Small cap oil stocks Petro River Oil Corp (OTCBB: PTRC), Innocent Inc (OTCMKTS: INCT) and Gray Fox Petroleum Corp (OTCBB: GFOX) have all been getting some attention lately in various investment newsletters thanks in part to some paid promotions for at least two of these stocks. Of course and while small cap oil stocks can produce a gusher for investors if they hit a gusher of oil, they can also take investors on a wild ride or come up empty. So do these three small cap oil stocks have what it takes to succeed and produce a gusher for investors? Here is a reality check:
Petro River Oil Corp (OTCBB: PTRC) Is Quiet With the Press Releases
Small cap Petro River Oil Corp consummated a number of related transactions through which it acquired control of Petro River Oil, LLC and Petro’s wholly-owned subsidiary Petro River Operating, LLC. Petro is an emerging oil and gas producer with producing wells in the Southeast Kansas region of the Mississippi Lime. On Friday, Petro River Oil Corp rose 1.45% to $0.07 for a market cap of $50.87 million plus PTRC is down 51.7% since last March according to Google Finance.
What’s the Catch With Petro River Oil Corp? According to various disclosures, no transactions have occurred to mention Petro River Oil Corp in various investment newsletters. I am not seeing any press releases from Petro River Oil Corp, so perhaps its worth noting the company’s recent history. As described in a recent 8-k, Petro River Oil Corp was originally incorporated in British Columbia on February 8, 2000 under the name Brockton Capital Corp, then changed its name to MegaWest Energy Corp. in 2010 before changing it to Gravis Oil Corp. in 2011. On September 11, 2012, the Company re-organized as a Delaware corporation. Through proceeds from the issuance of various promissory notes issued on February 1, 2012, Petro River Oil Corp purchased various interests in oil and gas leases, wells, records, data and related personal property located along the Mississippi Lime play from bankrupt Metro Energy Corporation for cash consideration of $2,000,000 as well as a 25% non-managing membership interest in the company. As a result of the asset purchase from Metro Energy Corporation and the completion of the additional lease renewals or acreage purchases, Petro River Oil Corp has obtained a total of 115,000 gross/85,000 net acres of leases, having unproven reserves at the time of acquisition, in the Mississippi Lime play in Southeast Kansas for total cost of $12.2 million. A quick look at Petro River Oil Corp’s financials reveals revenues of $105k (most recent reported quarter) and zero for the two quarters reported this year; net losses of $2,205k and $3,835k; and $5,038k in cash to cover $2,819k in current liabilities and $563k in other liabilities.
Innocent Inc (OTCMKTS: INCT) Announces an Exploration Agreement
Small cap Innocent Inc is a development stage oil and gas exploration and production company focused on developing properties in North America. On Friday, Innocent Inc sank 23.33% to $0.0690 for a market cap of $1.38 million plus INCT is up 2,553.8% since the start of the year and down 85.6% since October 2009 according to Google Finance.
What’s the Catch With Innocent Inc? According to various disclosures, transactions of $2k and $7.5k have or will occur to mention Innocent Inc in various investment newsletters. Last Thursday, Innocent Inc announced an exploration agreement with Evergreen Petroleum of Dallas where the latter will be responsible for selecting areas to lease, drilling exploratory wells, drilling development wells and producing oil and gas found. The primary area of interest will be the Powder River Basin of Wyoming and according to the 8-k filing, Innocent Inc. will be responsible for the funding of the project with the initial operating funds of $25,000 due in 30 days from the date of the agreement. However, a quick look at Innocent Inc’s financials reveals no revenues; net losses of $46k (most recent reported quarter), $52k, $302k and $42k for the past four reported quarters; and no cash to cover $1,679k in current liabilities at the end of last May. So perhaps investors should wait for more financials to appear and to see how Innocent Inc comes up with the initial funding for the exploration agreement.
Gray Fox Petroleum Corp (OTCBB: GFOX) Is a Regular Issuer of Stock
Small cap Gray Fox Petroleum Corp recently agreed to purchase FFMJ LLC's interest in 22 separate oil and gas leases issued by the Bureau of Land Management with the leases comprising 32,723 acres based in the Butte Valley Oil Play Region in north central Nevada. On Friday, Gray Fox Petroleum Corp fell 3.54% to $1.09 for a market cap of $38.22 million plus GFOX is up 118% since last July according to Google Finance.
What’s the Catch With Gray Fox Petroleum Corp? According to various disclosures, transactions of $15k and $20k have or will occur to mention Gray Fox Petroleum Corp in various investment newsletters. Gray Fox Petroleum Corp has been quiet with the press releases with the last 8-k filing dated November 15th reporting a Securities Purchase Agreement with Rooftop Investments Ltd. for the issuance of 100,000 shares of common stock to the investor for a purchase price of $100,000 or $1.00 per share. A quick look at this year’s filings for Gray Fox Petroleum Corp shows that the company appears to have been issuing around $100k worth of securities on a monthly basis for some time now plus the company has reported no revenues; net losses of $250k (most recent reported quarter), $67k, $7k and $16k for the past four reported quarters; and just $6k in cash to cover $37k in accounts payable at the end of last September. So maybe investors should wait for Gray Fox Petroleum Corp to start producing some revenues or at least some cash flow so that it does not have to keep issuing securities on a monthly basis.