Perkins Oil & Gas Inc (OTCMKTS:PEKN) Making Strategic Moves

Perkins Oil & Gas Inc (OTCMKTS:PEKN), the oil and gas operator, surprised everybody in September, as the company announced that it had acquired a lease to explore 80 acres land in Renville County, North Dakota. Have a look at the share price reaction and note the amount of shares that changed hands those days. 1 month chart for PEKNBusiness historyPEKN is a Texas based oil and gas exploration and development company that focuses on US-soil projects. The company belongs to the Energy sector and operates in the Oil & Gas Exploration and Production Industry. It was first founded in 2001.Formerly, the company supplied the following items: absorbent pads, booms, Peat Sorb, belts, clamps, downhole pumps, electric motors, meter stations, house meters, pipe fitting in standard or extra heavy, depth meters, hydraulic oil savers, tongs, dies, inserts, swab cups, tanks, thread compounds, well heads, and pit liners. Gasoline engines, including engines from Briggs, Robin, and automatic electronic start up engines from Honda and Kohler, were available along with the ball, check butterfly, gate needle, and Kimray Dump valves. Perkins Supply also carried a full line of Pennzoil products, including oils, hydraulic fluid, greases, and lubricants. The Company aims at building a portfolio of oil and gas leases in many areas, which allow it go for low cost-per-acre acquisitions.In early years, Perkins Oil & Gas Inc. was involved in contracting and production of oil and gas primarily in West Virginia. Perkins Supply caters to the oil and gas industry and is beginning to expand sales into other fields, such as logging, lumber, and general contracting. But, the recent purchase of 80 acres land in Renville County, North Dakota, has put this company on the center stage. Recent DevelopmentsOn Sept 5, Perkins Oil & Gas announced that it participated in the government lease auction of 80 acres land in Renville County, North Dakota, and successfully purchased it. Renville County is a Bakken oil and natural gas play. It is located approximately in the middle of the Bakken formation close to the Canada border.According to an April 2013 estimate, the United States Geological Survey projected 7.4 billion barrels of undiscovered oil could be recovered from the Bakken and Three Forks formations. Buying 80 acres land in Renville County, North Dakota puts the company in the center of this prolific basin. The following news had a big positive impact and as a result the stock price of this company increased 250% over the course of 6 trading days.This move comes about as a result of some management changes. We could see in this filing and this other one that the previous CEO resigned, and Mr. Sonny Arandia was recently appointed Director & CEO. His profile is interesting. He holds a lot of expertise in financial management, and has worked as Operations Manager at Forum Energy Inc., Financial Analyst at Emerson Electric Asia Ltd., account supervisor at 3M Service Center APAC among other posts. He has an accounting degree from University of Philippines as well as MBA from Ateneo De Manila University in 1995.Balance sheet and ConclusionIn the last annual report that included the audited financial accounts, we obtained the following information about the balance sheet:Balance Sheet Data: 6/30/16 6/30/15
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Cash $ 668 $ 6
Total assets $ 668 $ 6
Total liabilities $ 57,856 $ 37,858Source
Currently trading with a market cap of $25 million, PEKN is making some big moves that we think could capture the attention of the big energy players. This small E&P company effectively got a hold of 80 acres in a prime geological basin before the big boys could grab it. We look forward to seeing how management parlay this lease and their next moves in boosting shareholder value. PEKN is certainly one small cap oil & gas play that investor's need to have on their radar. For those that missed the run, look for a discount entry opportunity on a pullback.We will be updating our subscribers as soon as we know more. For the latest updates on PEKN, sign up below!Image courtesy of FlickrDisclosure: We have no position in PEKN and have not been compensated for this article.