The excitement about the announcement from the end of March that Titan Oil & Gas, Inc. (OTC:TNGS) has acquired an interest in five producing oil wells has already completely faded away an the share price is back down. The usual for this year performance pattern of TNGS stock still holds, and yesterday it looked like the downtrend would continue. 
TNGS opened the market below the previous close and then finished the session at $0.80 for a share with a 13.04% decline in the price. The trading volume of 406,800 shares was definitely above the average, making further losses in value possible. Next support is at $0.75 and it got almost touched yesterday.
In the middle of the month the company announced that it has entered into an agreement to acquire an interest in five producing oil wells operated by a multi-billion dollar oil company based out of Calgary, Alberta. Titan’s President even said the company has achieved its goal of becoming a producing oil company. Stated in the press release production from the wells is 60 barrel per day.
The corresponding 8-K filing gives no more details, but it confirms the existence of six oil wells with five currently producing oil in the mentioned area. According to the SEC filing, the company has received a 6% working interest in the petroleum and natural gas rights, as well as the intangible and miscellaneous interests, in 800 acres of land located in the Leaman area of Alberta, Canada. The price paid in consideration of that was about $144,500.
Thus, the future remains uncertain. TNGS reports cash reserves of $408,000 in its latest 10-Q and the management expects to incur over the next twelve months $60,000 in operating expenses and $40,000 in annual lease payments for the on-going assessment of the properties. Yet, the cash available will not be enough for the further exploration and development of the company’s properties.
Management plans to raise funds through selling shares of TNGS common stock to potential investors, which would dilute the company’s shareholders.
