Oncolin Therapeutics, Inc. (PINK:OCOL) is on a massive buying wave after the stock was promoted by one of the most popular penny stock newsletters.The stock price gained over 25% shortly after trading began today, and after OCOL was marketed by StockEgg.com and HotOTC.com. Both of these promoting websites are run by the same company and deliver identical promotions each time.
The compensation for the investor awareness services reached $45 thousand this time, which brought the interested party one week of marketing through the newsletters.
OCOL is presented as an exploration stage natural gas and crude oil oriented business, targeting a couple of prospects along Texas and Los Angeles Gulf Coast. The company is about to change its name to Bering Exploration, Inc. to better represent its current activities. The newsletter states that OCOL is run by an experienced management team with over 30 years of practice in the oil and gas business.[BANNER]
The company’s properties are not as promising though. OCOL has interest in a South Texas oil and gas prospect that holds estimated 5 million barrels of oil and 46 BCF of gas. However, OCOL holds only a 5% working interest after payout. The first well is yet to be drilled on the property and has estimated completion in the 4th quarter of the year.
We’re looking for potential $24.7 million in net revenues for the company after all the oil and gas has been dug up and sold. This is truly a long-term number and has mere relation to the current share price that puts a market cap of over $200 million, or to the company’s troubled financial position.
Oncolin Therapeutics reported to have just over $2 thousand in liquid capital and over half a million in debts for the period ending June 30, 2010.
