MDM Permian Inc. (OTC:MDMP) Stock Gains Momentum: But Why?

This morning, many investors are going to focus on those companies that were in the news on Tuesday, and by that token, it is likely that MDM Permian Inc. (OTC:MDMP) is going to come into focus. The company, which is the managing partner of Essence Wells LP, announced that there had been a capital infusion of as much as $500,000.

The capital infusion into Essence Wells came about from two sophisticated and accredited individual investors. The company noted that it was part of the larger strategy on the part of MDM Permian to boost shareholder value and also minimize shareholder dilution. The company also revealed in the news release that it was going to raise capital through a 506 Reg D offering. The aim of the company would be the generation of income through the wells that would not only benefit the company’s investors but MDM in its capacity as the managing partner of Essence Wells as well.

The company would serve as one of the two managing partners of Essence Wells. The partners would have a comprehensive and exclusive right to control and manage the properties, business, and day-to-day affairs of the partnership. The two investments actually came from MDM Permian in its capacity as one of the managing partners.

The company also noted that the facilitation of the investment was also an indication of its commitment and belief in the projects that had been outlined in the original Reg D offering. The other investment in the venture had been made by FireDream Resources LLC, the majority shareholder in MDM Permian. The allocated capital would be deployed by Essence Wells to rework one of its existing wells located in the East Texas Basin acreage. It remains to be seen if the stock gets any action today or not.