Believe it, or not. The X-Change Corporation (XCHC), through its subsidiary Cress Oil, Inc., has managed to secure $23.8 million in assets with almost no money. That’s right, the oil and gas company had $0 assets and $0 revenues as of March 31, 2012 and has now miraculously secured 86,111 net acres of mineral interests via 3 separate agreements, each for $10. This has placed XCHC stock on the map for a Monday morning dumpage of a firmly straddled porcelain throne, similar to a weekend of doner kebab ingestation of processed meat particles.
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XCHC Stock Chart
Shares Authorized: 750,000,000
Shares Outstanding: 46,108,791 (May 15th)
Close: 0.0712, down -0.0288 (-28.80%)
Average Trade Size: 625
20 Day Percent Change: -28.80%
20 Day Moving Average: 0.0999
20 Day Average Volume: 27,757
On April 12, 2012, X-Change Corp., through its wholly owned subsidiary, Cress Oil Inc., entered into Purchase and Sale Agreements with Granite Group Energy. The Meat: the Company is acquiring approximately 21,111 net acres of mineral interests in return for the payment of approximately $15,000,000. The Potatoes: Total up front costs: $10 (see here, Exhibit B) For that, Granite retains no less than 78% of all revenues generated on that leased acreage.
On May 10, 2012, X-Change, through it’s wholly owned subsidiary, Cress Oil and Natural Gas Company, entered into an Agreement with Diverse Energy Investments, LLC. The Meat: As part of the Agreement, the Company is acquiring from Diverse approximately 15,000 next acres of mineral interests in Roosevelt and Daniels Counties, Montana in return for the payment of approximately $8.812,500. The Potatoes: Another $10 consideration (see here, Exhibit “2”)
On May 14, 2012, X-Change Corp., through its wholly owned subsidiary, Cress Oil Inc., entered into Purchase and Sale Agreements with Wexco Resources, LLC. The Meat: the Company is acquiring from Wexco approximately 50,000 net acres of mineral interests for the payment of approximately$7,500,000. Cress was set to pay $100,000 within 5 days of the agreement which allows Wexco to retain 10% working interest in the $150 per acre leased property. Another $250,000 was set to be paid to Wexco 45 days after executing the agreement. Cress commits to drill 2 wells every 12 months for the first 36 months after the closing date. The Potatoes: Yet, again, as seen on Addemdum “A” (see here), the deal is put onto paper for the consideration of $10.
Amazing considering that as of March 31, 2012 and December 31, 2011, respectively, X-Change had no operations, no cash on hand, and significant debt related to the financing of the operations of its former subsidiary, AirGATE Technologies. Because of these factors, X-Change’s auditors issued an audit opinion on the Company’s annual financial statements which includes a statement describing their going concern status. Translation: Substantial doubt about X-Change’s ability to continue.
Stupid auditors. Proves you only need $30 to show you have agreements to purchase $23.8 million in oil producing lands. What do auditors know anyway.
About XCHC Stock
As of December 31, 2011, The X-Change Corporation was classified as a shell company as defined in Rule 405 under the Securities Act of 1933 after disposing all assets and operations as of December 31, 2008. As a shell company, they had no operations and no, or nominal, assets.
Today, X-Change Corporation is building interests in a broad range of oil and gas projects worldwide as an independent energy company engaged in the production, development, acquisition, exploitation and exploration of crude oil and natural gas. The Company’s wholly owned subsidiary, Cress Oil, is focused on projects for deep and shallow wells domestically and internationally, partnering with other oil and gas companies to explore for reserves on properties the majors have left behind.
Bottom Line: This penny stock is a #2Flusher. XCHC is more diluted than a bottle of tequila flavored water served at a typical tourist trap in Tijuana. To put it nicely, when you have a portion of your 10-K called “Unsuccessful Business Endeavors”, you know you suck.
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