Propell Shares Skyrocket On Well Treatment Contract With Pemex, Mexico's State-Owned Petroleum Company

Propell Shares Skyrocket On Well Treatment Contract With Pemex, Mexico's State-Owned Petroleum Company

By: Dylan Sikes - AllPennyStocks.com News

Wednesday, August 10, 2016

When oil prices plummeted in the summer of 2014, one of the biggest casualties were oil & gas services firms. The industry of course was not directly hurt by lower oil prices. It was rather the reduction in capital spending from oil & gas companies that had a negative impact on the industry’s financial performance. After a tough 2015 and a disastrous start to 2016, oil prices bounced back in February this year. The initial rally in oil prices was sparked by expectations that the members of the Organization of Petroleum Exporting Countries (OPEC) would agree to a production freeze. Even some non-OPEC members such as Russia had been willing to freeze production. However, OPEC’s most important member, Saudi Arabia, refused to put a cap on production unless Iran did the same.


Although no agreement was reached between OPEC and non-OPEC members on production, oil continued to rally as production outages in countries such as Canada, Libya and Nigeria led to analysts calling for a rebalancing of the market by as early as 2017.

Oil prices have once again slipped back. In fact, recently oil entered into bear market territory. The outlook has once again turned bearish and this time it is due to a glut in the downstream market. Analysts believe that a glut in refined products will lead to a cut back in production, which will hurt demand for crude oil.

While the oil market outlook remains bearish, shares of Propell Technologies Group Inc. (OTCQB:PROP) are seeing a huge rally in trading today. Propell is an oil exploitation and production acquisition company which intends to build and grow a base of producing assets by leveraging M&A and operational expertise, and by using advanced technology, including the Plasma Pulse technology.

PROP shares are soaring in trading today after the company announced that it will begin a program to treat 15 wells for Pemex, Mexico's state-owned petroleum company (Petróleos Mexicanos) through the Company's partner in Mexico, Pozotech/Grupo Industrial RJP.

The company intends to use its proprietary 3.5 inch, Gen 2 Plasma Pulse (PPT) tools to treat the 15 wells and expects to commence treatment of the first well in late August with the program running through December 2016.

Brian Boutte, CEO at Propell Technologies Group, said that the company is excited to move forward with Pemex and has recently completed maintenance and operational training on the Gen 2 tools for the engineering personnel of Pozotech/Grupo Industrial RJP.

At last check, PROP shares were trading 170.90% higher at $0.0810 on volume of 1.26 million, which is above the daily average volume of 93,974. Even though shares are up substantially on the news today, the stock chart has been in a down trend since mid-2013, tempering and real reason to give cheer, at least not yet.

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