Summertime usually means fun in the sun, at the beaches, at the ballparks, but for those seasoned penny stocks traders, it also includes scouring the OTC for subpenny tickers that could spurt gains worth a free weekend of sunshine enjoyment. Such has occurred already with World Oil Group, Inc. (OTC PINK: WOGI) which, through their wholly owned subsidiary, EPA Petroleum, has produced 400% gains since they last communicated with their shareholders on June 26. While you can dispute that less than $40,000 worth of volume, despite being 3X the 30 day average, is nothing to brag about, those early buyers of WOGI stock at under 0.002 would argue that theory with you while sitting in the box seats at the All Star Game this week.
When you think about it, 400% profit over the course of two weeks is pretty damn good, but when you factor in that the gains have come from a Company that’s putting out news about oil drilling and production ramp ups when all they had was $24,141 worth of assets, all of which were categorized as “organizational costs,” the gains have been pretty sick. Digging down a bit deeper into the annual statement for World Oil Group, you come to find that the $0 asset balance sheet belongs to Cyber-Kiosk Solutions, Inc., the former shell, whereas their wholly owned subsidiary, EPA Petroleum, had $319,452, $19,452 of cash, which makes believing the fracking news a bit simpler.
Shares of WOGI stock actually fell apart shortly after the May announcement that World Oil Group installed pump jacks on the first two wells that have been fracked and will begin fracking the 3rd well at the end of that week. However, on June 26, when the Company announced that it had completed fracking 4 wells and has begun fracking the 5th well, along with having installed pump jacks on 4 of the wells (wells 1, 2, 3, & 4) and operating 3 of the wells (wells 1, 2, & 3), WOGI shares, which had just reached a YTD low (0.0019) turned around and have been nothing but green since.
WOGI Share Structure:
- Authorized Shares 500,000,000 a/o Mar 31, 2015
- Outstanding Shares 263,262,060 a/o Mar 31, 2015
- Float 74,442,835 a/o Mar 31, 2015
In recent weeks, we’ve seen big jumps in new oil rigs in the Eagle Ford and Permian Basin. With the panic that was created by Greece and China, it looks like oil prices have finally become less volatile which could spark some interest in some M&A activity in the oil and gas industry during the second half of 2015. Although it’s highly unlikely that WOGI shares will be acquired by some massive blue-chip expanding their portfolio while prices are weak, the fact that the PPS has returned to the level they were in September when oil prices dropped, it’s safe to say the run is done.
With the oil wells pumping and the jacks installed, the financing for these developments likely came in the form of debt issuances which could mean that the share structure could be much less attractive when new filings are recorded by OTC Markets. While the run may be done, the performance of WOGI shares over the past couple of weeks only goes to prove that money is there to be made on penny stocks, even if it’s just a couple hundred dollars profit at a time.
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