Petron Energy II, Inc. (OTCMKTS:PEII) Jumps On News
Lately, the stock of Petron Energy II, Inc. (OTCMKTS:PEII) hasn’t been very interesting to investors and wasn’t traded much. The ticker had quite a few sessions ending in the red after the burst from the beginning of January and has already lost all the gain it made then.
There were no news from the company after they announced that the deal with Phoenix Energy, Inc. for the Bakken Shale was off in the end of January. The stock was swaying in both directions, hovering around $0.0015 after the announcement, but things began to look better yesterday.
The reason was a press release from PEII which unformed us that they have began a workover of their Knox County, Texas property. Work is expected to be complete by March 15, 2014 and PEII think they should be able to add 8-10 barrels of oil per day to their production.
This lead to a healthy gain of 33% yesterday, as PEII closed at $0.0024 on the highest volume in its trading history. We saw more than 168 million shares switch hands, which generated some $406 thousand in dollar volume.
However, knowing the company financial state and the current price per barrel we reckon that this wont be enough. Here are the numbers of prime interest from PEII‘s quarterly report, covering the period ended September 30, 2013 for your consideration.
- cash: $8,600
- total assets: $3.2 million
- current liabilities: $2.7 million
- total liabilities: $4.7 million
- revenues: $76 thousand
- net loss: $468 thousand
And when you add to that the fact that the outstanding share count has more than doubled since the end of 2013, the situation starts to look rather grim for PEII. With 882.7 million OS, half of which have emerged in a matter of 2 months, there is a big possibility for dilution.
Still, the company is expecting to have 3 large acreage leases online by the end of the year and there are hopes that PEII will become profitable this year. Also, they did start enhanced oil recovery procedures on their Edwards leases in Oklahoma back in December and even though they are far from the 30-50 BO/D they expected work is still going.
So far they have reached a weekly 71 barrels of oil, which is quite far from previous expectations, but these are early production results. We are quite sure that the financial report for the third quarter of 2013 will be very interesting and will help us better understand how the company development is going and will they be able to start working at a profit by the end of the year.
Until then, be sure to proceed with caution and do your due diligence before jumping in PEII‘s bandwagon.
Minerco Resources, Inc. (OTCMKTS:MINE) also registered some impressive results yesterday, as the stock moved some 47% up. In the meantime, Nuvilex, Inc. (OTCMKTS:NVLX) had a correction after the great run the ticker had and lost 10% on a $13 million dollar volume.
