With the incoming Trump Administration, the oil and gas exploration and production landscape is expected to undergo sweeping changes. The restrictive and sometimes cost-prohibitive regulations that were imposed by the EPA as a matter of policy by the Obama Administration, will more than likely be eased, or eliminated altogether. When you couple that with the expected increase in demand for gas and oil resulting from the anticipated economic growth that usually follows a business friendly environment, a rush to acquire as many oil and gas assets to fulfill the upcoming increased demand may prove to be a shrewd move by PetroGas Co Inc (OTCMKTS:PTCO)Petrogas Company Inc was formerly known as American Resources Explorations Inc (OTCMKTS:AREN). The company’s description remains the same, except the name has been changed. It’s described as “an oil and gas exploration and production company focused on the acquisition of properties in areas with significant oil reserves and drilling potential. The Company’s growth strategy includes the acquisition of oil fields from distressed third parties at a substantial discount to value, and development of fields whose potential has not been fully maximized.” The company has recently made an aggressive push to acquire new oil and gas assets throughout the country.On February 21, 2017 PetroGas announced that it has acquired oil and gas mineral rights to a property of approximately 150 acres in Cleveland County, Oklahoma.
"With our newest acquisition in Oklahoma, we are now in a position to begin exploring the idea of putting together a drill program in the State as this marks our fifth sizeable acquisition," said Mr. Yu, CEO of PetroGas Company.
On February 07, 2017 PetroGas announced that it has acquired an oil and gas lease of approximately 160 acres in Payne County, Oklahoma.
"With this latest acquisition in Oklahoma, the company is now an important holder of leases in the state as it marks our fourth acquisition in the area. Payne County is an up and coming location for oil and gas drilling with a lot of potential which we intend to explore," said Mr. Yu, CEO of PetroGas Company.
On February 1, 2017 PetroGas announced that it has acquired mineral rights for 160 gross acres in Harper County, Oklahoma.
"Harper County is one of the key oil and gas producing counties on the Oklahoma/Kansas border with around 150,000 bbls of oil production per day and over 2,000,000 MCF. We believe that this acquisition will strengthen our position in the state and allow us to benefit from rising energy prices," mentioned the CEO of Petrogas Company.
On January 1, 2017 PetroGas announced that it purchased from the Bureau of Land Management ("BLM") 160 acres of oil and gas leases in Valley County, Montana.On January 18, 2017 PetroGas announced that it participated in a government auction by the Bureau of Land Management ("BLM") and successfully purchased 161 acres of oil and gas leases in Colorado. More specifically, the company purchased leases in Lincoln County, CO. The leases are on a 10-year primary term and the company will pay 12.5% in royalties to the government once production begins.
"We are pleased to have participated in these government auctions and won. These leases will be our first in Colorado and with oil prices hovering near a high we are looking forward to exploring the potential in this area," said Mr. Huang Yu, CEO of Petrogas Company.
On December 21, 2016 PetroGas announced that it participated in a government auction by the Bureau of Land Management ("BLM") and successfully purchased two oil and gas leases in the Eastern States. More specifically, the company purchased a lease in Washington, OH and another in Monroe, OH. The leases are on a 10-year primary term and the company will pay 12.5% in royalties to the government once production begins.
PetroGas’stock price started 2017 with a very strong rally on December 15, 2016 at $.38, and shot up to a high of $5.65 on January 27, 2017 on very strong volume. The stock immediately retraced over a three day period to a low of $.90. The stock price has settled and is now trading at $.17. There is a discernible increase in overall volume in 2017. Current market capitalization stands at $5.16 million, on 29.68 million shares outstanding as of March 10, 2017. One cause for concern is that the financials are not showing any revenues for several years.For an oil and gas exploration and production company, more assets means greater potential for generating revenue. Once all these acquisitions are brought online and operating to capacity, PetroGas should start generating some revenues. Investors are hoping that's the case and the stock can bounce from current levels. For a more in depth read on why PTCO crashed and how we warned our subscribers, have a look at what we wrote in December.We will be updating our subscribers as soon as we know more. For the latest updates on PTCO, sign up below!Disclosure: We have no position in PTCO and have not been compensated for this article.
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