By: Dylan Sikes - AllPennyStocks.com News

Thursday, June 25, 2015

The Organization of Petroleum Exporting Countries or OPEC met earlier this month in Vienna. As expected, the oil cartel maintained its production levels despite low oil prices. After all, it was OPEC’s decision to maintain production levels that sparked a huge drop in oil prices late last year. The cartel, which is dominated by Saudi Arabia, has maintained that it wants to retain its market share and hence it will not cut production. The oil & gas boom in the U.S. has changed the dynamics of the global energy market. The U.S. has become one of the world’s biggest oil producers in a matter of a few years thanks to new technology. However, exploration companies in the U.S. have to spend more dollars to extract each barrel of oil than their counterparts in Saudi Arabia and other oil rich members of OPEC. Saudi Arabia believes that if anyone should cut production, it is the U.S. exploration companies focusing on tight oil.

It seems that Saudi Arabia’s strategy of maintaining production is paying off as rig count in the U.S. is dropping. Several oil & gas companies have also cut capital spending. All these developments have provided some support to oil prices, which are now hovering around $60 per barrel. In fact, the spread between WTI and Brent crude has also narrowed, indicating a drop in U.S. supplies.

This morning, Houston, Texas-based petroleum exploration and production company, Hydrocarb Energy Corporation (OTCBB:HECC) announced that it has added S. Chris Herndon and Charles F. Dommer to the board of its internationally focused exploration subsidiary, Hydrocarb Corporation (HCN). Dommer also serves as the President and COO of HECC. He has also been appointed as CEO of Hydrocarb Corporation.

HECC said that the formal changes to the board and its management for its subsidiary are in preparation for expanding its opportunity base for exploration concessions in Africa.

Kent P. Watts, Chairman and CEO of Hydrocarb Energy, said that working as a team in Namibia, the company is looking at making Windhoek, Namibia its African-based headquarters for exploration efforts in Africa. Watts said that the change in the board of HCN and establishing Chuck Dommer as its CEO are in part preparation for this.

Dommer said that he looks forward to positioning HCN to move its exploration fast forward in Namibia and to implement a plan to obtain new African exploration concessions going forward. Shares of HECC have been clobbered along with other oil & gas companies over the last year however the share price slide looks to have been contained over the last few months.

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