Maverick Energy Group Ltd (OTCMKTS:MKGP) Stock Falls After Announcing Acquisition
It was a fairly tough day in the markets for investors in Maverick Energy Group Ltd (OTCMKTS:MKGP) as the company’s stock suffered from a selloff and went down by as much as 7% as a consequence. The selloff was triggered by an announcement from the company yesterday.
Trading Data
On Tuesday, MKGP stock slid 7.43% to $0.1620 with more than 2.02 million shares traded, compared to volume of 418.44K shares. The stock moved within a range of $0.1260 – 0.1900 after opening trading at $0.1800.
Maverick Signs Binding Agreement to Acquire 100% of Pass Creek Resources, LLC Including 100% Working Interest in the Adena Oil and Gas Field in Morgan County, Colorado
Maverick announced yesterday that it had concluded a transaction with the firm Pass Creek Resources LLC by way of which it would acquire the entirety of the units that belong to Pass Creek. In this context, it should be noted that Pass Creek holds a 100% working interest to go along with a 77.5% net revenues interest in the Adena Oil and Gas Field, which is situated in Morgan County in Colorado.
The company completed the transaction in exchange for as many as 60 million restricted shares of the Maverick common stock. It should be noted that the Adena field is the third biggest oil field in Colorado and had been discovered back in 1953. The field encompasses an area spanning as much as 14000 acres and as per estimates from Pass Creek, the field still contains recoverable oil reserves to the tune of 20 to 50 million barrels.
Key Quote
James McCabe, CEO Maverick Energy Group, Ltd., commented, “This is Maverick’s first producing property acquisition that brings immediate cash flow to the company while providing what we believe is significant upside growth potential.”
Technical Data
MKGP stock is trading above the 20-Day and 50-Day Moving averages of $0.11 and $0.06 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.12.
