PetroGas Co (OTCMKTS:PTCO) continued its ascent in the stock market, as it gained another 31.44% in terms of its share value. The stock has so far added $0.75 per share, since closing at $0.34 on December 14. PTCO is currently trading at $1.11 per share. It should be noted here that the last time PTCO filed a press release was last year, at the end of September 2015. One of the main reasons for the sudden surge in the stock was a recent press release from the company, announcing that PetroGas has acquired interest in oil and gas wells, in Texas.
As per the release, PTCO now has fractional interest in a total of four oil and gas wells, in Roberts County, Texas. The company further revealed that the wells are operated by Unit Petroleum Company of Tulsa, Oklahoma and BP America. Over a 6-month period, ending May 2016, the wells produced a combined daily average of 131 barrels of oil and 2,571 MCF of gas. The acquisition comes soon after OPEC announced that it would reduce oil production by 1.2 million barrels per day, for the 1H2017. As such, analysts expect the global oil markets to move from surplus to deficit. Moreover, this is expected to result in an improvement in global oil prices, which are up by approximately 17% , since the OPEC announcement.
Mr. Huang, the CEO of PTCO, expressed his pleasure at the closing of the deal, as the company gears up to take advantage of the rising oil prices. He also expressed hope that the prices would continue to surge, offering more opportunities for expanding production, in the near future. In the associated form 8-K, Petrogas noted that the deal was valued at $10,485. In addition to this, the company also filed another 8-K, announcing that it has acquired two additional oil and gas leases in Monroe County and Washington County, in Ohio. These leases were acquired for $2,705. Further details of the acquisition are still awaited, from the company.