Rodinia Oil Corp is waiting on weather

Mar 9th, 2011 – Comment

Hi Lou, I would like to have your input regarding Rodinia Oil (ROZ), which as you may know is sitting on potentially one of the largest unexplored oil reservoirs in the world (Officer Basin in Australia). There was some interesting price movement during the past 2 months. Do you see an upswing in the charts […]


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Hi Lou,

I would like to have your input regarding Rodinia Oil (ROZ), which as you may know is sitting on potentially one of the largest unexplored oil reservoirs in the world (Officer Basin in Australia). There was some interesting price movement during the past 2 months. Do you see an upswing in the charts ?

Thank you !

Alexandru

Hi Alexandru,

Thanks for the assignment. Rodinia Oil Corp. ( ROZ TSXV) has had a good run since it went public on May 28, 2010 at a price of $1.00 per unit. You are right ROZ is sitting on an under explored onshore basin in Australia that could hold up to 126 billion barrels of oil. This is a wildcat situation where the company is doing all the work to establish a new frontier.

 Originally management expected to start a six well drilling program in February of 2011 but weather conditions have pushed those plans back until mid April of 2011. The priority targets for the first ten wells drilled by the company are estimated to be sitting on 26.2 billion barrels of oil. I guess if you are going to wildcat you might as well be hunting elephants!

Jim Buckee the former President and CEO of Talisman Energy is on the board and if anyone knows about hunting for elephants internationally he does. His participation adds to the positive side of the ledger for ROZ. Lets consult the charts for some direction.

The one year chart depicts the move higher from the May 2010 IPO and the topping out that started in December of 2010 at $3.20. At this point I would say that investors are waiting for the drilling to begin and the news starting to flow. The question that needs to be answered is whether the first series of wells produce hydrocarbons or dust.

The six month chart clearly illustrates the range bound pattern ROZ has been in since the begining of 2011. There is resistance at $3.20 and support at $2.40.

 The MACD has generated a number of strong buy and sell signals since September of 2010. Currently it is indicating that buyers and sellers are at a stand off. All your questions will be answered as the company starts to drill its targets weather depending in a month or so.

If you like this wildcat story then check it every day until you see some changes in the MACD and the volume. Volume has thinned out over the last month and as we know we need volume to move a stock higher.

Happy Capitalism!

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