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Navaho Gold cites shale potential in South Australia as possible reasons for share spike

Navaho Gold cites shale potential in South Australia as possible reasons for share spike

Navaho Gold (ASX:NVG) has cited reports from Linc Energy (ASX:LNC) highlighting the potential for significant shale gas in the Arckaringa Basin in South Australia as possible reasons for share spike.

Navaho got the speeding ticket from the ASX on Thursday after its shares went up to 2.3 cents from the Friday close of 1.3 cents.

Shares hit a high of 2.5 cents on Thursday before trending off to 2 cents a share. However, it continued the climb today hitting a high of 3.7 cents a share or up 85%.

Navaho explained that the Linc Energy reports had generated significant media interest with speculation that South Australia could be sitting on oil potentially worth more than $20 trillion.

Also, the South Australian Mineral Resources Development Minister Tom Koutsantonis also said that the shale oil and gas will be a key part to securing Australia's energy security now and into the future.

Navaho's diversification into shale gas could be adding to investor interest after it last year formed a subsidiary company NAVGAS.

It lodged five petroleum exploration licence application covering 50,000 square kilometres in the Flinders with in the Adelaide Fold Belt, which is prospective for shale gas and was close to infrastructure and had gas shows from previous exploration drilling.

The NAVGAS project area neighbours the Arckaringa Basin and Navaho said the publicity generated by Linc Energy's release and statements made my the South Australian minister have highlighted the prospectivity of the area in general and renewed interest in Navaho.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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