Dallas, Texas 10/23/2013 (Financialstrend) – North American Oil & Gas Corp (OTCBB:NAMG) is a development stage oil and gas company in operation since 2010. It is engaged in oil exploration activities spread across California. It has set up a subsidiary Lani to execute these operations.
Its stock is classified as a penny stock and has a market capitalization of $60 million. At close of business on October 22, the stock had posted a 2% increase from its previous day close price to settle at $1.01 per share. This represents a 40.5% increase from its 52 week low valuation.
On October 22, the oil firm filed a mandatory update with SEC, informing them about its new capital injection in the form of an agreement with Oel und Erdgazforshung AG. As per this agreement dated October 16, the oil explorer is selling 246,914 of common stock issued by it to the investor in exchange of $200,000. These shares are having a face value of $0.001 per share. As part of the agreement warrants have also been issued which will allow Oel und Erdgazforshung to purchase a additional 96,618 “shares of common stock” at a mutually agreed upon price of $1.04 per share. These warrants are expected to expire in October 2016 and come into effect immediately. The agreement allows the warrant holder to exercise his options in part or full by tendering appropriate payment.
On the news of this new cash injection, the stock price appreciated to the day closing price which indicates a 65% dip on its 52 week high valuation. The company hopes to use the cash generated to continue its preparations for drilling production wells at pre-identified test wells which were sunk in based on positive 3D mapping reports which it had procured recently. Long term investors in the stock would be hoping that their continued support of the stock will get justified when the production wells get operational.