Norstra Energy, Inc. (OTCBB:NORX) Moves on More PR Fluff
Yesterday Norstra Energy, Inc. (OTCBB:NORX) shuffled another 4% up, possibly aided by a press announcement issued near the market’s open. Share volume was comparable to Friday’s session, still much smaller than the previous streak of disastrous crashes.
The press release NORX posted yesterday morning contained little that could get their curls in an uproar, yet the stock managed to inch its way up. The company announced it had completed the surveying of the first well location and hopefully the drilling permit will be issued in two weeks’ time.
The well in question is just one of the three wells NORX is expected to drill in order to gain full interest in the Bakken property, as per their agreement with a Summit West Oil, LLC. It’s difficult to say how far NORX will be able to proceed with the well operations, even if it does get its permit on time, due to the financial situation of the company as per its latest report. The contractual obligations of NORX include drilling not one, but three horizontal wells, each of which is estimated to cost the company $5 million. Where the company is going to magically spawn this sort of money is not too clear.
Here is how NORX looked on the financial side of things as of Feb 28, the date of their latest report:
- $99.5 thousand in cash
- $105 thousand in liabilities
- ZERO revenues since inception
- $42 thousand in net loss, period not listed, assuming yearly as report is a 10-K
This is not exactly the sort of money you can leverage in drilling wells that cost $10 million by the end of this year. In addition to the skewed financial situation in terms of expectations and delivery, NORX also has a number of other red flags about it, which we examined in our video coverage of the company as early as May 22, before the huge spike and crash had happened. Those include a forward split that increased the number of shares, selling many cheap shares to undisclosed parties and then getting a stock pump paid with millions of dollars, conducted both through emails and website landing pages.
BioZoom, Inc. (OTCBB:BIZM), another more recent pump job, also moved up in yesterday’s session, closing 15% up. iTalk, Inc. (OTCBB:TALK), another ongoing pump job run by a number of promoter outfits, also closed green yesterday, gaining 15%.
