Maverick Energy Group Inc (OTCMKTS:MKGP) Stock Slumps After Participation Agreement to Complete Multiple Wells in Seven Texas Counties
It was a tough day in the markets for investors in the Maverick Energy Group Inc (OTCMKTS:MKGP) stock as it suffered from a major selloff and ended up with a decline of as much as 31%.
Trading Data
On Wednesday, MKGP stock slumped 31.58% to $0.13 with 3.17 million shares, compared to its average volume 298K shares. The stock moved within a range of $0.0916 – 0.1990 after opening trade at $0.1990.
Maverick Signs Participation Agreement to Complete Multiple Wells in Seven Texas Counties
The company came into focus among investors yesterday after it announced that it had inked an agreement for the recompletion of as many as three existing wells located in Lee County and Gonzales Country in Texas. In addition to that, the company also announced that it inked a participation agreement with a well-known operator for the Giddings Field, which is spread across several counties in Texas.
The entire area is made up of as many as 5000 acres for production purposes and consists of more than 25 wells to go along with more than 100 leases. As per the agreement signed by Maverick, the company is going to take care of the entirety of the costs that is going to accrue for the horizontal recompletion of the three wells.
In exchange, the company would get a 75% working interest in the wells. While the announcement was a significant one, it led to a negative response from investors. It remains to be seen if the stock can bounce back.
Key Quote
James McCabe, President and CEO of Maverick Energy Group, Ltd. Commented, “We believe that this is a major opportunity for Maverick to establish a core area with existing wells and production at a fraction of the cost of traditional leasing, exploration, and development. In addition, this transaction requires no further dilution of our common shares.”
Technical Data
MKGP stock is trading above the 20-Day and 50-Day Moving averages of $0.10 and $0.05 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.12.