PetroGas Co (OTCMKTS:PTCO) Perks Up Again

Today, we need to address a business profile that seems to be waking up again after remaining calm for some period of time on the OTC Markets.We are referring to PetroGas Co (OTCMKTS:PTCO), the oil and gas exploration and production company. Logo of PetroGas Co OTCMKTS:PTCOReaders will remember well this name because of the massive fall in the share price seen in February 2017. What's our take?PTCO has a well known history of stock promotion. Part of the reason for the collapse is that the promoters stopped pumping the share price and dumped their positions.Another reason for the share price collapse was this quarterly earnings report released some time later. Additionally, the short sellers seemed to be operating in the stock and helped pushed down the share price. We will talk about them in this report.The share price continued to trade lower and went down to hit share price level below $10.Have a look at the following stock chart: 1 year chart for PTCOSo, why are we talking about this company now?Because the share price seems to be waking up again. Check the following two months’ chart before we provide more details: 2 months chart for PTCOBusinessPetroGas Company was founded in the State of Nevada on January 24, 2014. On June 12, 2015, the company acquired large amount of working interests in certain oil & gas property, which seemed to increase the excitement in the market.The acquisition was made after signing an asset purchase agreement with a Chinese individual, who acquired 40,000 million shares in exchange for rights to certain "oil and gas leases located in Frio and Atascosa Counties, Texas, consisting of a total of 714 total acres of land, two working wells, and a total of seven wells."We believe that the deal was very beneficial for the company. It provided new assets that can deliver revenues for a new business model.But, the transactions did not end in 2015.On June 11, 2015, the company signed other agreements to acquire multiple oil and gas leases and overriding royalty interests: Interests acquired - PetroGas Co OTCMKTS:PTCOFinally, on August 13, 2015, another agreement was signed with Inceptus Resources, LLC, whereby the company obtained "78% net revenue interest in 200 acres located in Callahan County, Texas, and 78% net revenue interest in 522 acres also located in Callahan County, Texas."We believe that market participants commenced to study this company at the end of 2016. The increase in awareness and the amount of oil and gas leases signed created the share price increase in January 2017.What does the company intend to do next?In the company materials, it is noted that PTCO is focused on acquiring "more producing and non-producing leases." We believe that if the oil price continues to increase, the value of these agreements will of course increase as well increasing the value of the company. It is noted in the last quarterly report: "taking advantage of the inevitable uptick in oil prices to come."That's not all we need to highlight. The fact that the company is very positive about the future developments is a key feature. Check the tone that PTCO uses in its reports:

"We are planning an exploration strategy to drill new wells on the current Leases, as well as acquire deeper rights in order to drill some of the wells at great depths. We expect that reservoirs at those depths could yield a very high daily output of oil." Source

What's new?The company has not released any press releases recently. But, some filings have been received by the market. They seem to be the reason to justify the recent share price moves.On October 10, 2017, the company issued 24,000,000 shares to convert debt with Rise Fast Limited, a Hong Kong corporation. We appreciate that the company is reducing its financial risk. We believe that future growth will offset shareholder dilution.Additionally, on November 14, 2017, the company released a new quarterly report, wherein the market could have access to new financial statements. The reaction of market participants was positive. They reacted by pushing up the share price from $3 to close to $7 in only a few sessions.Why?We believe that the increase in total assets and reduction of total liabilities was the main reason. Additionally, the increase in cash flows and the reporting of royalty revenue for the first time in 2017 was also very positive.Short SalesShort sellers seemed to increase their holdings in February, 2017. We believe that the incredible share price decline seen during that time period was created by these unethical individuals. Have a look a the short interest:DateShort Interest% ChangeAvg. Daily Share VolumeDays to CoverSplitNew IssueOct 13, 2017199100.002751.00NoNoAug 31, 20174,241100.0033,4411.00NoNoMay 31, 2017834-56.1139,8761.00NoNoMay 15, 20171,900-82.2551,4571.00NoNoApr 28, 201710,70264.2954,3011.00NoNoApr 13, 20176,514100.0095,3141.00NoNoMar 15, 20175,607-75.08774,5731.00NoNoFeb 28, 201722,498-37.382,001,0381.00NoNoFeb 15, 201735,926-79.711,067,4151.00NoNoJan 31, 2017177,03055.75794,6211.00NoNoJan 13, 2017113,663126.42726,4771.00NoNoDec 30, 201650,200100.001,001,5031.00NoNoNov 30, 20160-100.002,6430.00NoNoSourceIf you check closely the table, you will see that they have been decreasing their stake in the company. We believe that it is a good signal.ConclusionCurrently trading with a market cap of $17 million, PetroGas Co (OTCMKTS:PTCO) is an exciting story among small caps with a history of big moves to the upside and the downside. We believe that taking into account what happened in February, market participants can continue to follow the steps of the company. To sum up, the company seems to be waking up again. Readers will remember what happens each time the stock wakes up. Just be careful. We recommend trading PTCO as the stock has a history of leaving shareholders holding the bag.We will be updating our subscribers as soon as we know more. For the latest updates on PTCO, sign up below!Image courtesy of blake.thornberry via FlickrDisclosure: We have no position in PTCO and have not been compensated for this article.