A new promotional campaign for Force Energy Corp. (OTC:FORC) stock started out yesterday evening and is expected to influence the trading today. The promotional power for FORC has been questionable so far and the company has not issued any news recently on its new lithium project, but now a third party has paid $79,000 for a one-week advertising contract and probably expects results.

On Friday FORC closed the market at $0.18 for a share and 42,850 traded shares. Today the stock may see much more action as a new costly promotional campaign started yesterday. According to the e-mails that arrived in out database, a number of promoters have shared the above mentioned compensation, thus the new promotion could easily have a broader reach and achieve better results than last week’s promotions.

In any case, it is important that traders pay attention to the details and do their own research on Force Energy. The option for 4.3 Million barrels of oil at the Diamond Spring Prospect mentioned by one promoter does not exist for FORC anymore as the company’s latest 10-Q says that following the exploration results the company has abandoned its interest in that prospect already last year.

Others were well updated on FORC projects, but still the focus is more on the lithium industry and less on the company. In July Force Energy acquired an option to purchase a 100% net undivided interest in the Zoro 1 mineral property located near the East Shore of Wekusko Lake in west-central Manitoba, Canada.

So far the company has made only the initial payment of about $60,000 and has to pay another $664,000, a first part being due on June 15, 2011. Until the option is exercised, the company has no rights on the mineral claim. According to FORC balance sheet, at the end February 2011 the company had $8,354 in cash and $4,770 in prepaid expenses, by far insufficient to cover the second payment for the Zero 1 option.

The rest is here:

Full map of the property is expected to be finished by the end of February 2010. It is needed to properly assess the risks associated with the exploration of the site and will potentially allow Force to establish optimal drilling locations.

The update was somewhat meaningful while the full map is not ready and gave the company some more positive share price action, but nothing special was announced. Basically they have just confirmed that everything is going according to plan.

The company currently holds 75% interest in the Diamond Spring prospect. The prospect is calculated to contain 4.3 million barrels of recoverable oil which under current prices would roughly translate into $320 million. Considering the company would have 75% net revenue interest by the time of recovery it would potentially generate $240 million for them.

The project is still in preparation phase and there are no guidelines on possible start of drilling operations. Further, as the company acquired $5 million private capital funding in exchange for their shares back in Nov 2009, they have also agreed not to pursue additional funds without the approval of capital provider Villa Atmu. Depending on the situation this sounds like a troublesome aspect.

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