Azabache Energy Inc., a Canadian oil and natural-gas developer, surged to its highest level in more than three years as the company prepares to drill exploration wells.
The shares rose 21 percent to C$1.04 at the close in Toronto, the highest since June 30, 2008.
Azabache Energy, based in Calgary, is part-owner of leases on properties in Argentina and Colombia and will begin exploration drilling this year, said Chairman Glenn Van Doorne said in an interview today. The company will spend C$15 million ($14.8 million) to drill this year and expects the Colombian properties to yield 300 barrels a day of oil and the leases in Argentina to produces 2 million cubic feet of gas daily, he said.
Azabache Energy may have as much as 4.8 billion barrels of oil equivalent, Kevin Shaw, a Calgary-based analyst at Casimir Capital Ltd., said.
“Success on any of the exploration wells are considered to be high-impact events likely to drive the stock price significantly higher,” Shaw wrote in a Jan. 10 note, when he began coverage of the company with a “speculative buy” rating.