American Petro-Hunter Inc. (OTC:AAPH) went up 3.7% yesterday following the announcement of a corporate update which later paved the way for a wave of free newsletter alerts.
When AAPH revealed that its second horizontal well had started oil and gas production at its Mississippi Lime Project, investors’ reaction was moderate at best. Indeed, AAPH stock rose up one cent to $0.28 per share on a volume of 68 thousand, but it was hardly as impressive as some of the company’s past market performances.
The PR went on to disclose that the well mentioned above had actually been connected to the existing gas line and tank battery, stating that what follows were some commercial testing and evaluation activities. Strangely enough, it was this official press release that triggered a free newsletter campaign in support of AAPH since the majority of the emails represented pure carbon copies of the update.
Given the minor gain achieved yesterday, AAPH stock will hardly take investors by surprise in the current session. The company has not filed any significant documents with the SEC since mid-August when its latest quarterly report saw the light of day. As of Jun. 30, 2011, AAPH’s balance sheet contained:
- cash reserves in excess of $50 thousand;
- working capital deficit of $2.3 million;
- quarterly revenue of $75 thousand as opposed to $10 thousand in Q2 of 2010;
- quarterly net loss of $915 thousand in comparison vs $353K a/o Jun. 30, 2010.
Whatever pushes AAPH up on the stock market in the forthcoming sessions, it will hardly be attributed to the company’s financial state unless its management finds a way to cut losses and start generating profits.
