The penny stock of Xtreme Oil & Gas Inc. (OTCBB: XTOG.OB) should open “hot” after closing the last trading session at $0.30 on volume of just 15,000 shares. The independent energy company focused on exploring, developing, and producing crude oil, announced 2011 annual revenues of roughly $2.5 million compared to just $90,000 in 2010.
Operating profit for the penny stock XTOG increased to approximately $649,000 for fiscal 2011, compared to a loss of $7 million in 2010. The company, Xtreme Oil & Gas, achieved numerous milestones in 2011. Management has successfully transitioned themselves from a start-up to an emerging oil producing company that has several profitable revenue streams.
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XTOG has enhanced its market position mainly from the recovery of both oil and natural gas from the company’s owned properties in Texas and Oklahoma. The extraction of resources successfully from the owned properties of the company is a direct result of XTOG management and their commitment to proven oil and gas drilling methods.
During the course of 2011, Xtreme Oil & Gas made investments to increase their production at the company’s Texas and Oklahoma properties that should lead to continued growth in 2012.
Recent Operational Highlights
- The Company has begun oil production at its 1,200 acre 5 Star West Thrifty Texas property.
- The site has previously produced over 8 million barrels of oil, and new drilling techniques,
completion and chemical technologies are expected to recover remaining reserves.
- The site has previously produced over 8 million barrels of oil, and new drilling techniques,
- Xtreme began oil production from their first Well site in Oklahoma.
- The first well has produced 20,000 barrels of oil, and is continuing output at 150 barrels per day.
- Additionally, the well has produced 60,000 mcf of gas at a rate of 700 mcf per day.
- The Company initiated disposal operations on its first Saltwater Disposal Well in Oklahoma and is
moving into full commercial operation with an initial goal of disposing of 3,000 barrels per day- Management expects to increase the amount to 15,000 barrels per day during the course of
2012 with the potential for $7 Million in annual revenue.
- Management expects to increase the amount to 15,000 barrels per day during the course of
- Xtreme reached a vertical drilling depth of over 3,000 feet and drilled 4,250 feet horizontally on the
first well in Kansas and has utilized specialized techniques to perform hydraulic fracturing of the
formation.- This is the first well to be drilled on the Company’s 8,516 acre Kansas property.
Bottom Line: Add XTOG to your stock watch list. The penny stock has a market capitalization of $13.61 million with 45.36 million shares outstanding. Average Volume on XTOG has only been 12,476 and 16,700 for the 3 months and 10 days respectively.
A volume surge higher than 10,000 shares in the first few minutes of trading on the penny stock at the open could indicate a breakout for XTOG.
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