TNGS stock got some action in yesterday’s trading session even with the lower than the average trading volume of about 387,000 shares. The stock closed the day with a 5.26% increase in the closing price at exactly $1 per share. Early in the morning, the company issued a press release on its recent corporate developments.
Titan Oil & Gas informed investors that after an initial review of a number of potential properties it has identified three “high-priority” targets with the potential for immediate production and near-term cash flows. Further, the company promised more updates, concerning planned partnerships or joint venture agreements. That could sound promising for more jumps of the share price like the one from yesterday, but it will take more than just announced plans for the downtrend to stop and reverse.
It is not hard to describe in brief the nature of TNGS operations. As of November 30, 2010 the company had no products or services. The initial plan was to market electronic safe systems, but after it failed the business changed to oil and gas exploration in June 2010. As of last November, the total value of the company’s oil and gas interests in properties located in Alberta and Saskatchewan, Canada was about $190,000. Later, in February this year, TNGS disposed of its Saskatchewan interests in for a total of $15,000, and in January TNGS acquired additional leases in Alberta for $49,588.
A positive thing to be pointed out is that the company is still young and maybe still has the chance to strike some oil and gas reserves on any of its properties. In January, TNGS also completed a private placement for total proceeds of $100,500, in which 67,000 shares of common stock were sold at a price of $1.50 each. The offering was fully subscribed by one single non-US investor.
