The Horse Hill oil project made quite the splash just eighteen months ago as estimates of a truly huge discovery emerged. And some time later a number of sceptics were silenced as excellent flows of oil came to surface. But what comes next?
Zak Mir, also known as the King of Charts, examined UK Oil & Gas Investment Plc (LON:UKOG), the largest London-listed stakeholder in Horse Hill.
He notes that interest in the share – which has traded between 0.85p and 3.34p in the past twelve months – has tempered somewhat as investors have waited for new developments. “There’s a delay there, which private investors don’t like,” he added.
WATCH Zak Mir's analysis right now
Nevertheless the chartist sees “good consolidation” in the share price recently and he expects the price to rise to mark a key buying signal soon.
Mir, in a TIP TV segment for Proactive Investors, explained he is expecting to soon see a ‘golden cross’ buy signal, and he reckons the price can rise from current levels (1.75p) to around 2.5p per share.
“What technical people will be enjoying at the moment is the way we’ve got both the 50-day and 200-day moving average rising,” Mir said.
“They’re both rising and they’ll probably deliver a golden cross buy signal over the next couple of weeks, so that would be a decent technical reason to go long.”
While it is expected that UKOG and partners will continue to advance the appraisal and development of Horse Hill, the AIM company is also involved in follow-up ventures elsewhere in the Weald basin, including wells at the Holmwood and Brockham projects.