Hello traders,
Let’s get ready for what could be another hit!
That potential hit is HORI (Horizon Energy Corp.)
HORI is in the business of acquiring, discovering, and developing oil and gas properties.
We all know that the main thing connected to oil & gas is money & cash.
Well… It looks like investors are starting to pay attention to HORI, the 3-month chart shows a steady rise is share price. The stock closed at $.28 on Friday and if you study the chart it appears that HORI is fighting it’s way back to higher levels, close to the 52-week high of $.53!
Monday could be the day that HORI witnesses a potential breakout!
Why????
Because, HORI released BIG news on Friday that could quickly generate a lot of attention among the investment community!
The recent news on HORI is what makes this an appealing pick.
HORI announced it has signed an option agreement for an oil and gas lease in Webb County, Texas. The land under consideration consists of two tracts totaling 1,340 acres located close to Mirando City. The agreement is part of Horizon’s ongoing efforts to identify prospective opportunities for the exploration, development and production of domestic oil and gas.
Webb County (3,376 sq. miles) is located in south Texas. The county is a legacy producing area that produces oil and natural gas from the Lobo and Wilcox formations and is home to a large swath of the Eagle Ford shale play. According to Texas oil and gas provider texasdrilling.com, there are currently 81 producing operators in Webb County, with 3,799 active leases that produced 7,859 barrels of oil and 35,368,299 MCF of natural gas in September, 2013.
Major operators in Webb County include SM Energy (SM) and Lewis Energy in partnership with BP (BP). Other top operators with active leases in the area include Chevron USA (CVX), ConocoPhillips (COP) and Laredo Energy.
Read the full report here: http://finance.yahoo.com/news/horizon-energy-signs-oil-gas-210100284.html
Where there’s smoke, there’s fire, and where there’s oil, there’s probably a lot of it!
All of this information appears like the unfolding of a new possible big name in the Texas oil industry.
If and when they find oil on one of their investment properties, the possibilities on the future of HORI could be enormous. Here’s a little bit about the company.
About - HORI – Horizon Energy Corp.
(Current PPS - $.28)
Company website: http://horizonenergyusa.com/
Horizon Energy Corporation was incorporated in the state of Wyoming in 2010. Its business model and scope of operation includes traditional and nontraditional energy sector opportunities.
Horizon Energy Corporation is a company engaged primarily in the acquisition, exploration, and development of properties for the production of crude oil and natural gas, onshore in the United States.
HORI acquires known, underdeveloped oil and natural gas resources and develops them through the application of capital, sound engineering, and modern technology to increase production, gain ultimate recoveries, or both.
To carry out this strategy, HORI works to generate and execute scalable, low unit cost, development, and re-development opportunities that minimize or eliminate exploration risks. These opportunities involve the application of proven oilfield technology, their own proprietary technology and their specific expertise in overlooked areas of the United States.
Horizon Energy intends to enhance shareholder value by focusing on the fundamental principles of the company, i.e. reserve growth and profitability. They have a three-pronged strategy to grow their pool of oil and gas reserves.
Market Outlook
Crude Oil:
Expectations of an improving economy and bullish supply data have strengthened oil prices to around $100 per barrel. Crude’s recent run has been spurred by the Federal Reserve’s measured Taper announcement.
The central bank -- asserting that the U.S. economy was strong enough -- stated that it will reduce bond repurchases by $10 billion, bringing its monetary stimulus to $75 billion a month from Jan 2014.
This has fueled hopes for robust fuel and energy demand in the world's biggest oil consumer. The bullish momentum was further propelled by positive revision to third quarter GDP numbers and continued decline in U.S. supplies.
Partly offsetting this favorable view has been a spike in domestic production -- now at their highest levels since 1988 -- and suggestions of increase in Libyan oil exports following months of political turmoil.
The immediate outlook for oil, however, remains positive given the commodity’s constrained supply picture. In particular, while the Western economies exhibit sluggish growth prospects, global oil consumption is expected to get a boost from sustained strength in China, the Middle East, Central and South America that continue to expand at a healthy rate.
According to the Energy Information Administration (EIA), which provides official energy statistics from the U.S. Government, world crude consumption grew by an estimated 1.1 million barrels per day in 2013 to a record-high level of 90.3 million barrels per day.
The agency, in its most recent Short-Term Energy Outlook, said that it expects global oil demand growth by another 1.2 million barrels per day in 2014. Importantly, EIA’s latest report assumes that world supply is also likely to go up by 1.2 million barrels per day in 2014.
In our view, crude prices in the first half of 2014 are likely to exhibit a sideways-to-bearish trend, trading in the $90-$100 per barrel range. As North American supply remains strong and the groundbreaking agreement with Iran makes it easier for the country to sell the commodity, we are likely to experience a pressure in the price of a barrel of oil.
Natural Gas:
Over the last few years, a quiet revolution has been reshaping the energy business in the U.S. The success of ‘shale gas’ -- natural gas trapped within dense sedimentary rock formations or shale formations -- has transformed domestic energy supply, with a potentially inexpensive and abundant new source of fuel for the world’s largest energy consumer.
With the advent of hydraulic fracturing (or fracking) -- a method used to extract natural gas by blasting underground rock formations with a mixture of water, sand and chemicals -- shale gas production is now booming in the U.S. Coupled with sophisticated horizontal drilling equipment that can drill and extract gas from shale formations, the new technology is being hailed as a breakthrough in U.S. energy supplies, playing a key role in boosting domestic natural gas reserves.
As a result, once faced with a looming deficit, natural gas is now available in abundance. In fact, natural gas inventories in underground storage hit an all-time high of 3.929 trillion cubic feet (Tcf) in 2012. The oversupply of natural gas pushed down prices to a 10-year low of $1.82 per million Btu (MMBtu) during late April 2012 (referring to spot prices at the Henry Hub, the benchmark supply point in Louisiana).
Investors continue to focus on temperature patterns to understand the fuel’s economic dynamics. As it is, natural gas fundamentals look uninspiring with supplies remaining ample in the face of underwhelming demand. In fact, it is expected to take many years for the commodity’s demand to match supply in the face of newer projects.
Despite these issues, natural gas rallied to a two-year high recently on the back of persistent decreases in natural gas supplies and forecasts of freezing cold weather conditions, which boost natural gas demand for space heating by residential/commercial consumers.
Investor Highlights
Listen folks, oil and gas aren’t going away over night. And as we all know, when it comes to fossil fuels, demand is outpacing supply by a long shot.
This is where companies like Horizon Energy come into play. The US boom in domestic drilling for oil and natural gas has made an enormous dent in the nation's reliance on imported fossil fuels, which dropped roughly 20% from 2012 to 2013.
Returns in crude oil are pretty much confined to two states – Texas and North Dakota – which account for almost 90% of the post 2008 production spike.
In a given year, Texas produces roughly a third of the country’s oil, not including the Gulf of Mexico.
We all remember what happened to the Clampetts, don’t we? (The Beverley Hillbillies)
You may not want to sleep on an opportunity like this. Oil and gas run this country, and will for at least the next 60 years. Short term and long term, oil and gas are a growth industry, and always will be as long as Americans love their muscle cars and SUV’s.
Start your research on HORI and get ready for an exciting week ahead!
