Horn is another member of the Lundin stable and this deal is sister to rapidly moving Africa Oil Company - AOI.v which nailed, from all accounts, an elephant.
A good deal of systemic risk in the Venture is removed by betting on the right jockey. Horn may be in play and today's action may be indicating greater things ahead.
Up $ .51 to $ 1.96 on $ 8m worth today with no news to speak of and the market is telling us the expected might be highly better than average. Africa Oil - AOI.v also busting new highs, now around $ 8.30.
Horn Petroleum Corp - HRN.v
News from HRN.v showing hole turned out to be showing not that frikkin much and thats the major difference between a massive large market cap and one instantly pared down to reality.
More holes to come and money ain't a problem. Things could be worst but boyos need to hit something next time.
"Horn Petroleum Corp. has agreed to sell on the basis of a non-brokered private placement an aggregate of up to 18.75 million units at a price of 80 cents per unit for gross proceeds of up to $15-million." https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aHRN-1961166&symbol=H...
Boyos didn't waste much time at these levels and watch this baby moving forward.
I'm not in HRN, but their 20% joint venture partner Red Emperor Resources, listed in England and Australia. They're almost a pure play on Somalia like Horn.
HRN hit 12-20m of potential net pay in the first drill at an upper zone where they weren't really expecting to hit anything. They need to go back and test to see will it flow.
The SP is under pressure right now because in the 2nd drill they hit water at the corresponding zone, so investors are worried that HRN in fact found 12-20m of water, not oil. I seriously doubt it, hence my purchase at these bargain prices.
The primary zone is lower down, and in the first drill they found only 3m net pay, but they expect this to be bigger in the second drill as it's much closer to the centre of the basin.
There's also the chance that the basement will contain oil, and investors are a little suspicious as to why the first drill didn't go down a few metres more.
Will all the political stuff going on in Somalia now, HRN have said that they are trying to "manage expectations" so I believe we will only get complete confirmation of commercial oil until after August 20th (the deadline day for the new constitution to be enacted).
I have high hopes of a multi bagger by the end of August!