Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) Manages to Stay Afloat

It seems the pump job for Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) worked out quite well. Even though BLKG is far from its pumped highs of $2.40, the ticker is still kicking. The company’s share price put on 14% in yesterday’s session and closed at $1.74 per share on a new swell in volume.

BLKG is an oil and gas exploration company which barely traded until a few weeks ago. Then promoter Wall Street Report (WSR) picked the ticker up and ran an expensive stock pump. The earliest WSR paid pump email we tracked down is dated Aug 12 but it’s likely the promo started earlier, judging by the price movement.

The promoter initially disclosed a budget of $50 thousand paid to promote BLKG by a third party named Pansino Investment Ltd. The later emails show that this figure grew to $100,000 in payment from Pansino. Compared against the big pump jobs of the previous couple of years, a hundred thousand is not that much but with the pumping game very nearly done for, this is no small sum to pump a stock. To justify its payment, WSR even set up a special landing page with a mock-up ‘research report’ on BLKG on its own website.

BLKG put up their latest quarterly report just as the stock was crashing after the big spike, on Aug 19. Given the dire numbers contained in that, it’s hard to imagine people lapping up the stock at over $1.70 per share but the market tells a different story. Here is what BLKG had to show on its books as of June 30, 2015:

• $239 in cash (two hundred and thirty nine U.S. dollars)
• $7 thousand in total company assets
• $20 thousand in total liabilities
• ZERO revenues since inception
• $34 thousand in quarterly net loss

It’s quite amazing what promoters are doing, really. In essence, after they pocket their payment, they start advertising a company that is nearly flat broke, never generated a penny worth of revenues, has bold plans to do expensive exploration of mineral properties that costs many times its total assets, and this is all presented by the promoter as a new Exxon Mobil in the making.

Judging by the price movement and BLKG‘s surprising resilience on the charts, it seems the $100,000 for the pump was money well spent. How long the stock can run, however, is another matter.