Wall Street News Alert's "stocks to watch" this morning are: Radial Energy Inc. (OTCBB: RENG), YAMANA GOLD INC. (NYSE: AUY), Corrections Corporation of America (NYSE: CXW) and Accuride Corporation (NYSE: ACW).
Radial Energy Inc. (OTCBB: RENG) Just released huge news! Yesterday after the stock markets closed, the company, focused on acquiring and developing overlooked and under-exploited oil and natural gas reserves in North and Latin America, issued a press release announcing that the Board of Directors of Rancho Hermoso S.A. has approved an offer from the company to acquire 100% of the shares of Rancho Hermoso S.A. subject to approval by the pertinent Colombian authorities as may be legally required. Senior management of both companies will sign a formal Memorandum of Understanding next week in Houston, Texas.
How big a deal is this? Rancho Hermoso S.A. is a privately held Colombian oil production company and operator of two oil fields located in the Casanare department of Colombia. The Rancho Hermoso and Entrerrios fields are geologically located in the Llanos Basin, one of the most prolific hydrocarbon producing areas of South America including the giant Cano Limon and Cusiana/Cupiagua fields.
Ecopetrol discovered the Rancho Hermoso field in 1983 with production of 37 API oil from the Mirador formation beginning in May 2000. The contract with Ecopetrol, which covers 24,167 acres, is classified as a Production Contract, which specifies a "tariff" or production payment payable to Rancho Hermoso in exchange for operating the field and paying 100% of all costs. Cumulative production through July 2006 is 7,166,792 barrels, from three Mirador wells, with July production at 2,827 BOPD.
Pay very close attention to this story as it develops! Rancho Hermoso S.A. is currently negotiating for the rights from Ecopetrol to develop and produce oil from the Ubaque formation in the Rancho Hermoso field. The agreement, subject to the approval by Ecopetrol's Board of Directors, would allow Rancho Hermoso S.A. to test, and if successful, produce and receive revenues from 30% of the oil produced from the formation that currently shows as a potential producer in the recently drilled RH-4 well. Additionally, the field may have potential to produce from the Gacheta and Guadalupe intervals.
Nearby, the Entrerrios field began production in May 2004. Rancho Hermoso S.A. owns 60% of the rights to the Production Contract for this 14,920-acre area that provides for production sharing of the oil, with varying percentages for the Mirador and Ubaque formations that are producing from depths of between 8,950 and 9,650 feet. Cumulative production through September 2006 is 286,530 barrels from the Mirador and 351,828 barrels from the Ubaque formation. Production rates for the two producing wells in the field were 762 BOPD and 324 BWPD from the Mirador, and 1,445 BOPD and 115 BWPD from the Ubaque formation.
If you have taken Radial Energy off of your radar screen, put it back on right now as Wall Street News Alert continues to place Aggressive Investors and Speculators on alert to monitor the progress. Radial President G. Leigh Lyons comments, "The acquisition of Rancho Hermoso S.A. shall be a milestone event and further evidence of Radial's commitment the execution of its corporate strategy. In Colombia and Peru, we completed the first stage of our strategy with the acquisition of participation in the Huaya and Bosques blocks. With the acquisition of Rancho Hermoso S.A., we will complete the second stage of our strategy in Colombia with the acquisition of a reputable company with excellent infrastructure, personnel, production, significant cash flow and considerable upside development potential. Importantly, we will have acquired the status of 'operator' that we view as crucial to our future growth in Colombia and the region. As an operator of record we can now acquire exploration and production assets in the region at the ground-floor level without being subjected to promotes, minority interests and limited operational control."
For an updated Wall Street News Alert in-depth profile of Radial Energy, visit http://www.thenewssvc.com/RENG020807.html
Before the news was released, the stock closed Thursday at Fifty-Four cents.
Recently Market Advisors issued an analyst report placing a target price of $3.25 on the company's stock: http://www.growthstockresearch.com/ (the report was not written by, and may not express the views of Wall Street News Alert).
To view all of Wall Street News Alert's special early morning trading alerts for this morning, visit www.WallStreetNewsAlert.com, where you may also sign up to receive free email alerts in advance of our press releases being issued.
In case you are not familiar with the company: Radial Energy identifies, acquires and develops low-risk oil and natural gas exploration and development opportunities throughout the Americas. The company's innovative strategy involves targeting overlooked or under-developed reserves that are under the radar of multinational oil companies and out of the reach of small independents. The company targets highly prospective oil and natural gas plays in historically productive regions with a primary focus on identifying previously drilled but undeveloped exploratory wells that due to factors at the time of initial drilling including the absence of pipeline infrastructure, lack of modern recovery technology, poor geological or engineering interpretation or low oil and gas prices, weren't fully exploited.
YAMANA GOLD INC. (NYSE: AUY) up 4.8% on 8.4 million shares traded. Yamana is a Canadian gold producer with significant gold production, gold development stage properties, exploration properties, and land positions in Brazil, Argentina and Central America.
Corrections Corporation of America (NYSE: CXW) up 7.1% on 1.3 million shares traded. Corrections Corporation of America is one of the nation's largest owners and operators of privatized correctional and detention facilities and one of the largest prison operators in the United States, behind only the federal government and three states.
Accuride Corporation (NYSE: ACW) up 8.3% on 1 million shares traded. Accuride Corporation is one of the largest and most diversified manufacturers and suppliers of commercial vehicle components in North America.
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