The above sentence is a quote taken from a Grid Petroleum Corp. (OTC:GRPR) promotional mail from yesterday morning. The results from it and a PR by the company released shortly after the market opened were:
GRPR has been around for some years and is currently in its second exploration stage. The announcement from yesterday concerned the acquisition of a company that has the mineral lease hold rights to some oil and gas property in the central California Joaquin Basin.
During GRPR’s previous exploration stage, the company acquired seven placer claim tenures, which it later abandoned. This post on iHub could be of interest to potential investors. It contains some due diligence, which suggests that Lucian Gago, CEO of the new GRPR subsidiary, has had some legal problems in the past.
The most recent 10-Q of the company could also make some investors unhappy, and it contains the “going concern” paragraph that states “The Company does not have sufficient cash to fund its desired exploration for the next twelve months.” The cash and cash equivalents reported by GRPR amount to $18,605.
It should be mentioned, however, that the oil and natural gas sector is very strong at this moment, and there is a lot of potential in it. If the company manages to find real reserves and starts exploiting them, there could be significant value for shareholders.
“GRPR is off to a good strong start today! After meeting some initial resistance in the $1.39 to $1.40 range, it seems to have broken through and is continuing to trend upward in a slow and steady manner.” This is a sentence form a newsletter from April 26, 2010. Investors are, as always, free to draw their own conclusions.
