interest at the Piceance Basin located in Colorado.
The property in question spans across an area of 1127 acres and the royalty interest was for 18.75% in a gas producing well spanning across 80 acres of land. In addition to that, the company also had 100% royalty interest in the rest of the 1047 acres of land that is located in San Miguel County in Colorado.
However, that is not all. The management at Orion Diversified had also reached an agreement in relation to the gas and oil property that is situated on the Sprayberry field in West Texas. It will be interesting to see if the stock adds to its gains today or not.
Key Quote
“We have finally received a favorable estimate to perforate new zones in the Rhode Ranch wells. The Rhode 7801 well drilled in 2010 is an 11,000ft horizontal well that had an initial production rate of 30,000 mcf per month and 1500 barrels of oil per month.” commented Tom Lull, CEO of Orion. “There are 5 more Wilcox zones to be perforated in the 3 Rhode Ranch wells.”
Traders Review
OODH stock is trading below the 20-Day and 50-Day Moving averages of $0.0257 and $0.0304 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0349.
