Dallas, Texas 10/30/2013 (Financialstrend) – North American Oil & Gas Corp (OTCBB:NAMG) is an $76 million market capitalized development stage oil and gas company. It pursues its operations via its 100% owned subsidiary Lani. The company owns oil reserves in the San Joanquin region of California. On October 22, the oil company reported that it had managed to secure new line of funding adding up to $0.2 million through a leveraged stake sale of close to 0.246 million shares to a private company “Oel und Erdgazforshung AG”. In addition to the sale of above shares the oil and gas exploration company has also issued warrants of 0.966 million which have a tenure of October 16, 2016. The price at which the warrants must be exercised has been set at $1.04 per share. Oel has the option to exercise the warrant starting October 22 and expires in October 2016.
In spite of the new injection of investment, the stock shed close to 7.94% of its share price during trading on October 29. The share price had settled at $1.16 per share as of close of business on October 29 from its previous close of $1.26 per share. At current valuations, the stock was trading at 30.5% down from its previous 52 week high valuation and 364% up from its 52 week low pricing. The downturn in the stock price was completely contrary to the 0.72% increase posted by Dow Jones Industrial average and 0.28% increase posted by Russell 2000 index during yesterday’s trading. Due to the selling pressure on the stock, more than 3 million shares of the stock changed hands compared to daily trading average of 0.5 million.
Long term investors in the stock of North American Oil & Gas Corp (OTCBB:NAMG) would be hoping that the small cap oil exploration company is able to turn around the fall in investor confidence in the stock.
