Last week the stock of Eagle Oil Holding Company, Inc. (PINK:EGOH) made five consecutive sessions with an increase in its closing price. It looks like the expectations of news about the closing of the latest announced agreement of the company let the stock hold the attention of traders. 
Friday’s session closed at $0.0268 with another 16.52% increase in EGOH share price. Trading volume was again more than twice the average with 7.44 million traded shares. Thus, the chart configuration is very bullish currently, but if its wasn’t the news to support it, it is questionable if EGOH stock would have become that attractive.
The company is designated with a red STOP No Information shield on the OTC Markets page and it has not filed financial results to the SEC since last April. On Wednesday last week, Eagle Oil Holding announced to have received the initial payment from Questus Energy LLC (“Questus”) under the Farm-out Agreement between the company and Questus. Also, the press release said that EGOH would now begin working on a group of 15 oil wells at its East Texas field and that the Questus Agreement would potentially cover up to 120 wells.
That farm-out agreement was first announced a month ago and on the same day EGOH stock got lifted into a higher trading range. EGOH market cap is currently given at $2.45 million, though calculated using the number of outstanding shares as of May, 2009. That appears too low for a company that claims to have an interest in 173 wells located in a historic oil and gas region.
Yet, it looks like the low share price of the stock has made it quite attractive for traders recently, and EGOH may still file an appropriate 8-K to confirm the deal. An 8-K from this May says that Eagle Oil Holding maintains some liquid assets and has 12 million barrels of oil in place, along with certain equipment. Further, the filing confirms that EGOH has an on-going business as a producer of petroleum in East Texas on its own oil field.
