After several years of standstill, MASS Petroleum, Inc. (OTC:MASP) must have decided that it is time for the business to become more than just an intention. On the other side, promoters decided that their stock had already reached its bottom and the new perspectives in front of the exploration stage company need some advertising.The stock price rally followed, though yesterday it looked like it will not be lasting. On more than 103 million shares volume, the stock headed downwards right after market open and closed at $0.009. The decline was 34.78% and from the numerous alerts sent out to investors by stock promoting websites one could suspect that they have already done their job for now and the shorters have cashed up their profits.
Probably anticipating the demand, the massive shorting began last Wednesday and reached 72% of the total trading volume a day before MASS Petroleum announced its new new (and second of all) project. The company announced it has entered into a letter of intend to purchase some interests in the Walnut, Southeast Field in Crawford County, Kansas. That grabbing investor attention deal is still a costly intention, to be fulfilled under certain conditions in September. Given a successful due diligence, the company will have to pay $800,000 for the interest.
Although MASS Petroleum cannot afford that money right now, it was the right thing for investors to hear. Then the business was obviously not doing so well since it began in 2006. The company has a 2.34% non operating interest in three oil and gas wells located in Oklahoma, which together with some computer hardware and some cash comprises a total of $44,633 in assets for the company. As opposed to that, there are $334,290 in liabilities standing out. Revenues were minor, and the net loss bubbled to $3.8 million over the years.
Though, the management has a plan. At the beginning of the year it diluted shareholders with 38 million new shares of common stock in order to settle some loans, recording a loss of $822,000 on that settlement. Further, they plan to find a full-time engineer and a full-time geologist to do preliminary evaluation of potential exploration stage oil and gas properties for acquisition.
Which however does not mean that its over with the dilutive activities. Another $2 million will be needed to cover the operations over the next year. A bank loan can hardly come into consideration, with the above described assets and results.
