Treaty Energy Corporation (PINK:TECO) started the current run about a month ago. As you can see on the chart, it started out slow and met resistance around $0.015. That held until Apr. 12.
Yesterday, TECO had an extremely good session, which made a lot of investors exstatic. The price surged 58.97% on approximately 9.1 million shares and closed at $0.062. Less than a month ago, it was a sub-penny stock.
It seems the factor that caused the $0.015 resistance to break was the press release published by TECO on Apr. 12. In it, the company announced it had signed a “definitive letter of intent” to purchase producing oil and gas leases in the Texas 7B Oil District. The PR said the acquisition was projected to close on Apr. 14.
The 8-K that was supposed to reveal the details of the acquisition is still to come.[BANNER]
This didn’t seem to dampen the spirits. On Apr. 14, the company announced Bruce Gwyn had been appointed to the Board of Directors, effective Apr. 15. This gave extra confidence to investors and the run continued.
TECO is based in Houston Texas. The company is engaged in the process of adding oil and gas properties to its assets. That’s part of what is said on the company website. At this time, the news section there is not updated for some reason and the latest release is from December 22, 2010.
The latest financial report is the annual report filed on Apr. 15. According to the 10-K, TECO was not in the most favorable financial state as of December 31, 2010:
- $148 cash to account for the company’s total current assets
- $1,485,699 liabilities, all of which current
- $1,570 in revenue and $769,679 net loss for the year
Statements like “we may have difficulty financing our planned growth” and “… at December 31, 2010… we had no proved oil and gas reserves…” may not sound too promising.
This, however, doesn’t seem to bother traders and today’s session is starting very well for TECO. The company provided another PR to inform potential investors that it had acquired a drilling rig.
While there are still no details about the previously announced acquisitions, it seems the run will go on for the time being. For how long, and how far it will take TECO, remains to be seen.
