EnerJex Resources Inc (NYSEMKT:ENRJ)
Nano-cap EnerJex Resources Inc (NYSEMKT:ENRJ) is an independent oil and gas exploration company based out of San Antonio, TX. Today its share volume exploded and ENRJ shares gained 88% at their highs ($0.47) before closing at $0.28 for a daily gain of almost 16%. Volumes were heavy. The 30-day, daily average volume for ENRJ shares is 273,000 but today over 3.75 million shares traded hands.
What EnerJex Does
EnerJex Resources Inc (NYSEMKT:ENRJ) focuses on the acquisition and development of oil and natural gas assets located in Colorado, Kansas, Nebraska, and Texas. EnerJex owns oil and gas leases covering over 100,000 acres in these states. They claim they have identified over 500 drilling sites on its leases that could be characterized by long lived reserves with low production decline rates. This includes its lease in the Denver-Julesburg Basin which has exposure to the horizontal Niobrara and Codell plays in Weld County, CO.
Today’s Price Action
EnerJex Resources Inc (NYSEMKT:ENRJ) opened today at yesterday’s closing price of $0.25. At 10 AM EST, ENRJ shares began their ascent and around 10:45 AM ETS, ENRJ shares had almost doubled to $0.47. However by 11:30 AMETS, the shares had receded back to under $0.30 where they remained for the rest of the day until they closed at $0.28. Street speculation surrounds the covering of short positions the reason for the spike and then decline. This would be a logical explanation given the increased volumes and a total lack of news concerning the firm. A thorough search of the internet revealed no news about the company’s operations or finances that could help explain the price action.
EnerJex Resources Inc (NYSEMKT:ENRJ) has had declining sales since 2014 when the company reported a figure of $14.3 million. In 2015 that number shrank to $4.9 million and then shrank again in 2016 to $2.5 million. Interestingly the (-$6.50) EPS loss in 2015 also shrank in 2016 to (-$1.92). Meanwhile the number of outstanding shares stayed about the same from 2015 (8.27 million) to 2016 (8.42 million).
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.