soared 161.35% and its traded volume reached approximately 13 million shares.The most reasonable explanation for the sudden high trade appears to be the news that came up yesterday. According to the announcement, Topaz has acquired four producing oil wells and intends to bring several more back on-line through their workover program.
As soon as the news was published, investors got encouraged and TOPZ started to climb up at full speed. Still, the announcement states that the consolidation of Topaz North Texas shallow oil project is to be completed in November.[BANNER]
Topaz Resources is an independent oil and gas company focusing on production, acquisitions and developmental drilling opportunities within proven producing areas of Texas. In June-July, the company used to trade significantly higher, though after that the stock price moved down.
Five days ago, Topaz confirmed a share dividend with a payment date of November 15, though at the date the news was released the stock price didn’t rise up.
According to its 10-Q report, the company has more assets than liabilities, but it also has incurred a net loss of approximately $16 thousand. As of June 30, 2010, Topaz hasn’t emerged from the development stage and it has been financed from loans from its executive officer and from the sale of its equity securities.
The management team claims that currently TOPZ is dependent upon “the Company’s ability to begin operations and to achieve a level of profitability” and it “intends on financing its future development activities”. Because of its minimum amount of cash, Topaz needs to raise additional funds, otherwise it will have to drop down its intended business plan.
