Market's view on Zephyr Energy
Published on April 2024
- A recent drone footage from the 36-2R site was shared but lacked commentary, which would have enhanced the understanding of the site operations.
- There is speculation about a Bull Flag formation on the chart, suggesting a potential upward breakout in the stock price.
- The current trading volume is low, indicating a quiet period; a stock watcher is considering this as the quiet before a potential storm.
- Zephyr Energy’s management decision to revert to a previously successful drill method is viewed as a sign of good management practice, especially with upgraded infrastructure and the potential to produce from the Paradox asset.
- Recent successful spudding of the Paradox well is seen positively, indicating a return to operations left off last year and boosting shareholder confidence.
- There is a sentiment of excitement about the company’s future, with expectations of opening up a new basin and significant developments ahead.
- The share price is expected to rise significantly if upcoming well operations are successful, with targets set around 10p and 20p, depending on operational outcomes and news.
- There’s a noted lack of stock availability, causing buyers to pay over the offer price, indicating strong demand and limited supply.
- Discussion about potential synergies between Ascent Resources PLC and another onshore US gas investment related to helium, though concerns about both companies’ financial health were mentioned.