Notice a lot of down and out oil companies lately looking to divest their assets? That’s exactly where you’ll find America Resources Exploration, Inc. (AREN) looking as it seeks to acquire new assets. It’s a successful strategy if a company can afford it. Buy while prices are low.
America Resources recently purchased in two gas wells in Shelby County, Texas. As reported by Bloomberg Business, “The wells are drilled in the Carthage field into the Haynesville Shale formation and are producing from a completion interval depth of 12,890 to 19,053 feet.” The operator for both wells is currently XTO Energy Inc., a subsidiary of Exxon Mobil Corporation.
AREN is working to develop its assets and partnerships. “We are excited to diversify our production portfolio with this natural gas play,” commented Huang Yu, CEO of America Resources. “This transaction also displays our determination to associate with established operating partners like XTO Energy in an industry where relationships are a key to success and longevity.”
Diverse assets and strong partnerships are usually key to a company’s success. It’ll be interesting how this plays out in America Resources Exploration’s stock, which are experiencing some movement, both up and down. On August 13th, 2015, stocks were reported hitting a high of $1.30, only to fall again. Today’s opening saw them at $.80.