Making their first public announcement in over 4 months, the former penny stock pick if Andy Carpenter from last summer, United American Petroleum Corp. (OTC: UAPC), could not have kicked in their own teeth any worse. Stating that not only JMJ Financial, is part of the Company’s newest funding program, but also the toxic avengers of penny stock financing, Asher Enterprises, Inc., traders completely lost faith in any sort of revival in UAPC stock. Whether the news caused Friday’s drop in price or just the lack of interest in the oil exploration and management Company, revenues are indicative that there could be a value play setting itself up in the coming future.
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UAPC Stock Quote
Market Cap: 4.33M
Last: 0.0866 ▼ -0.0233 (-21.20%)
Dollar Volume: $14,897
Issued and Outstanding: 50,034,543
14-Day Rel Strength: 42.07%
14-Day Stochastic: 3.20%
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Despite being the pump and dump promotion of Andy Carpenter from last summer (see here), the Company has done what it needed to do in order to survive. Since acquiring 100% working interest of McKenzie Oil Corp.’s McKenzie State Well No. 1 located in Pecos County, Texas, United American Petroleum has put up the numbers.
The Company’s Merrick Davis lease, a 300+/- acres located in Shackleford County, Texas with acreage that will allow for additional potential new drills in the future, currently has 12 oil wells producing approximately 6-8 barrels of oil per day. Total revenues for the nine months ended September 30, 2012 were $525,997 compared to just $144,169 for the same period the year prior.
UAPC stock has had little response to the revenue growth based simply on stock dilution. For the nine months ended September 30, 2012, United American Petroleum diluted their shares by converting $2,258,375 of debt into UAPC stock. Any single of the following conversions which occurred during the nine months ended September 30, 2102 was an amount of shares issued greater than the highest volume trading session when UAPC stock was peaking itself towards the $1.50 high set back 11 months ago.
• On April 13, 2012, the Company converted a $620,000 convertible note into 1,240,000 shares of common stock.
• On June 1, 2012, the Company converted $590,000 of its convertible notes into 1,180,000 shares of common stock.
• On June 7, 2012, the Company converted $1,590,000 of its convertible notes into 3,180,000 shares of common stock.
With new convertible debt, according to the 8K filing from last week, the chances of seeing a bounce play anytime before new lows are set is highly unlikely.
Effective January 31, 2013, United American Petroleum entered into a promissory note with JMJ Financial who agreed to lend up to an aggregate principal amount of $360,000 to the Company. The funds are due in 12 months and can all be converted into shares of UAPC common stock at JMJ Financial’s election at a conversion price equal to the lesser of $0.11 per share or 60% of the lowest trading price of the Company’s common stock in the 25 days prior to any conversion.
That’s not so bad and is even somewhat positive considering the conversion price. However, the same can not be said for the portion of funding United American Petroleum obtained from the other group who are known to be one of the toxic financiers of the OTC.
Effective February 19, 2013, the Company entered into a Securities Purchase Agreement with Asher Enterprises, Inc. by selling them a convertible note in the amount of $103,500, bearing interest at the rate of 8% per annum. Asher has the right to convert the outstanding balance, including accrued and unpaid interest, into UAPC common shares (up to 4.99% of the Company’s common stock) at a conversion price equal to the greater of:
(a) 60% of the average of the five lowest trading prices of the Company’s common stock during the ten trading days prior to such conversion date; and
(b) $0.00005 per share, at any time after the expiration of 180 days from the date such Convertible Note was issued. The Convertible Note is payable, along with interest thereon on February 20, 2014.
Chatter has all but disappeared on UAPC stock message boards and the recent news of toxic financing was not a “firework display” in any sense of the word. So much for that $18.25 price Andy was rooting about.
About UAPC Stock
United American Petroleum Corp. is an exploration company engaged in the acquisition, exploration, development and production of oil and gas properties. The principal business is the acquisition of leasehold interests in petroleum and natural gas rights, either directly or indirectly, and the exploitation and development of properties subject to these leases.
Last 5 Trading Sessions:
Bottom Line: The former hard mailed UAPC is wortha peek at, but not yet ready to be added to the list of penny stocks to watch. Best case scenario for that would be for UAPC stock to break past its low of $0.07 before considering it addable. With the upcoming annual report due out, a breakout could occur if, and only if, revenues for the year ended December 31 topped the $1 million mark.
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