There has been huge investor interest towards Crocotta Energy Inc. (TSE:CTA), (PINK:CRCTF) lately, especially on the Canadian market. The stock enjoys high trading activity which exceeds several times the company’s average. The volume began bulging in the days after the company released a short operational update, which happened one week ago.

Crocotta_Energy_-_Chart_-_25_Oct_2011.pngIn the announcement, Crocotta festively informs the public about the “drilling success” at its Edison project. As stated, the current production exceeds 5,000 boepd. The corporation expects to raise the output to 6,000 boepd till mid-December after building the required infrastructural facilities.

Maybe, this partly explains the great demand for the company’s stock observed recently. Still, it has not contributed to a significant rise in the share price. Since last Wednesday, CTA has gained as much as 1.46% to close yesterday’s trade at $2.78.

As we mentioned, the volume was more impressive. During the last session, over 643K shares were traded, thus beating 6.5 times the average turnover from the previous 30 days.

According to the corporation’s statements, Crocotta had a net debt of $34M in the end of Q3 2011 compared to a bank credit facility of $80M. The latest filed financial reports also reveal:

  • A slight increase in oil and natural gas sales for the six months ended JCrocotta_Energy_-_Logo.pngune 30, 2011 over the corresponding sales in 2010;
  • The company recorded a net loss of $4M for the named 6-month period in 2011;
  • Reduced operating costs – from $9.95/boe in Q1 2011 to $8.87/boe in Q2 2011;
  • A rise in production – from 2,274 boe/d in Q1 2011 to 3,012 boe/d in Q2 2011.

Judging by these fundamentals, the readers could make their own conclusions about the future performance of Crocotta’s shares.