A farm-out agreement brought about a 21% increase for Eagle Oil Holding Company, Inc. (PINK:EGOH) during yesterday’s market session.
Clocking in at $0.0115 per share, EGOH stock scored a seven-week high. Moreover, it achieved such an improvement by registering a massive 52-week volume record. By the time the trading session came to a close, more than 9.17 million shares of OGOH stock had changed hands. The latter is also eleven times higher than the daily average trading volume.
So, what triggered that movement? Apart from the aforementioned PR, no other corporate updates have surfaced for the last five weeks. Nor has any paid promotion taken place. Indeed, acquiring a working interest in 104 wells might eventually turn into a valuable asset. Yet, at the same time it can end up being a financial bust. The transaction is expected to be finalized by Jun. 22 with operations starting in the immediate term.
Eagle Oil Holding Company describes itself as an independent company occupying the crude petroleum and natural gas industry. Its main focus is on redeveloping and reconstructing pre-existing oil fields.
When it comes to financials, however, the company has been classified as a limited information provider. Which, in fact, is rather weird, especially given the fact that EGOH recently filed its latest quarterly report covering the period ended Apr. 8, 2011. As of that date, its unaudited balance sheet revealed:
- $10K in assets;
- $673K in current liabilities;
- nine-month net income in excess of $21K.
The company has estimated its oil field equipment at approximately $1.3 million. Whether it will strike real oil or not remains to be seen in due course.
