After a 1-for-50 reverse split at the end of Q1, 2012, along with a name change from Avro Energy Inc. (AVOE), it appears as if Rango Energy Inc. (OTC: RAGO) is ready to go. A false alarm was triggered back in November when the dormant RAGO stock traded over 400K shares making some traders think it was finally time. Once again, after seeing a little bit of volume pas on Friday, traders are all wondering if this oil and natural gas explorer is going to spurt or be one of those “W” type oil deals that looks good from far but is far from good.
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RAGO Stock Chart
Market Cap: 12.13M
Last: 0.12 ▲ 0.08 (200.00%)
Dollar Volume: $10,219
Issued and Outstanding: 101,088,543
14-Day Rel Strength: 48.91%
14-Day Stochastic: 25.81%
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Rango Energy isn’t your typical oil and gas penny stock which is why there is a bit of hype around RAGO stock at present. For the nine months ended September 30, 2012, the Company booked revenues worth $178,055 versus $150,559 fr the same period in 2011.
The reason they are already booking revenues is due in part to a Farm-Out Agreement with First Pacific Oil and Gas Ltd. the Company entered into back in May, 2011 by which First Pacific acquired the right to earn 50% of Rango’s working interest in its existing 12 hydrocarbon wells located in Southern Arkansas.
First Pacific paid Rango Energy $250,000 at the time of the agreement signing and owed an additional $800,000 as of September 30, 2012. Until the $800,000 is paid, First Pacific will not earn its working interest upon improvements of the existing hydrocarbon wells being completed. At the least, there is still a chance to see that $800,000 for Rango Energy.
Basically, the Company leases working or workable wells and then flips them for a 20% royalty income deal — pretty slick to be honest.
One lease in particular, the “Arkansas Lease,” was closed on by the Company in October, 2009 whereby the Company signed a letter agreement to acquire 11 producible deep oil wells north of Hosston, Louisiana, and in Southern Arkansas. There were 7 wells in production with the deepest of them producing from the Smackover formation at nearly 8,000 feet. There are 4 more wells capable of production after some TLC has been given to them. Along with those mentioned, 3 disposal wells also came along with the lease agreement.
The terms of the “Arkansas Lease” agreement allowed Rango Energy to pay $385,000, over a seven month period, with the first payment of $50,000 paid on November 24, 2009 and the final payment made on September 30, 2010 to complete the purchase for the property. What we need to see now is the MM’s to get on the board and start shuffling the cards to open the RAGO table.
Let it flow and gush now that it again appears RAGO stock is about to open the doors for traders to jump in and flip it like leased property — it’s actually all a penny stock is: leased property. Make sure its on your watch list.
About RAGO Stock
Rango Energy Inc., fka Avro Energy, Inc. (AVOE), is currently engaged in the acquisition, exploration and development of oil and natural gas properties in the U.S. ArkLaTex region with plans to develop low risk opportunities by itself or with joint venture partners in the oil and natural gas sectors. Click here to view the SEC filings for RAGO.
Last 5 Trading Sessions:
Bottom Line: RAGO looks pretty slick and deserves a spot on the list of penny stocks to watch for a consistent amount of volume to flow before calling it liquid. From the looks of it, RAGO stock could easily see some mid-dollar numbers if a proper awareness campaign kicked off. Let’s see.
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