PetroGas Company (OTC Pink: PTCO) is an exploration and production company within the oil & gas industry. Shares of the exploration and production company are soaring 76% on Thursday, December 15, 2016. Over the past month, PetroGas Company has seen average daily volume of 18,551 shares. However, volume of nearly 1.47 million shares or dollar volume of $874,650, has already exchanged hands on early trading Thursday.
Shares of PetroGas Company are surging Thursday, after the company announced it has acquired interest in four oil & gas wells in Texas. The assets are located in Roberts County, Texas and have a combined daily average of 2,571 MCF of natural gas and 131 barrels of oil, as of May 2016. The company also says that the OPEC agreement has helped increase oil prices around 17%, which will greatly increase the ability of small American oil companies to increase production. Here is the full press release detailing of the oil asset acquisition:
PetroGas Company Press Release:
HOUSTON, TX — (Marketwired) — 12/13/16 — Petrogas Company (OTC PINK: PTCO) (“Petrogas Company” or “the Company”), today announced that it has acquired a fractional interest in four oil and gas wells located in Roberts County, Texas.
The wells produced a combined daily average of 2,571 MCF of gas and 131 barrels of oil for the 6-month period ending in May. The wells are operated by Unit Petroleum Company of Tulsa, Oklahoma and BP America. Investors may refer to the company’s 8-k filing with the SEC for additional details regarding the acquisition.
“We are pleased to close on this acquisition to take full advantage of the increasing oil and gas prices,” commented Mr. Huang, CEO of Petrogas Company. “We are optimistic that they will continue to rebound and provide opportunities to increase production. Oil prices are currently at their highest level in more than a year.”
The Organization of Petroleum Exporting Countries (OPEC) agreed to reduce oil production by 1.2 million barrels a day for six months starting in January 2017. Non-member producers also agreed to scale back their output by an additional 558,000 barrels per day.
According to the International Energy Agency, Global oil markets will swing from surplus to deficit in the first half of 2017 as OPEC and non-member producers follow through on the agreement to cut supply.
“Oil has gained approximately 17% since the Nov 30th OPEC agreement,” commented Mr Huang. “Given the likely uptick in oil prices, we will be strategically positioning Petrogas Company for additional acquisitions in this sector in the coming months.”
About Petrogas Company, Inc.
Petrogas Company, Inc. is an oil and gas exploration and production company focused on the acquisition of properties in areas with significant oil reserves and drilling potential. The Company’s growth strategy includes the acquisition of oil fields from distressed third parties at a substantial discount to value, and development of fields whose potential has not been fully maximized. For more information investors can visit www.petrogas-company.com.