Junior energy stock soars on well discovery

Stockhouse Canadian Small and Micro-cap Stock Report for Thursday, July 31, 2008

TORONTO (SHfn) - A new Bakken area well generated plenty of investor interest Thursday, while an explorer jumped on pending oil shale drilling.

Petrostar Petroleum (TSX: V.PEP, Stock Forum) shares soared 33% to 36 cents on Thursday after the micro-cap oil and gas explorer reported a new discovery well located in the Saskatchewan extension of the Bakken oil play. The well encountered 19 metres of pay locked in a sandstone formation with excellent porosity and good permeability and the company is confident that no water issues will need to be addressed. Petrostar will test the well and bring it on production over the next few weeks.

As well, shares of Canadian Imperial Venture (TSX: V.CQV, Stock Forum) shot up 40% to seven cents as the junior energy firm announced that a five-well drilling program has begun on its lands in southern Alberta. The target of the program is the discovery and production of natural gas from very shallow horizons.

Noble Metal Group (TSX: V.NMG, Stock Forum) shares powered 13% higher to 30.5 cents after the junior explorer said it has entered into a diamond drill contract with More Core Diamond Drilling Services for the exploration of its subsidiary's, Noble Hydrocarbons, oil shale permitted lands near Hudson Bay, Saskatchewan.

Tamerlane Ventures (TSX: V.TAM, Stock Forum), meanwhile, announced that it has been issued a Type A Land Use Permit by the Mackenzie Valley Land and Water Board in accordance with the Mackenzie Valley Resource Management Act. With the receipt of this permit, the company may now begin construction at its Pine Point lead-zinc project in the Northwest Territories. Tamerlane stock popped 39% to 57 cents.

Canadian Zinc (TSX: T.CZN, Stock Forum) shares surged 38% to 65 cents after the miner said it has entered into a memorandum of understanding with the Parks Canada Agency in regards to the expansion of the Nahanni National Park Reserve and the development of the Prairie Creek lead/zinc/silver mine.

Shares of Orex Exploration (TSX: V.OX, Stock Forum) jumped 17% to 10.5 cents after the micro-cap miner reported additional gold assay results from its wholly-owned Goldboro Gold Project in Nova Scotia, which included 15 metres of 2.49 grams per tonne (g/t) gold.

And, RJK Explorations (TSX: V.RJX.A, Stock Forum) Thursday said it has signed an earn-in option agreement with Altai Resources for a 100% interest in an oil and gas permit totaling 24,042 hectares held by Altai at Sept Iles in Quebec. RJK also added an additional permit totaling 12,400 hectares tying on to the west side of the current Sept - Iles permits. Its shares climbed 10% to 16 cents.