Worthington Energy, Inc. (OTC:WGAS) has been climbing up for two weeks already. Last Friday, the stock soared another
17.50% for the day, and its traded volume went over 5 million shares.
The most reasonable explanation on the massive trade turns out to be the last announcements by the company, which gave new hopes to investors. Though, once the stock was moving up, Worthington was not willing to give up the climb. Thus, it secured it by promotions.
The campaign was held on Friday and cost $17,500 in total. The stock alerts featured the recent news for the company’s management team, as well as the opportunity for WGAS to climb higher. Though, it is still not certain of any of these will be enough to pump up the stock more.
Worthington Energy, Inc. f/k/a Paxton Energy, Inc., engages in the acquisition and development of natural gas and oil prospects in North America. Historically, the company’s stock price has had spectacular ups and downs which explain its unstable market position.
As of September 30, 2011 cash and cash equivalents of WGAS have significantly decreased, though its current liabilities got almost double. At the same time, oil and gas revenues for this period totaled zero, net loss remained uncovered, and the deficit accumulated during the exploration stage exceeded $16 million.[BANNER]
Apparently, WGAS relies mostly on the subscription agreement it has entered between Jan 18, 2012 and Feb 8, 2012, providing for the sale by the company of 8% convertible debentures in the aggregate principal amount of $70,000 and common stock purchase warrants to purchase an aggregate of 700,000 shares of Common Stock.
Nevertheless, the management states that the company’s continuation as a going concern is dependent upon its ability to obtain necessary additional funds to continue operations and the attainment of profitable operations.
