MDM Permian Inc (OTC:MDMP) Stock Soars 42%: What’s The Buzz?
There were a number of companies that had come on the radar of investors for one reason or another on Wednesday and one of those was MDM Permian Inc. (OTC:MDMP). It could be a good idea for investors to consider taking a closer look at the developments so as to make their minds up about the stock.
Yesterday, the company announced that it had launched a Regulation D offering worth $10 million, which would be made available exclusively to accredited investors. In the news release yesterday, the company noted that the move was a strategic one meant to serve two purposes. One of those was to protect the interests of the shareholders of the company, and the other was to cash in on some of the recent acquisitions so that the growth prospects could be harnessed.
However, the main objective would be to protect the interests of the shareholders. Since the company structured the offering in the form of a Regulation D offering, the issuance of new shares by MDM Permian would not lead to the dilution of the current shareholding of the investors.
The capital that the company would raise from the offering would then be used to finance the reworking of the 15 existing wells and also drill two new wells. The company noted that it would generate significant amounts of cash flow from the current reserves on the new acreage. The company revealed that it had managed to identify as many as 14 existing wells at the East Texas holdings that would go through reworking.
Other than its East Texas holdings, the company would also deploy its resources to develop the assets in the Permian Basin. The expansion initiative would involve the reworking of the existing well. Additionally, the company would also drill two new development wells out of the six possibly productive ones located in Irion County.
The President and Chief Executive Officer of the company, Mark T. Warner, spoke about the latest developments. He welcomed any accredited investors to take advantage of the ‘tremendous opportunity’ offered by the company. He went on to note that, other than the strong benefits, it would also offer significant economic upside.
The oil and gas company was in focus on September 5 after it announced positive findings in the engineering and geological reports pertaining to one of its East Texas leases. The lease had been recently acquired by the company. The report had been verified by a petroleum engineer as well, and it provided strong evidence of considerable oil and gas reserves in the Petitt Formation.
The company revealed that, as per the data and the geological assessments from some of the nearby locations, it believed that there could be recoverable oil reserves to the tune of 730,000 barrels. MDM Permian also noted in the news release that one of the formations nearby, consisting of 26 wells, had already produced impressive numbers. It may well be a good time to add the MDM Permian stock to the watch lists based on recent developments.
