Advantage Oil & Gas Ltd (USA) (NYSE:AAV) Suffers Slight Dip, Down 2.51%

Posted by Michael Korte June 14, 2013 0 Comment 869 views


Northern, WI 06/14/2013 (GDPInsider) – Advantage Oil & Gas Ltd (USA) (NYSE:AAV) had a moderately start in today’s trading session, opening at 4.39, 0.01 above its previous close of 4.38. AAV has a trading range of 4.22 and 4.38 and has enjoyed moderate volume of 354.47K traded shares.

The cause of the downtrend is a lightly hard to pinpoint because AAV sits on a solid technical setup. The oil and gas company has been trading positively above its SMA50 of 3.97 and RSI has been steady under 60 – presently showing a figure of 57.96.

What’s also interesting is that AAV has had a few favorable news results in the last few weeks, beginning May when it announced the increase of their natural gas commodity price hedges for the period October 2013 to March 2014.

Analysts have set a target price of $4.89 which AAV is trading very close to at the moment and the wider forecasts and outlook on the stock are pretty positive. The company owns a number of oil wells and fields all across Canada, including Saskatchewan, British Columbia, and Alberta.

One of AAV’s biggest properties is its Glacier property which by all accounts has a very good capacity for high production. Some estimates place these production levels at 580 mmcf/d for up to 18 years. Clearly there is strong long term potential in AAV.

AAV has been shoring up operations by focusing on properties that deliver high returns and discarding poorer performing oil and gas properties. In March the company got rid of a few core assets, selling 5,900 boe/d to Questfire Energy for $40 million in cash. The sale was augmented by an additional $44 million Convertible Senior Secured Debenture and Class B shares worth $1.5 million.

AAV has been a pretty resilient company and since breaking through its first resistance point of $3.80 it has consistently risen. The current downtrend is therefore no major cause for concern and investors seem to have taken the view also.

The company has 168.38 million shares outstanding and institutions own 57% of the stock.

Is AAV a solid investment at these levels? Get exclusive data and trends here.

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About Michael Korte

Michael Korte an investigative reporter at GDP Insider and is a breaking news reporter. Michael work includes investigations of misconduct by federal prosecutors and industrial air pollution around the nation's schools. His reporting has been recognized with the Hillman Prize for Newspaper Journalism, the Grantham Prize for Excellence in Reporting on the Environment, and the Philip Meyer Journalism Award for reporting that incorporates social science methods.

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