In yesterday’s trading session, the stock price of America Resources Exploration Inc (OTCMKTS:AREN) declined more than 19% to close the trading session at $0.526. The decline came at a share volume of 1.5 million compared to average monthly share volume of 2.2 million.
As mentioned earlier, the fact that America Resources stock has not plunged all the way to triple zero area yet is something shocking. The market cap stands at $68.06 million.
The buzz
In last week of August, America Resources reported acquisition of a stake in the oil and gas well located in Texas. This bought well is located on a 431 acres lease and is operated by entity Woodbine Acquisition, LLC. As per the detailed report, the well is producing resources from the Woodbine formation.
The daily average oil production rate is 54 barrels while that of gas is 9 MCF reported for the period ending in April. The CEO Huang Yu said that Woodbine Acquisition has managed the property extremely well providing consistent production. Although it is a not a large scale production addition, it will be accretive and offer a recurring future revenue stream.
Woodbine Formation
The Woodbine Formation can be stated as a geological formation based in east Texas. Its strata date goes back to the Late Cretaceous located in the Upper Cenomanian phase. It is the fertile formation of the East Texas Oil Field from which more than 5 billion barrels of oil output have been produced.
The Woodbine Formation underlies the Austin Chalk and Eagle Ford Formation and overlies the Buda Limestone. In some regions, the Woodbine is separated into Pepper Shale, Lewisville Sandstone, Maness Shale and Dexter Sandstone sub-units. The Eagle Ford and Woodbine units are collectively known as the “Eaglebine” gas and oil play in some parts of East Texas.
