Small cap oil and gas stocks Liberty Energy Corp (OTCMKTS: LBYE) and Gray Fox Petroleum Corp (OTCBB: GFOX) made some minor positive moves last Friday and both have been getting some attention lately in various investment newsletters or alerts. Moreover, it appears that only one of these stocks have been the subject of a minor paid promotion of some kind. So will investors and traders alike hit a gusher with these small cap oil and gas stocks? Here is a quick drill into both small caps:
Liberty Energy Corp (OTCMKTS: LBYE) Reduces Its Share Float
Small cap Liberty Energy Corp is an Independent Oil and Gas Exploration and Production Company dedicated to the sourcing and production of oil and gas onshore Texas. On Friday, Liberty Energy Corp rose 9.72% to $0.0395 for a market cap of $3.49 million plus LBYE is up 163.3% over the past year and down 95.3% over the past five years according to Google Finance.
What’s the Catch With Liberty Energy Corp? According to various disclosures, no transactions have occurred to mention Liberty Energy Corp in various investment newsletters. Last Tuesday, Liberty Energy Corp announced that the company has negotiated a reduction of the float of Liberty's Common Stock by 8,533,605 shares (there are $88.43 million shares outstanding according to Google Finance data); while earlier in January, the company executed the Purchase And Sale Agreement on the Archer County, Texas producing oil and gas leases as well as it has executed revised terms on the Baylor County, Texas producing oil and gas leases. The Archer County lease covers 140 Acres with 21 oil wells and 2 injection wells with a current production on average 6 Barrels Of Per Day (BOPD) from currently producing wells while the Baylor County leases cover 1,100 Acres with 17 oil wells, 4 injection wells and has revised current production of approximately 2 Barrels Of Per Day (BOPD) from currently producing wells. Before the holidays, Liberty Energy Corp announced it had executed terms to acquire a drilling rig capable of drilling to depths of 3,000 feet with the press release noting:
"The outlook for 2014 has greatly improved now that we have paid off all convertible debt, filed all our most recent financial statements and executed terms on the first producing acquisition and drilling rig. We look forward to aggressively furthering our acquisition and development mandates in the new year.”
A look at the financials of Liberty Energy Corp reveals now revenues; net losses of $36k (most recent reported quarter), $177k, $134k and $83k for the past four quarters; and had $1k in cash to cover $228k in accounts payable at the end of last October. So it looks like Liberty Energy Corp is still getting off the ground and investors might want to wait for some more financials or disclosures to see if the recent acquisitions pay off in revenues and profits.
Gray Fox Petroleum Corp (OTCBB: GFOX) Recently Completed an Oil and Gas Lease Acquisition
Small cap Gray Fox Petroleum Corp is a domestic oil and gas exploration and development company, which is focused on expanding the 135+ year tradition of Western US energy production by engaging in the acquisition and exploration of oil and natural gas properties in the Western US. On Friday, Gray Fox Petroleum Corp rose 4.4% to $1.90 for a market cap of $66.61 million plus GFOX is up 280% since last July according to Google Finance.
What’s the Catch With Gray Fox Petroleum Corp? According to various disclosures, one promoter was “compensated a flat fee for each emails sent.” Last Tuesday, Gray Fox Petroleum Corp announced that it had entered into a Securities Purchase Agreement with Rooftop Investments Ltd. where the company issued 80,000 shares of common stock at a par value $0.001 per share for an aggregate purchase price of $80,000, or $1.00 per share. Back in December, Gray Fox Petroleum Corp completed the acquisition of 22 separate oil and gas leases issued by the Bureau of Land Management pursuant to a Lease Purchase Agreement with FFMJ, LLC. The leased land comprises of 32,723 acres in the Butte Valley Oil Play Region in north central Nevada with an expiration date ranging from March 31, 2016 to July 31, 2017. Gray Fox Petroleum Corp has a 100% Working Interest and an 82% Net Revenue Interest in the Leases plus the company issued a press release to announce its initial exploration plan to identify drilling targets. A quick look at Gray Fox Petroleum Corp’s financials reveals no revenues; net losses of $250k (most recent reported quarter), $67k, $7k and $16k for the past four reported quarters; and $6k in cash to cover $37k in accounts payable at the end of September.