Petrogas Company Inc (OTCMKTS:PTCO) was formerly known as American Resources Explorations Inc (OTCMKTS:AREN) and a promotion of the Elite Penny Stock Group. 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.”
We have covered Elite in the past here at Insider Financial. For those that are not familiar with Elite, they were the most powerful newsletter group on the OTC markets. Their websites included finestpennystocks.com, smartstockchoices.com, smartstockwinners.com, BestAmericanStocks.com, and many others. What made Elite so powerful is that they had a massive database of names and followers. They even have other newsletters following their picks and then trying to pass off Elite picks as their own. Elite would blast their list several times a day trying to get as many buyers into their stocks as possible.
Unfortunately, Elite has left a trail of victims that only the Wolf of Wall Street can admire. Some of their last picks besides AREN have been Broke Out Inc (OTCMKTS:BRKO), Cloudweb Inc (OTCMKTS:CLOW), AgriEuro Corp (OTCMKTS:EURI), and Midwest Oil & Gas Inc (OTCMKTS:MWGO). Here’s a quick recap. BRKO got halted. EURI, CLOW and MWOG all left investors holding the bag.
The last pick we covered from Elite was Golden Edge Entertainment Inc (OTCMKTS:GDEE). GDEE followed the same chart pattern as the rest of the Elite Picks. Luckily for our subscribers, they got the heads up that Elite was looking for a new round of bagholders.
Not much has changed since PTCO was AREN. Most notable is that Huang Yu is still CEO. He was in charge when AREN was first promoted by Elite and remains in the CEO chair as the PTCO promotion looks to be kicking off again. Compare the GDEE chart to PTCO and you can see the volume coming in and the price running up.
The volume that came into PTCO was on the back of the press release on December 14. PTCO announced that it acquired a fractional interest in four oil and gas wells located in Roberts County, Texas. According to the company, the wells produced a combined daily average of 2,571 MCF of gas and 131 barrels of oil for the 6-month period ending in May. The wells are operated by Unit Petroleum Company of Tulsa, Oklahoma and BP America. CEO Huang said:
“We are pleased to close on this acquisition to take full advantage of the increasing oil and gas prices. We are optimistic that they will continue to rebound and provide opportunities to increase production. Oil prices are currently at their highest level in more than a year. Oil has gained approximately 17% since the Nov 30th OPEC agreement. Given the likely uptick in oil prices, we will be strategically positioning Petrogas Company for additional acquisitions in this sector in the coming months.”
The 8-K shed a little more light on the transaction.
On November 30, 2016, PetroGas Company, a Nevada corporation (the “Company”), acquired various royalty interests in the Mahler 106 5H, 6H, 8H and SL 9H wells located in the SE/4 of Section 106, Block C, Gunter & Munson Survey, A-513, Roberts County, Texas for $10,485.00. These wells are operated by Unit Petroleum Company of Tulsa, Oklahoma and BP America Production Company of Houston, Texas.
So it wasn’t a $10k acquisition that drove the stock price from $.25 to over $.80 today, but rather the behind the scenes efforts of the promoter’s. We have seen what Elite is capable of in the past. They can indeed create tremendous volume and drive a huge increase in a company’s stock price. The key for investors is to be nimble and to trade these types of picks rather than be long-term investors. In the long run, it never ends well and investors always get left holding the bag.
In the latest 10-Q, we got a picture of why the promoter’s efforts are ramping up again. New shares were issued over the summer at prices of $.001 per share and $.005 per share.
On January 2, 2016, the remaining principal balance of the aforementioned loans payable totaling $54,020 and accrued interest of $1,225 thereon were converted to several 4% convertible notes with varying conversion prices. A portion of these notes were concurrently assigned to several third parties. A total of $21,635 of the principal value of the convertible notes have a conversion price at $0.001 per share, and the remaining $33,610 in principal value of the convertible notes have a conversion price at $0.005 per share. On July 1, 2016 the Company issued 21,635,730 shares of common stock to settle certain convertible notes in the principal amount of $21,635. On July 11, 2016 the Company issued 6,721,920 shares of common stock to settle certain convertible notes in the principal amount of $33,610.
You get the picture now. 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.