The effect of the announced in May acquisition of certain new oil-and-gas properties and production equipment settled quickly and since then PDGO share price is moving downwards. Though, after the bottom last week, PDGO was featured as a volume leader in a paid trading alert on Tuesday and started rising up again. Yesterday the recovery got even faster as the stock gained 63.04% and closed at $0.375 for share. Considering the narrow price channel recently, yesterday’s jump looks like a real breakout.
The accompanying news was a follow-up press release on the acquired in May Transportable Enhanced Oil Recovery Platform (T-EOR), which is a portable production system that can be easily moved from well to well. The company intends to use it for oil recovery on some previously producing wells within the acquired in June this year Chilson properties.
Yesterday, Paradigm announced that the first T-EOR has been deployed and is ready for use. As the market has been prepared for that announcement already at the end of September and did not show much of reaction up to yesterday, the company’s attempts to “delete” its previous history of eight years with no revenues or profits seem to have moderate success. Maybe because the current market cap is already over 300 times higher than the tangible value of the Paradigm.
The last three press releases imply that regular oil production will start any moment, but do not mention if the available cash resources will be enough to finance that. At the end of June, Paradigm had $126,000 in cash (a remaining amount from a convertible note over $524,560 issued in the last quarter) and another $240,000 have been provided afterwards as an additional amount under the same note.
