AM Oil Resources & Technology Inc. (AMOR.OB) shares surged 7.69 percent to 28 cents in todayâ€™s mid-morning trading, moving on last weekâ€™s analyst rating by Beacon Equity Research. Beacon analyst Victor Sula recently gave the company a Speculative Buy rating, with a 63-cent target price, highlighting the companyâ€™s Portable Steam Generator System, Portable Thermo-Gas Repressurizing System and its Deep Steam Generator technologies.
AMORâ€™s licensed technologies equip the company with a competitive edge as it emerges as an innovator in oil production from low-producing oil wells. According to the recent Beacon report, after 30 to 40 years of pumping, up to 80 percent of oil in a formation still remains in the ground. Thatâ€™s where AMORâ€™s technologies take the lead.
The companyâ€™s steam and gas injection technologies have the ability to recover about 50 percent of the remaining oil from previously pumped wells. There are more than 400,000 â€œstripper wellsâ€ scattered across the United States. From 1994 to 2003, about 142,000 oil wells were abandoned, though many have untapped reserves, given the right means for extraction.
AMOR has developed a strategy to produce and sell its portable systems, capitalizing on the recovery of untapped crude oil from those abandoned marginal wells. The company has already received its patent and rights to market its Portable Steam Generator, and its Portable Thermo-Gas Repressurizing System and Deep Steam Generator technologies are patent-pending. AMOR intends to market these products through joint-venture opportunities.
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