Savannah Petroleum (LSE:SAVP) gave an update yesterday regarding its Bushiya Oil Discovery. While an oil sample has been taken and returned to surface from the shallower horizon, an attempt to extract an oil sample from the deeper horizon was unsuccessful due to limitations of the testing equipment.
The share price responded positively, hitting over 30p, but subsequently dropped back a little to close 29.2p. This meant the price closed outside the Falling Wedge pattern that had been developing since the beginning of the year. The stock dipped earlier today to 28.5p before rising to its current price of 29.8p.
Immediate resistance is around 30.3p, then 32.5p, after which upside appears to be to 42.75p – an area hit twice previously. The last time was in May last year prior to the stocks suspension on AIM. The company returned in December with an acquisition and fundraising at 35p. After recent price moments and further newsflow in the pipeline, Savannah’s share price may have found its’s bottom.