In last trading session, the share price of NuTech Energy Resources Inc (OTCMKTS:NERG) gained more than 57% to close at $0.00220. The up move came at a massive share volume of 87.46 million compared to average share volume of $19.87 million. Following the green close in yesterday’s trading session, the market capitalization of NERG surged to $42.49 million.

The progress

NuTech Energy is a leading natural gas & oil development and technology entity. The company recently updated on the voluntary tender proposal that it received from TechnoInvest Oil & Gas Ltd. It stated that it received the offer for the acquisition of its outstanding shares from TechnoInvest. The offer price is reported to be 2.5 cents per share. Both parties in agreement talks are consulting their respective advisory boards and management to design necessary measures.

The attorneys of NuTech have evaluated TechnoInvest’s offer and have concluded that the evaluation of this proposal shows to it being a “bona fide” offer with big prospects to close. For now, the terms and conditions are kept undisclosed for the potential deal, but the updates will be released to shareholders as buyout offer progresses. Techno is aiming to gain on NuTech’s coalbed methane production mechanism and capitalize on the existing coalbed methane assets.

The highlights

Due to the country’s existing economic scenario in the gas and oil industry, NuTech is open and is aggressively considering Techno’s proposal. For record, NuTech is a growing oil and natural gas technology & development entity that has designed a patented mechanism for the manufacturing of coalbed methane without any need to pump water.

The company at present runs wells in the famous Powder River Basin region and has commitments to acquire more wells. Its improvement of registered equipment exclusively places the firm to be able to purchase and cost-effectively manage wells that were previously cost prohibitive.