11.63% to close at $0.190 per share and its volume rose over 2 million shares traded. That’s quite an unusual value for SGCA, keeping in mind that the average volume of the stock is only 263 thousand shares.
Apparently, the volume was affected by yesterday’s promotion of SGCA, which however couldn’t push up the stock price.
The last news on Strategic American Oil was released yesterday, when the company announced it has identified a new Pinnacle Reef oil drilling target in the Illinois Basin. Jeremy Driver, President and CEO of SGCA, said that the new target was added to their development plans and the company intended to evaluate the prospective subsurface geology.
However, it looks like the optimistic news wasn’t enough for the investors and something has made them sell their shares.
Strategic American Oil Corporation is a growth-stage oil and natural gas exploration and production company with operations in Texas, Louisiana and Illinois. At the end of 2009, the company used to trade much higher, though after that the stock price moved down.[BANNER]
Over the last quarter, oil and gas revenues of Strategic American Oil have increased, though its net loss and expenses also got much higher as compared to the previous period.
On April 30, 2010 the company’s capitalization was 500 million authorized common shares with a par value of $0.001 per share and SGCA registered a working deficit of over $805 thousand. According to its 10-Q report, Strategic American Oil’s “sources of revenue are inadequate to provide incoming cash flows to sustain our future operations” and the company is dependent upon additional equity financing.
As SGCA has accumulated losses of $11 million since inception, the management team claims there is a “substantial doubt regarding our ability to continue as a going concern”.
