Since making an impact on the markets back in late August, the somewhat quiet penny stock of Eagle Ford Oil & Gas Corp. (ECCE) seems to have broken its silence. In just four trading sessions and without an enormous amount of volume, ECCE stock has gained over 260%as it set a new 52 week high on Monday. With today the deadline for the Company’s $10.5 million needed to fund drilling projects on their 85% working interest in the 3,684 acres located in hydrocarbon rich Frio County, Texas, the hope is that the recent surge in share price can remain Caliente.
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ECCE Stock Chart
Market Cap: 33.26M
Close: 0.92, up 0.28 (43.75%)
Dollar Volume: $73,469
Average Trade Size: 1,543
Issued and Outstanding: 36,155,893
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Assuming Eagle Ford Oil & Gas does come up with the funds needed for today’s deadline, the plan is to begin drilling three to four wells immediately in an effort to generate production revenue. Once funds have been raised from operations, additional funding is likely to be sought and secured for phase two of their development project which consists of between 30 to 40 additional wells. The production revenue will be a great addition to the emaciated top line numbers Eagle Ford has been putting up in recent quarters.
Revenues were actually negative for Q3 and minimal for the nine months ended September 30, 2012. What’s encouraging is that, although revenues have decreased compared to the same periods in 2011, so have operating expenses to the tune of $307,488 and $1,071,919 for the three and nine months ended respectively versus $640,499 and $6,212,823 for the same periods in 2011. Yet based on cash at the end of September recorded as just $10,305, chances are the $10.5 million needed for today’s deadline are to come from further issuances of stock or a JVA perhaps.
Already during the course of 2012, Eagle Ford has had the follwing transactions involving the penny shares:
Common stock sales
• On January 18, 2012, ECCE sold 357,143 and 71,429 common shares to two individuals for $0.14 per share.
• On May 9, 2012, ECCE sold 500,000 shares of common stock to four individuals for $0.10 per share.
• On June 6, 2012, ECCE sold 416,667 shares of common stock to Ronald Bain, a consultant of the company, at $0.12 per share, for total proceeds of $50,000.
• On September 28, 2012, ECCE sold 166,667 shares of common stock to an individual for $0.09 per share.
Common stock issued for exchange of debt and accounts payable
• On February 23, 2012, ECCE issued 300,000 shares of common stock in exchange for nine notes payable totaling $36,000 and accrued interest of $6,369.
Common stock issued for services
• On March 14, 2012, ECCE issued 250,000 shares to four individuals as compensation for technical assistance relating to existing and potential field evaluation, fair valued at $50,000.
The Company still has a big fat $7 million bunch of note payables on the books, most of which is unsecured. Based on some of these purchasers of ECCE being up as much as 1,090% as of yesterday’s HOD and new 52 week high, it makes you wonder when the chance for “Joe Investor” will come for them to get shares so cheap that they make 10-bagger gains. Perhaps that’s why we have the newsletter and website going for public viewing.
About ECCE Stock
Eagle Ford Oil & Gas Corp. is an independent oil and gas company actively engaged in oil and gas development, exploration and production with properties and operational focus in the Texas and Louisiana-Gulf Coast Region. Click here to view the SEC filings for ECCE.
Last 5 Trading Sessions:
Bottom Line: ECCE is surely worth having a good look at before adding to the list of penny stocks to watch. The way ECCE stock has performed since Wednesday last week, it would be hard to not be interested in seeing where today’s session takes it and if they announce funding requirements were met or not.
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